DUKE ENERGY CORP (DUK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DUK - US26441C2044 - Common Stock
117.71 USD
-1.66 (-1.39%)
117.85 USD
+0.14 (+0.12%)
Taking everything into account, DUK scores 4 out of 10 in our fundamental rating. DUK was compared to 46 industry peers in the Electric Utilities industry. While DUK has a great profitability rating, there are quite some concerns on its financial health. DUK is quite expensive at the moment. It does show a decent growth rate. Finally DUK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year DUK was profitable.
- DUK had a positive operating cash flow in the past year.
- DUK had positive earnings in each of the past 5 years.
- DUK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of DUK (2.57%) is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 9.59%, DUK is in line with its industry, outperforming 43.48% of the companies in the same industry.
- The Return On Invested Capital of DUK (4.38%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for DUK is in line with the industry average of 4.58%.
- The 3 year average ROIC (3.87%) for DUK is below the current ROIC(4.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 9.59% | ||
| ROIC | 4.38% |
ROA(3y)1.76%
ROA(5y)1.66%
ROE(3y)6.44%
ROE(5y)5.93%
ROIC(3y)3.87%
ROIC(5y)3.68%
1.3 Margins
- Looking at the Profit Margin, with a value of 15.58%, DUK belongs to the top of the industry, outperforming 80.43% of the companies in the same industry.
- DUK's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 27.12%, DUK belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
- In the last couple of years the Operating Margin of DUK has grown nicely.
- DUK's Gross Margin of 71.28% is fine compared to the rest of the industry. DUK outperforms 63.04% of its industry peers.
- DUK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.12% | ||
| PM (TTM) | 15.58% | ||
| GM | 71.28% |
OM growth 3Y3.31%
OM growth 5Y2.83%
PM growth 3Y-2.07%
PM growth 5Y-0.38%
GM growth 3Y-1.86%
GM growth 5Y-0.71%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DUK is destroying value.
- The number of shares outstanding for DUK has been increased compared to 1 year ago.
- Compared to 5 years ago, DUK has more shares outstanding
- DUK has a worse debt/assets ratio than last year.
2.2 Solvency
- DUK has an Altman-Z score of 0.69. This is a bad value and indicates that DUK is not financially healthy and even has some risk of bankruptcy.
- DUK has a worse Altman-Z score (0.69) than 65.22% of its industry peers.
- DUK has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of DUK (1.60) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.69 |
ROIC/WACC0.68
WACC6.4%
2.3 Liquidity
- A Current Ratio of 0.63 indicates that DUK may have some problems paying its short term obligations.
- With a Current ratio value of 0.63, DUK is not doing good in the industry: 84.78% of the companies in the same industry are doing better.
- DUK has a Quick Ratio of 0.63. This is a bad value and indicates that DUK is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.40, DUK is doing worse than 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
- DUK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.70%, which is quite good.
- Measured over the past 5 years, DUK shows a small growth in Earnings Per Share. The EPS has been growing by 3.12% on average per year.
- Looking at the last year, DUK shows a small growth in Revenue. The Revenue has grown by 4.80% in the last year.
- The Revenue has been growing slightly by 3.89% on average over the past years.
EPS 1Y (TTM)12.7%
EPS 3Y4.1%
EPS 5Y3.12%
EPS Q2Q%11.73%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y7.23%
Revenue growth 5Y3.89%
Sales Q2Q%4.76%
3.2 Future
- DUK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.84% yearly.
- Based on estimates for the next years, DUK will show a small growth in Revenue. The Revenue will grow by 4.85% on average per year.
EPS Next Y8.11%
EPS Next 2Y7.26%
EPS Next 3Y7.06%
EPS Next 5Y6.84%
Revenue Next Year4.83%
Revenue Next 2Y4.27%
Revenue Next 3Y4.22%
Revenue Next 5Y4.85%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- DUK is valuated rather expensively with a Price/Earnings ratio of 18.17.
- The rest of the industry has a similar Price/Earnings ratio as DUK.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, DUK is valued a bit cheaper.
- The Price/Forward Earnings ratio is 17.34, which indicates a rather expensive current valuation of DUK.
- The rest of the industry has a similar Price/Forward Earnings ratio as DUK.
- DUK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.17 | ||
| Fwd PE | 17.34 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as DUK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.07 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of DUK may justify a higher PE ratio.
PEG (NY)2.24
PEG (5Y)5.82
EPS Next 2Y7.26%
EPS Next 3Y7.06%
5. Dividend
5.1 Amount
- DUK has a Yearly Dividend Yield of 3.58%.
- DUK's Dividend Yield is a higher than the industry average which is at 2.93.
- Compared to an average S&P500 Dividend Yield of 1.83, DUK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
5.2 History
- The dividend of DUK has a limited annual growth rate of 2.59%.
- DUK has been paying a dividend for at least 10 years, so it has a reliable track record.
- DUK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.59%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- 66.01% of the earnings are spent on dividend by DUK. This is not a sustainable payout ratio.
- The dividend of DUK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.01%
EPS Next 2Y7.26%
EPS Next 3Y7.06%
DUKE ENERGY CORP / DUK FAQ
Can you provide the ChartMill fundamental rating for DUKE ENERGY CORP?
ChartMill assigns a fundamental rating of 4 / 10 to DUK.
What is the valuation status of DUKE ENERGY CORP (DUK) stock?
ChartMill assigns a valuation rating of 2 / 10 to DUKE ENERGY CORP (DUK). This can be considered as Overvalued.
Can you provide the profitability details for DUKE ENERGY CORP?
DUKE ENERGY CORP (DUK) has a profitability rating of 7 / 10.
What are the PE and PB ratios of DUKE ENERGY CORP (DUK) stock?
The Price/Earnings (PE) ratio for DUKE ENERGY CORP (DUK) is 18.17 and the Price/Book (PB) ratio is 1.78.
How financially healthy is DUKE ENERGY CORP?
The financial health rating of DUKE ENERGY CORP (DUK) is 0 / 10.