DUKE ENERGY CORP (DUK) Stock Fundamental Analysis
USA - NYSE:DUK - US26441C2044 - Common Stock
121.08 USD
+0.69 (+0.57%)
121.08 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to DUK. DUK was compared to 48 industry peers in the Electric Utilities industry. While DUK is still in line with the averages on profitability rating, there are concerns on its financial health. DUK is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DUK was profitable.
In the past year DUK had a positive cash flow from operations.
Each year in the past 5 years DUK has been profitable.
In the past 5 years DUK always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.51%, DUK is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Return On Equity of DUK (9.34%) is comparable to the rest of the industry.
DUK has a Return On Invested Capital (4.31%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for DUK is in line with the industry average of 5.43%.
The 3 year average ROIC (3.87%) for DUK is below the current ROIC(4.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | 9.34% | ||
| ROIC | 4.31% |
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
With a decent Profit Margin value of 15.20%, DUK is doing good in the industry, outperforming 72.92% of the companies in the same industry.
In the last couple of years the Profit Margin of DUK has remained more or less at the same level.
DUK has a better Operating Margin (26.86%) than 83.33% of its industry peers.
DUK's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 69.92%, DUK is doing good in the industry, outperforming 64.58% of the companies in the same industry.
In the last couple of years the Gross Margin of DUK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.86% | ||
| PM (TTM) | 15.2% | ||
| GM | 69.92% |
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.
Compared to 1 year ago, DUK has more shares outstanding
The number of shares outstanding for DUK has been increased compared to 5 years ago.
DUK has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.71, we must say that DUK is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.71, DUK is doing worse than 68.75% of the companies in the same industry.
A Debt/Equity ratio of 1.62 is on the high side and indicates that DUK has dependencies on debt financing.
With a Debt to Equity ratio value of 1.62, DUK is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.71 |
ROIC/WACC0.68
WACC6.37%
2.3 Liquidity
DUK has a Current Ratio of 0.66. This is a bad value and indicates that DUK is not financially healthy enough and could expect problems in meeting its short term obligations.
DUK has a worse Current ratio (0.66) than 72.92% of its industry peers.
A Quick Ratio of 0.42 indicates that DUK may have some problems paying its short term obligations.
The Quick ratio of DUK (0.42) is worse than 85.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
DUK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.62%.
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.
DUK shows a small growth in Revenue. In the last year, the Revenue has grown by 4.07%.
DUK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.89% yearly.
EPS 1Y (TTM)3.62%
EPS 3Y4.1%
EPS 5Y3.12%
EPS Q2Q%5.93%
Revenue 1Y (TTM)4.07%
Revenue growth 3Y7.23%
Revenue growth 5Y3.89%
Sales Q2Q%4.68%
3.2 Future
The Earnings Per Share is expected to grow by 7.06% on average over the next years.
DUK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.55% yearly.
EPS Next Y8.36%
EPS Next 2Y7.23%
EPS Next 3Y7.15%
EPS Next 5Y7.06%
Revenue Next Year4.63%
Revenue Next 2Y3.91%
Revenue Next 3Y3.69%
Revenue Next 5Y4.55%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.25, DUK is valued on the expensive side.
Based on the Price/Earnings ratio, DUK is valued a bit more expensive than the industry average as 60.42% of the companies are valued more cheaply.
DUK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.85, DUK is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as DUK.
The average S&P500 Price/Forward Earnings ratio is at 22.86. DUK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.25 | ||
| Fwd PE | 17.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DUK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.53 |
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)2.3
PEG (5Y)6.17
EPS Next 2Y7.23%
EPS Next 3Y7.15%
5. Dividend
5.1 Amount
DUK has a Yearly Dividend Yield of 3.54%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.47, DUK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, DUK pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
5.2 History
The dividend of DUK has a limited annual growth rate of 2.59%.
DUK has paid a dividend for at least 10 years, which is 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
DUK pays out 68.02% of its income as dividend. This is not a sustainable payout ratio.
DUK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP68.02%
EPS Next 2Y7.23%
EPS Next 3Y7.15%
121.08
+0.69 (+0.57%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners68.82%
Inst Owner Change3.34%
Ins Owners0.05%
Ins Owner Change-0.25%
Market Cap94.15B
Analysts72.5
Price Target133.24 (10.04%)
Short Float %1.81%
Short Ratio4.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
Yearly Dividend4.15
Dividend Growth(5Y)2.59%
DP68.02%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.98%
Min EPS beat(2)5.29%
Max EPS beat(2)8.68%
EPS beat(4)2
Avg EPS beat(4)1.86%
Min EPS beat(4)-5.36%
Max EPS beat(4)8.68%
EPS beat(8)5
Avg EPS beat(8)2.84%
EPS beat(12)6
Avg EPS beat(12)0.58%
EPS beat(16)8
Avg EPS beat(16)0.66%
Revenue beat(2)2
Avg Revenue beat(2)2.21%
Min Revenue beat(2)1.39%
Max Revenue beat(2)3.03%
Revenue beat(4)3
Avg Revenue beat(4)1.02%
Min Revenue beat(4)-0.53%
Max Revenue beat(4)3.03%
Revenue beat(8)5
Avg Revenue beat(8)1.16%
Revenue beat(12)9
Avg Revenue beat(12)5.59%
Revenue beat(16)11
Avg Revenue beat(16)4.24%
PT rev (1m)1.87%
PT rev (3m)2.47%
EPS NQ rev (1m)-1.89%
EPS NQ rev (3m)-1.02%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.25 | ||
| Fwd PE | 17.85 | ||
| P/S | 3.01 | ||
| P/FCF | N/A | ||
| P/OCF | 7.88 | ||
| P/B | 1.85 | ||
| P/tB | 2.98 | ||
| EV/EBITDA | 11.53 |
EPS(TTM)6.29
EY5.19%
EPS(NY)6.78
Fwd EY5.6%
FCF(TTM)-0.72
FCFYN/A
OCF(TTM)15.36
OCFY12.68%
SpS40.21
BVpS65.44
TBVpS40.62
PEG (NY)2.3
PEG (5Y)6.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | 9.34% | ||
| ROCE | 4.9% | ||
| ROIC | 4.31% | ||
| ROICexc | 4.32% | ||
| ROICexgc | 4.86% | ||
| OM | 26.86% | ||
| PM (TTM) | 15.2% | ||
| GM | 69.92% | ||
| FCFM | N/A |
ROA(3y)1.76%
ROA(5y)1.66%
ROE(3y)6.44%
ROE(5y)5.93%
ROIC(3y)3.87%
ROIC(5y)3.68%
ROICexc(3y)3.88%
ROICexc(5y)3.68%
ROICexgc(3y)4.39%
ROICexgc(5y)4.19%
ROCE(3y)4.42%
ROCE(5y)4.19%
ROICexcg growth 3Y7.33%
ROICexcg growth 5Y3.3%
ROICexc growth 3Y7.73%
ROICexc growth 5Y3.73%
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%
F-Score7
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.36 | ||
| Cap/Depr | 179.19% | ||
| Cap/Sales | 39.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 0.71 |
F-Score7
WACC6.37%
ROIC/WACC0.68
Cap/Depr(3y)197.67%
Cap/Depr(5y)189.03%
Cap/Sales(3y)41.11%
Cap/Sales(5y)40.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.62%
EPS 3Y4.1%
EPS 5Y3.12%
EPS Q2Q%5.93%
EPS Next Y8.36%
EPS Next 2Y7.23%
EPS Next 3Y7.15%
EPS Next 5Y7.06%
Revenue 1Y (TTM)4.07%
Revenue growth 3Y7.23%
Revenue growth 5Y3.89%
Sales Q2Q%4.68%
Revenue Next Year4.63%
Revenue Next 2Y3.91%
Revenue Next 3Y3.69%
Revenue Next 5Y4.55%
EBIT growth 1Y8.51%
EBIT growth 3Y10.78%
EBIT growth 5Y6.83%
EBIT Next Year86.23%
EBIT Next 3Y29.27%
EBIT Next 5Y21.89%
FCF growth 1Y91.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y110.34%
OCF growth 3Y14.14%
OCF growth 5Y8.47%