DUKE ENERGY CORP (DUK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DUK - US26441C2044 - Common Stock
119.59 USD
+0.81 (+0.68%)
DUK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. While DUK belongs to the best of the industry regarding profitability, there are concerns on its financial health. DUK is valied quite expensively at the moment, while 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.
- In the past 5 years DUK has always been profitable.
- In the past 5 years DUK always reported a positive cash flow from operatings.
1.2 Ratios
- DUK has a Return On Assets (2.57%) which is in line with its industry peers.
- DUK has a Return On Equity of 9.59%. This is comparable to the rest of the industry: DUK outperforms 43.48% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.38%, DUK is in line with its industry, outperforming 58.70% of the companies in the same industry.
- DUK had an Average Return On Invested Capital over the past 3 years of 3.87%. This is in line with the industry average of 4.58%.
- The last Return On Invested Capital (4.38%) for DUK is above the 3 year average (3.87%), which is a sign of increasing profitability.
| 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
- With an excellent Profit Margin value of 15.58%, DUK belongs to the best 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.
- The Operating Margin of DUK (27.12%) is better than 91.30% of its industry peers.
- In the last couple of years the Operating Margin of DUK has grown nicely.
- The Gross Margin of DUK (71.28%) is better than 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.
- DUK has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, DUK has more shares outstanding
- Compared to 1 year ago, DUK has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.69, we must say that DUK is in the distress zone and has some risk of bankruptcy.
- DUK's Altman-Z score of 0.69 is on the low side compared to the rest of the industry. DUK is outperformed by 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.
- DUK has a Debt to Equity ratio (1.60) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.69 |
ROIC/WACC0.68
WACC6.4%
2.3 Liquidity
- DUK has a Current 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.
- The Current ratio of DUK (0.63) is worse than 84.78% of its industry peers.
- A Quick Ratio of 0.40 indicates that DUK may have some problems paying its short term obligations.
- DUK has a worse Quick ratio (0.40) than 86.96% of its industry peers.
| 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.
- The Earnings Per Share has been growing slightly by 3.12% on average over the past years.
- 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
- Based on estimates for the next years, DUK will show a small growth in Earnings Per Share. The EPS will grow by 6.84% on average per year.
- 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 Y8.1%
EPS Next 2Y7.18%
EPS Next 3Y7.05%
EPS Next 5Y6.84%
Revenue Next Year4.84%
Revenue Next 2Y4.2%
Revenue Next 3Y4.18%
Revenue Next 5Y4.85%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- Based on the Price/Earnings ratio of 18.46, the valuation of DUK can be described as rather expensive.
- DUK's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, DUK is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 17.64, the valuation of DUK can be described as rather expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as DUK.
- DUK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.46 | ||
| Fwd PE | 17.64 |
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 | 11.12 |
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)2.28
PEG (5Y)5.92
EPS Next 2Y7.18%
EPS Next 3Y7.05%
5. Dividend
5.1 Amount
- DUK has a Yearly Dividend Yield of 3.62%.
- Compared to an average industry Dividend Yield of 2.90, DUK pays a bit more dividend than its industry peers.
- DUK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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
- DUK pays out 66.01% 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.
DP66.01%
EPS Next 2Y7.18%
EPS Next 3Y7.05%
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 18.46 and the Price/Book (PB) ratio is 1.81.
How financially healthy is DUKE ENERGY CORP?
The financial health rating of DUKE ENERGY CORP (DUK) is 0 / 10.