DUKE ENERGY CORP (DUK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DUK - US26441C2044 - Common Stock
120.06 USD
-0.23 (-0.19%)
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
- DUK had positive earnings in the past year.
- In the past year DUK had a positive cash flow from operations.
- DUK had positive earnings in each of the past 5 years.
- Each year in the past 5 years DUK had a positive operating cash flow.
1.2 Ratios
- DUK has a Return On Assets (2.57%) which is comparable to the rest of the industry.
- 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.
- DUK's Return On Invested Capital of 4.38% is in line compared to the rest of the industry. DUK outperforms 58.70% of its industry peers.
- 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 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
- DUK's Profit Margin of 15.58% is amongst the best of the industry. DUK outperforms 80.43% of its industry peers.
- In the last couple of years the Profit Margin of DUK has remained more or less at the same level.
- DUK has a Operating Margin of 27.12%. This is amongst the best in the industry. DUK outperforms 91.30% of its industry peers.
- DUK's Operating Margin has improved in the last couple of years.
- DUK has a better Gross Margin (71.28%) 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
- DUK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, DUK has more shares outstanding
- DUK has more shares outstanding than it did 5 years ago.
- DUK has a worse debt/assets ratio than last year.
2.2 Solvency
- DUK has an Altman-Z score of 0.70. This is a bad value and indicates that DUK is not financially healthy and even has some risk of bankruptcy.
- DUK's Altman-Z score of 0.70 is on the low side compared to the rest of the industry. DUK is outperformed by 65.22% of its industry peers.
- A Debt/Equity ratio of 1.60 is on the high side and indicates that DUK has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.60, DUK is in line with its industry, outperforming 45.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.7 |
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.
- Looking at the Current ratio, with a value of 0.63, DUK is doing worse than 84.78% of the companies in the same industry.
- A Quick Ratio of 0.40 indicates that DUK may have some problems paying its short term obligations.
- With a Quick ratio value of 0.40, DUK is not doing good in the industry: 86.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 12.70% over the past year.
- DUK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.12% yearly.
- Looking at the last year, DUK shows a small growth in Revenue. The Revenue has grown by 4.80% in the last year.
- DUK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.89% yearly.
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
- The Earnings Per Share is expected to grow by 6.84% on average over the next years.
- The Revenue is expected to grow by 4.85% on average over the next years.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- DUK is valuated rather expensively with a Price/Earnings ratio of 18.53.
- DUK's Price/Earnings ratio is in line with the industry average.
- DUK is valuated rather cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- DUK is valuated rather expensively with a Price/Forward Earnings ratio of 17.71.
- DUK's Price/Forward Earnings is on the same level as the industry average.
- DUK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.53 | ||
| Fwd PE | 17.71 |
4.2 Price Multiples
- DUK's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.19 |
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)2.29
PEG (5Y)5.94
EPS Next 2Y7.18%
EPS Next 3Y7.05%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.62%, DUK has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.90, DUK pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, DUK pays a better dividend.
| 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 their dividend for at least 10 years, which is a reliable track record.
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 18.53 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.