DUKE ENERGY CORP (DUK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DUK - US26441C2044 - Common Stock
117.43 USD
-0.28 (-0.24%)
117.29 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. DUK scores excellent on profitability, but there are concerns on its financial health. DUK is quite expensive at the moment. It does show a decent growth rate. 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.
- Each year in the past 5 years DUK has been profitable.
- DUK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- DUK's Return On Assets of 2.57% is in line compared to the rest of the industry. DUK outperforms 43.48% of its industry peers.
- 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.
- The Average Return On Invested Capital over the past 3 years 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
- DUK has a Profit Margin of 15.58%. This is amongst the best in the industry. DUK outperforms 80.43% of its industry peers.
- 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.
- DUK's Operating Margin has improved in the last couple of years.
- DUK has a Gross Margin of 71.28%. This is in the better half of the industry: DUK outperforms 63.04% of its industry peers.
- 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 | 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DUK is destroying value.
- The number of shares outstanding for DUK has been increased compared to 1 year ago.
- 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 0.69, we must say that DUK is in the distress zone and has some risk of bankruptcy.
- DUK has a Altman-Z score of 0.69. This is in the lower half of the industry: DUK underperforms 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.
- 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 | 0.69 |
ROIC/WACC0.69
WACC6.38%
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.
- DUK has a worse Current ratio (0.63) 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.
- 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.
- The Earnings Per Share has been growing slightly by 3.12% on average over the past years.
- The Revenue has been growing slightly by 4.80% in the past 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
- 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.
- DUK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.85% yearly.
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
- The Price/Earnings ratio is 18.12, which indicates a rather expensive current valuation of DUK.
- Compared to the rest of the industry, the Price/Earnings ratio of DUK is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.21. DUK is valued slightly cheaper when compared to this.
- DUK is valuated rather expensively with a Price/Forward Earnings ratio of 17.33.
- The rest of the industry has a similar Price/Forward Earnings ratio as DUK.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. DUK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.12 | ||
| Fwd PE | 17.33 |
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 | 11.05 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DUK does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of DUK may justify a higher PE ratio.
PEG (NY)2.24
PEG (5Y)5.81
EPS Next 2Y7.18%
EPS Next 3Y7.05%
5. Dividend
5.1 Amount
- DUK has a Yearly Dividend Yield of 3.62%. Purely for dividend investing, there may be better candidates out there.
- DUK's Dividend Yield is a higher than the industry average which is at 2.90.
- Compared to an average S&P500 Dividend Yield of 1.81, 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 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
- 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 2Y7.18%
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 18.12 and the Price/Book (PB) ratio is 1.77.
How financially healthy is DUKE ENERGY CORP?
The financial health rating of DUKE ENERGY CORP (DUK) is 0 / 10.