ENTERGY CORP (ETR)
US29364G1031 - Common Stock
We assign a fundamental rating of 3 out of 10 to ETR. ETR was compared to 47 industry peers in the Electric Utilities industry. ETR has a medium profitability rating, but doesn't score so well on its financial health evaluation. ETR does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year ETR was profitable.
In the past year ETR had a positive cash flow from operations.
ETR had positive earnings in each of the past 5 years.
Each year in the past 5 years ETR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.73%, ETR is in line with its industry, outperforming 51.11% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.44%, ETR is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.14%, ETR is doing worse than 80.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ETR is in line with the industry average of 4.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 11.44% | ||
| ROIC | 3.14% |
ROA(3y)2.57%
ROA(5y)2.5%
ROE(3y)11.14%
ROE(5y)11.54%
ROIC(3y)3.24%
ROIC(5y)3.05%
1.3 Margins
With a decent Profit Margin value of 14.81%, ETR is doing good in the industry, outperforming 73.33% of the companies in the same industry.
In the last couple of years the Profit Margin of ETR has grown nicely.
The Operating Margin of ETR (20.02%) is comparable to the rest of the industry.
ETR's Operating Margin has improved in the last couple of years.
The Gross Margin of ETR (91.51%) is better than 95.56% of its industry peers.
ETR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.02% | ||
| PM (TTM) | 14.81% | ||
| GM | 91.51% |
OM growth 3Y6.61%
OM growth 5Y19.22%
PM growth 3Y12.23%
PM growth 5Y20.26%
GM growth 3Y0.58%
GM growth 5Y1.68%
2. Health
2.1 Basic Checks
ETR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ETR has been increased compared to 1 year ago.
Compared to 5 years ago, ETR has more shares outstanding
ETR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that ETR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ETR (0.95) is comparable to the rest of the industry.
ETR has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.80, ETR is not doing good in the industry: 75.56% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC0.5
WACC6.3%
2.3 Liquidity
ETR has a Current Ratio of 0.89. This is a bad value and indicates that ETR is not financially healthy enough and could expect problems in meeting its short term obligations.
ETR has a worse Current ratio (0.89) than 60.00% of its industry peers.
A Quick Ratio of 0.59 indicates that ETR may have some problems paying its short term obligations.
ETR's Quick ratio of 0.59 is on the low side compared to the rest of the industry. ETR is outperformed by 68.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The earnings per share for ETR have decreased by -3.70% in the last year.
ETR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.55% yearly.
Looking at the last year, ETR shows a decrease in Revenue. The Revenue has decreased by -6.56% in the last year.
ETR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.99% yearly.
EPS 1Y (TTM)-3.7%
EPS 3Y6.15%
EPS 5Y-1.55%
EPS Q2Q%-8.56%
Revenue 1Y (TTM)-6.56%
Revenue growth 3Y6.3%
Revenue growth 5Y1.99%
Sales Q2Q%-5.74%
3.2 Future
Based on estimates for the next years, ETR will show a small growth in Earnings Per Share. The EPS will grow by 7.16% on average per year.
The Revenue is expected to grow by 2.56% on average over the next years.
EPS Next Y8.08%
EPS Next 2Y7.43%
EPS Next 3Y8.09%
EPS Next 5Y7.16%
Revenue Next Year-6.69%
Revenue Next 2Y-1.24%
Revenue Next 3Y0.79%
Revenue Next 5Y2.56%
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
A Price/Earnings ratio of 23.28 indicates a rather expensive valuation of ETR.
Based on the Price/Earnings ratio, ETR is valued more expensive than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, ETR is valued at the same level.
ETR is valuated rather expensively with a Price/Forward Earnings ratio of 19.40.
Based on the Price/Forward Earnings ratio, ETR is valued a bit more expensive than the industry average as 68.89% of the companies are valued more cheaply.
ETR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.28 | ||
| Fwd PE | 19.4 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than ETR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ETR does not grow enough to justify the current Price/Earnings ratio.
ETR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.88
PEG (5Y)N/A
EPS Next 2Y7.43%
EPS Next 3Y8.09%
5. Dividend
5.1 Amount
ETR has a Yearly Dividend Yield of 3.26%.
Compared to an average industry Dividend Yield of 3.44, ETR has a dividend in line with its industry peers.
ETR's Dividend Yield is a higher than the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
5.2 History
The dividend of ETR has a limited annual growth rate of 4.31%.
ETR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.31%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
55.89% of the earnings are spent on dividend by ETR. This is a bit on the high side, but may be sustainable.
The dividend of ETR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP55.89%
EPS Next 2Y7.43%
EPS Next 3Y8.09%
ENTERGY CORP
NYSE:ETR (11/21/2024, 8:25:20 PM)
Premarket: 153.786 +2.24 (+1.48%)151.55
+0.84 (+0.56%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap32.49B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.28 | ||
| Fwd PE | 19.4 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 11.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.02% | ||
| PM (TTM) | 14.81% | ||
| GM | 91.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-3.7%
EPS 3Y6.15%
EPS 5Y
EPS Q2Q%
EPS Next Y8.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.56%
Revenue growth 3Y6.3%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y