ENTERGY CORP (ETR) Stock Fundamental Analysis
NYSE:ETR - New York Stock Exchange, Inc. - US29364G1031 - Common Stock
ETR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 46 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 is quite expensive at the moment. It does show a decent growth rate.
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.
ETR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ETR has a Return On Assets (2.73%) which is comparable to the rest of the industry.
ETR has a better Return On Equity (11.44%) than 72.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.14%, ETR is doing worse than 83.78% 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 4.61%.
| 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
ETR has a better Profit Margin (14.81%) than 70.27% of its industry peers.
In the last couple of years the Profit Margin of ETR has grown nicely.
With a Operating Margin value of 20.02%, ETR perfoms like the industry average, outperforming 43.24% of the companies in the same industry.
In the last couple of years the Operating Margin of ETR has grown nicely.
With an excellent Gross Margin value of 91.51%, ETR belongs to the best of the industry, outperforming 94.59% of the companies in the same industry.
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 5Y19.21%
PM growth 3Y12.22%
PM growth 5Y20.27%
GM growth 3Y0.58%
GM growth 5Y1.68%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ETR is destroying value.
Compared to 1 year ago, ETR has more shares outstanding
ETR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ETR has an improved debt to assets ratio.
2.2 Solvency
ETR has an Altman-Z score of 0.99. This is a bad value and indicates that ETR is not financially healthy and even has some risk of bankruptcy.
ETR has a better Altman-Z score (0.99) than 64.86% of its industry peers.
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: 70.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.99 |
ROIC/WACC0.48
WACC6.56%
2.3 Liquidity
A Current Ratio of 0.89 indicates that ETR may have some problems paying its short term obligations.
ETR has a Current ratio of 0.89. This is comparable to the rest of the industry: ETR outperforms 45.95% of its industry peers.
ETR has a Quick 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 Quick ratio (0.59) than 67.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
ETR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.70%.
ETR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.55% yearly.
ETR shows a decrease in Revenue. In the last year, the revenue decreased by -6.56%.
Measured over the past years, ETR shows a small growth in Revenue. The Revenue has been growing by 1.99% on average per year.
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
The Earnings Per Share is expected to grow by 8.67% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.76% on average over the next years.
EPS Next Y8.19%
EPS Next 2Y7.46%
EPS Next 3Y8.62%
EPS Next 5Y8.67%
Revenue Next Year-7.07%
Revenue Next 2Y-0.77%
Revenue Next 3Y1.27%
Revenue Next 5Y3.76%
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 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 25.65, which means the current valuation is very expensive for ETR.
Based on the Price/Earnings ratio, ETR is valued more expensive than 81.08% of the companies in the same industry.
When comparing the Price/Earnings ratio of ETR to the average of the S&P500 Index (28.29), we can say ETR is valued inline with the index average.
ETR is valuated rather expensively with a Price/Forward Earnings ratio of 21.39.
Based on the Price/Forward Earnings ratio, ETR is valued a bit more expensive than the industry average as 75.68% 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 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.65 | ||
| Fwd PE | 21.39 |
4.2 Price Multiples
ETR's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ETR is more expensive than 64.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.06 |
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.
The decent profitability rating of ETR may justify a higher PE ratio.
PEG (NY)3.13
PEG (5Y)N/A
EPS Next 2Y7.46%
EPS Next 3Y8.62%
5. Dividend
5.1 Amount
ETR has a Yearly Dividend Yield of 2.95%. Purely for dividend investing, there may be better candidates out there.
ETR's Dividend Yield is slightly below the industry average, which is at 3.61.
ETR's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
5.2 History
The dividend of ETR has a limited annual growth rate of 4.31%.
ETR has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of ETR decreased recently.
Dividend Growth(5Y)4.31%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ETR pays out 55.89% of its income as dividend. This is a bit on the high side, but may be sustainable.
ETR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP55.89%
EPS Next 2Y7.46%
EPS Next 3Y8.62%
ENTERGY CORP
NYSE:ETR (1/21/2025, 8:04:00 PM)
After market: 83.6601 +0.04 (+0.05%)83.62
+1.63 (+1.99%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners92.49%
Inst Owner Change1.23%
Ins Owners0.19%
Ins Owner Change-2.49%
Market Cap35.86B
Analysts75
Price Target82.81 (-0.97%)
Short Float %N/A
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
Yearly Dividend4.42
Dividend Growth(5Y)4.31%
DP55.89%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.78%
Min EPS beat(2)-0.41%
Max EPS beat(2)7.98%
EPS beat(4)1
Avg EPS beat(4)-5.82%
Min EPS beat(4)-29.1%
Max EPS beat(4)7.98%
EPS beat(8)3
Avg EPS beat(8)-3.44%
EPS beat(12)6
Avg EPS beat(12)0.75%
EPS beat(16)8
Avg EPS beat(16)2.06%
Revenue beat(2)0
Avg Revenue beat(2)-6.78%
Min Revenue beat(2)-8.38%
Max Revenue beat(2)-5.18%
Revenue beat(4)0
Avg Revenue beat(4)-14.51%
Min Revenue beat(4)-32.02%
Max Revenue beat(4)-5.18%
Revenue beat(8)1
Avg Revenue beat(8)-8.67%
Revenue beat(12)5
Avg Revenue beat(12)0.22%
Revenue beat(16)8
Avg Revenue beat(16)0.83%
PT rev (1m)-45.64%
PT rev (3m)-35.54%
EPS NQ rev (1m)-62.63%
EPS NQ rev (3m)-56.21%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-49.75%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)5.44%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.65 | ||
| Fwd PE | 21.39 | ||
| P/S | 3.02 | ||
| P/FCF | N/A | ||
| P/OCF | 8.59 | ||
| P/B | 2.33 | ||
| P/tB | 2.39 | ||
| EV/EBITDA | 13.06 |
EPS(TTM)3.26
EY3.9%
EPS(NY)3.91
Fwd EY4.67%
FCF(TTM)-2.3
FCFYN/A
OCF(TTM)9.73
OCFY11.64%
SpS27.66
BVpS35.82
TBVpS34.95
PEG (NY)3.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 11.44% | ||
| ROCE | 4.05% | ||
| ROIC | 3.14% | ||
| ROICexc | 3.22% | ||
| ROICexgc | 3.24% | ||
| OM | 20.02% | ||
| PM (TTM) | 14.81% | ||
| GM | 91.51% | ||
| FCFM | N/A |
ROA(3y)2.57%
ROA(5y)2.5%
ROE(3y)11.14%
ROE(5y)11.54%
ROIC(3y)3.24%
ROIC(5y)3.05%
ROICexc(3y)3.27%
ROICexc(5y)3.08%
ROICexgc(3y)3.29%
ROICexgc(5y)3.11%
ROCE(3y)4.19%
ROCE(5y)3.96%
ROICexcg growth 3Y10.98%
ROICexcg growth 5Y16.68%
ROICexc growth 3Y11%
ROICexc growth 5Y16.72%
OM growth 3Y6.61%
OM growth 5Y19.21%
PM growth 3Y12.22%
PM growth 5Y20.27%
GM growth 3Y0.58%
GM growth 5Y1.68%
F-Score5
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.8 | ||
| Cap/Depr | 215.15% | ||
| Cap/Sales | 43.48% | ||
| Interest Coverage | 2.16 | ||
| Cash Conversion | 87.44% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 0.99 |
F-Score5
WACC6.56%
ROIC/WACC0.48
Cap/Depr(3y)248.06%
Cap/Depr(5y)236.96%
Cap/Sales(3y)44.32%
Cap/Sales(5y)45.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.7%
EPS 3Y6.15%
EPS 5Y-1.55%
EPS Q2Q%-8.56%
EPS Next Y8.19%
EPS Next 2Y7.46%
EPS Next 3Y8.62%
EPS Next 5Y8.67%
Revenue 1Y (TTM)-6.56%
Revenue growth 3Y6.3%
Revenue growth 5Y1.99%
Sales Q2Q%-5.74%
Revenue Next Year-7.07%
Revenue Next 2Y-0.77%
Revenue Next 3Y1.27%
Revenue Next 5Y3.76%
EBIT growth 1Y-16.64%
EBIT growth 3Y13.32%
EBIT growth 5Y21.58%
EBIT Next Year78.49%
EBIT Next 3Y30.29%
EBIT Next 5Y21.3%
FCF growth 1Y77.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y98.75%
OCF growth 3Y16.87%
OCF growth 5Y12.48%