DUKE ENERGY CORP (1DUK.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1DUK - US26441C2044 - Common Stock
99.21 EUR
-4.25 (-4.11%)
We assign a fundamental rating of 4 out of 10 to 1DUK. 1DUK was compared to 29 industry peers in the Electric Utilities industry. 1DUK has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, 1DUK is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- 1DUK had positive earnings in the past year.
- 1DUK had a positive operating cash flow in the past year.
- In the past 5 years 1DUK has always been profitable.
- 1DUK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 2.57%, 1DUK is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
- 1DUK has a worse Return On Equity (9.59%) than 62.07% of its industry peers.
- 1DUK has a Return On Invested Capital of 4.38%. This is in the lower half of the industry: 1DUK underperforms 62.07% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1DUK is below the industry average of 6.33%.
- The 3 year average ROIC (3.87%) for 1DUK 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
- The Profit Margin of 1DUK (15.58%) is better than 79.31% of its industry peers.
- In the last couple of years the Profit Margin of 1DUK has remained more or less at the same level.
- With an excellent Operating Margin value of 27.12%, 1DUK belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
- 1DUK's Operating Margin has improved in the last couple of years.
- 1DUK's Gross Margin of 71.28% is fine compared to the rest of the industry. 1DUK outperforms 75.86% of its industry peers.
- 1DUK'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
- 1DUK 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, 1DUK has more shares outstanding
- Compared to 5 years ago, 1DUK has more shares outstanding
- The debt/assets ratio for 1DUK is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.69, we must say that 1DUK is in the distress zone and has some risk of bankruptcy.
- 1DUK has a Altman-Z score of 0.69. This is amonst the worse of the industry: 1DUK underperforms 93.10% of its industry peers.
- A Debt/Equity ratio of 1.60 is on the high side and indicates that 1DUK has dependencies on debt financing.
- 1DUK 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/WACC0.72
WACC6.12%
2.3 Liquidity
- 1DUK has a Current Ratio of 0.63. This is a bad value and indicates that 1DUK is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1DUK has a Current ratio of 0.63. This is amonst the worse of the industry: 1DUK underperforms 89.66% of its industry peers.
- A Quick Ratio of 0.40 indicates that 1DUK may have some problems paying its short term obligations.
- The Quick ratio of 1DUK (0.40) is worse than 93.10% of its industry peers.
| 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.
- Looking at the last year, 1DUK 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
- The Earnings Per Share is expected to grow by 6.79% on average over the next years.
- 1DUK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.78% yearly.
EPS Next Y8.19%
EPS Next 2Y7.27%
EPS Next 3Y7.03%
EPS Next 5Y6.79%
Revenue Next Year4.71%
Revenue Next 2Y3.95%
Revenue Next 3Y3.89%
Revenue Next 5Y4.78%
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
- With a Price/Earnings ratio of 17.94, 1DUK is valued on the expensive side.
- 1DUK's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. 1DUK is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 17.11, 1DUK is valued on the expensive side.
- 1DUK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1DUK is cheaper than 65.52% of the companies in the same industry.
- 1DUK'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 | 17.94 | ||
| Fwd PE | 17.11 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1DUK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.99 |
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 1DUK may justify a higher PE ratio.
PEG (NY)2.19
PEG (5Y)5.75
EPS Next 2Y7.27%
EPS Next 3Y7.03%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.62%, 1DUK has a reasonable but not impressive dividend return.
- 1DUK's Dividend Yield is a higher than the industry average which is at 3.10.
- Compared to an average S&P500 Dividend Yield of 1.81, 1DUK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
5.2 History
- The dividend of 1DUK has a limited annual growth rate of 2.59%.
Dividend Growth(5Y)2.59%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 66.01% of the earnings are spent on dividend by 1DUK. This is not a sustainable payout ratio.
- 1DUK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.01%
EPS Next 2Y7.27%
EPS Next 3Y7.03%
DUKE ENERGY CORP / 1DUK.MI FAQ
Can you provide the ChartMill fundamental rating for DUKE ENERGY CORP?
ChartMill assigns a fundamental rating of 4 / 10 to 1DUK.MI.
What is the valuation status of DUKE ENERGY CORP (1DUK.MI) stock?
ChartMill assigns a valuation rating of 3 / 10 to DUKE ENERGY CORP (1DUK.MI). This can be considered as Overvalued.
How profitable is DUKE ENERGY CORP (1DUK.MI) stock?
DUKE ENERGY CORP (1DUK.MI) has a profitability rating of 6 / 10.
Can you provide the financial health for 1DUK stock?
The financial health rating of DUKE ENERGY CORP (1DUK.MI) is 0 / 10.
How sustainable is the dividend of DUKE ENERGY CORP (1DUK.MI) stock?
The dividend rating of DUKE ENERGY CORP (1DUK.MI) is 6 / 10 and the dividend payout ratio is 66.01%.