DUKE ENERGY CORP (DUK) Stock Fundamental Analysis
NYSE:DUK - New York Stock Exchange, Inc. - US26441C2044 - Common Stock - Currency: USD
Taking everything into account, DUK scores 3 out of 10 in our fundamental rating. DUK was compared to 47 industry peers in the Electric Utilities industry. There are concerns on the financial health of DUK while its profitability can be described as average. 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.
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 worse Return On Assets (2.49%) than 65.96% of its industry peers.
The Return On Equity of DUK (9.21%) is comparable to the rest of the industry.
DUK has a Return On Invested Capital of 4.31%. This is comparable to the rest of the industry: DUK outperforms 53.19% of its industry peers.
DUK had an Average Return On Invested Capital over the past 3 years of 3.87%. This is significantly below the industry average of 38.54%.
The 3 year average ROIC (3.87%) for DUK is below the current ROIC(4.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 9.21% | ||
| ROIC | 4.31% |
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
With a decent Profit Margin value of 15.09%, DUK is doing good in the industry, outperforming 61.70% of the companies in the same industry.
In the last couple of years the Profit Margin of DUK has remained more or less at the same level.
Looking at the Operating Margin, with a value of 26.91%, DUK belongs to the top of the industry, outperforming 85.11% of the companies in the same industry.
DUK's Operating Margin has improved in the last couple of years.
DUK has a Gross Margin of 68.72%. This is in the better half of the industry: DUK outperforms 61.70% 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 | 26.91% | ||
| PM (TTM) | 15.09% | ||
| GM | 68.72% |
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.
DUK has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DUK has been increased compared to 5 years ago.
The debt/assets ratio for DUK is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.74, we must say that DUK is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.74, DUK is not doing good in the industry: 63.83% of the companies in the same industry are doing better.
DUK has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external financing.
DUK has a Debt to Equity ratio of 1.62. This is in the lower half of the industry: DUK underperforms 61.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.74 |
ROIC/WACC0.67
WACC6.45%
2.3 Liquidity
A Current Ratio of 0.77 indicates that DUK may have some problems paying its short term obligations.
DUK has a worse Current ratio (0.77) than 68.09% of its industry peers.
DUK has a Quick Ratio of 0.77. 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 Quick ratio of 0.50. This is in the lower half of the industry: DUK underperforms 76.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.24% over the past year.
Measured over the past 5 years, DUK shows a small growth in Earnings Per Share. The EPS has been growing by 3.12% on average per year.
DUK shows a small growth in Revenue. In the last year, the Revenue has grown by 5.02%.
Measured over the past years, DUK shows a small growth in Revenue. The Revenue has been growing by 3.89% on average per year.
EPS 1Y (TTM)7.24%
EPS 3Y4.1%
EPS 5Y3.12%
EPS Q2Q%22.22%
Revenue 1Y (TTM)5.02%
Revenue growth 3Y7.23%
Revenue growth 5Y3.89%
Sales Q2Q%7.53%
3.2 Future
DUK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.89% yearly.
Based on estimates for the next years, DUK will show a small growth in Revenue. The Revenue will grow by 4.50% on average per year.
EPS Next Y8.19%
EPS Next 2Y7.2%
EPS Next 3Y7.01%
EPS Next 5Y6.89%
Revenue Next Year4.56%
Revenue Next 2Y4.11%
Revenue Next 3Y4.06%
Revenue Next 5Y4.5%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.96, DUK is valued on the expensive side.
Based on the Price/Earnings ratio, DUK is valued a bit more expensive than 61.70% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, DUK is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.31, the valuation of DUK can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as DUK.
When comparing the Price/Forward Earnings ratio of DUK to the average of the S&P500 Index (36.42), we can say DUK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 18.31 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DUK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.01 |
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)2.44
PEG (5Y)6.4
EPS Next 2Y7.2%
EPS Next 3Y7.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.79%, DUK is a good candidate for dividend investing.
DUK's Dividend Yield is rather good when compared to the industry average which is at 3.66. DUK pays more dividend than 93.62% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, DUK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
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 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
68.77% of the earnings are spent on dividend by DUK. This is not a sustainable payout ratio.
DUK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP68.77%
EPS Next 2Y7.2%
EPS Next 3Y7.01%
124.17
+1.26 (+1.03%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners68.73%
Inst Owner Change-0.3%
Ins Owners0.05%
Ins Owner Change7.91%
Market Cap96.51B
Analysts72.8
Price Target129.62 (4.39%)
Short Float %1.54%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
Yearly Dividend4.15
Dividend Growth(5Y)2.59%
DP68.77%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.75%
Min EPS beat(2)-1.19%
Max EPS beat(2)8.68%
EPS beat(4)2
Avg EPS beat(4)4.12%
Min EPS beat(4)-5.36%
Max EPS beat(4)14.34%
EPS beat(8)4
Avg EPS beat(8)1.11%
EPS beat(12)6
Avg EPS beat(12)0.61%
EPS beat(16)8
Avg EPS beat(16)0.57%
Revenue beat(2)1
Avg Revenue beat(2)0.43%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)1.39%
Revenue beat(4)3
Avg Revenue beat(4)2.14%
Min Revenue beat(4)-0.53%
Max Revenue beat(4)7.49%
Revenue beat(8)5
Avg Revenue beat(8)1.5%
Revenue beat(12)9
Avg Revenue beat(12)6.18%
Revenue beat(16)10
Avg Revenue beat(16)3.93%
PT rev (1m)0.11%
PT rev (3m)2.52%
EPS NQ rev (1m)-4.72%
EPS NQ rev (3m)-5.31%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)0.89%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 18.31 | ||
| P/S | 3.12 | ||
| P/FCF | N/A | ||
| P/OCF | 8.02 | ||
| P/B | 1.9 | ||
| P/tB | 3.08 | ||
| EV/EBITDA | 12.01 |
EPS(TTM)6.22
EY5.01%
EPS(NY)6.78
Fwd EY5.46%
FCF(TTM)-0.24
FCFYN/A
OCF(TTM)15.48
OCFY12.47%
SpS39.8
BVpS65.19
TBVpS40.36
PEG (NY)2.44
PEG (5Y)6.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 9.21% | ||
| ROCE | 4.87% | ||
| ROIC | 4.31% | ||
| ROICexc | 4.32% | ||
| ROICexgc | 4.86% | ||
| OM | 26.91% | ||
| PM (TTM) | 15.09% | ||
| GM | 68.72% | ||
| FCFM | N/A |
ROA(3y)1.76%
ROA(5y)1.66%
ROE(3y)6.44%
ROE(5y)5.93%
ROIC(3y)3.87%
ROIC(5y)3.68%
ROICexc(3y)3.88%
ROICexc(5y)3.68%
ROICexgc(3y)4.39%
ROICexgc(5y)4.19%
ROCE(3y)4.42%
ROCE(5y)4.19%
ROICexcg growth 3Y7.33%
ROICexcg growth 5Y3.3%
ROICexc growth 3Y7.73%
ROICexc growth 5Y3.73%
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%
F-Score7
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.52 | ||
| Cap/Depr | 185.83% | ||
| Cap/Sales | 39.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 0.74 |
F-Score7
WACC6.45%
ROIC/WACC0.67
Cap/Depr(3y)197.67%
Cap/Depr(5y)189.03%
Cap/Sales(3y)41.11%
Cap/Sales(5y)40.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.24%
EPS 3Y4.1%
EPS 5Y3.12%
EPS Q2Q%22.22%
EPS Next Y8.19%
EPS Next 2Y7.2%
EPS Next 3Y7.01%
EPS Next 5Y6.89%
Revenue 1Y (TTM)5.02%
Revenue growth 3Y7.23%
Revenue growth 5Y3.89%
Sales Q2Q%7.53%
Revenue Next Year4.56%
Revenue Next 2Y4.11%
Revenue Next 3Y4.06%
Revenue Next 5Y4.5%
EBIT growth 1Y12.56%
EBIT growth 3Y10.78%
EBIT growth 5Y6.83%
EBIT Next Year86.44%
EBIT Next 3Y29.23%
EBIT Next 5Y21.1%
FCF growth 1Y97.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y114.27%
OCF growth 3Y14.14%
OCF growth 5Y8.47%