DUKE ENERGY CORP (DUK) Stock Fundamental Analysis
NYSE:DUK - New York Stock Exchange, Inc. - US26441C2044 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to DUK. DUK was compared to 46 industry peers in the Electric Utilities industry. DUK has a medium profitability rating, but doesn't score so well on its financial health evaluation. DUK is valied quite expensively at the moment, while it does show a decent growth rate. DUK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
DUK had positive earnings in the past year.
DUK had a positive operating cash flow in the past year.
DUK had positive earnings in each of the past 5 years.
In the past 5 years DUK always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.49%, DUK is not doing good in the industry: 67.39% of the companies in the same industry are doing better.
DUK has a Return On Equity of 9.21%. This is comparable to the rest of the industry: DUK outperforms 43.48% of its industry peers.
DUK has a Return On Invested Capital of 4.31%. This is comparable to the rest of the industry: DUK outperforms 54.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DUK is significantly below the industry average of 39.32%.
The last Return On Invested Capital (4.31%) for DUK is above the 3 year average (3.87%), which is a sign of increasing profitability.
| 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
DUK has a better Profit Margin (15.09%) than 60.87% of its industry peers.
DUK's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 26.91%, DUK belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
In the last couple of years the Operating Margin of DUK has grown nicely.
Looking at the Gross Margin, with a value of 68.72%, DUK is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
DUK's Gross Margin has been stable in the last couple of years.
| 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
DUK 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 DUK has been increased compared to 1 year ago.
Compared to 5 years ago, DUK has more shares outstanding
The debt/assets ratio for DUK is higher compared to a year ago.
2.2 Solvency
DUK has an Altman-Z score of 0.72. This is a bad value and indicates that DUK is not financially healthy and even has some risk of bankruptcy.
DUK has a Altman-Z score of 0.72. This is in the lower half of the industry: DUK underperforms 63.04% of its industry peers.
A Debt/Equity ratio of 1.62 is on the high side and indicates that DUK has dependencies on debt financing.
DUK has a Debt to Equity ratio of 1.62. This is in the lower half of the industry: DUK underperforms 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.67
WACC6.47%
2.3 Liquidity
A Current Ratio of 0.77 indicates that DUK may have some problems paying its short term obligations.
DUK has a Current ratio of 0.77. This is in the lower half of the industry: DUK underperforms 69.57% 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.
The Quick ratio of DUK (0.50) is worse than 76.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
DUK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.24%.
DUK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.12% yearly.
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
Based on estimates for the next years, DUK will show a small growth in Earnings Per Share. The EPS will grow by 7.04% on average per year.
DUK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.77% yearly.
EPS Next Y8.2%
EPS Next 2Y7.21%
EPS Next 3Y7.01%
EPS Next 5Y7.04%
Revenue Next Year4.47%
Revenue Next 2Y4.01%
Revenue Next 3Y4.03%
Revenue Next 5Y3.77%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
DUK is valuated rather expensively with a Price/Earnings ratio of 18.93.
The rest of the industry has a similar Price/Earnings ratio as DUK.
When comparing the Price/Earnings ratio of DUK to the average of the S&P500 Index (26.25), we can say DUK is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.36 indicates a rather expensive valuation of DUK.
The rest of the industry has a similar Price/Forward Earnings ratio as DUK.
DUK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.93 | ||
| Fwd PE | 17.36 |
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 | 11.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DUK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.31
PEG (5Y)6.07
EPS Next 2Y7.21%
EPS Next 3Y7.01%
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 3.46.
Compared to an average S&P500 Dividend Yield of 2.38, 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 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
DUK pays out 68.77% of its income as dividend. 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 2Y7.21%
EPS Next 3Y7.01%
117.72
+2.27 (+1.97%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners66.87%
Inst Owner Change4.17%
Ins Owners0.06%
Ins Owner Change7.92%
Market Cap91.50B
Analysts73.6
Price Target126.43 (7.4%)
Short Float %1.34%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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%
PT rev (3m)1.26%
EPS NQ rev (1m)-0.93%
EPS NQ rev (3m)-0.18%
EPS NY rev (1m)0.11%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.93 | ||
| Fwd PE | 17.36 | ||
| P/S | 2.96 | ||
| P/FCF | N/A | ||
| P/OCF | 7.61 | ||
| P/B | 1.81 | ||
| P/tB | 2.92 | ||
| EV/EBITDA | 11.74 |
EPS(TTM)6.22
EY5.28%
EPS(NY)6.78
Fwd EY5.76%
FCF(TTM)-0.24
FCFYN/A
OCF(TTM)15.48
OCFY13.15%
SpS39.8
BVpS65.19
TBVpS40.36
PEG (NY)2.31
PEG (5Y)6.07
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 | 0.72 |
F-Score7
WACC6.47%
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 Y8.2%
EPS Next 2Y7.21%
EPS Next 3Y7.01%
EPS Next 5Y7.04%
Revenue 1Y (TTM)5.02%
Revenue growth 3Y7.23%
Revenue growth 5Y3.89%
Sales Q2Q%7.53%
Revenue Next Year4.47%
Revenue Next 2Y4.01%
Revenue Next 3Y4.03%
Revenue Next 5Y3.77%
EBIT growth 1Y12.56%
EBIT growth 3Y10.78%
EBIT growth 5Y6.83%
EBIT Next Year86.44%
EBIT Next 3Y29.23%
EBIT Next 5Y21.49%
FCF growth 1Y97.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y114.27%
OCF growth 3Y14.14%
OCF growth 5Y8.47%