DUKE ENERGY CORP (DUK)
US26441C2044 - Common Stock
Overall DUK gets a fundamental rating of 3 out of 10. We evaluated DUK against 45 industry peers in the Electric Utilities industry. While DUK is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, DUK is valued expensive at the moment. 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.
In the past 5 years DUK has always been profitable.
DUK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DUK's Return On Assets of 1.55% is on the low side compared to the rest of the industry. DUK is outperformed by 75.56% of its industry peers.
Looking at the Return On Equity, with a value of 5.57%, DUK is doing worse than 71.11% of the companies in the same industry.
DUK has a Return On Invested Capital of 3.43%. This is in the lower half of the industry: DUK underperforms 64.44% of its industry peers.
DUK had an Average Return On Invested Capital over the past 3 years of 3.16%. This is in line with the industry average of 4.58%.
The 3 year average ROIC (3.16%) for DUK is below the current ROIC(3.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 5.57% | ||
| ROIC | 3.43% |
ROA(3y)1.72%
ROA(5y)1.66%
ROE(3y)6.08%
ROE(5y)5.76%
ROIC(3y)3.16%
ROIC(5y)3.11%
1.3 Margins
DUK has a worse Profit Margin (9.41%) than 60.00% of its industry peers.
DUK's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 24.50%, DUK belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Operating Margin of DUK has grown nicely.
DUK has a better Gross Margin (66.69%) than 64.44% of its industry peers.
DUK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.5% | ||
| PM (TTM) | 9.41% | ||
| GM | 66.69% |
OM growth 3Y0.84%
OM growth 5Y3.02%
PM growth 3Y20.94%
PM growth 5Y-2.84%
GM growth 3Y-2.84%
GM growth 5Y-0.76%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DUK is destroying value.
The number of shares outstanding for DUK remains at a similar level compared to 1 year ago.
Compared to 5 years ago, DUK has more shares outstanding
DUK has a worse debt/assets ratio than last year.
2.2 Solvency
DUK has an Altman-Z score of 0.63. This is a bad value and indicates that DUK is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of DUK (0.63) is worse than 68.89% of its industry peers.
DUK has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.56, DUK is not doing good in the industry: 64.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.63 |
ROIC/WACC0.56
WACC6.11%
2.3 Liquidity
DUK has a Current Ratio of 0.74. 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's Current ratio of 0.74 is on the low side compared to the rest of the industry. DUK is outperformed by 66.67% of its industry peers.
A Quick Ratio of 0.49 indicates that DUK may have some problems paying its short term obligations.
DUK's Quick ratio of 0.49 is on the low side compared to the rest of the industry. DUK is outperformed by 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.32% over the past year.
DUK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.42% yearly.
DUK shows a small growth in Revenue. In the last year, the Revenue has grown by 1.02%.
DUK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.46% yearly.
EPS 1Y (TTM)4.32%
EPS 3Y2.79%
EPS 5Y3.42%
EPS growth Q2Q36.04%
Revenue 1Y (TTM)1.02%
Revenue growth 3Y6.78%
Revenue growth 5Y3.46%
Revenue growth Q2Q3.28%
3.2 Future
The Earnings Per Share is expected to grow by 6.80% on average over the next years.
DUK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.29% yearly.
EPS Next Y8.45%
EPS Next 2Y7.23%
EPS Next 3Y6.9%
EPS Next 5Y6.8%
Revenue Next Year2.71%
Revenue Next 2Y2.98%
Revenue Next 3Y2.93%
Revenue Next 5Y4.29%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.67 indicates a rather expensive valuation of DUK.
The rest of the industry has a similar Price/Earnings ratio as DUK.
The average S&P500 Price/Earnings ratio is at 24.76. DUK is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.29, the valuation of DUK can be described as correct.
DUK's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. DUK is more expensive than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.26, DUK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.67 | ||
| Fwd PE | 16.29 |
4.2 Price Multiples
DUK's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.29 |
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.
PEG (NY)2.09
PEG (5Y)5.17
EPS Next 2Y7.23%
EPS Next 3Y6.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.30%, DUK is a good candidate for dividend investing.
DUK's Dividend Yield is a higher than the industry average which is at 5.35.
DUK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
5.2 History
The dividend of DUK has a limited annual growth rate of 3.98%.
DUK has paid a dividend for at least 10 years, which is a reliable track record.
DUK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.98%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
118.61% of the earnings are spent on dividend by DUK. This is not a sustainable payout ratio.
The dividend of DUK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP118.61%
EPS Next 2Y7.23%
EPS Next 3Y6.9%
DUKE ENERGY CORP
NYSE:DUK (4/19/2024, 5:47:33 PM)
After market: 98.24 0 (0%)98.24
+2.31 (+2.41%)
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 Cap75.79B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 17.67 | ||
| Fwd PE | 16.29 | ||
| 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)2.09
PEG (5Y)5.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 5.57% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.5% | ||
| PM (TTM) | 9.41% | ||
| GM | 66.69% | ||
| 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 Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.49 | ||
| 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)
Growth
EPS 1Y (TTM)4.32%
EPS 3Y2.79%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.02%
Revenue growth 3Y6.78%
Revenue growth 5Y
Revenue growth 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