DUKE ENERGY CORP - DUK 5 5/8 09/15/2078 (DUKB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DUKB - US26441C4024
24.79 USD
+0.07 (+0.28%)
DUKB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. DUKB scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on DUKB.
1. Profitability
1.1 Basic Checks
- In the past year DUKB was profitable.
- DUKB had a positive operating cash flow in the past year.
- In the past 5 years DUKB has always been profitable.
- In the past 5 years DUKB always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 2.57%, DUKB perfoms like the industry average, outperforming 45.65% of the companies in the same industry.
- DUKB has a Return On Equity (9.59%) which is in line with its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.38%, DUKB is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
- DUKB had an Average Return On Invested Capital over the past 3 years of 3.87%. This is in line with the industry average of 4.58%.
- The last Return On Invested Capital (4.38%) for DUKB is above the 3 year average (3.87%), which is a sign of increasing profitability.
| 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 DUKB (15.58%) is better than 82.61% of its industry peers.
- DUKB's Profit Margin has been stable in the last couple of years.
- With an excellent Operating Margin value of 27.12%, DUKB belongs to the best of the industry, outperforming 93.48% of the companies in the same industry.
- DUKB's Operating Margin has improved in the last couple of years.
- DUKB's Gross Margin of 71.28% is fine compared to the rest of the industry. DUKB outperforms 65.22% of its industry peers.
- In the last couple of years the Gross Margin of DUKB has remained more or less at the same level.
| 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
- DUKB 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, DUKB has more shares outstanding
- Compared to 5 years ago, DUKB has more shares outstanding
- Compared to 1 year ago, DUKB has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.38, we must say that DUKB is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.38, DUKB is doing worse than 86.96% of the companies in the same industry.
- DUKB has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.60, DUKB perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.38 |
ROIC/WACC0.84
WACC5.2%
2.3 Liquidity
- A Current Ratio of 0.63 indicates that DUKB may have some problems paying its short term obligations.
- With a Current ratio value of 0.63, DUKB is not doing good in the industry: 82.61% of the companies in the same industry are doing better.
- A Quick Ratio of 0.40 indicates that DUKB may have some problems paying its short term obligations.
- The Quick ratio of DUKB (0.40) is worse than 84.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
- DUKB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.70%, which is quite good.
- DUKB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.12% yearly.
- DUKB shows a small growth in Revenue. In the last year, the Revenue has grown by 4.80%.
- DUKB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.89% yearly.
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 6.84% on average over the next years.
- DUKB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.85% yearly.
EPS Next Y8.1%
EPS Next 2Y7.18%
EPS Next 3Y7.05%
EPS Next 5Y6.84%
Revenue Next Year4.84%
Revenue Next 2Y4.2%
Revenue Next 3Y4.18%
Revenue Next 5Y4.85%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- Based on the Price/Earnings ratio of 3.83, the valuation of DUKB can be described as very cheap.
- Based on the Price/Earnings ratio, DUKB is valued cheaper than 95.65% of the companies in the same industry.
- DUKB is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 3.66, the valuation of DUKB can be described as very cheap.
- Based on the Price/Forward Earnings ratio, DUKB is valued cheaper than 97.83% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. DUKB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.83 | ||
| Fwd PE | 3.66 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DUKB is valued cheaply inside the industry as 93.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.54 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- DUKB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.47
PEG (5Y)1.23
EPS Next 2Y7.18%
EPS Next 3Y7.05%
5. Dividend
5.1 Amount
- DUKB has a Yearly Dividend Yield of 3.62%.
- Compared to an average industry Dividend Yield of 2.90, DUKB pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, DUKB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
5.2 History
- The dividend of DUKB has a limited annual growth rate of 2.59%.
- DUKB has been paying a dividend for over 5 years, so it has already some track record.
- DUKB has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.59%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
- DUKB pays out 66.01% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of DUKB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.01%
EPS Next 2Y7.18%
EPS Next 3Y7.05%
DUKE ENERGY CORP - DUK 5 5/8 09/15/2078 / DUKB FAQ
What is the ChartMill fundamental rating of DUKE ENERGY CORP - DUK 5 5/8 09/15/2078 (DUKB) stock?
ChartMill assigns a fundamental rating of 4 / 10 to DUKB.
Can you provide the valuation status for DUKE ENERGY CORP - DUK 5 5/8 09/15/2078?
ChartMill assigns a valuation rating of 7 / 10 to DUKE ENERGY CORP - DUK 5 5/8 09/15/2078 (DUKB). This can be considered as Undervalued.
Can you provide the profitability details for DUKE ENERGY CORP - DUK 5 5/8 09/15/2078?
DUKE ENERGY CORP - DUK 5 5/8 09/15/2078 (DUKB) has a profitability rating of 7 / 10.
What is the expected EPS growth for DUKE ENERGY CORP - DUK 5 5/8 09/15/2078 (DUKB) stock?
The Earnings per Share (EPS) of DUKE ENERGY CORP - DUK 5 5/8 09/15/2078 (DUKB) is expected to grow by 8.1% in the next year.
How sustainable is the dividend of DUKE ENERGY CORP - DUK 5 5/8 09/15/2078 (DUKB) stock?
The dividend rating of DUKE ENERGY CORP - DUK 5 5/8 09/15/2078 (DUKB) is 5 / 10 and the dividend payout ratio is 66.01%.