ENTERGY CORP (ETR) Stock Fundamental Analysis
USA - NYSE:ETR - US29364G1031 - Common Stock
97.36 USD
+0.78 (+0.81%)
98.25 USD
+0.89 (+0.91%)
We assign a fundamental rating of 3 out of 10 to ETR. ETR was compared to 47 industry peers in the Electric Utilities industry. ETR has a medium profitability rating, but doesn't score so well on its financial health evaluation. ETR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ETR had positive earnings in the past year.
In the past year ETR had a positive cash flow from operations.
ETR had positive earnings in each of the past 5 years.
In the past 5 years ETR always reported a positive cash flow from operatings.
1.2 Ratios
ETR has a Return On Assets (2.57%) which is comparable to the rest of the industry.
ETR's Return On Equity of 10.65% is in line compared to the rest of the industry. ETR outperforms 57.45% of its industry peers.
ETR has a Return On Invested Capital (3.90%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ETR is in line with the industry average of 4.90%.
The 3 year average ROIC (3.21%) for ETR is below the current ROIC(3.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 10.65% | ||
| ROIC | 3.9% |
ROA(3y)2.49%
ROA(5y)2.34%
ROE(3y)10.3%
ROE(5y)10.54%
ROIC(3y)3.21%
ROIC(5y)3%
1.3 Margins
ETR has a Profit Margin of 14.30%. This is comparable to the rest of the industry: ETR outperforms 53.19% of its industry peers.
In the last couple of years the Profit Margin of ETR has declined.
ETR's Operating Margin of 26.88% is amongst the best of the industry. ETR outperforms 89.36% of its industry peers.
In the last couple of years the Operating Margin of ETR has grown nicely.
With an excellent Gross Margin value of 89.72%, ETR belongs to the best of the industry, outperforming 93.62% of the companies in the same industry.
ETR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.88% | ||
| PM (TTM) | 14.3% | ||
| GM | 89.72% |
OM growth 3Y8.93%
OM growth 5Y8.49%
PM growth 3Y-2.29%
PM growth 5Y-4.88%
GM growth 3Y1.5%
GM growth 5Y1.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ETR is destroying value.
Compared to 1 year ago, ETR has more shares outstanding
ETR has more shares outstanding than it did 5 years ago.
ETR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.07, we must say that ETR is in the distress zone and has some risk of bankruptcy.
ETR's Altman-Z score of 1.07 is fine compared to the rest of the industry. ETR outperforms 61.70% of its industry peers.
ETR has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
ETR has a worse Debt to Equity ratio (1.73) than 72.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.07 |
ROIC/WACC0.61
WACC6.44%
2.3 Liquidity
ETR has a Current Ratio of 0.80. This is a bad value and indicates that ETR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.80, ETR is in line with its industry, outperforming 48.94% of the companies in the same industry.
A Quick Ratio of 0.52 indicates that ETR may have some problems paying its short term obligations.
With a Quick ratio value of 0.52, ETR is not doing good in the industry: 65.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
ETR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.56%, which is quite good.
ETR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.36% yearly.
Looking at the last year, ETR shows a small growth in Revenue. The Revenue has grown by 1.98% in the last year.
ETR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.78% yearly.
EPS 1Y (TTM)18.56%
EPS 3Y6.69%
EPS 5Y6.36%
EPS Q2Q%9.38%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y0.39%
Revenue growth 5Y1.78%
Sales Q2Q%12.7%
3.2 Future
ETR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.40% yearly.
The Revenue is expected to grow by 5.92% on average over the next years.
EPS Next Y7.7%
EPS Next 2Y9.93%
EPS Next 3Y10.41%
EPS Next 5Y10.4%
Revenue Next Year0.59%
Revenue Next 2Y3.58%
Revenue Next 3Y4.54%
Revenue Next 5Y5.92%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.16, the valuation of ETR can be described as rather expensive.
Based on the Price/Earnings ratio, ETR is valued expensively inside the industry as 80.85% of the companies are valued cheaper.
ETR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.04, ETR is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ETR indicates a rather expensive valuation: ETR more expensive than 82.98% of the companies listed in the same industry.
ETR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.16 | ||
| Fwd PE | 22.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ETR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ETR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.14
PEG (5Y)3.8
EPS Next 2Y9.93%
EPS Next 3Y10.41%
5. Dividend
5.1 Amount
ETR has a Yearly Dividend Yield of 2.51%.
Compared to an average industry Dividend Yield of 3.23, ETR is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.31, ETR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
5.2 History
The dividend of ETR decreases each year by -9.03%.
ETR has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of ETR decreased recently.
Dividend Growth(5Y)-9.03%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ETR pays out 58.77% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP58.77%
EPS Next 2Y9.93%
EPS Next 3Y10.41%
97.36
+0.78 (+0.81%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners96.01%
Inst Owner Change-0.02%
Ins Owners0.19%
Ins Owner Change0.57%
Market Cap43.46B
Revenue(TTM)12.31B
Net Income(TTM)1.76B
Analysts77.5
Price Target94.95 (-2.48%)
Short Float %2.39%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Yearly Dividend2.34
Dividend Growth(5Y)-9.03%
DP58.77%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.61%
Min EPS beat(2)12.96%
Max EPS beat(2)18.26%
EPS beat(4)3
Avg EPS beat(4)8.37%
Min EPS beat(4)-0.41%
Max EPS beat(4)18.26%
EPS beat(8)5
Avg EPS beat(8)2.23%
EPS beat(12)7
Avg EPS beat(12)1.01%
EPS beat(16)9
Avg EPS beat(16)2.62%
Revenue beat(2)1
Avg Revenue beat(2)0.87%
Min Revenue beat(2)-6.51%
Max Revenue beat(2)8.26%
Revenue beat(4)1
Avg Revenue beat(4)-5.3%
Min Revenue beat(4)-14.57%
Max Revenue beat(4)8.26%
Revenue beat(8)1
Avg Revenue beat(8)-11.05%
Revenue beat(12)3
Avg Revenue beat(12)-4.88%
Revenue beat(16)7
Avg Revenue beat(16)-0.37%
PT rev (1m)0.55%
PT rev (3m)5.09%
EPS NQ rev (1m)-1.52%
EPS NQ rev (3m)-3.82%
EPS NY rev (1m)0.24%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)2.83%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.16 | ||
| Fwd PE | 22.04 | ||
| P/S | 3.53 | ||
| P/FCF | N/A | ||
| P/OCF | 9.17 | ||
| P/B | 2.63 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 12.39 |
EPS(TTM)4.03
EY4.14%
EPS(NY)4.42
Fwd EY4.54%
FCF(TTM)-5.76
FCFYN/A
OCF(TTM)10.62
OCFY10.91%
SpS27.57
BVpS37.03
TBVpS36.2
PEG (NY)3.14
PEG (5Y)3.8
Graham Number57.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 10.65% | ||
| ROCE | 5.35% | ||
| ROIC | 3.9% | ||
| ROICexc | 3.98% | ||
| ROICexgc | 4% | ||
| OM | 26.88% | ||
| PM (TTM) | 14.3% | ||
| GM | 89.72% | ||
| FCFM | N/A |
ROA(3y)2.49%
ROA(5y)2.34%
ROE(3y)10.3%
ROE(5y)10.54%
ROIC(3y)3.21%
ROIC(5y)3%
ROICexc(3y)3.23%
ROICexc(5y)3.04%
ROICexgc(3y)3.25%
ROICexgc(5y)3.07%
ROCE(3y)4.44%
ROCE(5y)4.17%
ROICexgc growth 3Y6.05%
ROICexgc growth 5Y5.84%
ROICexc growth 3Y6.08%
ROICexc growth 5Y5.88%
OM growth 3Y8.93%
OM growth 5Y8.49%
PM growth 3Y-2.29%
PM growth 5Y-4.88%
GM growth 3Y1.5%
GM growth 5Y1.02%
F-Score4
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.93 | ||
| Cap/Depr | 293.32% | ||
| Cap/Sales | 59.4% | ||
| Interest Coverage | 2.69 | ||
| Cash Conversion | 81.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.07 |
F-Score4
WACC6.44%
ROIC/WACC0.61
Cap/Depr(3y)234.05%
Cap/Depr(5y)243.38%
Cap/Sales(3y)42.84%
Cap/Sales(5y)46.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.56%
EPS 3Y6.69%
EPS 5Y6.36%
EPS Q2Q%9.38%
EPS Next Y7.7%
EPS Next 2Y9.93%
EPS Next 3Y10.41%
EPS Next 5Y10.4%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y0.39%
Revenue growth 5Y1.78%
Sales Q2Q%12.7%
Revenue Next Year0.59%
Revenue Next 2Y3.58%
Revenue Next 3Y4.54%
Revenue Next 5Y5.92%
EBIT growth 1Y36.15%
EBIT growth 3Y9.35%
EBIT growth 5Y10.42%
EBIT Next Year92.15%
EBIT Next 3Y36.2%
EBIT Next 5Y25.31%
FCF growth 1Y-93.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y31.83%
OCF growth 3Y24.95%
OCF growth 5Y9.77%
ENTERGY CORP / ETR FAQ
Can you provide the ChartMill fundamental rating for ENTERGY CORP?
ChartMill assigns a fundamental rating of 3 / 10 to ETR.
Can you provide the valuation status for ENTERGY CORP?
ChartMill assigns a valuation rating of 1 / 10 to ENTERGY CORP (ETR). This can be considered as Overvalued.
What is the profitability of ETR stock?
ENTERGY CORP (ETR) has a profitability rating of 6 / 10.
What are the PE and PB ratios of ENTERGY CORP (ETR) stock?
The Price/Earnings (PE) ratio for ENTERGY CORP (ETR) is 24.16 and the Price/Book (PB) ratio is 2.63.
Is the dividend of ENTERGY CORP sustainable?
The dividend rating of ENTERGY CORP (ETR) is 3 / 10 and the dividend payout ratio is 58.77%.