ENTERGY CORP (ETR) Stock Fundamental Analysis
NYSE:ETR - New York Stock Exchange, Inc. - US29364G1031 - Common Stock - Currency: USD
Taking everything into account, ETR scores 3 out of 10 in our fundamental rating. ETR was compared to 47 industry peers in the Electric Utilities industry. There are concerns on the financial health of ETR while its profitability can be described as average. While showing a medium growth rate, ETR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year ETR was profitable.
ETR had a positive operating cash flow in the past year.
Each year in the past 5 years ETR has been profitable.
In the past 5 years ETR always reported a positive cash flow from operatings.
1.2 Ratios
ETR has a worse Return On Assets (2.01%) than 85.11% of its industry peers.
The Return On Equity of ETR (8.65%) is worse than 65.96% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.68%, ETR is doing worse than 72.34% of the companies in the same industry.
ETR had an Average Return On Invested Capital over the past 3 years of 3.21%. This is significantly below the industry average of 38.54%.
The 3 year average ROIC (3.21%) for ETR is below the current ROIC(3.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 8.65% | ||
| ROIC | 3.68% |
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 worse Profit Margin (11.24%) than 65.96% of its industry peers.
In the last couple of years the Profit Margin of ETR has declined.
ETR has a better Operating Margin (25.88%) than 72.34% of its industry peers.
ETR's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 90.79%, ETR belongs to the best of the industry, outperforming 93.62% of the companies in the same industry.
In the last couple of years the Gross Margin of ETR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.88% | ||
| PM (TTM) | 11.24% | ||
| GM | 90.79% |
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
ETR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ETR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ETR has more shares outstanding
The debt/assets ratio for ETR is higher compared to a year ago.
2.2 Solvency
ETR has an Altman-Z score of 1.00. This is a bad value and indicates that ETR is not financially healthy and even has some risk of bankruptcy.
ETR has a Altman-Z score of 1.00. This is comparable to the rest of the industry: ETR outperforms 59.57% of its industry peers.
A Debt/Equity ratio of 1.91 is on the high side and indicates that ETR has dependencies on debt financing.
The Debt to Equity ratio of ETR (1.91) is worse than 87.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1 |
ROIC/WACC0.57
WACC6.44%
2.3 Liquidity
ETR has a Current Ratio of 0.82. This is a bad value and indicates that ETR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.82, ETR perfoms like the industry average, outperforming 40.43% of the companies in the same industry.
ETR has a Quick Ratio of 0.82. This is a bad value and indicates that ETR is not financially healthy enough and could expect problems in meeting its short term obligations.
ETR's Quick ratio of 0.55 is on the low side compared to the rest of the industry. ETR is outperformed by 70.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.29% over the past year.
The Earnings Per Share has been growing slightly by 6.36% on average over the past years.
The Revenue has decreased by -0.24% in the past 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)17.29%
EPS 3Y6.69%
EPS 5Y6.36%
EPS Q2Q%51.85%
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y0.39%
Revenue growth 5Y1.78%
Sales Q2Q%1.87%
3.2 Future
The Earnings Per Share is expected to grow by 9.58% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.23% on average over the next years.
EPS Next Y7.08%
EPS Next 2Y9.67%
EPS Next 3Y10.07%
EPS Next 5Y9.58%
Revenue Next Year1.5%
Revenue Next 2Y3.94%
Revenue Next 3Y4.78%
Revenue Next 5Y6.23%
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 20.75 indicates a rather expensive valuation of ETR.
Compared to the rest of the industry, the Price/Earnings ratio of ETR indicates a slightly more expensive valuation: ETR is more expensive than 72.34% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, ETR is valued a bit cheaper.
With a Price/Forward Earnings ratio of 18.60, ETR is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ETR indicates a slightly more expensive valuation: ETR is more expensive than 74.47% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.19. ETR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.75 | ||
| Fwd PE | 18.6 |
4.2 Price Multiples
ETR's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.93
PEG (5Y)3.26
EPS Next 2Y9.67%
EPS Next 3Y10.07%
5. Dividend
5.1 Amount
ETR has a Yearly Dividend Yield of 2.92%. Purely for dividend investing, there may be better candidates out there.
ETR's Dividend Yield is slightly below the industry average, which is at 3.64.
Compared to an average S&P500 Dividend Yield of 2.35, ETR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
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 75.86% of its income as dividend. This is not a sustainable payout ratio.
DP75.86%
EPS Next 2Y9.67%
EPS Next 3Y10.07%
81.75
-0.37 (-0.45%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners96.6%
Inst Owner Change0.01%
Ins Owners0.2%
Ins Owner Change8.25%
Market Cap36.49B
Analysts76.52
Price Target89 (8.87%)
Short Float %2.3%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
Yearly Dividend2.34
Dividend Growth(5Y)-9.03%
DP75.86%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.46%
Min EPS beat(2)2.66%
Max EPS beat(2)18.26%
EPS beat(4)3
Avg EPS beat(4)7.12%
Min EPS beat(4)-0.41%
Max EPS beat(4)18.26%
EPS beat(8)5
Avg EPS beat(8)1.84%
EPS beat(12)7
Avg EPS beat(12)2.06%
EPS beat(16)8
Avg EPS beat(16)1.47%
Revenue beat(2)0
Avg Revenue beat(2)-10.54%
Min Revenue beat(2)-14.57%
Max Revenue beat(2)-6.51%
Revenue beat(4)0
Avg Revenue beat(4)-8.66%
Min Revenue beat(4)-14.57%
Max Revenue beat(4)-5.18%
Revenue beat(8)0
Avg Revenue beat(8)-14.24%
Revenue beat(12)3
Avg Revenue beat(12)-4.05%
Revenue beat(16)7
Avg Revenue beat(16)-0.31%
PT rev (1m)-0.1%
PT rev (3m)-2.05%
EPS NQ rev (1m)-2.73%
EPS NQ rev (3m)-3.34%
EPS NY rev (1m)0.13%
EPS NY rev (3m)-0.24%
Revenue NQ rev (1m)-1.75%
Revenue NQ rev (3m)-2.99%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.75 | ||
| Fwd PE | 18.6 | ||
| P/S | 3.06 | ||
| P/FCF | N/A | ||
| P/OCF | 8.1 | ||
| P/B | 2.35 | ||
| P/tB | 2.41 | ||
| EV/EBITDA | 11.63 |
EPS(TTM)3.94
EY4.82%
EPS(NY)4.4
Fwd EY5.38%
FCF(TTM)-4.37
FCFYN/A
OCF(TTM)10.09
OCFY12.34%
SpS26.73
BVpS34.73
TBVpS33.91
PEG (NY)2.93
PEG (5Y)3.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 8.65% | ||
| ROCE | 5.11% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.77% | ||
| ROICexgc | 3.8% | ||
| OM | 25.88% | ||
| PM (TTM) | 11.24% | ||
| GM | 90.79% | ||
| 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%
ROICexcg growth 3Y6.05%
ROICexcg 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-Score5
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.33 | ||
| Cap/Depr | 261.69% | ||
| Cap/Sales | 54.08% | ||
| Interest Coverage | 2.57 | ||
| Cash Conversion | 81.08% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 1 |
F-Score5
WACC6.44%
ROIC/WACC0.57
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)17.29%
EPS 3Y6.69%
EPS 5Y6.36%
EPS Q2Q%51.85%
EPS Next Y7.08%
EPS Next 2Y9.67%
EPS Next 3Y10.07%
EPS Next 5Y9.58%
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y0.39%
Revenue growth 5Y1.78%
Sales Q2Q%1.87%
Revenue Next Year1.5%
Revenue Next 2Y3.94%
Revenue Next 3Y4.78%
Revenue Next 5Y6.23%
EBIT growth 1Y20.26%
EBIT growth 3Y9.35%
EBIT growth 5Y10.42%
EBIT Next Year96.84%
EBIT Next 3Y35.83%
EBIT Next 5Y25.31%
FCF growth 1Y5.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y49.77%
OCF growth 3Y24.95%
OCF growth 5Y9.77%