ENTERGY CORP (ETR) Stock Fundamental Analysis
USA - NYSE:ETR - US29364G1031 - Common Stock
96.05 USD
+0.59 (+0.62%)
95.61 USD
-0.44 (-0.46%)
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. 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.
ETR had a positive operating cash flow in the past year.
ETR had positive earnings in each of the past 5 years.
ETR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ETR's Return On Assets of 2.59% is in line compared to the rest of the industry. ETR outperforms 46.81% of its industry peers.
With a Return On Equity value of 10.66%, ETR perfoms like the industry average, outperforming 57.45% of the companies in the same industry.
ETR's Return On Invested Capital of 3.84% is in line compared to the rest of the industry. ETR outperforms 40.43% of its industry peers.
ETR had an Average Return On Invested Capital over the past 3 years of 3.21%. This is in line with the industry average of 4.89%.
The 3 year average ROIC (3.21%) for ETR is below the current ROIC(3.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.59% | ||
| ROE | 10.66% | ||
| ROIC | 3.84% |
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
With a Profit Margin value of 14.21%, ETR perfoms like the industry average, outperforming 51.06% of the companies in the same industry.
In the last couple of years the Profit Margin of ETR has declined.
Looking at the Operating Margin, with a value of 26.04%, ETR belongs to the top of the industry, outperforming 85.11% of the companies in the same industry.
In the last couple of years the Operating Margin of ETR has grown nicely.
The Gross Margin of ETR (89.70%) is better than 93.62% of its industry peers.
ETR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.04% | ||
| PM (TTM) | 14.21% | ||
| GM | 89.7% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ETR is destroying value.
Compared to 1 year ago, ETR has more shares outstanding
The number of shares outstanding for ETR has been increased compared to 5 years ago.
ETR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that ETR is in the distress zone and has some risk of bankruptcy.
ETR has a better Altman-Z score (1.04) than 61.70% of its industry peers.
ETR has a Debt/Equity ratio of 1.68. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.68, ETR is doing worse than 70.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.04 |
ROIC/WACC0.59
WACC6.46%
2.3 Liquidity
ETR has a Current Ratio of 0.71. This is a bad value and indicates that ETR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of ETR (0.71) is worse than 65.96% of its industry peers.
ETR has a Quick Ratio of 0.71. 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 Quick ratio value of 0.48, ETR is not doing good in the industry: 70.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.73% over the past year.
Measured over the past 5 years, ETR shows a small growth in Earnings Per Share. The EPS has been growing by 6.36% on average per year.
ETR shows a small growth in Revenue. In the last year, the Revenue has grown by 7.32%.
The Revenue has been growing slightly by 1.78% on average over the past years.
EPS 1Y (TTM)24.73%
EPS 3Y6.69%
EPS 5Y6.36%
EPS Q2Q%2.34%
Revenue 1Y (TTM)7.32%
Revenue growth 3Y0.39%
Revenue growth 5Y1.78%
Sales Q2Q%12.48%
3.2 Future
Based on estimates for the next years, ETR will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.40% on average per year.
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.
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
With a Price/Earnings ratio of 23.66, ETR is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of ETR indicates a rather expensive valuation: ETR more expensive than 82.98% of the companies listed in the same industry.
ETR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.75 indicates a rather expensive valuation of ETR.
Based on the Price/Forward Earnings ratio, ETR is valued expensively inside the industry as 82.98% of the companies are valued cheaper.
ETR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 21.75 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ETR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ETR does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ETR may justify a higher PE ratio.
PEG (NY)3.07
PEG (5Y)3.72
EPS Next 2Y9.93%
EPS Next 3Y10.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.51%, ETR has a reasonable but not impressive dividend return.
ETR's Dividend Yield is slightly below the industry average, which is at 3.24.
ETR's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| 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
58.63% of the earnings are spent on dividend by ETR. This is a bit on the high side, but may be sustainable.
DP58.63%
EPS Next 2Y9.93%
EPS Next 3Y10.41%
96.05
+0.59 (+0.62%)
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 Cap42.88B
Revenue(TTM)12.73B
Net Income(TTM)1.81B
Analysts77.5
Price Target103.6 (7.86%)
Short Float %2.39%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Yearly Dividend2.34
Dividend Growth(5Y)-9.03%
DP58.63%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.76%
Min EPS beat(2)4.55%
Max EPS beat(2)12.96%
EPS beat(4)4
Avg EPS beat(4)9.61%
Min EPS beat(4)2.66%
Max EPS beat(4)18.26%
EPS beat(8)5
Avg EPS beat(8)1.9%
EPS beat(12)7
Avg EPS beat(12)0.91%
EPS beat(16)10
Avg EPS beat(16)2.96%
Revenue beat(2)2
Avg Revenue beat(2)6.66%
Min Revenue beat(2)5.07%
Max Revenue beat(2)8.26%
Revenue beat(4)2
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-14.57%
Max Revenue beat(4)8.26%
Revenue beat(8)2
Avg Revenue beat(8)-8.22%
Revenue beat(12)3
Avg Revenue beat(12)-6.43%
Revenue beat(16)7
Avg Revenue beat(16)-0.32%
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 | 23.66 | ||
| Fwd PE | 21.75 | ||
| P/S | 3.37 | ||
| P/FCF | N/A | ||
| P/OCF | 8.07 | ||
| P/B | 2.53 | ||
| P/tB | 2.58 | ||
| EV/EBITDA | 12.06 |
EPS(TTM)4.06
EY4.23%
EPS(NY)4.42
Fwd EY4.6%
FCF(TTM)-5.3
FCFYN/A
OCF(TTM)11.9
OCFY12.39%
SpS28.52
BVpS38.03
TBVpS37.2
PEG (NY)3.07
PEG (5Y)3.72
Graham Number58.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.59% | ||
| ROE | 10.66% | ||
| ROCE | 5.34% | ||
| ROIC | 3.84% | ||
| ROICexc | 3.94% | ||
| ROICexgc | 3.96% | ||
| OM | 26.04% | ||
| PM (TTM) | 14.21% | ||
| GM | 89.7% | ||
| 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 | 1.68 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.88 | ||
| Cap/Depr | 304.33% | ||
| Cap/Sales | 60.33% | ||
| Interest Coverage | 2.58 | ||
| Cash Conversion | 90.99% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.04 |
F-Score4
WACC6.46%
ROIC/WACC0.59
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)24.73%
EPS 3Y6.69%
EPS 5Y6.36%
EPS Q2Q%2.34%
EPS Next Y7.7%
EPS Next 2Y9.93%
EPS Next 3Y10.41%
EPS Next 5Y10.4%
Revenue 1Y (TTM)7.32%
Revenue growth 3Y0.39%
Revenue growth 5Y1.78%
Sales Q2Q%12.48%
Revenue Next Year0.59%
Revenue Next 2Y3.58%
Revenue Next 3Y4.54%
Revenue Next 5Y5.92%
EBIT growth 1Y39.59%
EBIT growth 3Y9.35%
EBIT growth 5Y10.42%
EBIT Next Year92.15%
EBIT Next 3Y36.2%
EBIT Next 5Y25.31%
FCF growth 1Y-162.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y32.57%
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 23.66 and the Price/Book (PB) ratio is 2.53.
Is the dividend of ENTERGY CORP sustainable?
The dividend rating of ENTERGY CORP (ETR) is 3 / 10 and the dividend payout ratio is 58.63%.