ENTERGY CORP (ETR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ETR - US29364G1031 - Common Stock
92.35 USD
-0.97 (-1.04%)
92.35 USD
0 (0%)
Overall ETR gets a fundamental rating of 3 out of 10. We evaluated ETR against 48 industry peers in the Electric Utilities industry. While ETR is still in line with the averages on profitability rating, there are concerns on its financial health. ETR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ETR was profitable.
In the past year ETR had a positive cash flow from operations.
Each year in the past 5 years ETR has been profitable.
Each year in the past 5 years ETR had a positive operating cash flow.
1.2 Ratios
ETR has a Return On Assets of 2.59%. This is comparable to the rest of the industry: ETR outperforms 47.92% of its industry peers.
ETR's Return On Equity of 10.66% is in line compared to the rest of the industry. ETR outperforms 56.25% of its industry peers.
The Return On Invested Capital of ETR (3.84%) is worse than 62.50% 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 4.95%.
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
ETR's Profit Margin of 14.21% is in line compared to the rest of the industry. ETR outperforms 56.25% of its industry peers.
ETR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 26.04%, ETR belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Operating Margin of ETR has grown nicely.
ETR's Gross Margin of 89.70% is amongst the best of the industry. ETR outperforms 91.67% of its industry peers.
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 | 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
ETR 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, ETR has more shares outstanding
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
Based on the Altman-Z score of 1.03, we must say that ETR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.03, ETR is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
ETR has a Debt/Equity ratio of 1.68. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ETR (1.68) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.03 |
ROIC/WACC0.6
WACC6.44%
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.
ETR has a Current ratio of 0.71. This is in the lower half of the industry: ETR underperforms 77.08% 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.
The Quick ratio of ETR (0.48) is worse than 83.33% of its industry peers.
| 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.
ETR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.36% yearly.
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
ETR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.20% yearly.
The Revenue is expected to grow by 6.37% on average over the next years.
EPS Next Y8.01%
EPS Next 2Y10.01%
EPS Next 3Y10.6%
EPS Next 5Y10.2%
Revenue Next Year1.59%
Revenue Next 2Y4.45%
Revenue Next 3Y5.45%
Revenue Next 5Y6.37%
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 22.75 indicates a rather expensive valuation of ETR.
ETR's Price/Earnings ratio is a bit more expensive when compared to the industry. ETR is more expensive than 79.17% of the companies in the same industry.
ETR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.54.
Based on the Price/Forward Earnings ratio of 20.88, the valuation of ETR can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ETR is valued expensively inside the industry as 81.25% of the companies are valued cheaper.
ETR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.75 | ||
| Fwd PE | 20.88 |
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 | 11.85 |
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)2.84
PEG (5Y)3.58
EPS Next 2Y10.01%
EPS Next 3Y10.6%
5. Dividend
5.1 Amount
ETR has a Yearly Dividend Yield of 2.71%. Purely for dividend investing, there may be better candidates out there.
ETR's Dividend Yield is slightly below the industry average, which is at 3.42.
Compared to an average S&P500 Dividend Yield of 2.27, ETR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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 58.63% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP58.63%
EPS Next 2Y10.01%
EPS Next 3Y10.6%
92.35
-0.97 (-1.04%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners96.88%
Inst Owner Change2.34%
Ins Owners0.2%
Ins Owner Change-0.4%
Market Cap41.24B
Revenue(TTM)12.73B
Net Income(TTM)1.81B
Analysts77.5
Price Target105.23 (13.95%)
Short Float %98.72%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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)8.89%
Min EPS beat(2)4.81%
Max EPS beat(2)12.96%
EPS beat(4)4
Avg EPS beat(4)9.67%
Min EPS beat(4)2.66%
Max EPS beat(4)18.26%
EPS beat(8)5
Avg EPS beat(8)1.93%
EPS beat(12)7
Avg EPS beat(12)0.93%
EPS beat(16)10
Avg EPS beat(16)2.98%
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)1.58%
PT rev (3m)12.76%
EPS NQ rev (1m)-1.17%
EPS NQ rev (3m)-6.27%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)-2.32%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.75 | ||
| Fwd PE | 20.88 | ||
| P/S | 3.24 | ||
| P/FCF | N/A | ||
| P/OCF | 7.76 | ||
| P/B | 2.43 | ||
| P/tB | 2.48 | ||
| EV/EBITDA | 11.85 |
EPS(TTM)4.06
EY4.4%
EPS(NY)4.42
Fwd EY4.79%
FCF(TTM)-5.3
FCFYN/A
OCF(TTM)11.89
OCFY12.88%
SpS28.5
BVpS38.01
TBVpS37.19
PEG (NY)2.84
PEG (5Y)3.58
Graham Number58.93
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 | 1.03 |
F-Score4
WACC6.44%
ROIC/WACC0.6
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 Y8.01%
EPS Next 2Y10.01%
EPS Next 3Y10.6%
EPS Next 5Y10.2%
Revenue 1Y (TTM)7.32%
Revenue growth 3Y0.39%
Revenue growth 5Y1.78%
Sales Q2Q%12.48%
Revenue Next Year1.59%
Revenue Next 2Y4.45%
Revenue Next 3Y5.45%
Revenue Next 5Y6.37%
EBIT growth 1Y39.59%
EBIT growth 3Y9.35%
EBIT growth 5Y10.42%
EBIT Next Year93.78%
EBIT Next 3Y36.83%
EBIT Next 5Y25.12%
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 22.75 and the Price/Book (PB) ratio is 2.43.
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%.