ENTERGY CORP (ETR)
US29364G1031 - Common Stock
Overall ETR gets a fundamental rating of 5 out of 10. We evaluated ETR against 45 industry peers in the Electric Utilities industry. ETR scores excellent on profitability, but there are concerns on its financial health. ETR has a correct valuation and a medium growth rate. ETR also has an excellent dividend rating.
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.
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
Looking at the Return On Assets, with a value of 3.95%, ETR belongs to the top of the industry, outperforming 84.44% of the companies in the same industry.
ETR's Return On Equity of 15.75% is amongst the best of the industry. ETR outperforms 97.78% of its industry peers.
ETR's Return On Invested Capital of 3.86% is fine compared to the rest of the industry. ETR outperforms 77.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ETR is in line with the industry average of 4.43%.
The 3 year average ROIC (3.24%) for ETR is below the current ROIC(3.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 15.75% | ||
| ROIC | 3.86% |
ROA(3y)2.57%
ROA(5y)2.5%
ROE(3y)11.14%
ROE(5y)11.54%
ROIC(3y)3.24%
ROIC(5y)3.05%
1.3 Margins
Looking at the Profit Margin, with a value of 19.40%, ETR belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
ETR's Profit Margin has improved in the last couple of years.
ETR has a better Operating Margin (21.90%) than 68.89% 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 97.78% of the companies in the same industry.
ETR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.9% | ||
| PM (TTM) | 19.4% | ||
| GM | 90.79% |
OM growth 3Y6.61%
OM growth 5Y19.22%
PM growth 3Y12.23%
PM growth 5Y20.26%
GM growth 3Y0.58%
GM growth 5Y1.68%
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
The number of shares outstanding for ETR has been increased compared to 5 years ago.
ETR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.88, we must say that ETR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ETR (0.88) is better than 66.67% of its industry peers.
ETR has a Debt/Equity ratio of 1.61. This is a high value indicating a heavy dependency on external financing.
ETR has a Debt to Equity ratio (1.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.88 |
ROIC/WACC0.66
WACC5.88%
2.3 Liquidity
ETR has a Current Ratio of 0.57. 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 0.57, ETR is not doing good in the industry: 82.22% of the companies in the same industry are doing better.
ETR has a Quick Ratio of 0.57. 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 0.32 is on the low side compared to the rest of the industry. ETR is outperformed by 91.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
ETR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.96%.
The Earnings Per Share has been decreasing by -1.55% on average over the past years.
ETR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.75%.
Measured over the past years, ETR shows a small growth in Revenue. The Revenue has been growing by 1.99% on average per year.
EPS 1Y (TTM)4.96%
EPS 3Y6.15%
EPS 5Y-1.55%
EPS growth Q2Q1.96%
Revenue 1Y (TTM)-11.75%
Revenue growth 3Y6.3%
Revenue growth 5Y1.99%
Revenue growth Q2Q-16.74%
3.2 Future
The Earnings Per Share is expected to grow by 7.22% on average over the next years.
ETR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.52% yearly.
EPS Next Y7.46%
EPS Next 2Y7.37%
EPS Next 3Y7.32%
EPS Next 5Y7.22%
Revenue Next Year-1.26%
Revenue Next 2Y1.19%
Revenue Next 3Y2.21%
Revenue Next 5Y3.52%
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
ETR is valuated correctly with a Price/Earnings ratio of 15.73.
ETR's Price/Earnings ratio is in line with the industry average.
ETR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.84.
Based on the Price/Forward Earnings ratio of 14.64, the valuation of ETR can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as ETR.
ETR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.73 | ||
| Fwd PE | 14.64 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than ETR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.72 |
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 excellent profitability rating of ETR may justify a higher PE ratio.
PEG (NY)2.11
PEG (5Y)N/A
EPS Next 2Y7.37%
EPS Next 3Y7.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.20%, ETR is a good candidate for dividend investing.
ETR's Dividend Yield is comparable with the industry average which is at 4.20.
ETR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
5.2 History
The dividend of ETR has a limited annual growth rate of 4.31%.
ETR has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.31%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ETR pays out 39.74% of its income as dividend. This is a sustainable payout ratio.
ETR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.74%
EPS Next 2Y7.37%
EPS Next 3Y7.32%
ENTERGY CORP
NYSE:ETR (4/26/2024, 7:04:00 PM)
After market: 106.883 +0.38 (+0.36%)106.5
-1.03 (-0.96%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap22.71B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.73 | ||
| Fwd PE | 14.64 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 15.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.9% | ||
| PM (TTM) | 19.4% | ||
| GM | 90.79% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)4.96%
EPS 3Y6.15%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.75%
Revenue growth 3Y6.3%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y