ENTERGY CORP (ETR) Stock Fundamental Analysis
USA - NYSE:ETR - US29364G1031 - Common Stock
95.39 USD
+1.82 (+1.95%)
95.39 USD
0 (0%)
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. While ETR is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
In the past year ETR had a positive cash flow from operations.
In the past 5 years ETR has always 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 2.57%. This is comparable to the rest of the industry: ETR outperforms 42.55% of its industry peers.
ETR has a Return On Equity of 10.65%. This is comparable to the rest of the industry: ETR outperforms 57.45% of its industry peers.
With a Return On Invested Capital value of 3.90%, ETR perfoms like the industry average, outperforming 44.68% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ETR is in line with the industry average of 4.95%.
The last Return On Invested Capital (3.90%) for ETR is above the 3 year average (3.21%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 14.30%, ETR is in line with its industry, outperforming 53.19% of the companies in the same industry.
In the last couple of years the Profit Margin of ETR has declined.
ETR has a better Operating Margin (26.88%) than 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.
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 | 26.88% | ||
| 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
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
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 1.06, we must say that ETR is in the distress zone and has some risk of bankruptcy.
ETR has a better Altman-Z score (1.06) than 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.
With a Debt to Equity ratio value of 1.73, ETR is not doing good in the industry: 72.34% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.06 |
ROIC/WACC0.6
WACC6.48%
2.3 Liquidity
A Current Ratio of 0.80 indicates that ETR may have some problems paying its short term obligations.
ETR has a Current ratio (0.80) which is in line with its industry peers.
A Quick Ratio of 0.52 indicates that ETR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.52, ETR is doing worse than 65.96% of the companies in the same industry.
| 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.
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.
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
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.
ETR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.92% yearly.
EPS Next Y7.45%
EPS Next 2Y9.86%
EPS Next 3Y10.28%
EPS Next 5Y10.4%
Revenue Next Year0.48%
Revenue Next 2Y3.56%
Revenue Next 3Y4.65%
Revenue Next 5Y5.92%
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
The Price/Earnings ratio is 23.67, which indicates a rather expensive current valuation of ETR.
ETR's Price/Earnings ratio is rather expensive when compared to the industry. ETR is more expensive than 82.98% of the companies in the same industry.
ETR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.86.
The Price/Forward Earnings ratio is 21.62, which indicates a rather expensive current valuation of ETR.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, ETR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.67 | ||
| Fwd PE | 21.62 |
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 | 12.3 |
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.
ETR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.18
PEG (5Y)3.72
EPS Next 2Y9.86%
EPS Next 3Y10.28%
5. Dividend
5.1 Amount
ETR has a Yearly Dividend Yield of 2.56%.
ETR's Dividend Yield is slightly below the industry average, which is at 3.37.
Compared to an average S&P500 Dividend Yield of 2.44, ETR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
The dividend of ETR decreases each year by -9.03%.
ETR has been paying a dividend for at least 10 years, so it has 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 2Y9.86%
EPS Next 3Y10.28%
95.39
+1.82 (+1.95%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners96.01%
Inst Owner Change0.03%
Ins Owners0.19%
Ins Owner Change0.97%
Market Cap42.58B
Analysts77.5
Price Target94.95 (-0.46%)
Short Float %2.58%
Short Ratio4.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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)1.75%
PT rev (3m)6.69%
EPS NQ rev (1m)-1.47%
EPS NQ rev (3m)-2.8%
EPS NY rev (1m)0.19%
EPS NY rev (3m)0.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.67 | ||
| Fwd PE | 21.62 | ||
| P/S | 3.46 | ||
| P/FCF | N/A | ||
| P/OCF | 8.98 | ||
| P/B | 2.58 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | 12.3 |
EPS(TTM)4.03
EY4.22%
EPS(NY)4.41
Fwd EY4.62%
FCF(TTM)-5.76
FCFYN/A
OCF(TTM)10.62
OCFY11.13%
SpS27.57
BVpS37.03
TBVpS36.2
PEG (NY)3.18
PEG (5Y)3.72
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%
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-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 | 1.06 |
F-Score4
WACC6.48%
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)18.56%
EPS 3Y6.69%
EPS 5Y6.36%
EPS Q2Q%9.38%
EPS Next Y7.45%
EPS Next 2Y9.86%
EPS Next 3Y10.28%
EPS Next 5Y10.4%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y0.39%
Revenue growth 5Y1.78%
Sales Q2Q%12.7%
Revenue Next Year0.48%
Revenue Next 2Y3.56%
Revenue Next 3Y4.65%
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%