ENTERGY CORP (ETR) Stock Fundamental Analysis
USA - NYSE:ETR - US29364G1031 - Common Stock
93.35 USD
-0.68 (-0.72%)
93.55 USD
+0.2 (+0.21%)
We assign a fundamental rating of 3 out of 10 to ETR. ETR was compared to 46 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 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.
In the past 5 years ETR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ETR (2.59%) is comparable to the rest of the industry.
ETR has a Return On Equity (10.66%) which is in line with its industry peers.
The Return On Invested Capital of ETR (3.84%) is worse than 63.04% 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 5.00%.
The last Return On Invested Capital (3.84%) for ETR is above the 3 year average (3.21%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 14.21%. This is comparable to the rest of the industry: ETR outperforms 56.52% of its industry peers.
ETR's Profit Margin has declined in the last couple of years.
ETR's Operating Margin of 26.04% is amongst the best of the industry. ETR outperforms 86.96% of its industry peers.
In the last couple of years the Operating Margin of ETR has grown nicely.
ETR has a Gross Margin of 89.70%. This is amongst the best in the industry. ETR outperforms 93.48% 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
Compared to 5 years ago, ETR has more shares outstanding
Compared to 1 year ago, ETR has a worse debt to assets ratio.
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.
ETR's Altman-Z score of 1.03 is fine compared to the rest of the industry. ETR outperforms 63.04% of its industry peers.
A Debt/Equity ratio of 1.68 is on the high side and indicates that ETR has dependencies on debt financing.
ETR has a Debt to Equity ratio of 1.68. This is in the lower half of the industry: ETR underperforms 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.03 |
ROIC/WACC0.6
WACC6.45%
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's Current ratio of 0.71 is on the low side compared to the rest of the industry. ETR is outperformed by 71.74% 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.
ETR has a Quick ratio of 0.48. This is in the lower half of the industry: ETR underperforms 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
ETR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.73%, which is quite impressive.
The Earnings Per Share has been growing slightly by 6.36% on average over the past years.
Looking at the last year, ETR shows a small growth in Revenue. The Revenue has grown by 7.32% in the last year.
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 10.41% on average per year.
ETR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.37% yearly.
EPS Next Y8.05%
EPS Next 2Y10.02%
EPS Next 3Y10.52%
EPS Next 5Y10.41%
Revenue Next Year1.9%
Revenue Next 2Y4.68%
Revenue Next 3Y5.59%
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 22.99 indicates a rather expensive valuation of ETR.
ETR's Price/Earnings ratio is rather expensive when compared to the industry. ETR is more expensive than 82.61% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.07, ETR is valued at the same level.
The Price/Forward Earnings ratio is 21.10, 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 80.43% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, ETR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.99 | ||
| Fwd PE | 21.1 |
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)2.86
PEG (5Y)3.61
EPS Next 2Y10.02%
EPS Next 3Y10.52%
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.
Compared to an average industry Dividend Yield of 3.77, ETR is paying slightly less dividend.
ETR's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| 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
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 2Y10.02%
EPS Next 3Y10.52%
93.35
-0.68 (-0.72%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners96.01%
Inst Owner Change2.19%
Ins Owners0.19%
Ins Owner Change0.38%
Market Cap41.67B
Revenue(TTM)12.73B
Net Income(TTM)1.81B
Analysts77.5
Price Target103.6 (10.98%)
Short Float %2.68%
Short Ratio4.42
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)9.11%
PT rev (3m)10.75%
EPS NQ rev (1m)-6.21%
EPS NQ rev (3m)-10%
EPS NY rev (1m)0.56%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)3.42%
Revenue NQ rev (3m)2.07%
Revenue NY rev (1m)1.41%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.99 | ||
| Fwd PE | 21.1 | ||
| P/S | 3.27 | ||
| P/FCF | N/A | ||
| P/OCF | 7.84 | ||
| P/B | 2.45 | ||
| P/tB | 2.51 | ||
| EV/EBITDA | 11.85 |
EPS(TTM)4.06
EY4.35%
EPS(NY)4.42
Fwd EY4.74%
FCF(TTM)-5.3
FCFYN/A
OCF(TTM)11.9
OCFY12.75%
SpS28.52
BVpS38.03
TBVpS37.2
PEG (NY)2.86
PEG (5Y)3.61
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 | 1.03 |
F-Score4
WACC6.45%
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 Y8.05%
EPS Next 2Y10.02%
EPS Next 3Y10.52%
EPS Next 5Y10.41%
Revenue 1Y (TTM)7.32%
Revenue growth 3Y0.39%
Revenue growth 5Y1.78%
Sales Q2Q%12.48%
Revenue Next Year1.9%
Revenue Next 2Y4.68%
Revenue Next 3Y5.59%
Revenue Next 5Y6.37%
EBIT growth 1Y39.59%
EBIT growth 3Y9.35%
EBIT growth 5Y10.42%
EBIT Next Year92.15%
EBIT Next 3Y36.2%
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 2 / 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 22.99 and the Price/Book (PB) ratio is 2.45.
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%.