ENTERGY CORP (ETR) Stock Fundamental Analysis
NYSE:ETR - New York Stock Exchange, Inc. - US29364G1031 - Common Stock - Currency: USD
We assign a fundamental rating of 4 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. 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.
ETR had positive earnings in each of the past 5 years.
Each year in the past 5 years ETR had a positive operating cash flow.
1.2 Ratios
ETR's Return On Assets of 2.01% is on the low side compared to the rest of the industry. ETR is outperformed by 71.74% of its industry peers.
Looking at the Return On Equity, with a value of 8.65%, ETR is in line with its industry, outperforming 41.30% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.68%, ETR is in line with its industry, outperforming 45.65% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ETR is significantly below the industry average of 45.26%.
The 3 year average ROIC (3.21%) for ETR is below the current ROIC(3.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 8.65% | ||
| ROIC | 3.68% |
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 11.24%, ETR is in line with its industry, outperforming 43.48% of the companies in the same industry.
In the last couple of years the Profit Margin of ETR has declined.
With a decent Operating Margin value of 25.88%, ETR is doing good in the industry, outperforming 76.09% 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 90.79% is amongst the best of the industry. ETR outperforms 93.48% 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 | 25.88% | ||
| PM (TTM) | 11.24% | ||
| GM | 90.79% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ETR is destroying value.
The number of shares outstanding for ETR has been increased compared to 1 year ago.
ETR has more shares outstanding than it did 5 years ago.
ETR has a worse debt/assets ratio than last year.
2.2 Solvency
ETR has an Altman-Z score of 0.98. This is a bad value and indicates that ETR is not financially healthy and even has some risk of bankruptcy.
ETR has a better Altman-Z score (0.98) than 69.57% of its industry peers.
A Debt/Equity ratio of 1.91 is on the high side and indicates that ETR has dependencies on debt financing.
With a Debt to Equity ratio value of 1.91, ETR is not doing good in the industry: 71.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.98 |
ROIC/WACC0.57
WACC6.45%
2.3 Liquidity
A Current Ratio of 0.82 indicates that ETR may have some problems paying its short term obligations.
ETR has a Current ratio (0.82) which is in line with its industry peers.
A Quick Ratio of 0.55 indicates that ETR may have some problems paying its short term obligations.
With a Quick ratio value of 0.55, ETR perfoms like the industry average, outperforming 45.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
ETR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.29%, which is quite good.
The Earnings Per Share has been growing slightly by 6.36% on average over the past years.
ETR shows a decrease in Revenue. In the last year, the revenue decreased by -0.24%.
ETR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.78% yearly.
EPS 1Y (TTM)17.29%
EPS 3Y6.69%
EPS 5Y6.36%
EPS Q2Q%51.85%
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y0.39%
Revenue growth 5Y1.78%
Sales Q2Q%1.87%
3.2 Future
The Earnings Per Share is expected to grow by 9.49% on average over the next years. This is quite good.
Based on estimates for the next years, ETR will show a small growth in Revenue. The Revenue will grow by 6.23% on average per year.
EPS Next Y6.97%
EPS Next 2Y9.66%
EPS Next 3Y10.06%
EPS Next 5Y9.49%
Revenue Next Year2.59%
Revenue Next 2Y4.27%
Revenue Next 3Y4.81%
Revenue Next 5Y6.23%
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.
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 21.02 indicates a rather expensive valuation of ETR.
Compared to the rest of the industry, the Price/Earnings ratio of ETR indicates a slightly more expensive valuation: ETR is more expensive than 60.87% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, ETR is valued at the same level.
With a Price/Forward Earnings ratio of 18.84, ETR is valued on the expensive side.
ETR's Price/Forward Earnings is on the same level as the industry average.
ETR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | 18.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ETR is valued a bit cheaper than the industry average as 63.04% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ETR may justify a higher PE ratio.
PEG (NY)3.02
PEG (5Y)3.3
EPS Next 2Y9.66%
EPS Next 3Y10.06%
5. Dividend
5.1 Amount
ETR has a Yearly Dividend Yield of 2.95%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.45, ETR is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.36, ETR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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
75.86% of the earnings are spent on dividend by ETR. This is not a sustainable payout ratio.
DP75.86%
EPS Next 2Y9.66%
EPS Next 3Y10.06%
82.82
+1.54 (+1.89%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.88%
Inst Owner Change6.56%
Ins Owners0.21%
Ins Owner Change7.7%
Market Cap36.97B
Analysts76.67
Price Target92.3 (11.45%)
Short Float %2.3%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
Yearly Dividend2.34
Dividend Growth(5Y)-9.03%
DP75.86%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.46%
Min EPS beat(2)2.66%
Max EPS beat(2)18.26%
EPS beat(4)3
Avg EPS beat(4)7.12%
Min EPS beat(4)-0.41%
Max EPS beat(4)18.26%
EPS beat(8)5
Avg EPS beat(8)1.84%
EPS beat(12)7
Avg EPS beat(12)2.06%
EPS beat(16)8
Avg EPS beat(16)1.47%
Revenue beat(2)0
Avg Revenue beat(2)-10.54%
Min Revenue beat(2)-14.57%
Max Revenue beat(2)-6.51%
Revenue beat(4)0
Avg Revenue beat(4)-8.66%
Min Revenue beat(4)-14.57%
Max Revenue beat(4)-5.18%
Revenue beat(8)0
Avg Revenue beat(8)-14.24%
Revenue beat(12)3
Avg Revenue beat(12)-4.05%
Revenue beat(16)7
Avg Revenue beat(16)-0.31%
PT rev (1m)1.58%
PT rev (3m)13.92%
EPS NQ rev (1m)6.62%
EPS NQ rev (3m)12.45%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.93%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-2.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | 18.84 | ||
| P/S | 2.99 | ||
| P/FCF | N/A | ||
| P/OCF | 7.92 | ||
| P/B | 2.3 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 11.36 |
EPS(TTM)3.94
EY4.76%
EPS(NY)4.4
Fwd EY5.31%
FCF(TTM)-4.52
FCFYN/A
OCF(TTM)10.45
OCFY12.62%
SpS27.7
BVpS35.99
TBVpS35.13
PEG (NY)3.02
PEG (5Y)3.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.01% | ||
| ROE | 8.65% | ||
| ROCE | 5.11% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.77% | ||
| ROICexgc | 3.8% | ||
| OM | 25.88% | ||
| PM (TTM) | 11.24% | ||
| GM | 90.79% | ||
| 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-Score5
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.33 | ||
| Cap/Depr | 261.69% | ||
| Cap/Sales | 54.08% | ||
| Interest Coverage | 2.57 | ||
| Cash Conversion | 81.08% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 0.98 |
F-Score5
WACC6.45%
ROIC/WACC0.57
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)17.29%
EPS 3Y6.69%
EPS 5Y6.36%
EPS Q2Q%51.85%
EPS Next Y6.97%
EPS Next 2Y9.66%
EPS Next 3Y10.06%
EPS Next 5Y9.49%
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y0.39%
Revenue growth 5Y1.78%
Sales Q2Q%1.87%
Revenue Next Year2.59%
Revenue Next 2Y4.27%
Revenue Next 3Y4.81%
Revenue Next 5Y6.23%
EBIT growth 1Y20.26%
EBIT growth 3Y9.35%
EBIT growth 5Y10.42%
EBIT Next Year89.06%
EBIT Next 3Y34.56%
EBIT Next 5Y25.31%
FCF growth 1Y5.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y49.77%
OCF growth 3Y24.95%
OCF growth 5Y9.77%