ENTERGY CORP (ETR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ETR - US29364G1031 - Common Stock
91.19 USD
-0.12 (-0.13%)
91.19 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to ETR. ETR was compared to 46 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ETR was profitable.
ETR had a positive operating cash flow in the past year.
In the past 5 years ETR has always been profitable.
ETR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ETR has a Return On Assets of 2.59%. This is comparable to the rest of the industry: ETR outperforms 47.83% of its industry peers.
Looking at the Return On Equity, with a value of 10.66%, ETR is in line with its industry, outperforming 56.52% of the companies in the same industry.
ETR has a worse Return On Invested Capital (3.84%) than 60.87% 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 4.58%.
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's Profit Margin of 14.21% is in line compared to the rest of the industry. ETR outperforms 54.35% of its industry peers.
In the last couple of years the Profit Margin of ETR has declined.
With an excellent Operating Margin value of 26.04%, ETR belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
In the last couple of years the Operating Margin of ETR has grown nicely.
With an excellent Gross Margin value of 89.70%, ETR belongs to the best of the industry, outperforming 93.48% 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 | 26.04% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ETR is destroying value.
ETR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ETR has been increased compared to 5 years ago.
ETR has a worse debt/assets ratio than last year.
2.2 Solvency
ETR has an Altman-Z score of 1.02. This is a bad value and indicates that ETR is not financially healthy and even has some risk of bankruptcy.
ETR has a Altman-Z score of 1.02. This is in the better half of the industry: ETR outperforms 69.57% of its industry peers.
ETR has a Debt/Equity ratio of 1.68. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.68, ETR is doing worse than 63.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.02 |
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 has a worse Current ratio (0.71) than 73.91% of its industry peers.
A Quick Ratio of 0.48 indicates that ETR may have some problems paying its short term obligations.
ETR's Quick ratio of 0.48 is on the low side compared to the rest of the industry. ETR is outperformed by 80.43% 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.
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
The Earnings Per Share is expected to grow by 10.20% 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 6.37% on average per year.
EPS Next Y8.03%
EPS Next 2Y9.98%
EPS Next 3Y10.57%
EPS Next 5Y10.2%
Revenue Next Year2.08%
Revenue Next 2Y4.68%
Revenue Next 3Y5.61%
Revenue Next 5Y6.37%
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
ETR is valuated rather expensively with a Price/Earnings ratio of 22.46.
Compared to the rest of the industry, the Price/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/Earnings ratio of 26.92, ETR is valued at the same level.
ETR is valuated rather expensively with a Price/Forward Earnings ratio of 20.63.
Based on the Price/Forward Earnings ratio, ETR is valued expensively inside the industry as 80.43% of the companies are valued cheaper.
When comparing the Price/Forward Earnings ratio of ETR to the average of the S&P500 Index (23.57), we can say ETR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.46 | ||
| Fwd PE | 20.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ETR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.7 |
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)2.8
PEG (5Y)3.53
EPS Next 2Y9.98%
EPS Next 3Y10.57%
5. Dividend
5.1 Amount
ETR has a Yearly Dividend Yield of 2.77%.
Compared to an average industry Dividend Yield of 3.05, ETR is paying slightly less dividend.
ETR's Dividend Yield is a higher than the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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.
ETR has decreased its dividend 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 2Y9.98%
EPS Next 3Y10.57%
91.19
-0.12 (-0.13%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners96.92%
Inst Owner Change0%
Ins Owners0.2%
Ins Owner Change-0.4%
Market Cap40.73B
Revenue(TTM)12.73B
Net Income(TTM)1.81B
Analysts77.5
Price Target105.43 (15.62%)
Short Float %2.81%
Short Ratio4.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
Yearly Dividend2.34
Dividend Growth(5Y)-9.03%
DP58.63%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)0.88%
PT rev (3m)11.04%
EPS NQ rev (1m)-1.85%
EPS NQ rev (3m)-9.13%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.46 | ||
| Fwd PE | 20.63 | ||
| P/S | 3.2 | ||
| P/FCF | N/A | ||
| P/OCF | 7.67 | ||
| P/B | 2.4 | ||
| P/tB | 2.45 | ||
| EV/EBITDA | 11.7 |
EPS(TTM)4.06
EY4.45%
EPS(NY)4.42
Fwd EY4.85%
FCF(TTM)-5.3
FCFYN/A
OCF(TTM)11.89
OCFY13.04%
SpS28.5
BVpS38.01
TBVpS37.19
PEG (NY)2.8
PEG (5Y)3.53
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 | 1.02 |
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 Y8.03%
EPS Next 2Y9.98%
EPS Next 3Y10.57%
EPS Next 5Y10.2%
Revenue 1Y (TTM)7.32%
Revenue growth 3Y0.39%
Revenue growth 5Y1.78%
Sales Q2Q%12.48%
Revenue Next Year2.08%
Revenue Next 2Y4.68%
Revenue Next 3Y5.61%
Revenue Next 5Y6.37%
EBIT growth 1Y39.59%
EBIT growth 3Y9.35%
EBIT growth 5Y10.42%
EBIT Next Year93.2%
EBIT Next 3Y36.64%
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.
What is the valuation status for ETR stock?
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.
Can you provide the financial health for ETR stock?
The financial health rating of ENTERGY CORP (ETR) is 0 / 10.
Can you provide the expected EPS growth for ETR stock?
The Earnings per Share (EPS) of ENTERGY CORP (ETR) is expected to grow by 8.03% in the next year.