ENTERGY CORP (ETR) Stock Fundamental Analysis
NYSE:ETR - New York Stock Exchange, Inc. - US29364G1031 - Common Stock - Currency: USD
Taking everything into account, ETR scores 4 out of 10 in our fundamental rating. 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.
In the past 5 years ETR always reported a positive cash flow from operatings.
1.2 Ratios
ETR has a Return On Assets of 1.63%. This is in the lower half of the industry: ETR underperforms 67.39% of its industry peers.
The Return On Equity of ETR (6.85%) is worse than 63.04% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.40%, ETR is in line with its industry, outperforming 43.48% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ETR is in line with the industry average of 4.68%.
The last Return On Invested Capital (3.40%) for ETR is above the 3 year average (3.21%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.63% | ||
| ROE | 6.85% | ||
| ROIC | 3.4% |
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 8.89%. This is comparable to the rest of the industry: ETR outperforms 43.48% of its industry peers.
ETR's Profit Margin has declined in the last couple of years.
ETR's Operating Margin of 23.22% is fine compared to the rest of the industry. ETR outperforms 67.39% of its industry peers.
ETR's Operating Margin has improved in the last couple of years.
ETR has a better Gross Margin (91.70%) than 95.65% of its industry peers.
ETR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.22% | ||
| PM (TTM) | 8.89% | ||
| GM | 91.7% |
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
ETR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for ETR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.99, we must say that ETR is in the distress zone and has some risk of bankruptcy.
ETR has a better Altman-Z score (0.99) than 71.74% of its industry peers.
ETR has a Debt/Equity ratio of 1.79. This is a high value indicating a heavy dependency on external financing.
ETR has a Debt to Equity ratio (1.79) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.99 |
ROIC/WACC0.53
WACC6.38%
2.3 Liquidity
ETR has a Current Ratio of 0.72. This is a bad value and indicates that ETR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of ETR (0.72) is comparable to the rest of the industry.
ETR has a Quick Ratio of 0.72. This is a bad value and indicates that ETR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ETR (0.43) is worse than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.29% 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.
The Revenue has decreased by -2.20% in the past year.
The Revenue has been growing slightly by 1.78% on average over the past years.
EPS 1Y (TTM)17.29%
EPS 3Y6.69%
EPS 5Y6.36%
EPS Q2Q%51.85%
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y0.39%
Revenue growth 5Y1.78%
Sales Q2Q%1.87%
3.2 Future
ETR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.49% yearly.
The Revenue is expected to grow by 6.23% on average over the next years.
EPS Next Y7.06%
EPS Next 2Y9.58%
EPS Next 3Y9.94%
EPS Next 5Y9.49%
Revenue Next Year2.81%
Revenue Next 2Y4.59%
Revenue Next 3Y5.16%
Revenue Next 5Y6.23%
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
Based on the Price/Earnings ratio of 21.44, the valuation of ETR can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ETR indicates a slightly more expensive valuation: ETR is more expensive than 65.22% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ETR to the average of the S&P500 Index (28.22), we can say ETR is valued slightly cheaper.
A Price/Forward Earnings ratio of 19.25 indicates a rather expensive valuation of ETR.
ETR's Price/Forward Earnings ratio is in line with the industry average.
ETR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.44 | ||
| Fwd PE | 19.25 |
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 | 12.12 |
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)3.04
PEG (5Y)3.37
EPS Next 2Y9.58%
EPS Next 3Y9.94%
5. Dividend
5.1 Amount
ETR has a Yearly Dividend Yield of 2.88%.
Compared to an average industry Dividend Yield of 3.44, 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 | 2.88% |
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
94.73% of the earnings are spent on dividend by ETR. This is not a sustainable payout ratio.
DP94.73%
EPS Next 2Y9.58%
EPS Next 3Y9.94%
84.47
+1.1 (+1.32%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners95.88%
Inst Owner Change0.4%
Ins Owners0.21%
Ins Owner Change7.74%
Market Cap36.39B
Analysts76.67
Price Target91.98 (8.89%)
Short Float %2.65%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
Yearly Dividend2.34
Dividend Growth(5Y)-9.03%
DP94.73%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.12%
Min EPS beat(2)-0.41%
Max EPS beat(2)2.66%
EPS beat(4)2
Avg EPS beat(4)-4.72%
Min EPS beat(4)-29.1%
Max EPS beat(4)7.98%
EPS beat(8)4
Avg EPS beat(8)-3.01%
EPS beat(12)6
Avg EPS beat(12)0.33%
EPS beat(16)8
Avg EPS beat(16)1.87%
Revenue beat(2)0
Avg Revenue beat(2)-11.47%
Min Revenue beat(2)-14.57%
Max Revenue beat(2)-8.38%
Revenue beat(4)0
Avg Revenue beat(4)-10.14%
Min Revenue beat(4)-14.57%
Max Revenue beat(4)-5.18%
Revenue beat(8)0
Avg Revenue beat(8)-13.55%
Revenue beat(12)4
Avg Revenue beat(12)-3.22%
Revenue beat(16)8
Avg Revenue beat(16)0.93%
PT rev (1m)2.71%
PT rev (3m)11.08%
EPS NQ rev (1m)4.51%
EPS NQ rev (3m)-1.87%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.01%
Revenue NY rev (1m)-1.55%
Revenue NY rev (3m)-2.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.44 | ||
| Fwd PE | 19.25 | ||
| P/S | 3.06 | ||
| P/FCF | N/A | ||
| P/OCF | 8.11 | ||
| P/B | 2.36 | ||
| P/tB | 2.42 | ||
| EV/EBITDA | 12.12 |
EPS(TTM)3.94
EY4.66%
EPS(NY)4.39
Fwd EY5.2%
FCF(TTM)-3.44
FCFYN/A
OCF(TTM)10.42
OCFY12.34%
SpS27.58
BVpS35.76
TBVpS34.91
PEG (NY)3.04
PEG (5Y)3.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.63% | ||
| ROE | 6.85% | ||
| ROCE | 4.7% | ||
| ROIC | 3.4% | ||
| ROICexc | 3.45% | ||
| ROICexgc | 3.48% | ||
| OM | 23.22% | ||
| PM (TTM) | 8.89% | ||
| GM | 91.7% | ||
| 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%
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 | 1.79 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.29 | ||
| Cap/Depr | 244.3% | ||
| Cap/Sales | 50.25% | ||
| Interest Coverage | 2.47 | ||
| Cash Conversion | 86.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 0.99 |
F-Score5
WACC6.38%
ROIC/WACC0.53
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 Y7.06%
EPS Next 2Y9.58%
EPS Next 3Y9.94%
EPS Next 5Y9.49%
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y0.39%
Revenue growth 5Y1.78%
Sales Q2Q%1.87%
Revenue Next Year2.81%
Revenue Next 2Y4.59%
Revenue Next 3Y5.16%
Revenue Next 5Y6.23%
EBIT growth 1Y3.67%
EBIT growth 3Y9.35%
EBIT growth 5Y10.42%
EBIT Next Year89.06%
EBIT Next 3Y34.56%
EBIT Next 5Y25.31%
FCF growth 1Y-227.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y4.52%
OCF growth 3Y24.95%
OCF growth 5Y9.77%