ENTERGY CORP (ETR) Stock Fundamental Analysis
NYSE:ETR - US29364G1031 - Common Stock
89.33 USD
+0.11 (+0.12%)
89.33 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to ETR. 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
ETR had positive earnings in the past year.
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
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's Return On Equity of 10.65% is in line compared to the rest of the industry. ETR outperforms 59.57% of its industry peers.
ETR has a Return On Invested Capital of 3.90%. This is comparable to the rest of the industry: ETR outperforms 44.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ETR is in line with the industry average of 5.03%.
The 3 year average ROIC (3.21%) for ETR is below the current ROIC(3.90%), indicating increased profibility in the last year.
| 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
ETR has a Profit Margin of 14.30%. This is comparable to the rest of the industry: ETR outperforms 53.19% of its industry peers.
ETR's Profit Margin has declined in the last couple of years.
ETR's Operating Margin of 26.88% is amongst the best of the industry. ETR outperforms 87.23% of its industry peers.
ETR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 89.72%, ETR belongs to the top 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ETR is destroying value.
Compared to 1 year ago, ETR has more shares outstanding
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 1.03. This is a bad value and indicates that ETR is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.03, ETR is doing good in the industry, outperforming 61.70% of the companies in the same industry.
ETR has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
ETR has a Debt to Equity ratio of 1.73. This is in the lower half of the industry: ETR underperforms 72.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.03 |
ROIC/WACC0.6
WACC6.47%
2.3 Liquidity
ETR has a Current Ratio of 0.80. 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 Current ratio (0.80) which is comparable to the rest of the industry.
ETR has a Quick Ratio of 0.80. 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 Quick ratio (0.52) than 65.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.56% over the past year.
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
The Earnings Per Share is expected to grow by 9.68% 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 5.67% on average per year.
EPS Next Y7.25%
EPS Next 2Y9.8%
EPS Next 3Y10.17%
EPS Next 5Y9.68%
Revenue Next Year1.01%
Revenue Next 2Y3.8%
Revenue Next 3Y4.79%
Revenue Next 5Y5.67%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.17 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 74.47% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. ETR is around the same levels.
With a Price/Forward Earnings ratio of 20.27, ETR is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ETR indicates a slightly more expensive valuation: ETR is more expensive than 78.72% of the companies listed in the same industry.
ETR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.17 | ||
| Fwd PE | 20.27 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ETR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.83 |
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)3.06
PEG (5Y)3.48
EPS Next 2Y9.8%
EPS Next 3Y10.17%
5. Dividend
5.1 Amount
ETR has a Yearly Dividend Yield of 2.69%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.53, ETR is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, ETR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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.
ETR has decreased its dividend recently.
Dividend Growth(5Y)-9.03%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ETR pays out 58.77% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP58.77%
EPS Next 2Y9.8%
EPS Next 3Y10.17%
89.33
+0.11 (+0.12%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners97.47%
Inst Owner Change-1.99%
Ins Owners0.2%
Ins Owner Change-0.25%
Market Cap39.88B
Analysts76.52
Price Target93.32 (4.47%)
Short Float %2.12%
Short Ratio3.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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)3.28%
PT rev (3m)1.1%
EPS NQ rev (1m)-0.59%
EPS NQ rev (3m)-3.94%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)2.49%
Revenue NQ rev (3m)-3.8%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.17 | ||
| Fwd PE | 20.27 | ||
| P/S | 3.24 | ||
| P/FCF | N/A | ||
| P/OCF | 8.41 | ||
| P/B | 2.41 | ||
| P/tB | 2.47 | ||
| EV/EBITDA | 11.83 |
EPS(TTM)4.03
EY4.51%
EPS(NY)4.41
Fwd EY4.93%
FCF(TTM)-5.76
FCFYN/A
OCF(TTM)10.62
OCFY11.89%
SpS27.57
BVpS37.03
TBVpS36.2
PEG (NY)3.06
PEG (5Y)3.48
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 | 1.03 |
F-Score4
WACC6.47%
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 Y7.25%
EPS Next 2Y9.8%
EPS Next 3Y10.17%
EPS Next 5Y9.68%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y0.39%
Revenue growth 5Y1.78%
Sales Q2Q%12.7%
Revenue Next Year1.01%
Revenue Next 2Y3.8%
Revenue Next 3Y4.79%
Revenue Next 5Y5.67%
EBIT growth 1Y36.15%
EBIT growth 3Y9.35%
EBIT growth 5Y10.42%
EBIT Next Year93.85%
EBIT Next 3Y36.08%
EBIT Next 5Y24.99%
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%