Duke Energy returned losses of -19.7% last year, with its stock price reaching a high of $113.67 and a low of $83.76. Over the same period, the stock underperformed the S&P 500 index by -22.0%. As of April 2023, the company's 50-day average price was $95.8. Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. Based in Charlotte, NC, the large-cap Utilities company has 27,859 full time employees. Duke Energy has offered a 4.4% dividend yield over the last 12 months.
Exceptional Profitability Overshadowed by Excessive Leverage:
|Net Income (MM)||$3,748||$1,377||$3,908||$2,669|
|Net Interest Income||-$2,204,000||-$2,162,000||-$2,280,000||-$2,439,000|
|Depreciation & Amort.||-$4,548,000||-$4,705,000||-$4,990,000||-$5,086,000|
|Earnings Per Share||$5.06||$1.72||$4.94||$4.88|
|Diluted Shares (MM)||729||738||769||771|
|Free Cash Flow (MM)||$8,209||$8,856||$8,290||$5,927|
|Capital Expenditures (MM)||-$11,122||-$9,907||-$9,715||-$11,367|
|Net Current Assets (MM)||-$101,724||-$104,522||-$108,511||-$113,053|
|Long Term Debt (MM)||$54,985||$55,625||$60,448||$67,061|
|Net Debt / EBITDA||5.53||7.8||5.87||7.1|
Duke Energy has growing revenues and a flat capital expenditure trend and strong margins with a stable trend. Additionally, the company's financial statements display a steady stream of strong cash flows and wider gross margins than its peer group. However, the firm has a highly leveraged balance sheet. Finally, we note that Duke Energy has flat EPS growth.
Duke Energy's Valuation Is in Line With Its Sector Averages:
Duke Energy has a trailing twelve month P/E ratio of 19.6, compared to an average of 22.89 for the Utilities sector. Based on its EPS guidance of $5.99, the company has a forward P/E ratio of 16.0. The 3.4% compound average growth rate of Duke Energy's historical and projected earnings per share yields a PEG ratio of 5.72. This suggests that these shares are overvalued. Furthermore, Duke Energy is likely overvalued compared to the book value of its equity, since its P/B ratio of 1.47 is higher than the sector average of 1.03. The company's shares are currently trading 19.2% above their Graham number.
There's an Analyst Consensus of Some Upside Potential for Duke Energy:
The 13 analysts following Duke Energy have set target prices ranging from $102.0 to $120.0 per share, for an average of $109.08 with a buy rating. As of April 2023, the company is trading -12.2% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Duke Energy has a very low short interest because 1.0% of the company's shares are sold short. Institutions own 65.4% of the company's shares, and the insider ownership rate stands at 0.12%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 9% stake in the company is worth $6,334,634,506.