Today we're going to take a closer look at large-cap Industrials company Duke Energy, whose shares are currently trading at $92.18. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:
Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. The company belongs to the Industrials sector, which has an average price to earnings (P/E) ratio of 20.49 and an average price to book (P/B) ratio of 3.78. In contrast, Duke Energy has a trailing 12 month P/E ratio of 18.9 and a P/B ratio of 1.5.
Duke Energy's PEG ratio is 2.85, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.
Growing Revenues With a Flat Capital Expenditure Trend:
| 2020-02-20 | 2021-02-25 | 2022-02-24 | 2023-02-27 | |
|---|---|---|---|---|
| Revenue (MM) | $25,079 | $23,366 | $24,621 | $28,768 |
| Gross Margins | 46.1% | 48.6% | 48.6% | 45.1% |
| Operating Margins | 22.8% | 23.7% | 23.7% | 22.3% |
| Net Margins | 14.94% | 5.89% | 15.87% | 8.86% |
| Net Income (MM) | $3,748 | $1,377 | $3,908 | $2,550 |
| Net Interest Expense (MM) | -$2,204 | -$2,097 | -$2,207 | -$2,439 |
| Depreciation & Amort. (MM) | -$5,176 | -$5,486 | -$5,663 | -$5,843 |
| Earnings Per Share | $5.09 | $1.72 | $4.94 | $4.88 |
| EPS Growth | n/a | -66.21% | 187.21% | -1.21% |
| Diluted Shares (MM) | 729 | 738 | 769 | 771 |
| Free Cash Flow (MM) | $19,331 | $18,763 | $18,005 | $17,294 |
| Capital Expenditures (MM) | -$11,122 | -$9,907 | -$9,715 | -$11,367 |
| Net Current Assets (MM) | -$101,724 | -$104,522 | -$108,367 | -$113,002 |
| Current Ratio | 0.62 | 0.53 | 0.63 | 0.7 |
| Long Term Debt (MM) | $54,985 | $55,625 | $60,448 | $67,061 |
| Net Debt / EBITDA | 5.75 | 6.84 | 5.8 | 7.1 |
