Quick Update for DUK Investors

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
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.