Now trading at a price of $95.33, Duke Energy has moved -0.0% so far today.
Duke Energy returned losses of -7.5% last year, with its stock price reaching a high of $106.43 and a low of $83.06. Over the same period, the stock underperformed the S&P 500 index by -22.5%. As of April 2023, the company's 50-day average price was $89.44. Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. Based in Charlotte, NC, the large-cap Industrials company has 27,859 full time employees. Duke Energy has returned a 4.2% dividend yield over the last 12 months, but this may not be sustainable seen that the company has a choppy cash flow record.
Growing Revenues With Increasing Reinvestment in the Business:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $24,521 | $25,079 | $23,366 | $24,621 | $28,768 | $29,199 |
| Revenue Growth | n/a | 2.28% | -6.83% | 5.37% | 16.84% | 1.5% |
| Operating Margins | 19% | 23% | 20% | 22% | 21% | 22% |
| Net Margins | 11% | 15% | 6% | 16% | 13% | 13% |
| Net Income (MM) | $2,666 | $3,748 | $1,377 | $3,908 | $3,778 | $3,829 |
| Net Interest Expense (MM) | $2,094 | $2,204 | $2,097 | $2,207 | $2,439 | $2,900 |
| Depreciation & Amort. (MM) | $4,696 | $5,176 | $5,486 | $5,663 | $5,843 | $5,967 |
| Diluted Shares (MM) | 708 | 729 | 738 | 769 | 770 | 772 |
| Free Cash Flow (MM) | -$2,203 | -$2,913 | -$1,051 | -$1,425 | -$5,440 | -$4,481 |
| Capital Expenditures (MM) | $9,389 | $11,122 | $9,907 | $9,715 | $11,367 | $12,529 |
| Current Ratio | 0.65 | 0.62 | 0.53 | 0.62 | 0.7 | 0.76 |
| Total Debt (MM) | $57,939 | $61,261 | $62,736 | $67,139 | $73,703 | $78,541 |
| Net Debt / EBITDA | 5.42 | 4.84 | 5.27 | 5.01 | 5.39 | 5.52 |
Duke Energy has weak operating margins with a stable trend, declining EPS growth, and a highly leveraged balance sheet. On the other hand, the company has growing revenues and increasing reinvestment in the business working in its favor.
A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:
Duke Energy has a trailing twelve month P/E ratio of 18.9, compared to an average of 22.19 for the Industrials sector. Based on its EPS guidance of $5.97, the company has a forward P/E ratio of 15.0. The 6.8% compound average growth rate of Duke Energy's historical and projected earnings per share yields a PEG ratio of 2.77. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Duke Energy in terms of its equity because its P/B ratio is 1.56 while the sector average is 4.06. The company's shares are currently trading 111.7% above their Graham number.
Analysts Give Duke Energy an Average Rating of Buy:
The 17 analysts following Duke Energy have set target prices ranging from $89.0 to $120.0 per share, for an average of $98.76 with a buy rating. As of April 2023, the company is trading -9.4% 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 66.2% of the company's shares, and the insider ownership rate stands at 0.11%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $6,701,532,015.
