DUK Investors - Our Quick Report For You.

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.

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.