Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A+ . The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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Highlights from the ratings report include:
- DUK's revenue growth has slightly outpaced the industry average of 0.5%. Since the same quarter one year prior, revenues slightly increased by 1.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- 35.50% is the gross profit margin for DUKE ENERGY CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.40% is above that of the industry average.
- Net operating cash flow has increased to $1,130.00 million or 49.47% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 5.98%.
- DUKE ENERGY CORP reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DUKE ENERGY CORP increased its bottom line by earning $3.84 versus $3.00 in the prior year. This year, the market expects an improvement in earnings ($4.28 versus $3.84).
- The net income growth from the same quarter one year ago has exceeded that of the Electric Utilities industry average, but is less than that of the S&P 500. The net income increased by 2.1% when compared to the same quarter one year prior, going from $435.00 million to $444.00 million.
Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States and Latin America. The company operates in three segments: U.S. Franchised Electric and Gas, Commercial Power, and International Energy. The U.S. The company has a P/E ratio of 19.7, below the average utilities industry P/E ratio of 20.2 and above the S&P 500 P/E ratio of 17.7. Duke Energy has a market cap of $30.35 billion and is part of the
industry. Shares are up 0.1% year to date as of the close of trading on Wednesday.
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--Written by a member of TheStreet Ratings Staff.