Duke Energy Corp

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DUK : NYSE : Utilities
$86.50 | %
Today's Range: 85.00 - 86.57
Avg. Daily Volume: 3,110,100
07/22/16 - 4:01 PM ET

Financial Analysis


DUKE ENERGY CORP's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. DUKE ENERGY CORP has very weak liquidity. Currently, the Quick Ratio is 0.22 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.82% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)5623.06065.0
EBITDA ($mil)2167.02254.0
EBIT ($mil)1353.01477.0
Net Income ($mil)694.0864.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)778.02821.0
Total Assets ($mil)121709.0122142.0
Total Debt ($mil)43793.043763.0
Equity ($mil)39892.041051.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin38.5437.16
EBITDA Margin38.5337.16
Operating Margin24.0624.35
Sales Turnover0.190.19
Return on Assets2.172.32
Return on Equity6.86.05
Debt Q1 FY16 Q1 FY15
Current Ratio0.731.04
Debt/Capital0.520.52
Interest Expense411.0403.0
Interest Coverage3.293.67


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)689.0708.0
Div / share0.830.8
EPS1.01.09
Book value / share57.957.98
Institutional Own % n/a n/a
Avg Daily Volume3142663.03750571.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.13 for the Electric Utilities industry and a discount compared to the S&P 500 average of 25.03. For additional comparison, its price-to-book ratio of 1.46 indicates a discount versus the S&P 500 average of 2.80 and a discount versus the industry average of 1.93. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, DUKE ENERGY CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DUK 21.51 Peers 22.13   DUK 8.40 Peers 8.75

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

DUK is trading at a valuation on par with its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

DUK is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DUK 17.77 Peers 17.84   DUK 1.49 Peers 4.02

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

DUK is trading at a valuation on par with its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

DUK trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DUK 1.46 Peers 1.93   DUK 12.57 Peers 12.71

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

DUK is trading at a discount to its peers.

 

Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

DUK is expected to keep pace with its peers on the basis of earnings growth.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DUK 2.54 Peers 2.33   DUK -3.01 Peers -5.26

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

DUK is trading at a valuation on par with its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

DUK has a sales growth rate that significantly exceeds its peers.

 

 

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