Duke Energy Corp

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DUK : NYSE : Utilities
$84.25 | %
Today's Range: 84.215 - 85.4
Avg. Daily Volume: 2321400.0
09/22/17 - 4:01 PM ET

Financial Analysis


DUKE ENERGY CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. DUKE ENERGY CORP has very weak liquidity. Currently, the Quick Ratio is 0.15 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.48% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)5555.05213.0
EBITDA ($mil)2252.02101.0
EBIT ($mil)1417.01311.0
Net Income ($mil)686.0509.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)298.0676.0
Total Assets ($mil)135004.0122654.0
Total Debt ($mil)53003.044585.0
Equity ($mil)41284.039895.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin40.5440.3
EBITDA Margin40.5440.3
Operating Margin25.5125.15
Sales Turnover0.170.18
Return on Assets1.742.12
Return on Equity6.696.55
Debt Q2 FY17 Q2 FY16
Current Ratio0.620.82
Debt/Capital0.560.53
Interest Expense486.0395.0
Interest Coverage2.923.32


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)699.95689.0
Div / share0.860.83
EPS0.980.9
Book value / share58.9857.9
Institutional Own % n/a n/a
Avg Daily Volume2257531.02527073.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 27.92 for the Electric Utilities industry and a discount compared to the S&P 500 average of 24.88. Conducting a second comparison, its price-to-book ratio of 1.48 indicates a significant discount versus the S&P 500 average of 3.10 and a discount versus the industry average of 2.04. 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 22.10 Peers 27.92   DUK 9.73 Peers 8.86

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

DUK is trading at a discount to 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 18.07 Peers 19.36   DUK 0.92 Peers 2.26

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 1.48 Peers 2.04   DUK 4.21 Peers -4.09

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 significant discount to its peers.

 

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

DUK is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DUK 2.67 Peers 2.37   DUK 2.38 Peers 14.17

Premium. 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 premium to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

DUK significantly trails its peers on the basis of sales growth

 

 

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