Duke Energy Corporation
Duke Energy Corporation Fundamental Analysis
Duke Energy Corporation (DUK) shows moderate financial fundamentals with a PE ratio of 18.35, profit margin of 15.44%, and ROE of 9.85%. The company generates $33.4B in annual revenue with moderate year-over-year growth of 6.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DUK's fundamental strength across five key dimensions:
Efficiency Score
WeakDUK struggles to generate sufficient returns from assets.
Valuation Score
ModerateDUK shows balanced valuation metrics.
Growth Score
ExcellentDUK delivers strong and consistent growth momentum.
Financial Health Score
WeakDUK carries high financial risk with limited liquidity.
Profitability Score
ModerateDUK maintains healthy but balanced margins.
Key Financial Metrics
Is DUK Expensive or Cheap?
P/E Ratio
DUK trades at 18.35 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DUK's PEG of 2.08 indicates potential overvaluation.
Price to Book
The market values Duke Energy Corporation at 1.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.40 times EBITDA. This is generally considered low.
How Well Does DUK Make Money?
Net Profit Margin
For every $100 in sales, Duke Energy Corporation keeps $15.44 as profit after all expenses.
Operating Margin
Core operations generate 26.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.85 in profit for every $100 of shareholder equity.
ROA
Duke Energy Corporation generates $2.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Duke Energy Corporation generates strong operating cash flow of $11.71B, reflecting robust business health.
Free Cash Flow
Duke Energy Corporation generates strong free cash flow of $6.62B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.49 in free cash annually.
FCF Yield
DUK converts 6.99% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.66
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How DUK Stacks Against Its Sector Peers
| Metric | DUK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.35 | 19.43 | Neutral |
| ROE | 9.85% | 902.00% | Weak |
| Net Margin | 15.44% | 857.00% | Weak |
| Debt/Equity | 1.66 | 1.39 | Neutral |
| Current Ratio | 0.66 | 1.39 | Weak Liquidity |
| ROA | 2.59% | -4817.00% (disorted) | Weak |
DUK outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Duke Energy Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
30.86%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
242.21%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
32.30%
Industry Style: Defensive, Dividend, Income
High Growth