Entergy Corporation
Entergy Corporation Fundamental Analysis
Entergy Corporation (ETR) shows moderate financial fundamentals with a PE ratio of 29.40, profit margin of 13.56%, and ROE of 10.63%. The company generates $13.3B in annual revenue with moderate year-over-year growth of 8.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 25.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ETR's fundamental strength across five key dimensions:
Efficiency Score
WeakETR struggles to generate sufficient returns from assets.
Valuation Score
ModerateETR shows balanced valuation metrics.
Growth Score
ExcellentETR delivers strong and consistent growth momentum.
Financial Health Score
WeakETR carries high financial risk with limited liquidity.
Profitability Score
WeakETR struggles to sustain strong margins.
Key Financial Metrics
Is ETR Expensive or Cheap?
P/E Ratio
ETR trades at 29.40 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ETR's PEG of 1.08 indicates fair valuation.
Price to Book
The market values Entergy Corporation at 3.05 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 3.84 times EBITDA. This is generally considered low.
How Well Does ETR Make Money?
Net Profit Margin
For every $100 in sales, Entergy Corporation keeps $13.56 as profit after all expenses.
Operating Margin
Core operations generate 22.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.63 in profit for every $100 of shareholder equity.
ROA
Entergy Corporation generates $2.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Entergy Corporation generates strong operating cash flow of $5.47B, reflecting robust business health.
Free Cash Flow
Entergy Corporation generates weak or negative free cash flow of $-3.01B, restricting financial flexibility.
FCF Per Share
Each share generates $-6.58 in free cash annually.
FCF Yield
ETR converts -5.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.005
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.96
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How ETR Stacks Against Its Sector Peers
| Metric | ETR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.40 | 20.42 | Worse (Expensive) |
| ROE | 10.63% | 900.00% | Weak |
| Net Margin | 13.56% | 724.00% | Weak |
| Debt/Equity | 1.96 | 1.46 | Weak (High Leverage) |
| Current Ratio | 0.96 | 1.30 | Weak Liquidity |
| ROA | 2.38% | -4801.00% (disorted) | Weak |
ETR outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Entergy Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
15.90%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
14.14%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
73.37%
Industry Style: Defensive, Dividend, Income
High Growth