NYSE:DUK

Stock Analysis Report

Executive Summary

Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States.

Rewards

Trading at 31.6% below its fair value

Earnings are forecast to grow 5.78% per year

Earnings grew by 39.8% over the past year

Pays a high and reliable dividend of 4.72%

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has Duke Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DUK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

18.8%

DUK

8.3%

US Electric Utilities

9.4%

US Market


1 Year Return

-0.2%

DUK

1.1%

US Electric Utilities

-6.8%

US Market

Return vs Industry: DUK underperformed the US Electric Utilities industry which returned -3.1% over the past year.

Return vs Market: DUK matched the US Market which returned -10% over the past year.


Shareholder returns

DUKIndustryMarket
7 Day18.8%8.3%9.4%
30 Day-0.7%-8.8%-3.9%
90 Day-0.1%-9.4%-16.5%
1 Year4.1%-0.2%4.3%1.1%-4.8%-6.8%
3 Year24.4%9.3%25.0%13.1%23.4%15.2%
5 Year44.9%16.8%58.3%32.1%41.3%25.7%

Price Volatility Vs. Market

How volatile is Duke Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Duke Energy undervalued compared to its fair value and its price relative to the market?

22.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DUK ($80.11) is trading below our estimate of fair value ($117.18)

Significantly Below Fair Value: DUK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DUK is good value based on its PE Ratio (15.8x) compared to the Electric Utilities industry average (20.2x).

PE vs Market: DUK is poor value based on its PE Ratio (15.8x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: DUK is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: DUK is good value based on its PB Ratio (1.3x) compared to the US Electric Utilities industry average (1.9x).


Next Steps

Future Growth

How is Duke Energy forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DUK's forecast earnings growth (5.8% per year) is above the savings rate (1.7%).

Earnings vs Market: DUK's earnings (5.8% per year) are forecast to grow slower than the US market (13.3% per year).

High Growth Earnings: DUK's earnings are forecast to grow, but not significantly.

Revenue vs Market: DUK's revenue (2.3% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: DUK's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DUK's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

Past Performance

How has Duke Energy performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DUK has high quality earnings.

Growing Profit Margin: DUK's current net profit margins (15%) are higher than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: DUK's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: DUK's earnings growth over the past year (39.8%) exceeds its 5-year average (7% per year).

Earnings vs Industry: DUK earnings growth over the past year (39.8%) exceeded the Electric Utilities industry 6%.


Return on Equity

High ROE: DUK's Return on Equity (7.5%) is considered low.


Next Steps

Financial Health

How is Duke Energy's financial position?


Financial Position Analysis

Short Term Liabilities: DUK's short term assets ($9.2B) do not cover its short term liabilities ($14.8B).

Long Term Liabilities: DUK's short term assets ($9.2B) do not cover its long term liabilities ($96.1B).


Debt to Equity History and Analysis

Debt Level: DUK's debt to equity ratio (125.7%) is considered high.

Reducing Debt: DUK's debt to equity ratio has increased from 103.7% to 125.7% over the past 5 years.

Debt Coverage: DUK's debt is not well covered by operating cash flow (13.6%).

Interest Coverage: DUK's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Duke Energy's current dividend yield, its reliability and sustainability?

4.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DUK's dividend (4.72%) is higher than the bottom 25% of dividend payers in the US market (1.93%).

High Dividend: DUK's dividend (4.72%) is low compared to the top 25% of dividend payers in the US market (5.46%).


Stability and Growth of Payments

Stable Dividend: DUK's dividends per share have been stable in the past 10 years.

Growing Dividend: DUK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.9%), DUK's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DUK's dividends in 3 years are forecast to be covered by earnings (72.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Lynn Good (59yo)

6.75s

Tenure

US$15,029,386

Compensation

Ms. Lynn J. Good has been the Chairman of the Board of Edison Electric Institute since June 2018. Ms. Good serves as the President at Duke Energy Carolinas, LLC since July 1, 2013. Ms. Good has been the Ch ...


CEO Compensation Analysis

Compensation vs Market: Lynn's total compensation ($USD15.03M) is about average for companies of similar size in the US market ($USD11.79M).

Compensation vs Earnings: Lynn's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Lynn Good
Chairman6.75yrsUS$15.03m0.037% $24.8m
Steven Young
Executive VP & CFO6.67yrsUS$3.78m0.011% $7.2m
Dhiaa Jamil
Executive VP & COO3.92yrsUS$4.66m0.0034% $2.2m
Julia Janson
Executive VP of External Affairs & President of Carolinas Region1.25yrsUS$3.96m0.0035% $2.3m
Douglas Esamann
Executive VP of Energy Solutions and President of Midwest/Florida Regions & Natural Gas Business3.83yrsUS$3.61m0.0091% $6.0m
Dwight Jacobs
Senior VP1.83yrsno data0.00095% $629.8k
Bonnie Titone
Chief Information Officer0.83yrno datano data
Brian Savoy
Senior VP and Chief Transformation & Administrative Officer0.50yrno data0.0011% $722.6k
Bryan Buckler
Vice President of Investor Relationsno datano datano data
David Fountain
Senior VP of Legal1.42yrsno datano data

1.8yrs

Average Tenure

57yo

Average Age

Experienced Management: DUK's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Lynn Good
Chairman6.75yrsUS$15.03m0.037% $24.8m
William Kennard
Independent Director6.25yrsUS$301.17kno data
Daniel DiMicco
Independent Director12.5yrsUS$291.24k0.0045% $3.0m
Theodore Craver
Independent Director3.08yrsUS$316.24k0.00078% $517.1k
E. McKee
Independent Director7.75yrsUS$311.24kno data
Carlos Saladrigas
Independent Director7.75yrsUS$291.24k0.00043% $285.0k
Michael Browning
Lead Independent Director4.25yrsUS$359.35k0.0083% $5.5m
Charles Moorman
Independent Director4.08yrsUS$291.24k0.00089% $590.0k
John Herron
Independent Director7.08yrsUS$311.24k0.0027% $1.8m
William Webster
Independent Director3.58yrsUS$301.48k0.00014% $92.8k

5.3yrs

Average Tenure

67yo

Average Age

Experienced Board: DUK's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DUK insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.


Top Shareholders

Company Information

Duke Energy Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Duke Energy Corporation
  • Ticker: DUK
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: US$66.290b
  • Shares outstanding: 734.03m
  • Website: https://www.duke-energy.com

Number of Employees


Location

  • Duke Energy Corporation
  • 550 South Tryon Street
  • Charlotte
  • North Carolina
  • 28202-1803
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DUKNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
D2MNDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0ID1LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
D2MNBRSE (Berne Stock Exchange)YesCommon StockCHCHFJan 1968
D2MNETLX (Eurotlx)YesCommon StockITEURJan 1968
DUKEWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
DUK *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
DUKB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD0.001BRBRLOct 2016
DUK.PRANYSE (New York Stock Exchange)DP REP PFD AUSUSDMar 2019
A2R7SRDB (Deutsche Boerse AG)4.875%-FRN SUB PERP USD 'B'DEUSDSep 2019

Biography

Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables. The Electric Utilities and Infrastructure segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest; and uses coal, hydroelectric, natural gas, oil, renewable sources, and nuclear fuel to generate electricity. It also engages in the wholesale of electricity to municipalities, electric cooperative utilities, and load-serving entities. This segment serves approximately 7.8 million retail electric customers in 6 states in the Southeast and Midwest regions of the United States covering a service territory of approximately 91,000 square miles; and owns approximately 51,144 megawatts (MW) of generation capacity. The Gas Utilities and Infrastructure segment distributes natural gas to residential, commercial, industrial, and power generation natural gas customers; and owns, operates, and invests in pipeline transmission and natural gas storage facilities. It has approximately 1.6 million customers, including 1.1 million customers in North Carolina, South Carolina, and Tennessee, as well as 535,000 customers in southwestern Ohio and northern Kentucky. The Commercial Renewables segment acquires, owns, develops, builds, and operates wind and solar renewable generation projects, including nonregulated renewable energy and energy storage services to utilities, electric cooperatives, municipalities, and commercial and industrial customers. It has 22 wind, 126 solar, and 1 battery storage facilities, as well as 11 fuel cell locations with a capacity of 2,282 MW across 19 states. The company was formerly known as Duke Energy Holding Corp. and changed its name to Duke Energy Corporation in April 2005. The company was incorporated in 2005 and is headquartered in Charlotte, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 04:00
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.