NYSE:DUK

Stock Analysis Report

Executive Summary

Duke Energy Corporation operates as an energy company in the United States.

Rewards

Trading at 64.1% below its fair value

Earnings are forecast to grow 6.08% per year

Earnings grew by 20.1% over the past year

Pays a high and reliable dividend of 4.23%

Risk Analysis

Interest payments are not well covered by earnings

Shareholders have been diluted in the past year



Snowflake Analysis

6 star dividend payer with solid track record.


Similar Companies

Southern

NYSE:SO

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

DUK

0.9%

US Electric Utilities

-1.2%

US Market


1 Year Return

-0.6%

DUK

13.8%

US Electric Utilities

15.5%

US Market

Return vs Industry: DUK underperformed the US Electric Utilities industry which returned 13.8% over the past year.

Return vs Market: DUK underperformed the US Market which returned 15.5% over the past year.


Shareholder returns

DUKIndustryMarket
7 Day0.8%0.9%-1.2%
30 Day-4.1%1.4%1.4%
90 Day-4.8%1.1%4.7%
1 Year3.7%-0.6%17.6%13.8%18.0%15.5%
3 Year36.1%19.5%48.6%33.9%44.8%35.4%
5 Year33.6%7.7%64.0%36.2%67.3%48.9%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DUK ($89.29) is trading below our estimate of fair value ($248.9)

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 (18.6x) compared to the Electric Utilities industry average (23.9x).

PE vs Market: DUK is poor value based on its PE Ratio (18.6x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: DUK is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: DUK is good value based on its PB Ratio (1.5x) compared to the US Electric Utilities industry average (2.2x).


Next Steps

Future Growth

How is Duke Energy forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DUK's forecast earnings growth (6.1% per year) is above the savings rate (1.7%).

Earnings vs Market: DUK's earnings (6.1% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: DUK's revenue (3% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: DUK's revenue (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?

4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DUK has high quality earnings.

Growing Profit Margin: DUK's current net profit margins (14.1%) are higher than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: DUK's earnings have grown by 4.7% per year over the past 5 years.

Accelerating Growth: DUK's earnings growth over the past year (20.1%) exceeds its 5-year average (4.7% per year).

Earnings vs Industry: DUK earnings growth over the past year (20.1%) exceeded the Electric Utilities industry 2%.


Return on Equity

High ROE: DUK's Return on Equity (7.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Duke Energy's financial position?


Financial Position Analysis

Short Term Liabilities: DUK's short term assets ($9.6B) do not cover its short term liabilities ($13.4B).

Long Term Liabilities: DUK's short term assets ($9.6B) do not cover its long term liabilities ($95.1B).


Debt to Equity History and Analysis

Debt Level: DUK's debt to equity ratio (125.3%) is considered high.

Reducing Debt: DUK's debt to equity ratio has increased from 100.5% to 125.3% over the past 5 years.

Debt Coverage: DUK's debt is not well covered by operating cash flow (12%).

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


Balance Sheet

Inventory Level: DUK has a high level of physical assets or inventory.

Debt Coverage by Assets: DUK's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

4.23%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%1.4%markettop25%3.7%industryaverage3.2%forecastin3Years4.4%

Current dividend yield vs market & industry

Notable Dividend: DUK's dividend (4.23%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: DUK's dividend (4.23%) is in the top 25% of dividend payers in the US market (3.71%)


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: At its current payout ratio (77.6%), DUK's 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 (72.3% payout ratio).


Next Steps

Management

What is the CEO of Duke Energy's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Lynn Good (59yo)

6.4yrs

Tenure

US$13,982,960

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 ($USD13.98M) is about average for companies of similar size in the US market ($USD11.01M).

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


Management Age and Tenure

2.5yrs

Average Tenure

55yo

Average Age

Experienced Management: DUK's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

67yo

Average Age

Experienced Board: DUK's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$21,00230 Oct 19
Steven Young
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares221
Max PriceUS$95.03
SellUS$21,07730 Sep 19
Steven Young
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares219
Max PriceUS$96.24
SellUS$409,52103 Sep 19
Douglas Esamann
EntityIndividual
Shares4,430
Max PriceUS$92.45
SellUS$21,08228 Aug 19
Steven Young
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares232
Max PriceUS$90.87
SellUS$1,816,26828 Aug 19
Lloyd Yates
EntityIndividual
Shares20,000
Max PriceUS$90.84
SellUS$154,78622 Aug 19
Dwight Jacobs
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares1,700
Max PriceUS$91.28
SellUS$451,31628 May 19
Lloyd Yates
EntityIndividual
Shares5,117
Max PriceUS$88.21
SellUS$155,60821 May 19
E. McKee
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,781
Max PriceUS$87.37
SellUS$146,06417 May 19
Dwight Jacobs
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares1,700
Max PriceUS$85.92
SellUS$1,348,86604 Mar 19
Lynn Good
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares15,000
Max PriceUS$89.95
SellUS$74,470,12528 Feb 19
Julia Janson
EntityIndividual
Shares8,391
Max PriceUS$8,875.00
SellUS$295,41828 Feb 19
Julia Janson
EntityIndividual
Shares3,328
Max PriceUS$88.79
SellUS$309,77828 Feb 19
Lloyd Yates
EntityIndividual
Shares3,500
Max PriceUS$88.51
SellUS$67,31328 Feb 19
Dhiaa Jamil
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares750
Max PriceUS$89.75
SellUS$174,98321 Feb 19
Melissa Anderson
EntityIndividual
Role
Chief Administrative Officer
Executive VP of Administration & Chief Human Resources Officer
Shares2,000
Max PriceUS$87.50

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.1%.


Management Team

  • Dwight Jacobs (54yo)

    Senior VP

    • Tenure: 1.5yrs
  • Lynn Good (59yo)

    Chairman

    • Tenure: 6.4yrs
    • Compensation: US$13.98m
  • David Fountain (52yo)

    Senior VP of Legal

    • Tenure: 1.1yrs
  • Steve Young (61yo)

    Executive VP & CFO

    • Tenure: 6.3yrs
    • Compensation: US$3.13m
  • Melissa Anderson (54yo)

    Executive VP of Administration & Chief Human Resources Officer

    • Tenure: 3.6yrs
  • Dhiaa Jamil (63yo)

    Executive VP & COO

    • Tenure: 3.6yrs
    • Compensation: US$3.99m
  • Brian Savoy (44yo)

    Senior Vice President of Business Transformation & Technology

    • Tenure: 0yrs
  • Kodwo Ghartey-Tagoe (56yo)

    Executive VP & Chief Legal Officer

    • Tenure: 0.3yrs
  • Bonnie Titone

    Chief Information Officer

    • Tenure: 0.5yrs
  • Bryan Buckler

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Bill Kennard (62yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$291.26k
  • Dan DiMicco (68yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$291.26k
  • Ted Craver (67yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$316.26k
  • E. McKee (68yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$311.26k
  • Carlos Saladrigas (70yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$291.26k
  • Michael Browning (72yo)

    Lead Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$346.26k
  • Wick Moorman (67yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$293.11k
  • Lynn Good (59yo)

    Chairman

    • Tenure: 6.4yrs
    • Compensation: US$13.98m
  • John Herron (66yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$321.26k
  • Bill Webster (65yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$301.26k

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$64.053b
  • Shares outstanding: 729.03m
  • Website: https://www.duke-energy.com

Number of Employees


Location

  • Duke Energy Corporation
  • 550 South Tryon Street
  • Charlotte
  • North Carolina
  • 28202
  • 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
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 operates as an energy company in the United States. It operates through three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renew ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/05 23:59
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.