company background image

Entergy NYSE:ETR Stock Report

Last Price


Market Cap







04 Oct, 2022


Company Financials +
ETR fundamental analysis
Snowflake Score
Future Growth1/6
Past Performance2/6
Financial Health0/6

ETR Stock Overview

Entergy Corporation, together with its subsidiaries, engages in the production and retail distribution of electricity in the United States.

Entergy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Entergy
Historical stock prices
Current Share PriceUS$106.15
52 Week HighUS$126.82
52 Week LowUS$100.18
1 Month Change-8.67%
3 Month Change-4.69%
1 Year Change4.61%
3 Year Change-9.75%
5 Year Change33.29%
Change since IPO349.31%

Recent News & Updates

Sep 12

Entergy: Improving Financials, Solid Performance, Nice Valuation

Summary Entergy is a large electric utility serving four states in America's Deep South region. The company showed strong year-over-year revenue and net income growth during the second quarter, which is likely to continue going forward. The high price of natural gas is weighing a bit on its finances but this should correct itself now that gas prices have retreated. The company has improved its balance sheet a bit but debt still remains very high. The company's valuation is highly attractive relative to its peers. Entergy Corporation (NYSE:ETR) is a regulated electric utility that operates in four states in America's Deep South. This makes the company one of the larger utilities in the nation, as many of them are confined to only a single state. Entergy's $31.38 billion market capitalization certainly reinforces this conclusion as this is one of the highest figures in the utility sector. As might be expected then, Entergy has most of the characteristics that investors in utility companies appreciate. This includes things such as stable cash flows that tend to grow over time. This characteristic was certainly showcased in the company's second quarter 2022 earnings results as Entergy managed to post substantially higher year-over-year revenues and net income. This is unlikely to be a limited-time occurrence either, as the company is well-positioned for continued forward growth. Entergy also boasts a high dividend yield that is frequently characteristic of utilities, which at 3.37% is substantially above the broader market. When we combine this with a very attractive current valuation, Entergy appears to have a lot to offer an investor. About Entergy Corporation As stated in the introduction, Entergy Corporation is a regulated electric utility that operates in four states in America's Deep South region. These four states are Louisiana, Mississippi, Texas, and Arkansas: Entergy Corporation This is one of the interesting areas of the country due to the development that it has seen over the past few decades. As all of my regular readers likely know, Texas and to a lesser extent Louisiana has been the focal point of the nation's energy boom for about ten years. However, the region has seen much more economic and industrial development than just this as various new factories building a variety of products have been set up in Entergy's footprint. It thus may not be surprising that industrial and commercial users consume the majority of Entergy's electrical production, although residential users still account for a not insignificant portion: Entergy Corporation This is a very attractive business mix that provides Entergy with a substantial amount of diversification. This is because commercial and especially industrial users consume substantially more electricity than residential ones do. This should be fairly obvious. However, residential users tend to be considerably more stable customers over the long term. After all, businesses typically cut back on their operations during times of economic weakness, such as what we might see during a recession. However, residential users tend to not change their energy use much regardless of broader economic conditions. Indeed, residential users tend to prioritize paying their utility bills during times when money gets tight since maintaining electricity in a home is far more important to most people than any form of discretionary spending. As investors, stability is not nearly enough to satisfy us. We like to see growth, which Entergy certainly delivered during the second quarter of 2022. During the period, Entergy reported revenues of $3.3952 billion, representing a 20.31% increase over the $2.8221 billion that it reported in the prior-year quarter. However, we are generally concerned more with earnings than we are with revenues. Entergy managed to deliver here as well. During the quarter, Entergy reported an adjusted net income of $1.78 per share compared to $1.34 per share in the year-ago quarter: Entergy Corporation The only real downside here is that Entergy's operating cash flow declined substantially year-over-year. This metric went from $796 million a year ago to $278 million in the most recent quarter. This is not exactly surprising. One of the biggest expenses that an electrical utility has is purchasing natural gas for use in its generating plants. As I have pointed out in many previous articles, natural gas prices are currently substantially higher than they were last year. Indeed, the price of natural gas at Henry Hub has risen an enormous 61.94% over the past year, despite some recent declines: Business Insider The cost of purchasing natural gas weighed heavily on the company's operating cash flows. Fortunately, it was still able to increase its net income. The company is likely to be able to continue to do this going forward. This is because Entergy is continuing to grow its rate base. The rate base is the value of the company's assets upon which regulators allow it to earn a specified rate of return. As this rate of return is a percentage, any increase to the company's rate base allows it to increase the prices that it charges its customers in order to earn that specified rate of return. Thus, the company needs to increase its rate base in order to grow. This is typically accomplished by investing money into upgrading, modernizing, or even expanding its utility-grade infrastructure. Entergy is planning to do exactly this. As I discussed in my last article on Entergy, the company is planning to invest $11.7 billion into this task over the 2022 to 2024 period. The company did not provide an updated figure during the second quarter conference call, so presumably, this number is still accurate. I will confess, though, that I would like to see a bit more visibility from management here as the majority of the company's peers have outlined capital spending plans until at least 2026 so it would be nice if this company were to do that as well. Entergy did increase its earnings per share growth rate guidance as a result of its performance during the second quarter, however. As you may recall, I stated in my last article that the company's projected rate base growth positioned it to grow its earnings per share at a 5% to 7% compound annual growth rate over the 2021 to 2024 period. It now appears that this estimate was too low. Entergy is now projected to grow its earnings per share at a 6% to 8% compound annual growth rate over the same period: Entergy Corporation When we combine this with Entergy's current 3.37% dividend yield, investors should be looking at a 9% to 11% total return over the next two years by purchasing the company's stock today. This is roughly in line with the total return that the company was offering back in May due to the fact that the stock price has increased somewhat in response to these improved guidance numbers. It is still a very attractive total return for a utility, however. Financial Considerations It is important to look at the way that a company finances itself before making an investment in it. This is because debt is a risker way to finance a business than equity because debt must be repaid at maturity. As this is usually accomplished by issuing new debt to replace the maturing debt, a company may see its interest costs increase following such an event, depending on the conditions in the market. In addition, a company must make regular payments on its debt if it is to remain solvent. Thus, an event that causes a company's cash flows to decline could push it into insolvency if it has too much debt. Although utilities tend to enjoy remarkably stable cash flows, bankruptcies are certainly not unheard of in the sector. Indeed, we have already seen that Entergy's operating cash flows declined substantially during the most recent quarter so this is certainly a risk that we should not ignore. One metric that we can use to evaluate a company's financial structure is the net debt-to-equity ratio. This ratio tells us the degree to which a company is financing its operations with debt as opposed to wholly-owned funds. It also tells us how well a company's equity can cover its debt obligations in the event of a bankruptcy or liquidation event, which is arguably more important. As of June 30, 2022, Entergy Corporation had $26.2709 billion of net debt compared to $12.0380 billion of shareholders' equity. This gives the company a net debt-to-equity ratio of 2.18. this is an improvement over the figure that the company had back in May, which is nice because the company's high leverage has long been one of my biggest concerns about it. With that said though, here is how Entergy compares to some of its peers: Company Net Debt-to-Equity Entergy Corporation 2.18 DTE Energy (DTE) 2.23 Eversource Energy (ES) 1.41 Exelon Corporation (EXC) 1.60 Fortis Inc. (FTS) 1.22 As we can see here, with the exception of DTE Energy, Entergy still has substantially higher leverage than many of its peers. Although the company is certainly boasting a stronger balance sheet than it did at the end of the first quarter, this is still a very real concern as it indicates that the company may be carrying too much debt. As we saw earlier in this article, Entergy's cash flows declined substantially due to rising natural gas prices. This high debt load could thus create problems for the company if the price of natural gas rises much above the level that it had in the second quarter. This is a very real possibility long-term so we should keep an eye on Entergy's debt load to see if the company continues to make strides in reducing it. Dividend Analysis One of the biggest reasons that investors purchase utilities is because they have historically been one of the highest-yielding sectors in the market. This makes a great deal of sense since the sector is characterized by generally low growth so many of these companies deliver a greater proportion of their total return to investors via their dividends than a company in a high-growth sector would. Entergy is certainly no exception to this as the stock currently yields 3.37%, which is substantially above the 1.48% yield of the S&P 500 index (SPY). Perhaps even better, Entergy has a long history of increasing its dividend on an annual basis: Seeking Alpha The history of growing dividend payouts is quite nice during inflationary times, such as the one that we are currently in. This is because inflation is constantly reducing the number of goods and services that we can purchase with the dividend that the company pays out. As a result, an investor that is depending on the dividend to support their lifestyle may feel as if they are getting poorer and poorer over time. The fact that the company increases the amount of money that it pays out every year thus helps to offset this effect and allows us to continue to purchase the same things with the dividend that we always could. As is always the case though, it is critical that we ensure that the company can actually afford the dividend that it pays out. After all, we do not want to find ourselves the victims of a dividend cut since such an event would both reduce our incomes and probably cause the stock price to decline. The usual way that we analyze a company's ability to pay its dividend is by looking at its free cash flow. The free cash flow is the money that is generated by the company's ordinary operations that is left over after it pays all of its bills and makes all capital expenses. This is the money that it can use for things such as reducing debt, buying back stock, or paying a dividend. In the second quarter of 2022, Entergy had a negative levered free cash flow of $1.8839 billion. This is obviously not enough to pay any dividend, let alone the $205.4 million that the company pays out every quarter.

Aug 03
Slowing Rates Of Return At Entergy (NYSE:ETR) Leave Little Room For Excitement

Slowing Rates Of Return At Entergy (NYSE:ETR) Leave Little Room For Excitement

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Amongst other things...

Shareholder Returns

ETRUS Electric UtilitiesUS Market

Return vs Industry: ETR exceeded the US Electric Utilities industry which returned 0.2% over the past year.

Return vs Market: ETR exceeded the US Market which returned -20% over the past year.

Price Volatility

Is ETR's price volatile compared to industry and market?
ETR volatility
ETR Average Weekly Movement3.5%
Electric Utilities Industry Average Movement3.2%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: ETR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ETR's weekly volatility (3%) has been stable over the past year.

About the Company

191312,369Leo Denault

Entergy Corporation, together with its subsidiaries, engages in the production and retail distribution of electricity in the United States. The company operates in two segments, Utility and Entergy Wholesale Commodities. The Utility segment generates, transmits, distributes, and sells electric power in portions of Arkansas, Louisiana, Mississippi, and Texas, including the City of New Orleans; and distributes natural gas.

Entergy Fundamentals Summary

How do Entergy's earnings and revenue compare to its market cap?
ETR fundamental statistics
Market CapUS$21.59b
Earnings (TTM)US$1.23b
Revenue (TTM)US$12.35b


P/E Ratio


P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ETR income statement (TTM)
Cost of RevenueUS$7.22b
Gross ProfitUS$5.13b
Other ExpensesUS$3.90b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 02, 2022

Earnings per share (EPS)6.03
Gross Margin41.53%
Net Profit Margin9.93%
Debt/Equity Ratio223.1%

How did ETR perform over the long term?

See historical performance and comparison



Current Dividend Yield


Payout Ratio
We’ve recently updated our valuation analysis.


Is ETR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score


Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ETR?

Other financial metrics that can be useful for relative valuation.

ETR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.9x
Enterprise Value/EBITDA13.4x
PEG Ratio1.7x

Price to Earnings Ratio vs Peers

How does ETR's PE Ratio compare to its peers?

ETR PE Ratio vs Peers
The above table shows the PE ratio for ETR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average26.9x
FE FirstEnergy
EIX Edison International
AGR Avangrid
ETR Entergy

Price-To-Earnings vs Peers: ETR is good value based on its Price-To-Earnings Ratio (17.6x) compared to the peer average (26.9x).

Price to Earnings Ratio vs Industry

How does ETR's PE Ratio compare vs other companies in the US Electric Utilities Industry?

Price-To-Earnings vs Industry: ETR is good value based on its Price-To-Earnings Ratio (17.6x) compared to the US Electric Utilities industry average (18.2x)

Price to Earnings Ratio vs Fair Ratio

What is ETR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ETR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.6x
Fair PE Ratio24.3x

Price-To-Earnings vs Fair Ratio: ETR is good value based on its Price-To-Earnings Ratio (17.6x) compared to the estimated Fair Price-To-Earnings Ratio (24.3x).

Share Price vs Fair Value

What is the Fair Price of ETR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ETR ($106.15) is trading below our estimate of fair value ($131.17)

Significantly Below Fair Value: ETR is trading below fair value, but not by a significant amount.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

Future Growth

How is Entergy forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score


Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETR's forecast earnings growth (10.3% per year) is above the savings rate (1.9%).

Earnings vs Market: ETR's earnings (10.3% per year) are forecast to grow slower than the US market (14.7% per year).

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

Revenue vs Market: ETR's revenue (3.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ETR's revenue (3.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ETR's Return on Equity is forecast to be low in 3 years time (11.3%).

Discover growth companies

Past Performance

How has Entergy performed over the past 5 years?

Past Performance Score


Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ETR has high quality earnings.

Growing Profit Margin: ETR's current net profit margins (9.9%) are lower than last year (11.3%).

Past Earnings Growth Analysis

Earnings Trend: ETR has become profitable over the past 5 years, growing earnings by 34.4% per year.

Accelerating Growth: ETR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ETR had negative earnings growth (-0.9%) over the past year, making it difficult to compare to the Electric Utilities industry average (10.1%).

Return on Equity

High ROE: ETR's Return on Equity (10.2%) is considered low.

Discover strong past performing companies

Financial Health

How is Entergy's financial position?

Financial Health Score


Financial Health Score 0/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ETR's short term assets ($4.8B) do not cover its short term liabilities ($5.5B).

Long Term Liabilities: ETR's short term assets ($4.8B) do not cover its long term liabilities ($40.2B).

Debt to Equity History and Analysis

Debt Level: ETR's net debt to equity ratio (218.2%) is considered high.

Reducing Debt: ETR's debt to equity ratio has increased from 189.5% to 223.1% over the past 5 years.

Debt Coverage: ETR's debt is not well covered by operating cash flow (8.8%).

Interest Coverage: ETR's interest payments on its debt are not well covered by EBIT (2.4x coverage).

Balance Sheet

Discover healthy companies


What is Entergy current dividend yield, its reliability and sustainability?

Dividend Score


Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


Current Dividend Yield

Dividend Yield vs Market

Entergy Dividend Yield vs Market
How does Entergy dividend yield compare to the market?
SegmentDividend Yield
Company (Entergy)3.8%
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.6%
Industry Average (Electric Utilities)3.2%
Analyst forecast in 3 Years (Entergy)4.2%

Notable Dividend: ETR's dividend (3.81%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: ETR's dividend (3.81%) is low compared to the top 25% of dividend payers in the US market (4.63%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (65.6%), ETR's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: ETR is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies


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


Average management tenure


Leo Denault (62 yo)





Mr. Leo P. Denault has been Chairman and Chief Executive Officer of Entergy Corporation and Entergy Services, LLC since February 1, 2013. Mr. Denault serves as an Executive Officer of Entergy New Orleans I...

CEO Compensation Analysis

Leo Denault's Compensation vs Entergy Earnings
How has Leo Denault's remuneration changed compared to Entergy's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a


Mar 31 2022n/an/a


Dec 31 2021US$17mUS$1m


Sep 30 2021n/an/a


Jun 30 2021n/an/a


Mar 31 2021n/an/a


Dec 31 2020US$16mUS$1m


Sep 30 2020n/an/a


Jun 30 2020n/an/a


Mar 31 2020n/an/a


Dec 31 2019US$14mUS$1m


Sep 30 2019n/an/a


Jun 30 2019n/an/a


Mar 31 2019n/an/a


Dec 31 2018US$10mUS$1m


Sep 30 2018n/an/a


Jun 30 2018n/an/a


Mar 31 2018n/an/a


Dec 31 2017US$13mUS$1m


Sep 30 2017n/an/a


Jun 30 2017n/an/a


Mar 31 2017n/an/a


Dec 31 2016US$13mUS$1m


Sep 30 2016n/an/a


Jun 30 2016n/an/a


Mar 31 2016n/an/a


Dec 31 2015US$13mUS$1m


Compensation vs Market: Leo's total compensation ($USD17.05M) is above average for companies of similar size in the US market ($USD13.04M).

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

Leadership Team

Experienced Management: ETR's management team is considered experienced (4.1 years average tenure).

Board Members

Experienced Board: ETR's board of directors are considered experienced (9.5 years average tenure).


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

Insider Trading Volume

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

Recent Insider Transactions

NYSE:ETR Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
06 Sep 22SellUS$22,146Alexis HermanIndividual190US$116.56
18 Aug 22SellUS$19,376Alexis HermanIndividual161US$120.35
29 Apr 22SellUS$30,776Deanna RodriguezIndividual256US$120.22
10 Mar 22SellUS$20,141Alexis HermanIndividual185US$108.87
04 Mar 22SellUS$503,685Marcus BrownIndividual4,500US$111.93
04 Mar 22SellUS$150,903Kimberly FontanIndividual1,350US$111.78
04 Mar 22SellUS$559,250Paul HinnenkampIndividual5,000US$111.85
25 Feb 22SellUS$79,065Haley FisackerlyIndividual750US$105.42
25 Feb 22SellUS$527,000Paul HinnenkampIndividual5,000US$105.40
08 Dec 21SellUS$20,300Alexis HermanIndividual193US$105.18
19 Nov 21SellUS$47,588Laura LandreauxIndividual450US$105.75
10 Nov 21SellUS$18,095Alexis HermanIndividual176US$102.81

Ownership Breakdown

What is the ownership structure of ETR?
Owner TypeNumber of SharesOwnership Percentage
State or Government85,9000.04%
Individual Insiders849,1630.4%
General Public18,180,3258.9%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Top 25 shareholders own 65.48% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
The Vanguard Group, Inc.
BlackRock, Inc.
Capital Research and Management Company
State Street Global Advisors, Inc.
Managed Account Advisors LLC
Franklin Resources, Inc.
Geode Capital Management, LLC
J.P. Morgan Asset Management, Inc.
Columbia Management Investment Advisers, LLC
Newport Trust Company, Asset Management Arm
First Sentier Investors (Australia) IM Ltd
Invesco Ltd.
Invesco Capital Management LLC
Pictet Asset Management Limited
Boston Partners Global Investors, Inc.
Legal & General Investment Management Limited
Merrill Lynch & Co. Inc., Banking Investments
T. Rowe Price Group, Inc.
ClearBridge Investments Limited
Northern Trust Global Investments
Strategic Advisers LLC
Thrivent Investment Management, Inc.
Brookfield Asset Management Inc.
BNY Mellon Asset Management

Company Information

Entergy Corporation's employee growth, exchange listings and data sources

Key Information

  • Name: Entergy Corporation
  • Ticker: ETR
  • Exchange: NYSE
  • Founded: 1913
  • Industry: Electric Utilities
  • Sector: Utilities
  • Implied Market Cap: US$21.593b
  • Shares outstanding: 203.42m
  • Website:

Number of Employees


  • Entergy Corporation
  • 639 Loyola Avenue
  • New Orleans
  • Louisiana
  • 70113
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ETRNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
ETYDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
ETYXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
0IHPLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
E1TR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/04 00:00
End of Day Share Price2022/10/04 00:00
Annual Earnings2021/12/31

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.