NYSE:ETR

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.6%

NYSE:ETR

-0.2%

US Electric Utilities

-0.7%

US Market


1 Year Return

28.0%

NYSE:ETR

11.9%

US Electric Utilities

-0.5%

US Market

ETR outperformed the Electric Utilities industry which returned 11.9% over the past year.

ETR outperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

ETRIndustryMarket
7 Day1.6%-0.2%-0.7%
30 Day3.4%1.3%-3.0%
90 Day11.5%4.6%0.9%
1 Year33.0%28.0%15.7%11.9%1.7%-0.5%
3 Year59.5%40.0%34.1%20.6%39.5%30.4%
5 Year82.6%46.4%74.6%44.7%54.1%37.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Entergy undervalued based on future cash flows and its price relative to the stock market?

21.2x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Entergy's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Entergy's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Entergy is good value based on earnings compared to the US Electric Utilities industry average.

Entergy is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Entergy is poor value based on expected growth next year.


Price Based on Value of Assets

Entergy is good value based on assets compared to the US Electric Utilities industry average.


Next Steps

Future Growth

How is Entergy expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Entergy's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).

Entergy's earnings are expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).

Entergy's revenue growth is positive but not above the United States of America market average.

Entergy's earnings growth is positive but not above the United States of America market average.

Entergy's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Entergy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Entergy performed over the past 5 years?

-5.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Entergy's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Entergy's 1-year earnings growth exceeds its 5-year average (223.4% vs -5.7%)

Entergy's earnings growth has exceeded the US Electric Utilities industry average in the past year (223.4% vs 4.2%).


Return on Equity

Entergy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Entergy used its assets less efficiently than the US Electric Utilities industry average last year based on Return on Assets.


Return on Capital Employed

Entergy's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Entergy's financial position?


Financial Position Analysis

Entergy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Entergy's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Entergy's level of debt (189.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (131.7% vs 189.6% today).

Debt is not well covered by operating cash flow (12.4%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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

3.46%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Entergy's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Entergy's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Leo Denault (59yo)

6.5yrs

Tenure

US$10,326,456

Compensation

Mr. Leo P. Denault has been the Chairman and Chief Executive Officer of Entergy Corporation at Entergy Louisiana LLC and System Energy Resources, Inc since February 1, 2013. Mr. Denault serves as the Chief ...


CEO Compensation Analysis

Leo's remuneration is about average for companies of similar size in United States of America.

Leo's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.5yrs

Average Tenure

57yo

Average Age

The tenure for the Entergy management team is about average.


Board Age and Tenure

5.5yrs

Average Tenure

57yo

Average Age

The tenure for the Entergy board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$18,89606 May 19
Alexis Herman
EntityIndividual
Shares195
Max PriceUS$96.90
SellUS$554,34027 Feb 19
Paul Hinnenkamp
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares6,000
Max PriceUS$92.39
SellUS$138,43527 Feb 19
Sallie Rainer
EntityIndividual
Role
Unit Chairman
Chair of the Board
Shares1,500
Max PriceUS$92.29
SellUS$672,47627 Feb 19
Donald Vinci
EntityIndividual
Shares7,300
Max PriceUS$92.12
SellUS$138,88527 Feb 19
Haley Fisackerly
EntityIndividual
Role
Unit Chairman
Chairman
Shares1,500
Max PriceUS$92.59
SellUS$19,33925 Feb 19
Alexis Herman
EntityIndividual
Shares209
Max PriceUS$92.53
SellUS$43,53004 Dec 18
Haley Fisackerly
EntityIndividual
Role
Unit Chairman
Chairman
Shares500
Max PriceUS$87.06
SellUS$18,57121 Nov 18
Alexis Herman
EntityIndividual
Shares217
Max PriceUS$85.58
SellUS$173,22021 Nov 18
Sallie Rainer
EntityIndividual
Role
Unit Chairman
Chair of the Board
Shares2,000
Max PriceUS$86.61
SellUS$308,30415 Nov 18
Marcus Brown
EntityIndividual
Role
Chief Legal Officer
Executive VP & General Counsel
Shares3,600
Max PriceUS$85.64

Ownership Breakdown


Management Team

  • Chris Bakken (58yo)

    Executive VP of Nuclear Operations & Chief Nuclear Officer

    • Tenure: 3.3yrs
    • Compensation: US$3.24m
  • Leo Denault (59yo)

    Chairman & CEO

    • Tenure: 6.5yrs
    • Compensation: US$10.33m
  • Drew Marsh (47yo)

    Executive VP & CFO

    • Tenure: 6.5yrs
    • Compensation: US$2.60m
  • Craig Sorensen

    Director of Corporate Development

    • Tenure: 0.0yrs
  • Rod West (50yo)

    Group President of Utility Operations and Chairman

    • Tenure: 0.0yrs
    • Compensation: US$2.67m
  • Marcus Brown (57yo)

    Executive VP & General Counsel

    • Tenure: 6.6yrs
    • Compensation: US$2.95m
  • Kimberly Fontan (46yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 0.1yrs
  • Paul Hinnenkamp (57yo)

    Executive VP & COO

    • Tenure: 3.8yrs
  • David Borde

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Rob Hatley

    Group Vice President of Corporate Communications

    • Tenure: 0.9yrs

Board Members

  • Philip Frederickson (62yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$275.75k
  • Haley Fisackerly (53yo)

    Chairman

    • Tenure: 0.0yrs
    • Compensation: US$1.21m
  • Leo Denault (59yo)

    Chairman & CEO

    • Tenure: 6.5yrs
    • Compensation: US$10.33m
  • Rod West (50yo)

    Group President of Utility Operations and Chairman

    • Tenure: 0.0yrs
    • Compensation: US$2.67m
  • David Ellis (51yo)

    Chairman of the Board

    • Tenure: 0.0yrs
  • Blanche Lincoln (58yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$290.69k
  • Pat Condon (70yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$314.87k
  • Sallie Rainer (57yo)

    Chair of the Board

    • Tenure: 0.0yrs
    • Compensation: US$1.20m
  • Phillip May (57yo)

    Chairman

    • Tenure: 0.0yrs
    • Compensation: US$1.56m
  • Laura Landreaux (45yo)

    Chair of the Board

    • Tenure: 0.0yrs

Company Information

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


Key Information

  • Name: Entergy Corporation
  • Ticker: ETR
  • Exchange: NYSE
  • Founded: 1949
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: US$21.710b
  • Shares outstanding: 198.83m
  • Website: https://www.entergy.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ETRNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
ETYDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0IHPLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968

Biography

Entergy Corporation, together with its subsidiaries, engages in the production and distribution of electricity in the United States. It generates electricity through gas/oil, nuclear, coal, hydro, and sola ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 23:37
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
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.