NYSE:ETR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

6 star dividend payer with proven track record.


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

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.


Market Performance


7 Day Return

-6.8%

ETR

-4.8%

US Electric Utilities

-3.6%

US Market


1 Year Return

-25.7%

ETR

-7.3%

US Electric Utilities

36.5%

US Market

Return vs Industry: ETR underperformed the US Electric Utilities industry which returned -7.3% over the past year.

Return vs Market: ETR underperformed the US Market which returned 36.4% over the past year.


Shareholder returns

ETRIndustryMarket
7 Day-6.8%-4.8%-3.6%
30 Day-8.9%-6.8%2.7%
90 Day-20.2%-6.0%7.5%
1 Year-22.9%-25.7%-4.2%-7.3%39.5%36.5%
3 Year27.0%13.4%21.1%10.8%53.5%43.6%
5 Year43.6%17.0%27.6%9.4%117.5%93.2%

Long-Term 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 compared to its fair value and its price relative to the market?

11.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ETR ($86.81) is trading below our estimate of fair value ($97.96)

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


Price To Earnings Ratio

PE vs Industry: ETR is good value based on its PE Ratio (12.5x) compared to the US Electric Utilities industry average (19.3x).

PE vs Market: ETR is good value based on its PE Ratio (12.5x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: ETR is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: ETR's PB Ratio (1.6x) is in line with the US Electric Utilities industry average.


Next Steps

Future Growth

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

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETR's forecast earnings growth (3.2% per year) is above the savings rate (2%).

Earnings vs Market: ETR's earnings (3.2% per year) are forecast to grow slower than the US market (20.1% 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 (10.4% 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 (10.9%).


Next Steps

Past Performance

How has Entergy performed over the past 5 years?

46.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ETR has high quality earnings.

Growing Profit Margin: ETR's current net profit margins (13.7%) are higher than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: ETR has become profitable over the past 5 years, growing earnings by 46.2% per year.

Accelerating Growth: ETR's earnings growth over the past year (12%) is below its 5-year average (46.2% per year).

Earnings vs Industry: ETR earnings growth over the past year (12%) exceeded the Electric Utilities industry -7.7%.


Return on Equity

High ROE: ETR's Return on Equity (12.4%) is considered low.


Next Steps

Financial Health

How is Entergy's financial position?


Financial Position Analysis

Short Term Liabilities: ETR's short term assets ($4.6B) do not cover its short term liabilities ($7.1B).

Long Term Liabilities: ETR's short term assets ($4.6B) do not cover its long term liabilities ($40.0B).


Debt to Equity History and Analysis

Debt Level: ETR's debt to equity ratio (212%) is considered high.

Reducing Debt: ETR's debt to equity ratio has increased from 144.6% to 212% over the past 5 years.

Debt Coverage: ETR's debt is not well covered by operating cash flow (11.4%).

Interest Coverage: ETR's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Next Steps

Dividend

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

4.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ETR's dividend (4.38%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: ETR's dividend (4.38%) is in the top 25% of dividend payers in the US market (3.77%)


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.9%), ETR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ETR's dividends in 3 years are forecast to be covered by earnings (64.8% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Leo Denault (60 yo)

8yrs

Tenure

US$14,264,249

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 an Execut...


CEO Compensation Analysis

Compensation vs Market: Leo's total compensation ($USD14.26M) is above average for companies of similar size in the US market ($USD10.55M).

Compensation vs Earnings: Leo's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Leo Denault
Chairman & CEO8yrsUS$14.26m0.16%
$ 27.8m
Andrew Marsh
Executive VP & CFO8yrsUS$4.93m0.045%
$ 7.7m
Marcus Brown
Executive VP & General Counsel8.08yrsUS$4.42m0.019%
$ 3.3m
Roderick West
Group President of Utility Operations10.67yrsUS$4.71m0.016%
$ 2.8m
A. Bakken
Executive VP of Nuclear Operations & Chief Nuclear Officer4.83yrsUS$3.19m0.0085%
$ 1.5m
Paul Hinnenkamp
Executive VP & COO5.25yrsno data0.018%
$ 3.1m
Kimberly Fontan
Senior VP & Chief Accounting Officer1.58yrsno data0.0041%
$ 718.8k
Michael Rhymes
Chief Information Officerno datano datano data
David Borde
Vice President of Investor Relationsno datano datano data
Robert Hatley
Group Vice President of Corporate Communications2.42yrsno datano data
Craig Sorensen
Director of Corporate Developmentno datano datano data
Kathryn Collins
Senior VP & Chief Human Resources Officer1.08yrsno data0.0024%
$ 410.7k

5.3yrs

Average Tenure

57yo

Average Age

Experienced Management: ETR's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leo Denault
Chairman & CEO8yrsUS$14.26m0.16%
$ 27.8m
Haley Fisackerly
Chairmanno dataUS$1.21m0.0038%
$ 663.1k
Sallie Rainer
Chair of the Boardno dataUS$1.20m0.0066%
$ 1.2m
Phillip May
Chairmanno dataUS$1.56m0.012%
$ 2.0m
Laura Landreaux
Chair of the Boardno datano data0.0028%
$ 482.1k
David Ellis
Chairman of the Boardno datano data0.0016%
$ 280.2k
Stuart Levenick
Independent Lead Director4.75yrsUS$364.55k0.0079%
$ 1.4m
Alexis Herman
Independent Director18.08yrsUS$313.28k0.00023%
$ 40.0k
Philip Frederickson
Independent Director5.42yrsUS$291.85k0.0018%
$ 304.6k
Blanche Lincoln
Independent Director9.92yrsUS$305.58k0.0042%
$ 736.2k
Patrick Condon
Independent Director5.92yrsUS$348.14k0.0047%
$ 811.0k
Kirkland Donald
Independent Director7.67yrsUS$337.34k0.0012%
$ 205.4k

7.7yrs

Average Tenure

59.5yo

Average Age

Experienced Board: ETR's board of directors are considered experienced (7.7 years average tenure).


Ownership

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

Ownership Breakdown

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


Top Shareholders

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$17.404b
  • Shares outstanding: 200.48m
  • 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
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

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/28 23:07
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.