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 with questionable 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


Market Performance


7 Day Return

-0.5%

ETR

-1.5%

US Electric Utilities

1.0%

US Market


1 Year Return

43.2%

ETR

19.5%

US Electric Utilities

6.7%

US Market

Return vs Industry: ETR exceeded the US Electric Utilities industry which returned 19.5% over the past year.

Return vs Market: ETR exceeded the US Market which returned 6.7% over the past year.


Share holder returns

ETRIndustryMarket
7 Day-0.5%-1.5%1.0%
30 Day3.3%1.8%-1.8%
90 Day11.8%5.1%-1.8%
1 Year48.9%43.2%23.5%19.5%9.1%6.7%
3 Year79.0%57.1%44.9%30.4%46.1%36.6%
5 Year83.1%46.8%75.0%45.0%66.9%48.6%

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?

22.76x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: ETR ($117.23) is trading above our estimate of fair value ($62.97)

Significantly Undervalued: ETR is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: ETR is good value based on its PE Ratio (22.8x) compared to the Electric Utilities industry average (23.5x).

PE vs Market: ETR is poor value based on its PE Ratio (22.8x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: ETR is poor value based on its PEG Ratio (3.2x)


Price Based on Value of Assets

PB vs Industry: ETR is overvalued based on its PB Ratio (2.4x) compared to the US Electric Utilities industry average (2.3x).


Next Steps

Future Growth

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

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: ETR's forecast earnings growth (7.1% per year) is above the savings rate (2.7%).

Earnings vs Market: ETR's earnings (7.1% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: ETR's revenue (3.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ETR's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: ETR's Return on Equity is forecast to be low in 3 years time (11.7%).


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

Earnings Trend: ETR's earnings have declined by -5.7% per year over the past 5 years.

Accelerating Growth: ETR's earnings growth over the past year (223.4%) exceeds its 5-year average (-5.7% per year).

Earnings vs Industry: ETR earnings growth over the past year (223.4%) exceeded the Electric Utilities industry 4.2%.


Return on Equity

High ROE: ETR's Return on Equity (9.6%) is considered low.


Return on Assets

ROA vs Industry: ETR's Return on Assets is below or equal to the Electric Utilities industry average last year.


Return on Capital Employed

ROCE Improving: ETR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Entergy's financial position?


Financial Position Analysis

Short Term Liabilities: ETR's short term assets ($3.3B) do not cover its short term liabilities ($4.5B)

Long Term Liabilities: ETR's short term assets (3.3B) do not cover its long term liabilities (36.0B)


Debt to Equity History and Analysis

Debt Level: ETR's debt to equity ratio (189.6%) is considered high

Reducing Debt: ETR's debt to equity ratio has increased from 131.7% to 189.6% over the past 5 years.

Debt Coverage: ETR's debt is not well covered by operating cash flow (12.4%).

Interest Coverage: ETR's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: ETR's 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?

3.22%

Expected Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.5%markettop25%3.8%industryaverage2.9%forecastin3Years3.2%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: ETR's dividend (3.11%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: ETR's dividend (3.11%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 (70.3%), 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 (64.9% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Leo Denault (59yo)

6.7yrs

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

Compensation vs. Market: Leo's total compensation ($USD10.33M) is about average for companies of similar size in the US market ($USD11.20M).

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


Management Age and Tenure

3.7yrs

Average Tenure

57yo

Average Age

Experienced Management: ETR's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

57yo

Average Age

Experienced Board: ETR's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: 3.5yrs
    • Compensation: US$3.24m
  • Leo Denault (59yo)

    Chairman & CEO

    • Tenure: 6.7yrs
    • Compensation: US$10.33m
  • Drew Marsh (47yo)

    Executive VP & CFO

    • Tenure: 6.7yrs
    • Compensation: US$2.60m
  • Craig Sorensen

    Director of Corporate Development

    • Tenure: 0yrs
  • Rod West (50yo)

    Group President of Utility Operations and Chairman

    • Tenure: 0yrs
    • Compensation: US$2.67m
  • Marcus Brown (57yo)

    Executive VP & General Counsel

    • Tenure: 6.8yrs
    • Compensation: US$2.95m
  • Kimberly Fontan (46yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 0.3yrs
  • Paul Hinnenkamp (57yo)

    Executive VP & COO

    • Tenure: 3.9yrs
  • David Borde

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Rob Hatley

    Group Vice President of Corporate Communications

    • Tenure: 1.1yrs

Board Members

  • Philip Frederickson (62yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$275.75k
  • Haley Fisackerly (53yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: US$1.21m
  • Leo Denault (59yo)

    Chairman & CEO

    • Tenure: 6.7yrs
    • Compensation: US$10.33m
  • Rod West (50yo)

    Group President of Utility Operations and Chairman

    • Tenure: 0yrs
    • Compensation: US$2.67m
  • David Ellis (51yo)

    Chairman of the Board

    • Tenure: 0yrs
  • Blanche Lincoln (58yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$290.69k
  • Pat Condon (70yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$314.87k
  • Sallie Rainer (57yo)

    Chair of the Board

    • Tenure: 0yrs
    • Compensation: US$1.20m
  • Phillip May (57yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: US$1.56m
  • Laura Landreaux (45yo)

    Chair of the Board

    • Tenure: 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$23.309b
  • 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 Analysis2019/10/14 01:16
End of Day Share Price2019/10/11 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.

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