We are reaffirming our $123 fair value estimate for Entergy after the company reported adjusted earnings per share of $1.08 in the first quarter and gave regulatory updates that support our long-term outlook. We are reaffirming our narrow moat rating.
Industrial electricity rates that are well below the US average are driving strong industrial development in the Mississippi Delta and electricity sales growth.
Gulf Coast storms are always a risk, especially in Louisiana. These could result in large unplanned operating and capital costs that Entergy might not be able to recover from customers.
|
Metric
|
ETR
|
DUK
|
XEL
|
|---|---|---|---|
Price/Earnings (Normalized) | 15.83 | 17.38 | 16.10 |
Price/Book Value | 1.56 | 1.61 | 1.69 |
Price/Sales | 1.87 | 2.61 | 2.09 |
Price/Cash Flow | 6.00 | 7.86 | 7.18 |
|
Metric
|
ETR
|
DUK
|
XEL
|
|---|---|---|---|
Quick Ratio | 0.24 | 0.25 | 0.41 |
Current Ratio | 0.57 | 0.74 | 0.72 |
Interest Coverage | 2.50 | 2.57 | 2.62 |
|
Metric
|
ETR
|
DUK
|
XEL
|
|---|---|---|---|
Return on Assets (Normalized) | 3.89% | 0.49% | 2.98% |
Return on Equity (Normalized) | 17.15% | 1.85% | 10.85% |
Return on Invested Capital (Normalized) | 7.33% | 2.77% | 6.04% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
NEE
| NextEra Energy Inc | Hykhfrlnp | Tfdtpjd | $136.0 Bil | |
SO
| Southern Co | Dpxpwfcyw | Bbrsnd | $80.2 Bil | |
DUK
| Duke Energy Corp | Zrsgjthg | Jgkng | $75.7 Bil | |
NGG
| National Grid PLC ADR | Jlsfgjbb | Gkk | $48.1 Bil | |
AEP
| American Electric Power Co Inc | Qvgcktp | Fqvmmrg | $44.7 Bil | |
PCG
| PG&E Corp | Btkppvzbw | Pmrs | $44.3 Bil | |
D
| Dominion Energy Inc | Lkcvkkdf | Byflfy | $42.4 Bil | |
EXC
| Exelon Corp | Nzwpwgkh | Kkcvvbh | $36.7 Bil | |
PEG
| Public Service Enterprise Group Inc | Dwybnwzrn | Nvytjq | $33.2 Bil | |
ED
| Consolidated Edison Inc | Rmhwfvlq | Vhwk | $32.1 Bil |
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