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Entergy Corp. (ETR)
NYSE:ETR
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Entergy
(NYSE:ETR)
75Outperform
Positive Factors
Earnings Growth
ETR raised its capital plan by $2.7B, leading to EPS growth greater than 8% through 2028.
Regulatory Environment
Important Louisiana regulatory issues have been concluded with more constructive outcomes than anticipated.
Stock Liquidity
A 2-for-1 stock split has been recently announced for Entergy Corp, which can make the stock more accessible to a broader range of investors.
Negative Factors
Market Outlook
Morgan Stanley maintains an equal-weight rating for Entergy Corp, suggesting a neutral outlook on the stock's performance.
Natural Disaster Risks
Hurricane risk remains a structural challenge, with restoration costs pressuring customer bills.
Entergy (ETR) vs. S&P 500 (SPY)
Market Cap
$34.22B
Dividend Yield2.95%
Average Volume (3M)4.84M
Price to Earnings (P/E)32.3
Beta (1Y)0.37
Revenue Growth-2.20%
EPS Growth-55.73%
CountryUS
Employees12,267
SectorUtilities
Sector Strength92
IndustryRegulated Electric
Share Statistics
EPS (TTM)2.44
Shares Outstanding432,999,570
10 Day Avg. Volume4,902,887
30 Day Avg. Volume4,841,053
Financial Highlights & Ratios
PEG Ratio1.10
Price to Book (P/B)N/A
Price to Sales (P/S)3.04
Price to Cash Flow (P/CF)5.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$88.35Price Target Upside11.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
Entergy Business Overview & Revenue Model
Company DescriptionEntergy Corporation (ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Headquartered in New Orleans, Louisiana, Entergy operates in the southern United States and provides electricity to approximately 3 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. The company is involved in both regulated utility operations and wholesale energy businesses, focusing on electric power production and distribution, natural gas distribution, and nuclear power operations.
How the Company Makes MoneyEntergy makes money through its two primary business segments: Utility and Entergy Wholesale Commodities. The Utility segment generates revenue by supplying electricity to residential, commercial, industrial, and governmental customers. This segment operates under regulatory frameworks which allow for recovery of costs and earn an allowed return on invested capital. Revenue in this segment is largely determined by regulated rates set by public utility commissions. The Entergy Wholesale Commodities segment earns revenue through the sale of electricity generated by its non-utility nuclear power plants. This segment operates in competitive markets where power prices are determined by supply and demand dynamics. Additionally, the company benefits from long-term power purchase agreements, which provide a stable revenue stream. Entergy's earnings are also influenced by factors such as fuel costs, regulatory changes, and energy market conditions.
Entergy Financial Statement Overview
Summary
Entergy exhibits strong profitability margins and a low-leverage balance sheet. However, challenges include recent revenue and cash flow declines, which impact overall financial health.Income Statement
Entergy's financial performance shows a mixed trend. The company has a healthy gross profit margin of 68.52% and an EBIT margin of 22.32% for the latest year. However, it experienced a revenue decline of 2.20% from the previous year. The net profit margin stands at 8.89%, which is lower than the previous year, indicating some profitability challenges.75
Positive
Balance Sheet
Entergy maintains a strong equity position with a debt-to-equity ratio of 0.15, showcasing low leverage. The return on equity is solid at 7.00%. However, the equity ratio is unavailable due to missing total assets data for the latest period, which limits a complete assessment of financial stability.70
Positive
Cash Flow
The cash flow statement reveals potential concerns. There is a significant decline in operating cash flow, and although free cash flow improved from the previous year's negative figures, it reflects volatility. The free cash flow to net income ratio of 0.78 suggests cash flow generation needs improvement.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 11.88B | 12.15B | 13.76B | 11.74B | 10.11B | Gross Profit |
| 5.74B | 5.33B | 5.28B | 4.87B | 4.46B | EBIT |
| 2.65B | 2.62B | 2.05B | 1.85B | 1.77B | EBITDA |
| 4.66B | 4.92B | 4.16B | 4.39B | 4.33B | Net Income Common Stockholders |
| 1.06B | 2.36B | 1.10B | 1.12B | 1.41B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 859.70M | 132.55M | 224.16M | 442.56M | 1.76B | Total Assets |
| 64.79B | 59.70B | 58.60B | 59.45B | 58.24B | Total Debt |
| 2.31B | 26.25B | 26.76B | 27.08B | 24.00B | Net Debt |
| 2.31B | 26.11B | 26.54B | 26.64B | 22.24B | Total Liabilities |
| 49.61B | 44.74B | 45.53B | 47.75B | 47.28B | Stockholders Equity |
| 15.08B | 14.66B | 13.00B | 11.64B | 10.93B |
| Cash Flow | Free Cash Flow | |||
| 823.65M | -417.30M | -2.70B | -4.12B | -2.47B | Operating Cash Flow |
| 823.65M | 4.29B | 2.59B | 2.30B | 2.69B | Investing Cash Flow |
| -928.42M | -4.63B | -5.71B | -6.18B | -4.77B | Financing Cash Flow |
| 2.09B | 243.03M | 2.91B | 2.56B | 3.42B |
Entergy Technical Analysis
Negative
79.03
Price Trends
83.39
Negative
79.54
Negative
69.73
Positive
Market Momentum
0.38
Negative
57.25
Neutral
71.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETR, the sentiment is Negative. The current price of 79.03 is below the 20-day moving average (MA) of 83.84, below the 50-day MA of 83.39, and above the 200-day MA of 69.73, indicating a neutral trend. The MACD of 0.38 indicates Negative momentum. The RSI at 57.25 is Neutral, neither overbought nor oversold. The STOCH value of 71.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ETR.
Entergy Risk Analysis
Entergy disclosed 42 risk factors in its most recent earnings report. Entergy reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Entergy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $27.35B | 19.47 | 12.32% | 3.20% | -1.13% | 0.16% | |
75 Outperform | $34.22B | 32.31 | 7.04% | 2.95% | -2.20% | -55.73% | |
75 Outperform | $32.96B | 21.63 | 12.64% | 3.25% | -3.30% | 14.40% | |
74 Outperform | $40.60B | 21.51 | 8.44% | 3.06% | 4.23% | -27.02% | |
69 Neutral | $39.01B | 19.74 | 10.43% | 3.26% | -5.25% | 7.11% | |
65 Neutral | $11.67B | 15.52 | 6.23% | 4.52% | 5.50% | -9.06% | |
64 Neutral | $37.84B | 14.96 | 9.10% | 0.43% | -0.04% | 6.80% |
* Utilities Sector Average
Performance Comparison
ETR
Entergy
79.03
28.01
54.90%
ED
Consolidated Edison
109.32
21.77
24.87%
DTE
DTE Energy
131.80
26.00
24.57%
PCG
PG&E
16.44
-0.31
-1.85%
WEC
WEC Energy Group
104.36
25.94
33.08%
XEL
Xcel Energy
67.89
15.69
30.06%
Entergy Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -4.19% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive outlook for Entergy with strong financial performance, significant industrial segment growth, and increased capital investment plans. Regulatory approvals and improved credit metrics further support the positive sentiment. However, potential pressure on earned ROEs due to increased spending and heightened equity needs were noted as challenges.Highlights
Strong Financial Performance
Entergy reported 2024 adjusted EPS of $3.65, which is in the top half of their guidance range. They anticipate a compound annual growth rate of industrial sales at 12% to 13% from 2024 through 2028.
Industrial Segment Growth
Industrial sales were up 8% for the year and 15% for the fourth quarter. Entergy added two large hyperscale data centers to their outlook in 2024.
Capital Investment Increase
Entergy plans to invest $37 billion over the next four years, with significant investments in renewable and gas projects.
Regulatory Approvals and Settlements
Entergy concluded several regulatory processes, including final approvals of the SERI settlements and resilience investment approvals in Louisiana, Texas, and New Orleans.
Credit Metrics Improvement
Entergy's book FFO to adjusted debt was 14.7%, and S&P upgraded Series issuer credit rating one notch to BBB-.
Lowlights
Potential Pressure on Earned ROEs
With the ramp-up in spending, there could be some pressure on earned returns despite expectations of improvement over the forecast period.
Increased Equity Needs
Entergy increased equity needs by $300 million in 2026 to accommodate the higher capital plan.
Company Guidance
In the Entergy Fourth Quarter 2024 Earnings Conference Call, the company reported a robust adjusted EPS of $3.65, which falls within the top half of their guidance range. The company's long-term growth rate is projected to be greater than 8% through 2028, reflecting an increase from their previous 8% to 9% range. Industrial sales growth was particularly strong, with an 8% increase for the year and 15% growth in the fourth quarter, driven by demand in the Gulf South and new large-scale projects, such as hyperscale data centers. Entergy announced plans to invest $37 billion from 2025 to 2028 to support customer growth, expand renewable energy capacity, and enhance system reliability, with key projects including modern gas plants and upgrades to nuclear stations. The company also highlighted solid credit metrics, with a book FFO to adjusted debt ratio of 14.7%, and a strategy to optimize financing through a mix of operating cash flow, equity, and strategic partnerships.Entergy Corporate Events
Executive/Board Changes
Entergy Announces Leadership Transition with New COO
Neutral
Mar 28, 2025
On March 25, 2025, Entergy Corporation announced that Peter S. Norgeot, Jr., the Executive Vice President and Chief Operating Officer, will retire on April 30, 2025, as part of a planned leadership transition. Kimberly Cook-Nelson, currently the Executive Vice President and Chief Nuclear Officer, will succeed him starting May 1, 2025. Her compensation package includes a base salary of $745,000, an annual bonus, and stock options, reflecting her seniority and responsibilities.
Stock SplitBusiness Operations and StrategyFinancial Disclosures
Entergy Reports Strong 2024 Financial Performance
Positive
Feb 18, 2025
Entergy Corporation announced its financial results for the fourth quarter and full year 2024 on February 18, 2025. Despite a decrease in as-reported earnings compared to 2023, the company achieved adjusted earnings exceeding those of the previous year. Entergy’s strategic initiatives in 2024, such as launching new projects and securing regulatory approvals, position it for future growth. The company also executed a two-for-one stock split and maintained its inclusion in prestigious industry indices, reflecting a strong operational and market position.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.