Entergy (ETR) AI Stock Analysis

• Market Cap: $35.01B
• Dividend Yield: 2.86%
• Average Volume (3M): 4.13M
• Price to Earnings (P/E): 33.3
• Beta (1Y): 0.39
• Revenue Growth: -2.20%
• EPS Growth: -55.73%
• Country: US
• Employees: 12,267
• Sector: Utilities
• Sector Strength: 79
• Industry: Regulated Utilities
• EPS (TTM): 2.44
• Shares Outstanding: 430,412,570
• 10 Day Avg. Volume: 3,982,204
• 30 Day Avg. Volume: 4,125,652
• PEG Ratio: 1.10
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.95
• Price to Cash Flow (P/CF): 5.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $86.42
• Price Target Upside: 6.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

Entergy's strong financial performance, positive earnings call sentiment, and upward technical momentum contribute to a solid stock score. However, challenges such as cash flow volatility and increased equity requirements slightly temper the outlook.

Positive Factors

Earnings

ETR raised its capital plan by $2.7B, leading to EPS growth greater than 8% through 2028.

Regulatory Outcomes

Important Louisiana regulatory issues have been concluded with more constructive outcomes than anticipated, reducing regulatory risks in the near-term.

Negative Factors

Hurricane Risk

Hurricane risk remains a structural challenge, with restoration costs pressuring customer bills.

Entergy Business Overview & Revenue Model

Company Description

Entergy 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 Money

Entergy 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 81.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETR, the sentiment is Positive. The current price of 81.33 is below the 20-day moving average (MA) of 84.47, above the 50-day MA of 80.75, and above the 200-day MA of 66.69, indicating a neutral trend. The MACD of 0.81 indicates Positive momentum. The RSI at 43.30 is Neutral, neither overbought nor oversold. The STOCH value of 16.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ETR.

Entergy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DUK	77 Outperform	$90.64B	20.54	9.10%	3.56%	4.46%	54.09%
SO	77 Outperform	$100.25B	22.89	13.61%	3.15%	5.83%	10.23%
ETR	75 Outperform	$35.01B	33.25	7.04%	2.86%	-2.20%	-55.73%
AEP	73 Outperform	$55.78B	18.74	11.37%	3.46%	2.76%	31.53%
EXC	72 Outperform	$43.33B	17.58	9.34%	3.57%	5.98%	4.99%
PPL	68 Neutral	$25.15B	28.45	6.33%	3.02%	1.80%	19.78%
Sector *	65 Neutral	$12.05B	15.92	6.71%	4.32%	8.04%	3.76%

Entergy Corporate Events

Entergy Reports Strong 2024 Financial Performance

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.

Entergy Settles SEC Investigation with $12 Million Penalty

Entergy Corporation has reached a settlement with the U.S. Securities and Exchange Commission to resolve an investigation into its internal controls and inventory management. The company will pay a $12 million civil penalty and has implemented enhanced inventory processes and controls, which did not materially affect its inventory value.