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Duke Energy (DUK)
:DUK
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Duke Energy
(NYSE:DUK)77Outperform
Positive Factors
Investment and Growth
Duke Energy's capital plan of $82.5 billion came in well ahead of expectations, showing robust investment in growth.
Renewable Energy
Duke is positioned as a long-term 'grid play', which benefits from a rising national focus on grid infrastructure and government support.
Negative Factors
Financial Performance
The stock underperformed compared to the UTY by 350 basis points over two days following the 2025 guidance.
Duke Energy (DUK) vs. S&P 500 (SPY)
Market Cap
$90.39B
Dividend Yield3.5%
Average Volume (3M)3.55M
Price to Earnings (P/E)20.5
Beta (1Y)0.13
Revenue Growth4.46%
EPS Growth54.09%
CountryUS
Employees27,037
SectorUtilities
Sector Strength79
IndustryRegulated Utilities
Share Statistics
EPS (TTM)5.68
Shares Outstanding776,461,000
10 Day Avg. Volume3,709,216
30 Day Avg. Volume3,551,125
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)N/A
Price to Sales (P/S)3.04
Price to Cash Flow (P/CF)6.80
P/FCF Ratio4.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$123.80Price Target Upside6.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
Duke Energy Business Overview & Revenue Model
Company DescriptionFounded in 1904, North Carolina-based Duke Energy Corporation is an energy company which distributes natural gas and energy related services. It operates through three segments including, Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables.
How the Company Makes MoneyDuke Energy makes money primarily through its Electric Utilities and Infrastructure segment, which generates revenue by providing electricity to residential, commercial, and industrial customers. This segment includes the generation, transmission, and distribution of electricity across its service areas. The Gas Utilities and Infrastructure segment contributes to revenue by distributing natural gas to customers and engaging in gas pipeline and storage operations. Duke Energy's Commercial Renewables segment generates income by investing in and operating renewable energy assets, such as wind and solar power projects, and selling the generated energy to utilities, electric cooperatives, municipalities, and commercial customers. Additionally, Duke Energy benefits from regulatory frameworks that allow for cost recovery and earn returns on investments in infrastructure improvements and clean energy initiatives.
Duke Energy Financial Statement Overview
Summary
Duke Energy's financials demonstrate strong revenue growth and improved profitability, with a significant reduction in leverage risk. Despite some volatility in cash flow growth, the company showcases robust operational efficiency and shareholder returns.Income Statement
Duke Energy has shown consistent revenue growth, increasing from $29.06 billion in 2023 to $30.36 billion in 2024, representing a growth rate of approximately 4.3%. The gross profit margin for 2024 was high at approximately 98.1%, and the net profit margin improved significantly to 14.9% from 9.8% in the previous year. Both EBIT and EBITDA margins have shown positive trends, reflecting strong operational efficiency. Overall, the income statement reflects strong profitability and revenue growth.87
Very Positive
Balance Sheet
The debt-to-equity ratio improved significantly from 1.64 in 2023 to 0.18 in 2024, indicating reduced leverage risk and a stronger financial position. The return on equity (ROE) increased to 9.0% in 2024, suggesting improved profitability for shareholders. Despite these positive indicators, the equity ratio decreased slightly to 26.9%, indicating a moderate level of financial stability. Overall, the balance sheet reflects an improving leverage position and solid shareholder returns.78
Positive
Cash Flow
Duke Energy's free cash flow turned positive in 2024 at $12.28 billion, a significant improvement from negative free cash flow in the previous years. The operating cash flow to net income ratio remained strong, indicating solid cash-generating ability relative to net income. However, free cash flow growth has been volatile, reflecting potential challenges in managing capital expenditures and cash flow. Overall, the cash flow statement shows positive cash flow management with some volatility.74
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 30.36B | 29.06B | 28.77B | 24.62B | 23.37B | Gross Profit |
| 29.79B | 13.76B | 12.98B | 11.96B | 11.35B | EBIT |
| 7.93B | 7.07B | 6.01B | 5.50B | 4.57B | EBITDA |
| 15.00B | 13.29B | 12.40B | 11.63B | 10.94B | Net Income Common Stockholders |
| 4.52B | 2.84B | 2.55B | 3.91B | 1.38B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 314.00M | 253.00M | 409.00M | 343.00M | 259.00M | Total Assets |
| 186.34B | 176.89B | 178.09B | 169.59B | 162.39B | Total Debt |
| 8.89B | 80.46B | 74.43B | 67.93B | 63.95B | Net Debt |
| 8.58B | 80.20B | 74.02B | 67.58B | 63.69B | Total Liabilities |
| 135.09B | 126.71B | 126.23B | 118.45B | 113.20B | Stockholders Equity |
| 50.13B | 49.11B | 49.32B | 49.30B | 47.96B |
| Cash Flow | Free Cash Flow | |||
| 48.00M | -2.73B | -5.44B | -1.43B | -1.05B | Operating Cash Flow |
| 12.28B | 9.88B | 5.93B | 8.29B | 8.86B | Investing Cash Flow |
| -13.08B | -12.47B | -11.97B | -10.94B | -10.60B | Financing Cash Flow |
| 859.00M | 2.35B | 6.13B | 2.61B | 1.73B |
Duke Energy Technical Analysis
Positive
116.41
Price Trends
110.46
Positive
111.47
Positive
108.71
Positive
Market Momentum
1.83
Negative
58.60
Neutral
84.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DUK, the sentiment is Positive. The current price of 116.41 is above the 20-day moving average (MA) of 114.55, above the 50-day MA of 110.46, and above the 200-day MA of 108.71, indicating a bullish trend. The MACD of 1.83 indicates Negative momentum. The RSI at 58.60 is Neutral, neither overbought nor oversold. The STOCH value of 84.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DUK.
Duke Energy Risk Analysis
Duke Energy disclosed 32 risk factors in its most recent earnings report. Duke Energy reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Duke Energy 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 | $90.39B | 20.48 | 9.03% | 3.50% | 4.46% | 54.09% | |
77 Outperform | $98.48B | 22.48 | 13.25% | 3.17% | 5.83% | 10.23% | |
74 Outperform | $35.20B | 19.37 | 8.29% | 3.21% | 4.23% | -27.02% | |
73 Outperform | $56.12B | 18.85 | 11.37% | 3.36% | 2.76% | 31.53% | |
72 Outperform | $43.91B | 17.81 | 9.14% | 3.46% | 5.98% | 4.99% | |
68 Neutral | $26.00B | 29.40 | 27.15% | 2.89% | 1.80% | 19.78% | |
65 Neutral | $12.05B | 15.92 | 6.71% | 4.32% | 8.04% | 3.76% |
* Utilities Sector Average
Performance Comparison
DUK
Duke Energy
116.41
27.17
30.45%
AEP
American Electric Power
105.24
24.31
30.04%
ED
Consolidated Edison
102.15
16.16
18.79%
EXC
Exelon
43.68
8.81
25.27%
PPL
PPL
34.72
8.87
34.31%
SO
Southern Co
89.89
24.19
36.82%
Duke Energy Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: 0.96% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook for Duke Energy, characterized by strong earnings performance, robust capital and infrastructure investments, and successful regulatory outcomes. Despite challenges from the hurricane season and some cost management issues, the company's future prospects seem optimistic with expected growth in earnings and load.Highlights
Strong 2024 Earnings Performance
Duke Energy announced 2024 adjusted earnings per share of $5.90, finishing within the guidance range.
Positive 2025 Guidance and Long-Term Growth
Updated 2025 earnings per share guidance range of $6.17 to $6.42, with a midpoint of $6.30, indicating around 7% growth over 2024.
Significant Capital Investment Plans
An $83 billion capital plan is projected to drive 7.7% earnings-based growth, with substantial investments in infrastructure and grid improvements.
Regulatory Success
Approval of $45 billion of rate-based investments, minimizing rate case exposure in 2025 and 2026.
Solar Expansion in Florida
Addition of 1,500 megawatts of solar capacity now in service.
Customer Satisfaction Achievement
Piedmont Natural Gas team earned the J.D. Power number one customer satisfaction ranking for natural gas service in the Southeast for the third consecutive year.
Economic Development and Load Growth
Significant economic development projects expected to come online, particularly in the Carolinas, with projected annual load growth between 1.5% to 2% in 2025 and 3% to 4% from 2027 onward.
Strong Credit Metrics
Targeting 14% FFO to debt by the end of 2025, providing over 100 basis points of cushion above Moody's downgrade threshold.
Lowlights
Impact of Historic Hurricane Season
Top-line growth partially offset by the impacts of the hurricane season in 2024.
Ongoing Cost Management Challenges
Expected increase in O&M due to resource focus on storm recovery and additional storm cost provisions.
Underperformance in Ohio Kentucky Subsidiary
Ohio Kentucky subsidiary's ROE considerably below other subsidiaries, with ongoing efforts required to improve it to 9% plus.
Company Guidance
In the Duke Energy fourth quarter and year-end 2024 earnings call, the company provided updated guidance, forecasting a 2025 earnings per share (EPS) range of $6.17 to $6.42, with a midpoint of $6.30, reflecting a 7% growth over 2024. The company announced an $83 billion capital plan, driving 7.7% earnings-based growth and supporting a 5% to 7% EPS growth rate through 2029. Duke Energy emphasized its strong regulatory execution, having secured $45 billion of rate-based investments, and highlighted significant progress in grid and generation investments, including adding 1,500 megawatts of solar in Florida. Additionally, the company noted an expected load growth acceleration to 3% to 4% beginning in 2027, driven by economic development projects, particularly in the Carolinas.Duke Energy Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Duke Energy Announces New CEO Harry Sideris
Neutral
Jan 13, 2025
Duke Energy announced that Harry Sideris will become President and CEO, effective April 1, 2025, following Lynn J. Good’s retirement. Sideris, a 29-year company veteran, is expected to leverage his extensive experience to continue the company’s growth and innovation in regulated utility operations, while Theodore F. Craver, Jr. will become the independent Chair of the Board. The transition is part of a long-term succession plan aimed at maintaining the company’s strong market position and commitment to customer service and stakeholder engagement.
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.