Duke Energy (DUK) AI Stock Analysis

• Market Cap: $93.99B
• Dividend Yield: 3.48%
• Average Volume (3M): 3.16M
• Price to Earnings (P/E): 19.9
• Beta (1Y): -0.03
• Revenue Growth: 4.07%
• EPS Growth: 9.94%
• Country: US
• Employees: 26,413
• Sector: Utilities
• Sector Strength: 62
• Industry: Regulated Electric
• EPS (TTM): 1.25
• Shares Outstanding: 777,624,450
• 10 Day Avg. Volume: 2,508,948
• 30 Day Avg. Volume: 3,164,830
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.93
• Enterprise Value/Revenue: 5.81
• Enterprise Value/Gross Profit: 12.59
• Enterprise Value/Ebitda: 11.63
• 1Y Price Target: $131.27
• Price Target Upside: 8.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 73 Outperform
• Price Target: $135.00 ▲(11.93% Upside)

Duke Energy's overall stock score is driven by strong financial performance and positive earnings call sentiment. The company's strategic investments and legislative achievements bolster its growth outlook. However, high debt levels and mixed cash flow performance pose potential risks. The technical analysis and valuation suggest the stock is fairly valued with moderate momentum.

Positive Factors

Earnings Growth

Solid investment opportunities across Duke Energy's footprint in attractive regulatory jurisdictions are driving potential upside risk to EPS growth.

Financial Stability

Duke Energy's long-term FFO/debt target has been raised to 15%, indicating financial stability and is above Moody’s and S&P downgrade thresholds.

Negative Factors

Interest and Operational Expenses

Higher utilities interest expense, O&M, OpEx, and parent drag partially offset the positive comp.

Macroeconomic and Policy Risks

Key risks include negative rate case filing results, pushback in clean energy policies, higher interest rates, and macroeconomic risks.

Duke Energy Business Overview & Revenue Model

Company Description

Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables. The Electric Utilities and Infrastructure segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest; and uses coal, hydroelectric, natural gas, oil, renewable generation, and nuclear fuel to generate electricity. It also engages in the wholesale of electricity to municipalities, electric cooperative utilities, and load-serving entities. This segment serves approximately 8.2 million customers in 6 states in the Southeast and Midwest regions of the United States covering a service territory of approximately 91,000 square miles; and owns approximately 50,259 megawatts (MW) of generation capacity. The Gas Utilities and Infrastructure segment distributes natural gas to residential, commercial, industrial, and power generation natural gas customers; and owns, operates, and invests in pipeline transmission and natural gas storage facilities. It has approximately 1.6 million customers, including 1.1 million customers in North Carolina, South Carolina, and Tennessee, as well as 550,000 customers in southwestern Ohio and northern Kentucky. The Commercial Renewables segment acquires, owns, develops, builds, and operates wind and solar renewable generation projects, including nonregulated renewable energy and energy storage services to utilities, electric cooperatives, municipalities, and corporate customers. It has 23 wind, 178 solar, and 2 battery storage facilities, as well as 71 fuel cell locations with a capacity of 3,554 MW across 22 states. The company was formerly known as Duke Energy Holding Corp. and changed its name to Duke Energy Corporation in April 2005. The company was founded in 1904 and is headquartered in Charlotte, North Carolina.

How the Company Makes Money

Duke Energy generates revenue primarily through the sale of electricity and natural gas to residential, commercial, and industrial customers. The company operates regulated utility businesses, which are granted the ability to earn a return on investments in infrastructure and receive cost recovery through regulated rates approved by state regulatory commissions. Key revenue streams include residential electricity sales, commercial and industrial electricity sales, and natural gas delivery services. Additionally, Duke Energy has invested in renewable energy projects, which can provide additional revenue through power purchase agreements and subsidies. The company often engages in partnerships with local governments and private entities to expand its energy infrastructure and enhance service delivery, thereby contributing to its overall earnings.

Duke Energy Financial Statement Overview

Summary

Duke Energy demonstrates strong revenue growth and profitability, supported by efficient operations. However, the balance sheet reflects moderate leverage with high debt levels, and cash flow performance is mixed, indicating potential liquidity challenges.

Income Statement

Duke Energy demonstrates strong revenue growth with a TTM increase of 8.6% and consistent profitability, evidenced by a healthy gross profit margin of 62.5% and a net profit margin of 15.5%. The EBIT and EBITDA margins are robust, indicating efficient operations. However, the slight decline in gross profit from the previous year suggests potential cost pressures.

Balance Sheet

The company maintains a stable equity base with a debt-to-equity ratio of 1.87, indicating moderate leverage. Return on equity is solid at 9.6%, reflecting effective use of shareholder funds. However, the high level of total debt could pose risks if interest rates rise or cash flows decrease.

Cash Flow

Duke Energy's operating cash flow remains strong, but the negative free cash flow and its ratio to net income highlight potential liquidity concerns. Despite a significant improvement in free cash flow growth, the negative free cash flow to net income ratio suggests challenges in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.27B	30.36B	29.06B	28.77B	24.62B	23.37B
Gross Profit	14.44B	15.20B	13.76B	12.98B	11.96B	11.35B
EBITDA	15.64B	15.00B	13.87B	12.36B	11.86B	8.50B
Net Income	4.84B	4.51B	4.30B	2.55B	3.91B	1.38B
Balance Sheet
Total Assets	189.71B	186.34B	176.89B	178.09B	169.59B	162.39B
Cash, Cash Equivalents and Short-Term Investments	344.00M	314.00M	253.00M	409.00M	341.00M	259.00M
Total Debt	88.45B	85.23B	80.46B	74.91B	68.26B	64.08B
Total Liabilities	137.68B	135.09B	126.71B	126.23B	118.45B	113.20B
Stockholders Equity	50.89B	50.13B	49.11B	49.32B	49.30B	47.96B
Cash Flow
Free Cash Flow	-563.00M	48.00M	-2.73B	-5.44B	-1.43B	-1.05B
Operating Cash Flow	11.94B	12.33B	9.88B	5.93B	8.29B	8.86B
Investing Cash Flow	-12.81B	-13.12B	-12.47B	-11.97B	-10.94B	-10.60B
Financing Cash Flow	830.00M	859.00M	2.35B	6.13B	2.61B	1.73B

Duke Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 120.61
• 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 DUK, the sentiment is Neutral. The current price of 120.61 is below the 20-day moving average (MA) of 123.02, above the 50-day MA of 120.21, and above the 200-day MA of 114.67, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 43.24 is Neutral, neither overbought nor oversold. The STOCH value of 14.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DUK.

Duke Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
D	75 Outperform	$50.17B	20.36	9.29%	4.59%	7.60%	55.99%
AEP	74 Outperform	$58.88B	16.13	13.03%	3.44%	5.84%	36.33%
DUK	73 Outperform	$93.99B	19.86	9.60%	3.48%	4.07%	9.94%
EXC	73 Outperform	$43.80B	16.46	9.87%	3.64%	4.46%	8.68%
NGG	71 Outperform	$68.39B	17.53	8.31%	4.39%	-6.02%	7.24%
Sector *	66 Neutral	$17.25B	17.99	5.54%	3.64%	6.63%	11.55%
SO	65 Neutral	$101.06B	23.72	12.89%	3.18%	8.53%	-7.53%

Duke Energy Corporate Events

Duke Energy Issues $300M First Mortgage Bonds

On May 15, 2025, Duke Energy Indiana successfully completed the issuance and sale of $300 million in First Mortgage Bonds, Series CCCC, with a 5.90% interest rate, due in 2055. This financial move, executed under an underwriting agreement with several major financial institutions, is part of the company’s strategy to secure long-term financing, potentially impacting its operational capabilities and market positioning positively.

The most recent analyst rating on (DUK) stock is a Buy with a $135.00 price target. To see the full list of analyst forecasts on Duke Energy stock, see the DUK Stock Forecast page.