Duke Energy (DUK) AI Stock Analysis

• Market Cap: $92.39B
• Dividend Yield: 3.57%
• Average Volume (3M): 3.09M
• Price to Earnings (P/E): 19.8
• Beta (1Y): <0.01
• Revenue Growth: 5.02%
• EPS Growth: 45.08%
• Country: US
• Employees: 26,413
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 1.76
• Shares Outstanding: 777,257,100
• 10 Day Avg. Volume: 3,306,156
• 30 Day Avg. Volume: 3,092,559
• PEG Ratio: 3.37
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -431.23
• Enterprise Value/Market Cap: 1.91
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 8.65
• Enterprise Value/Ebitda: 3.01
• 1Y Price Target: $131.31
• Price Target Upside: 12.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 73 Outperform
• Price Target: $130.00 ▲(11.05%Upside)

Duke Energy's overall score reflects strong earnings and strategic initiatives that enhance its long-term growth prospects. However, high leverage and negative free cash flow pose challenges. The stock is moderately valued, with technical indicators suggesting mixed market sentiment. Recent corporate events positively impact its financial strategy.

Positive Factors

Growth Potential

DUK offers impressive growth potential with 5-year projected EPS growth of 6.8% and management has indicated the possibility of achieving the higher end of its 5-7% range.

Regulatory Achievements

The current stock levels of Duke Energy do not fully capture its progress in regulatory achievements, implying potential for growth.

Renewable Energy Investment

Duke is positioned as a long-term 'grid play', with plans to invest in enhancing grid reliability and incorporating 30GW of regulated renewable energy.

Negative Factors

Economic and Supply Chain Risks

Potential slowdown in industrial activity due to a slowing economy as well as supply chain cost implications from the trade tariffs implemented by the new administration.

Interest Rates and Expenses

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

Regulatory 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 (DUK) is one of the largest energy holding companies in the United States, headquartered in Charlotte, North Carolina. The company operates primarily through its electric utilities and infrastructure segment, serving approximately 7.9 million retail electric customers in six states in the Southeast and Midwest. Duke Energy is involved in the generation, transmission, and distribution of electricity, with a diverse portfolio of power generation assets, including coal, natural gas, nuclear, and renewables. Additionally, the company engages in natural gas distribution services in select regions.

How the Company Makes Money

Duke Energy generates revenue through several key streams. The primary source of income is from the sale of electricity to residential, commercial, and industrial customers. This includes charges for energy usage, delivery, and related services. The company also earns revenue from its natural gas operations, which involve the distribution and sale of natural gas. Duke Energy's power generation assets, including its investments in renewable energy like wind and solar, contribute to its earnings by selling power to the grid or through power purchase agreements. The company benefits from regulated utility operations, which provide stable and predictable revenue through rates approved by state utility commissions. Additionally, Duke Energy engages in strategic partnerships and investments in infrastructure projects that support long-term growth and sustainability initiatives.

Duke Energy Financial Statement Overview

Summary

Duke Energy demonstrates strong revenue growth and profitability, supported by efficient operations. However, high leverage on the balance sheet presents risks, and challenges in generating positive free cash flow necessitate focused efforts to improve cash management.

Income Statement

Duke Energy has shown consistent revenue growth with a TTM revenue of $30.94B, a 2.74% increase from 2024. The gross profit margin is robust at 66.07%, and the net profit margin stands at 15.40%, indicating strong profitability. The EBIT margin is 26.84%, and the EBITDA margin is 48.90%, reflecting efficient operational performance. Overall, the company exhibits strong financial health with steady revenue and profit growth.

Balance Sheet

The debt-to-equity ratio is 1.73, indicating a high leverage but manageable given the industry context. The return on equity (ROE) is 9.40%, showing a reasonable return on shareholders' investments. The equity ratio is 27.02%, suggesting a moderate level of stability. While the company has a strong asset base, the high debt level poses potential risks if not managed effectively.

Cash Flow

The free cash flow has decreased significantly, resulting in a negative free cash flow of -$208M in the TTM period, highlighting potential challenges in generating cash after capital expenditures. The operating cash flow to net income ratio of 0.76 indicates a decent conversion of net income into operating cash flow. However, the negative free cash flow to net income ratio suggests room for improvement in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.93B	30.36B	29.06B	28.77B	24.62B	23.37B
Gross Profit	20.44B	29.79B	13.76B	12.98B	11.96B	11.35B
EBITDA	15.13B	14.37B	13.29B	12.40B	11.63B	8.01B
Net Income	4.76B	4.52B	2.84B	2.55B	3.91B	1.38B
Balance Sheet
Total Assets	187.48B	186.34B	176.89B	178.09B	169.59B	162.39B
Cash, Cash Equivalents and Short-Term Investments	475.00M	314.00M	253.00M	409.00M	341.00M	259.00M
Total Debt	87.48B	85.23B	80.46B	74.91B	68.26B	64.08B
Total Liabilities	135.68B	135.09B	126.71B	126.23B	118.45B	113.20B
Stockholders Equity	50.67B	50.13B	49.11B	49.32B	49.30B	47.96B
Cash Flow
Free Cash Flow	-208.00M	48.00M	-2.73B	-5.44B	-1.43B	-1.05B
Operating Cash Flow	3.65B	12.35B	9.88B	5.93B	8.29B	8.86B
Investing Cash Flow	-4.07B	-13.12B	-12.47B	-11.97B	-10.94B	-10.60B
Financing Cash Flow	385.00M	859.00M	2.35B	6.13B	2.61B	1.73B

Duke Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 117.06
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 117.06 is above the 20-day moving average (MA) of 116.32, below the 50-day MA of 117.19, and above the 200-day MA of 113.53, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 51.67 is Neutral, neither overbought nor oversold. The STOCH value of 80.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DUK.

Duke Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DUK	73 Outperform	$92.39B	19.83	9.48%	3.57%	5.02%	45.08%
EXC	73 Outperform	$43.33B	15.92	10.10%	3.73%	6.71%	16.09%
SO	70 Outperform	$100.18B	21.86	14.01%	3.25%	9.58%	8.02%
D	69 Neutral	$48.97B	21.54	8.22%	4.65%	3.62%	40.33%
AEP	68 Neutral	$55.16B	19.92	10.41%	3.60%	4.20%	-3.64%
Sector *	67 Neutral	$16.39B	16.97	4.47%	3.56%	4.77%	6.10%
XEL	66 Neutral	$38.97B	19.92	10.26%	3.37%	-0.44%	2.14%

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.