Duke Energy (DUK) AI Stock Analysis

• Market Cap: $91.32B
• Dividend Yield: 3.59%
• Average Volume (3M): 3.45M
• Price to Earnings (P/E): 18.5
• Beta (1Y): -0.12
• Revenue Growth: 4.80%
• EPS Growth: 14.44%
• Country: US
• Employees: 26,413
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 1.81
• Shares Outstanding: 777,661,200
• 10 Day Avg. Volume: 3,494,428
• 30 Day Avg. Volume: 3,454,911
• PEG Ratio: 3.58
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 2.74
• P/FCF Ratio: 1.73K
• Enterprise Value/Market Cap: 2.05
• Enterprise Value/Revenue: 5.89
• Enterprise Value/Gross Profit: 9.88
• Enterprise Value/Ebitda: 11.87
• 1Y Price Target: $136.27
• Price Target Upside: 15.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $127.00 ▲(8.04% Upside)

Duke Energy's overall stock score reflects a solid financial performance with strong revenue growth and profitability. The positive outlook from the earnings call and strategic corporate events bolster the score. However, technical analysis indicates bearish momentum, and cash flow management challenges pose risks. The valuation suggests the stock is fairly valued, providing limited upside potential.

Positive Factors

Earnings Growth

Consistent earnings growth indicates robust operational performance and effective cost management, supporting long-term financial stability.

Capital Investment Plan

The significant capital investment plan positions Duke Energy for future growth, enhancing infrastructure and expanding capacity, driving long-term earnings.

Regulatory Support

Regulatory support through settlements and rate implementations provides a stable revenue base, aiding in predictable long-term growth.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Cash Flow Challenges

Challenges in generating free cash flow may strain financial resources, affecting the ability to fund operations and future investments.

Interest Expense Impact

Rising interest expenses can erode profitability and cash flow, posing a risk to financial health and limiting investment capacity.

Duke Energy Business Overview & Revenue Model

Company Description

Duke Energy (DUK) is one of the largest electric power holding companies in the United States, serving approximately 7.7 million customers across six states in the Southeast and Midwest. The company operates through three primary segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables. Duke Energy generates, transmits, distributes, and sells electricity, primarily from a diverse mix of energy sources including fossil fuels, nuclear, and renewable energy. Additionally, the company provides natural gas distribution services and is involved in renewable energy projects, which contribute to its commitment to sustainability and reducing carbon emissions.

How the Company Makes Money

Duke Energy makes money primarily through the sale of electricity and natural gas to residential, commercial, and industrial customers. The company's revenue model is largely based on a regulated utility framework, where it earns a return on investment through rates set by state regulatory commissions. Key revenue streams include retail electricity sales, natural gas distribution, and infrastructure investments. Duke Energy has significant partnerships with local and state governments to develop renewable energy projects, which can enhance revenue through incentives and subsidies. Furthermore, the company is involved in various energy efficiency programs and demand response initiatives that help to stabilize revenue during periods of fluctuating energy demand, contributing to its overall financial stability.

Duke Energy Financial Statement Overview

Summary

Duke Energy shows strong revenue growth and profitability with efficient operations and improved leverage management. However, declining free cash flow presents potential liquidity challenges that need addressing to sustain financial health.

Income Statement

Duke Energy's income statement shows strong performance with a consistent increase in revenue over the years, highlighted by a TTM revenue growth rate of 1.24%. The company maintains a solid gross profit margin of 59.5% and a net profit margin of 15.8% in the TTM, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also robust, reflecting operational efficiency. However, the net profit margin has slightly decreased from previous years, which could be a point of concern if the trend continues.

Balance Sheet

The balance sheet reveals a significant improvement in the debt-to-equity ratio, dropping to 0.20 in the TTM from higher levels in previous years, indicating better leverage management. The return on equity (ROE) has improved to 9.8%, showcasing effective use of equity to generate profits. However, the equity ratio remains stable, suggesting a balanced asset structure. The high total assets and equity levels provide stability, but the company should continue to monitor its debt levels to maintain financial health.

Cash Flow

Duke Energy's cash flow statement shows a concerning trend with a significant decline in free cash flow growth, dropping by 1691.47% in the TTM. The operating cash flow to net income ratio is healthy at 0.62, indicating good cash generation relative to net income. However, the free cash flow to net income ratio is lower, suggesting potential challenges in converting income into free cash flow. The company needs to address the negative free cash flow growth to ensure long-term liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.79B	30.36B	29.06B	28.77B	24.62B	23.37B
Gross Profit	18.96B	15.20B	13.76B	12.98B	11.96B	11.35B
EBITDA	15.78B	15.00B	13.87B	12.36B	11.86B	8.50B
Net Income	4.99B	4.51B	4.30B	2.55B	3.91B	1.38B
Balance Sheet
Total Assets	192.29B	186.34B	176.89B	178.09B	169.59B	162.39B
Cash, Cash Equivalents and Short-Term Investments	688.00M	314.00M	253.00M	409.00M	341.00M	259.00M
Total Debt	89.23B	85.23B	80.46B	74.91B	68.26B	64.08B
Total Liabilities	139.67B	135.09B	126.71B	126.23B	118.45B	113.20B
Stockholders Equity	51.46B	50.13B	49.11B	49.32B	49.30B	47.96B
Cash Flow
Free Cash Flow	8.96B	48.00M	-2.73B	-5.44B	-1.43B	-1.05B
Operating Cash Flow	12.05B	12.33B	9.88B	5.93B	8.29B	8.86B
Investing Cash Flow	-13.25B	-13.12B	-12.47B	-11.97B	-10.94B	-10.60B
Financing Cash Flow	1.49B	859.00M	2.35B	6.13B	2.61B	1.73B

Duke Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 117.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DUK, the sentiment is Negative. The current price of 117.55 is below the 20-day moving average (MA) of 118.59, below the 50-day MA of 122.17, and below the 200-day MA of 118.73, indicating a bearish trend. The MACD of -1.76 indicates Negative momentum. The RSI at 44.44 is Neutral, neither overbought nor oversold. The STOCH value of 68.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DUK.

Duke Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NGG	74 Outperform	$76.00B	20.49	7.53%	4.07%	-7.06%	38.21%
DUK	70 Outperform	$91.32B	18.46	9.92%	3.59%	4.80%	14.44%
AEP	68 Neutral	$61.27B	16.78	12.85%	3.24%	7.66%	37.42%
EXC	67 Neutral	$44.21B	15.66	10.31%	3.62%	6.07%	15.20%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
SO	64 Neutral	$95.83B	21.63	13.06%	3.38%	9.40%	-6.05%
D	63 Neutral	$51.33B	20.45	9.27%	4.44%	12.72%	4.90%

Duke Energy Corporate Events

Duke Energy Completes $1.75 Billion Senior Notes Sale

On September 11, 2025, Duke Energy Corporation completed the issuance and sale of $1.75 billion in senior notes, consisting of $1 billion of 4.95% Senior Notes due 2035 and $750 million of 5.70% Senior Notes due 2055. This strategic financial move, executed with several major underwriters, is expected to bolster the company’s financial position and support its ongoing operations and growth initiatives.