Entergy (ETR) AI Stock Analysis

• Market Cap: $35.21B
• Dividend Yield: 2.92%
• Average Volume (3M): 2.79M
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.36
• Revenue Growth: -0.84%
• EPS Growth: -37.59%
• Country: US
• Employees: 12,000
• Sector: Utilities
• Sector Strength: 77
• Industry: Regulated Electric
• EPS (TTM): 0.82
• Shares Outstanding: 430,774,100
• 10 Day Avg. Volume: 2,497,784
• 30 Day Avg. Volume: 2,793,257
• PEG Ratio: -3.43
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.25
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 5.81
• Enterprise Value/Ebitda: 1.59
• 1Y Price Target: $91.24
• Price Target Upside: 11.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 68 Neutral
• Price Target: $89.00 ▲(8.90%Upside)

Entergy's overall stock score is driven by strong financial performance and positive corporate developments. However, technical analysis and valuation concerns, such as high leverage and overvaluation, weigh on the score. The company's ability to manage cash flow and leverage will be crucial for future performance.

Positive Factors

Earnings

Entergy Corp. reported earnings per share that exceeded consensus estimates, indicating stronger financial performance.

Growth Outlook

Management reaffirmed its long-term earnings per share growth rate of greater than 8% through 2028, showing confidence in future growth.

Investment Opportunities

Analyst reiterates an Outperform rating and views the stock's current price as an attractive buying opportunity.

Negative Factors

Market Performance

Entergy Corp. underperformed peers due to investor positioning and a lack of positive incremental data points.

Retail Sales

Entergy underperformed peers due to investor positioning and a modest revision to retail sales.

Tariffs and Recession Risks

Focus is on management's commentary on tariffs and their potential recessionary effects on ETR's service territory given its more industrial-heavy load profile.

Entergy Business Overview & Revenue Model

Company Description

Entergy Corporation, together with its subsidiaries, engages in the production and retail distribution of electricity in the United States. The company operates in two segments, Utility and Entergy Wholesale Commodities. The Utility segment generates, transmits, distributes, and sells electric power in portions of Arkansas, Louisiana, Mississippi, and Texas, including the City of New Orleans; and distributes natural gas. The Entergy Wholesale Commodities segment engages in the ownership, operation, and decommissioning of nuclear power plants; and ownership of interests in non-nuclear power plants that sell electric power to wholesale customers, as well as provides services to other nuclear power plant owners. It generates electricity through gas, nuclear, coal, hydro, and solar power sources. The company sells energy to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies. The company's power plants have approximately 26,000 megawatts (MW) of electric generating capacity, which include 6,000 MW of nuclear power. It delivers electricity to 3 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. The company was founded in 1913 and is headquartered in New Orleans, Louisiana.

How the Company Makes Money

Entergy makes money primarily through its utility operations, which involve the generation, transmission, and distribution of electricity to residential, commercial, industrial, and governmental customers. The company operates under regulated rate structures, which allow it to recover expenses and earn a return on invested capital for its utility services. Additionally, Entergy generates revenue from its nuclear power plants, selling electricity to wholesale customers and other utilities. The company's earnings are influenced by factors such as regulatory decisions, fuel costs, weather conditions, and economic activity in its service areas. Entergy also participates in partnerships and joint ventures that can contribute to its revenue streams, as well as investments in infrastructure and technology to enhance its operational efficiency and service reliability.

Entergy Financial Statement Overview

Summary

Entergy exhibits strong profitability and operational efficiency with robust margins. However, the company faces challenges including inconsistent revenue growth and high leverage, along with negative free cash flow which could impact financial flexibility.

Income Statement

Entergy shows a strong TTM gross profit margin of 44.87% and an improving net profit margin of 11.27%, indicating effective cost management and profitability. The EBIT margin for TTM is solid at 25.67%, with EBITDA margin at 44.74%, reflecting operational efficiency. However, revenue growth has been inconsistent, with a slight decline in recent years, which could hinder long-term performance.

Balance Sheet

The company maintains a high debt-to-equity ratio of 2.04, signaling significant leverage which could pose financial risks. The TTM return on equity is a robust 8.85%, demonstrating effective use of equity capital. However, the equity ratio of 22.79% suggests a heavy reliance on debt funding, which may impact financial stability.

Cash Flow

Entergy's operating cash flow to net income ratio stands at 3.35 for TTM, indicating strong cash generation relative to net earnings. However, the negative free cash flow and declining free cash flow growth rate could limit opportunities for reinvestment and necessitate reliance on external financing.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.93B	11.88B	12.15B	13.76B	11.74B	10.11B
	Gross Profit
5.36B	5.74B	5.33B	5.28B	4.87B	4.46B
	EBIT
3.06B	2.65B	2.62B	2.05B	1.85B	1.77B
	EBITDA
5.49B	4.66B	4.92B	4.16B	4.39B	4.33B
	Net Income Common Stockholders
1.34B	1.06B	2.36B	1.10B	1.12B	1.41B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.51B	859.70M	132.55M	224.16M	442.56M	1.76B
	Total Assets
66.62B	64.79B	59.70B	58.60B	59.45B	58.24B
	Total Debt
30.92B	28.92B	26.25B	26.76B	27.08B	24.00B
	Net Debt
29.41B	28.06B	26.11B	26.54B	26.64B	22.24B
	Total Liabilities
51.12B	49.39B	44.74B	45.53B	47.75B	47.28B
	Stockholders Equity
15.19B	15.08B	14.66B	13.00B	11.64B	10.93B
Cash Flow		Free Cash Flow
-1.91B	-1.48B	-417.30M	-2.70B	-4.12B	-2.47B
	Operating Cash Flow
4.50B	4.49B	4.29B	2.59B	2.30B	2.69B
	Investing Cash Flow
-6.27B	-5.85B	-4.63B	-5.71B	-6.18B	-4.77B
	Financing Cash Flow
1.99B	2.09B	243.03M	2.91B	2.56B	3.42B

Entergy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 81.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETR, the sentiment is Negative. The current price of 81.73 is below the 20-day moving average (MA) of 82.52, below the 50-day MA of 82.51, and above the 200-day MA of 76.51, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 45.75 is Neutral, neither overbought nor oversold. The STOCH value of 37.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ETR.

Entergy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEC	77 Outperform	$33.24B	20.33	12.96%	3.40%	4.42%	11.98%
ETR	68 Neutral	$35.21B	26.52	8.96%	2.92%	-0.84%	-37.59%
DTE	68 Neutral	$27.63B	17.98	13.28%	3.22%	11.16%	20.94%
XEL	68 Neutral	$38.52B	19.69	10.26%	3.37%	-0.44%	2.14%
PCG	66 Neutral	$29.89B	12.51	8.55%	0.73%	1.91%	-4.40%
Sector *	64 Neutral	$8.57B	10.35	4.24%	4.64%	4.07%	-13.04%
ED	64 Neutral	$36.62B	18.76	8.33%	3.27%	8.52%	3.91%

Entergy Corporate Events

Entergy Settles Forward Sale Agreements for $806 Million

On May 13, 2025, Entergy Corporation settled its obligations under Forward Sale Agreements by delivering 15,560,474 shares of common stock, generating approximately $806 million in cash proceeds. The company still has outstanding forward sale agreements for 30,160,621 shares, which could yield an additional $2.3 billion if settled as of the same date.

The most recent analyst rating on (ETR) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Entergy stock, see the ETR Stock Forecast page.

Entergy Reports Strong Q1 2025 Financial Results

On April 29, 2025, Entergy Corporation reported its first quarter 2025 financial results, showing earnings of $361 million, or 82 cents per share, both on an as-reported and adjusted basis. This marks a significant increase from the first quarter of 2024, where earnings were $75 million, or 18 cents per share, as-reported. The company highlighted several business developments, including regulatory approvals for transmission projects in Texas and Louisiana, and the completion of a $1.5 billion common stock offering. Entergy also received an Emergency Response Award for its restoration work following Hurricane Francine. The company reaffirmed its 2025 adjusted earnings per share guidance range of $3.75 to $3.95, reflecting confidence in its operational strategy and stakeholder value delivery.

Entergy Announces Leadership Transition with New COO

On March 25, 2025, Entergy Corporation announced that Peter S. Norgeot, Jr., the Executive Vice President and Chief Operating Officer, will retire on April 30, 2025, as part of a planned leadership transition. Kimberly Cook-Nelson, currently the Executive Vice President and Chief Nuclear Officer, will succeed him starting May 1, 2025. Her compensation package includes a base salary of $745,000, an annual bonus, and stock options, reflecting her seniority and responsibilities.