Entergy (ETR) AI Stock Analysis

• Market Cap: $40.11B
• Dividend Yield: 2.66%
• Average Volume (3M): 2.63M
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.31
• Revenue Growth: 1.38%
• EPS Growth: -2.90%
• Country: US
• Employees: 12,000
• Sector: Utilities
• Sector Strength: 59
• Industry: Regulated Electric
• EPS (TTM): 1.05
• Shares Outstanding: 446,409,060
• 10 Day Avg. Volume: 2,549,289
• 30 Day Avg. Volume: 2,625,771
• PEG Ratio: -0.55
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 2.73
• P/FCF Ratio: -21.89
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 5.41
• Enterprise Value/Gross Profit: 11.03
• Enterprise Value/Ebitda: 10.97
• 1Y Price Target: $93.17
• Price Target Upside: 3.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 68 Neutral
• Price Target: $95.00 ▲(5.22% Upside)

Entergy's overall stock score reflects strong earnings call sentiment and fair valuation, offset by technical analysis concerns and financial performance risks. The company's strategic initiatives and growth in industrial sales are significant positives, but high leverage and cash flow challenges need attention.

Positive Factors

Industrial Sales Growth

Strong industrial sales growth indicates robust demand from industrial customers, supporting long-term revenue stability and expansion opportunities.

Increased Capital Plan

The expanded capital plan reflects Entergy's commitment to infrastructure and renewable energy, positioning it for future growth and sustainability.

Regulatory Approvals and Strategic Focus

The strategic divestment and regulatory approvals allow Entergy to concentrate on its core electric utility business, enhancing operational focus and investment capacity.

Negative Factors

High Leverage

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

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, necessitating improved cash management to support ongoing operations and investments.

Flat Residential Sales

Flat residential sales growth may signal challenges in consumer demand, potentially affecting future revenue growth in this segment.

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 generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers. The company's revenue model is largely based on regulated utility operations, where it earns a return on investment through the rates set by state utility commissions. Key revenue streams include residential and commercial electricity sales, capacity payments from wholesale markets, and ancillary services. Additionally, Entergy benefits from partnerships with renewable energy providers and government incentives related to clean energy initiatives. The company's diversified generation portfolio, including nuclear, natural gas, and renewable sources, further supports its earnings through stable and reliable energy production.

Entergy Financial Statement Overview

Summary

Entergy demonstrates strong profitability and revenue growth, supported by efficient operations. However, high leverage and negative free cash flow pose risks that need addressing. Overall, the company is on a positive trajectory but must manage its debt levels and improve cash flow to sustain long-term growth.

Income Statement

Entergy's income statement shows a solid performance with a consistent increase in gross profit margin and net profit margin over the years. The TTM data indicates a gross profit margin of 49.05% and a net profit margin of 14.34%, both of which are strong indicators of profitability. Revenue growth has been positive in the TTM period at 3.15%, recovering from previous declines. EBIT and EBITDA margins are also robust, reflecting efficient operations.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.88 in the TTM period, indicating significant leverage, which is a potential risk. However, the return on equity is improving, reaching 11.47%, showing effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals challenges with free cash flow, which is negative, though there is a notable improvement in free cash flow growth at 32.63% in the TTM period. The operating cash flow to net income ratio is 0.73, indicating moderate cash generation relative to net income. The negative free cash flow to net income ratio highlights the need for better cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.31B	11.88B	12.15B	13.76B	11.74B	10.11B
Gross Profit	6.04B	5.74B	5.33B	5.28B	4.87B	4.46B
EBITDA	6.07B	5.04B	4.92B	4.24B	4.39B	4.33B
Net Income	1.76B	1.06B	2.36B	1.10B	1.12B	1.41B
Balance Sheet
Total Assets	68.38B	64.79B	59.70B	58.60B	59.45B	58.24B
Cash, Cash Equivalents and Short-Term Investments	1.18B	859.70M	132.55M	224.16M	442.56M	1.76B
Total Debt	30.41B	28.92B	26.25B	26.76B	27.08B	24.00B
Total Liabilities	52.07B	49.61B	44.96B	45.53B	47.78B	47.28B
Stockholders Equity	16.21B	15.12B	14.66B	13.00B	11.64B	10.93B
Cash Flow
Free Cash Flow	-2.53B	-1.48B	-417.30M	-2.70B	-4.12B	-2.47B
Operating Cash Flow	4.74B	4.49B	4.29B	2.59B	2.30B	2.69B
Investing Cash Flow	-7.12B	-5.85B	-4.63B	-5.71B	-6.18B	-4.77B
Financing Cash Flow	2.20B	2.09B	243.03M	2.91B	2.56B	3.42B

Entergy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 90.29
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 90.29 is above the 20-day moving average (MA) of 88.58, above the 50-day MA of 87.12, and above the 200-day MA of 81.84, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 58.88 is Neutral, neither overbought nor oversold. The STOCH value of 58.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ETR.

Entergy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEC	76 Outperform	$35.32B	20.97	13.12%	3.20%	7.88%	20.67%
PEG	69 Neutral	$40.94B	20.64	12.19%	3.04%	13.73%	19.94%
ETR	68 Neutral	$40.11B	22.01	11.32%	2.66%	1.38%	-2.90%
XEL	68 Neutral	$43.09B	20.06	10.65%	3.07%	1.20%	7.99%
ED	66 Neutral	$35.24B	17.60	8.54%	3.46%	9.03%	7.22%
EXC	66 Neutral	$43.93B	16.45	9.87%	3.64%	4.46%	8.68%
Sector *	66 Neutral	$17.51B	18.09	5.60%	3.63%	6.62%	11.55%

Entergy Corporate Events

Entergy Reports Strong Q2 2025 Financial Results

Entergy Corporation reported strong financial results for the second quarter of 2025, with earnings of $468 million, or $1.05 per share, both on an as-reported and adjusted basis. This marks a significant increase from the second quarter of 2024, where earnings were $49 million, or 11 cents per share, as-reported. The company has updated its capital plan and raised its earnings outlook for 2027-2028, reflecting its strategic positioning and growth opportunities. Key developments include the sale of natural gas distribution businesses by Entergy New Orleans and Entergy Louisiana, and regulatory approvals for various infrastructure investments and rate adjustments across its operating regions. Entergy also maintained its 2025 adjusted earnings per share guidance range of $3.75 to $3.95, indicating confidence in its operational and financial strategies.

Entergy Appoints R. Lewis Ropp as New Director

On July 25, 2025, Entergy Corporation’s Board of Directors elected R. Lewis Ropp as a new independent director, effective August 15, 2025, expanding the Board to 11 members. Mr. Ropp, with extensive experience in investment management and the oil and gas industry, will serve on the Audit and Corporate Governance Committees, bringing valuable expertise to the company.

Entergy Completes Sale of Gas Distribution Business

On July 1, 2025, Entergy completed the sale of its natural gas distribution business to Delta Utilities, backed by Bernhard Capital Partners. The transaction, which involved the sale of Entergy New Orleans and Entergy Louisiana’s gas businesses, received all necessary regulatory approvals and is part of Entergy’s strategic focus on expanding its electric utility operations. This move is expected to enhance Entergy’s ability to invest in a more resilient energy future, while Delta Utilities takes over the management of gas services for approximately 204,000 homes and businesses in Baton Rouge and New Orleans.