Entergy (ETR) AI Stock Analysis

• Market Cap: $37.98B
• Dividend Yield: 3.36%
• Average Volume (3M): 2.57M
• Price to Earnings (P/E): 28.6
• Beta (1Y): 0.35
• Revenue Growth: -0.84%
• EPS Growth: -37.59%
• Country: US
• Employees: 12,000
• Sector: Utilities
• Sector Strength: 79
• Industry: Regulated Electric
• EPS (TTM): 0.82
• Shares Outstanding: 430,774,100
• 10 Day Avg. Volume: 2,705,345
• 30 Day Avg. Volume: 2,572,203
• PEG Ratio: 2.45
• Price to Book (P/B): 2.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -19.92
• Enterprise Value/Market Cap: 1.77
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 26.69
• Enterprise Value/Ebitda: 8.68
• 1Y Price Target: $91.02
• Price Target Upside: 3.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 68 Neutral
• Price Target: $90.00 ▲(2.09%Upside)

Entergy's strong earnings call performance and strategic customer investments are significant positives, indicating growth potential. However, high leverage, valuation concerns, and technical uncertainty pose risks that balance the overall outlook.

Positive Factors

AI Theme

Entergy is considered one of the clear winners in the AI theme, which attracts generalist investors.

Earnings

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

Growth Potential

Large load customers are highly interested in setting up facilities in Entergy Corp's service territories, indicating potential for growth.

Negative Factors

Retail Sales Revision

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

Underperformance

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

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 showcases strong profitability and operational efficiency with robust margins. However, inconsistent revenue growth and high leverage pose financial challenges. Cash flow management is concerning due to negative free cash flow, impacting future growth and 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.88B	12.15B	13.76B	11.74B	10.11B
Gross Profit	5.74B	5.33B	5.28B	4.87B	4.46B
EBITDA	4.66B	4.92B	4.16B	4.39B	4.33B
Net Income	1.06B	2.36B	1.10B	1.12B	1.41B
Balance Sheet
Total Assets	64.79B	59.70B	58.60B	59.45B	58.24B
Cash, Cash Equivalents and Short-Term Investments	859.70M	132.55M	224.16M	442.56M	1.76B
Total Debt	28.92B	26.25B	26.76B	27.08B	24.00B
Total Liabilities	49.39B	44.74B	45.53B	47.75B	47.28B
Stockholders Equity	15.08B	14.66B	13.00B	11.64B	10.93B
Cash Flow
Free Cash Flow	-1.48B	-417.30M	-2.70B	-4.12B	-2.47B
Operating Cash Flow	4.49B	4.29B	2.59B	2.30B	2.69B
Investing Cash Flow	-5.85B	-4.63B	-5.71B	-6.18B	-4.77B
Financing Cash Flow	2.09B	243.03M	2.91B	2.56B	3.42B

Entergy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 88.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 88.16 is above the 20-day moving average (MA) of 83.97, above the 50-day MA of 82.94, and above the 200-day MA of 79.34, indicating a bullish trend. The MACD of 1.57 indicates Negative momentum. The RSI at 71.85 is Negative, neither overbought nor oversold. The STOCH value of 84.84 is Negative, 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	73 Outperform	$34.95B	21.38	12.96%	3.15%	4.42%	11.98%
XEL	71 Outperform	$41.91B	21.42	10.26%	3.08%	-0.44%	2.14%
DTE	69 Neutral	$28.93B	18.83	13.28%	3.08%	11.16%	20.94%
ETR	68 Neutral	$37.98B	28.61	8.96%	3.36%	-0.84%	-37.59%
Sector *	67 Neutral	$16.91B	17.00	4.48%	3.26%	4.72%	5.95%
ED	61 Neutral	$36.84B	18.88	8.33%	3.29%	8.52%	3.91%
PCG	61 Neutral	$30.94B	12.95	8.55%	0.60%	1.91%	-4.40%

Entergy Corporate Events

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.

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 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.