Entergy (ETR) AI Stock Analysis

• Market Cap: $42.08B
• Dividend Yield: 2.59%
• Average Volume (3M): 2.71M
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.23
• Revenue Growth: 6.71%
• EPS Growth: -0.12%
• Country: US
• Employees: 12,000
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 1.53
• Shares Outstanding: 446,596,900
• 10 Day Avg. Volume: 2,588,767
• 30 Day Avg. Volume: 2,709,674
• 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: 1.70
• Enterprise Value/Revenue: 5.62
• Enterprise Value/Gross Profit: 12.75
• Enterprise Value/Ebitda: 12.00
• 1Y Price Target: $104.25
• Price Target Upside: 10.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 3.91
• Revenue Forecast (FY): $12.83B

• Rating: 66 Neutral
• Price Target: $102.00 ▲(8.26% Upside)

Entergy's overall stock score reflects strong earnings call performance and strategic growth initiatives. However, financial risks due to high leverage and negative cash flow growth, along with mixed technical indicators, temper the score.

Positive Factors

Renewable Energy Expansion

Entergy's significant strides in renewable energy projects, like the Bogalusa West Solar project, align with sustainable energy trends, enhancing long-term growth and reducing carbon footprint.

Strategic Partnerships

The long-term natural gas agreement supports Entergy's strategy to provide reliable energy and meet growing demand, strengthening its market position and customer base.

Customer Growth Initiatives

Initiatives like Superpower Mississippi and new industrial customers, including Google and Amazon, indicate robust customer growth, enhancing revenue stability and market reach.

Negative Factors

High Leverage

Entergy's high leverage, indicated by a debt-to-equity ratio of 1.80, poses financial risks, potentially limiting financial flexibility and increasing vulnerability to interest rate changes.

Negative Cash Flow Growth

Negative cash flow growth suggests liquidity challenges, which could hinder Entergy's ability to invest in growth opportunities and manage debt obligations effectively.

Operating Cost Challenges

Rising operating costs and labor challenges could pressure margins and impact profitability, requiring strategic cost management to maintain financial health.

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 its utility operations by charging customers for electricity consumption. The company earns money from residential, commercial, and industrial customers based on regulated rates set by state public utility commissions. Additionally, Entergy's Wholesale Commodities segment contributes to its revenue by selling electricity generated from its nuclear and gas-fired plants to wholesale markets. The company also engages in energy trading and provides ancillary services, further diversifying its revenue streams. Strategic partnerships with renewable energy developers and investments in sustainable practices are enhancing Entergy's earnings potential in the evolving energy landscape.

Entergy Financial Statement Overview

Summary

Entergy shows strong profitability and revenue growth with improved net profit margins. However, high leverage and negative free cash flow growth pose potential risks, necessitating improvements in cash flow management for long-term stability.

Income Statement

Entergy's income statement shows a solid performance with a TTM gross profit margin of 44.05% and a net profit margin of 14.28%, indicating strong profitability. The revenue growth rate of 3.44% in the TTM period suggests a positive trend compared to the previous year. However, the gross profit margin has slightly decreased from the previous year, and the net profit margin has improved significantly, reflecting better cost management and operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.80 in the TTM period, indicating significant leverage, which could pose financial risks. The return on equity (ROE) of 11.47% suggests moderate efficiency in generating returns from equity. The equity ratio of 24.16% indicates a stable capital structure but highlights the reliance on debt financing.

Cash Flow

Cash flow analysis shows challenges, with a negative free cash flow growth rate of -10.07% in the TTM period, indicating potential liquidity issues. The operating cash flow to net income ratio of 0.09 suggests limited cash generation relative to net income, while the free cash flow to net income ratio of -3.30 highlights cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.73B	11.88B	12.15B	13.76B	11.74B	10.11B
Gross Profit	5.61B	5.74B	5.33B	5.28B	4.87B	4.46B
EBITDA	5.96B	5.04B	4.92B	4.24B	4.39B	4.33B
Net Income	1.82B	1.06B	2.36B	1.10B	1.12B	1.41B
Balance Sheet
Total Assets	69.85B	64.79B	59.70B	58.60B	59.45B	58.24B
Cash, Cash Equivalents and Short-Term Investments	1.52B	859.70M	132.55M	224.16M	442.56M	1.76B
Total Debt	30.34B	28.92B	26.25B	26.76B	27.08B	24.00B
Total Liabilities	52.87B	49.61B	44.96B	45.53B	47.78B	47.28B
Stockholders Equity	16.88B	15.12B	14.66B	13.00B	11.64B	10.93B
Cash Flow
Free Cash Flow	-2.32B	-1.48B	-417.30M	-2.70B	-4.12B	-2.47B
Operating Cash Flow	5.31B	4.49B	4.29B	2.59B	2.30B	2.69B
Investing Cash Flow	-7.06B	-5.85B	-4.63B	-5.71B	-6.18B	-4.77B
Financing Cash Flow	1.85B	2.09B	243.03M	2.91B	2.56B	3.42B

Entergy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 94.22
• 50DMA: Negative
• 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 Neutral. The current price of 94.22 is below the 20-day moving average (MA) of 95.05, below the 50-day MA of 95.04, and above the 200-day MA of 86.59, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 47.48 is Neutral, neither overbought nor oversold. The STOCH value of 36.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ETR.

Entergy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEC	68 Neutral	$34.39B	19.98	13.19%	3.38%	11.88%	29.76%
EXC	67 Neutral	$44.26B	15.68	10.31%	3.65%	6.07%	15.20%
ETR	66 Neutral	$42.08B	23.25	11.33%	2.59%	6.71%	-0.12%
PEG	66 Neutral	$39.72B	19.12	12.58%	3.13%	18.29%	2.40%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ED	65 Neutral	$34.87B	16.88	8.84%	3.52%	10.35%	7.64%
XEL	58 Neutral	$45.66B	23.54	9.45%	2.92%	3.32%	-2.30%

Entergy Corporate Events

Entergy Closes $1.3 Billion Debenture Sale

On November 4, 2025, Entergy Corporation entered into an Underwriting Agreement for the sale of $1.3 billion in Junior Subordinated Debentures, with the transaction closing on November 7, 2025. This issuance is expected to impact Entergy’s financial strategy by potentially enhancing its capital structure and supporting future growth initiatives.

Entergy Announces Leadership Transition with Executive Change

Marcus V. Brown, Executive Vice President and General Counsel of Entergy Corporation, plans to retire in the spring of 2026 as part of a leadership transition. He will step down from his current role on December 1, 2025, to become the Executive Legal Advisor to the CEO, marking a significant change in the company’s leadership structure.

Entergy Appoints Admiral Caldwell to Board of Directors

On October 31, 2025, Entergy Corporation’s Board of Directors elected retired Admiral James F. Caldwell, Jr. to the Board, effective November 1, 2025, until the 2026 Annual Meeting of Shareholders. Admiral Caldwell, who qualifies as an independent director, will serve on the Nuclear and Operations Oversight and Talent and Compensation Committees. His extensive naval career, including roles such as Director of the Naval Nuclear Propulsion Program, adds significant expertise to the Board. The Board’s expansion to 12 members and Admiral Caldwell’s appointment are expected to enhance Entergy’s governance and operational oversight, particularly in nuclear operations, benefiting stakeholders.

Entergy Reports Q3 2025 Financial Results and Guidance

On October 29, 2025, Entergy Corporation reported its financial results for the third quarter of 2025, with earnings per share of $1.53 on both an as-reported and adjusted basis. The company narrowed its 2025 adjusted EPS guidance range to $3.85 to $3.95 and highlighted several business developments, including approvals for power stations and transmission projects in Texas and Arkansas, as well as a grant for resiliency projects. Entergy’s earnings were driven by regulatory actions, higher retail sales, and increased other income, though offset by higher operational costs and expenses.

Entergy Establishes New 2025 Availability Agreement

On October 1, 2025, System Energy Resources, Inc. and its affiliate operating companies terminated their existing Availability Agreement and related assignments, which had provided financial assurances for the company’s operations. This termination affects the security of certain bonds previously backed by the agreement. Concurrently, the company established a new 2025 Availability Agreement to ensure adequate cash resources for operational expenses and potential shutdown costs, with specific allocation percentages for payments from Entergy Arkansas, Entergy Mississippi, and Entergy New Orleans.