Duke Energy CORP (DUKU) stock analysis

P/E below its 5-year median

Duke Energy's P/E of 19.1 is below its own 5-year median of 21.2.

P/E below the industry

Duke Energy's P/E of 19.1 is below the Combination Electric and Gas, and Other Utility median of 19.2.

EV/EBITDA below its 5-year median

Duke Energy's EV/EBITDA of 11.3 is below its 5-year median of 12.2.

P/B above the industry

Duke Energy's price-to-book of 1.81 is above the Combination Electric and Gas, and Other Utility median of 1.70.

Trading below fair value

The share price of $127.39 is below our fair value estimate of $136.04.

Margin of safety under 20%

The price is 6.4% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 3.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 25.8% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 8.2% over the last twelve months, against a 5-year average of 29.3% a year.

Growing slower than the industry

Revenue grew 5.2% over the last twelve months; the Combination Electric and Gas, and Other Utility median is 5.4%.

Guidance unchanged

The latest outlook (through 2030 long-term adjusted EPS growth rate, Aug 3, 2026) was maintained, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 9.9% over the last twelve months and averaged 7.6% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.6%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Duke Energy's return on equity of 9.9% is above the Combination Electric and Gas, and Other Utility median of 9.6%.

Earnings grew over 5 years

Net income grew 29.3% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 16.1% over the last twelve months, against a 5-year average of 13.1%.

Net margin above the industry

Duke Energy's net margin of 16.1% is above the Combination Electric and Gas, and Other Utility median of 11.7%.

High debt

Debt is 167% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 131% five years ago to 167%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 12.7% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 2.4 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.66 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.73; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Duke Energy paid dividends worth 3.4% of the share price over the last twelve months.

Yield below Treasuries

The 3.4% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 4.0% or more; Duke Energy yields 3.4%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.