ENTERGY CORP /DE/ (ETR) Stock Analysis
ENTERGY CORP /DE/ (ETR) Stock Analysis
Analysis from 10-Q filed 2025-10-31. Data as of Q4 2025.
Overall Grade: F (Concerning)
ENTERGY CORP /DE/ faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 5.4% | Below expectations |
| FCF Margin | -19.6% | Cash flow pressure |
| Debt/Equity | 1.8x | Elevated debt |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore ENTERGY CORP /DE/: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: ENTERGY CORP /DE/ earns 5.4% ROIC, Bottom 50% in Utilities
ENTERGY CORP /DE/'s trailing-twelve-month ROIC of 5.4% ranks Bottom 50% in Utilities companies (sector median: 5.8%), driven by NOPAT margin of 19.3% combined with asset turnover of 0.2x. Source: 10-Q filed 2025-10-31.
| Metric | ETR | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 5.4% | Warning | Below sector median of 5.8% |
| Return on Equity (ROE) | 11.0% | Adequate | Moderate equity returns |
| Operating Margin | 24.7% | Excellent | Efficient operations |
Cash Flow: ENTERGY CORP /DE/ generates $-2.5B FCF at -19.6% margin, positive NaN/8 quarters
ENTERGY CORP /DE/ generated $-2.5B in free cash flow (TTM), a -19.6% FCF margin, a margin that ranks Top 50% in Utilities. Operating cash flow exceeds net income by 2.9x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-31.
| Metric | ETR | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | -19.6% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-2.5B | Red flag | Cash burn |
| OCF/Net Income | 2.9x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: ENTERGY CORP /DE/ at 1.8x leverage
ENTERGY CORP /DE/'s debt-to-equity ratio of 1.8x reflects high leverage. Total debt of $30.9B offset by $1.9B in cash. Source: 10-Q filed 2025-10-31.
| Metric | ETR | Rating | Context |
|---|---|---|---|
| Debt to Equity | 1.8x | Warning | Elevated leverage |
| Net Cash Position | $-29.0B | Warning | Net debt position |
Valuation: ENTERGY CORP /DE/ trades at 23.3x earnings
ENTERGY CORP /DE/ trades at a P/E of 23.3x. Free cash flow yield of -6.2% reflects market expectations for growth.
| Metric | ETR | Rating | Context |
|---|---|---|---|
| P/E Ratio | 23.3x | Adequate | Premium valuation |
| EV/Sales | 5.4x | Adequate | Growth premium priced in |
| FCF Yield | -6.2% | Warning | Lower cash yield |
| Dividend Yield | 2.6% | Adequate | Growth focus over income |
Capital Allocation: ENTERGY CORP /DE/ returns 2.6% shareholder yield
ENTERGY CORP /DE/'s total shareholder yield is 2.6% (dividends 2.6% + buybacks). Source: 10-Q filed 2025-10-31.
| Metric | ETR | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 2.6% | Adequate | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $1.1B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 5.4% | Bottom 50% | 0.9x below |
| Free Cash Flow Margin | -19.6% | Top 50% | - |
| Operating Margin | 24.7% | Top 50% | 1.2x above |
| Return on Equity (ROE) | 11.0% | Top 50% | 1.2x above |
| P/E Ratio | 23.3x | N/A | - |
Financial Scorecard
| Metric | ETR | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 5.4% | Warning | Bottom 50% of sector (median: 5.8%) |
| Free Cash Flow Margin | -19.6% | Red flag | Top 50% of sector (median: 0.0%) |
| Debt to Equity Ratio | 182.8% | Warning | High financial leverage |
| P/E Ratio (Price-to-Earnings) | 23.3x | Adequate | Fair value |
| Free Cash Flow Yield | -6.2% | Red flag | Growth-focused valuation |
Frequently Asked Questions
Q: What is ENTERGY CORP /DE/'s Return on Invested Capital (ROIC)?
ENTERGY CORP /DE/ (ETR) has a trailing twelve-month Return on Invested Capital (ROIC) of 5.4%. This compares below the sector median of 5.8%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is ENTERGY CORP /DE/'s Free Cash Flow Margin?
ENTERGY CORP /DE/ (ETR) has a free cash flow margin of -19.6%, generating $-2.5 billion in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is ENTERGY CORP /DE/ stock overvalued or undervalued?
ENTERGY CORP /DE/ (ETR) trades at a P/E ratio of 23.3x, which is above the sector median of N/A. The EV/Sales multiple is 5.4x.
Q: Does ENTERGY CORP /DE/ pay a dividend?
ENTERGY CORP /DE/ (ETR) currently pays a dividend yield of 2.6%. Including share buybacks, the total shareholder yield is 2.6%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: How much debt does ENTERGY CORP /DE/ have?
ENTERGY CORP /DE/ (ETR) has a debt-to-equity ratio of 1.8x with total debt of $30.9 billion. Net debt position is $29.0 billion.
Q: What is ENTERGY CORP /DE/'s revenue and earnings growth?
ENTERGY CORP /DE/ (ETR) grew revenue by 9.0% year-over-year. Earnings per share increased by 59.6% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: How does ENTERGY CORP /DE/ compare to competitors in Utilities?
Compared to other companies in Utilities, ENTERGY CORP /DE/ (ETR) shows: ROIC of 5.4% is below the sector median of 5.8% (Bottom 46%). FCF margin of -19.6% trails the sector median of 0.0% (Top 48% of sector). These rankings are based on MetricDuck's analysis of all Utilities companies with available SEC filings.
Q: What warning signs should I watch for with ENTERGY CORP /DE/?
Investors in ENTERGY CORP /DE/ (ETR) should monitor these potential warning signs: 1) FCF margin is thin at -19.6%, leaving limited buffer for economic downturns. 2) Debt-to-equity of 1.8x is elevated. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-10-31. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.