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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Entergy Corporation (XNYS:ETR) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
ETR
Name:
ENTERGY CORPORATION (XNYS:ETR)
Sector:
- 1046938.00K
Industry:
Utilities�Regulated Electric
CEO:
Mr. Leo Denault
Total Employees:
12,369
Our Technological Advancement Rating
Our Rating:
B
Technological advancement compared to industry is -1.00% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF ENTERGY CORPORATION(ETR) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND UTILITIES�REGULATED ELECTRIC INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
116.22
One Month Price Target:
$116.59
Six Month Price Target :
$118.45
Likely Price in One Year's Time:
Ticker:
$120.68
Likely Trading Range Today Under (Normal Volatility)
$115.83
Price Upper limit ($) :
$116.65
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$111.28
This week:
$105.17
This month :
$94.12
Other Primary facts
Market Cap:
23.52B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
203.42M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
14.85%
-15.73%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$139.16
$128.68
$93.28
$103.76
Medium risk (<10%) entry points
Buy Call
Sell Call
$125.27
Buy Put:
Sell Put:
$123.03
$107.14
$109.41
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
ETR
Sharpe Ratio:
0.50%
Comparison:
ETR, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is -56.98% lower than the industry
& is -77.89% lower than the market/S&P 500 average
Average Returns/Yield of
ETR
Daily returns:
0.02%
Weekly returns:
0.10%
Monthly returns:
0.39%
Yearly returns:
7.85%
Comparison of returns:
Average annual returns/yield (last 3 years) is -40.89% below industry average
Classification:
ETR, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.5
Statistical test of Returns:
ETR has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.08%
Weekly Volatility:
4.65%
Monthly Volatility:
9.30%
Yearly Volatility:
32.22%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.56%
Volatility in last five trading days has been -24.86% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.25%
Weekly VaR:
-9.51%
Monthly VaR:
-19.01%
How Much Can the price of
ETR
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-17%
Worst case (decline):
-65.86%
This translates to price declining to:
$96.93
This translates to price declining to:
$39.67
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
ETR is a 34.20% riskier investment compared to the market/S&P 500 & is 14.97% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 2.48% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
ETR
Beta in relation to market/S&P 500--0.57
Expected beta in 1 year's time:
0.538
Expected beta in 3 year's time:
0.761
Unlevered (debt free) Beta:
0.198
Beta in relation to Nasdaq (XNAS):
0.551
Beta in relation to all global stocks::
0.813
Beta Comparison & Analysis
Beta of competitors/peers::
0.945
Beta is -39.55% lower than peers
Average Industry Beta:
0.5
Beta is 14.35% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
4.32%
Sustainable growth rate is 23.89% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.024
Alpha is -290.14% below industry average alpha yield
Alpha is -154% below the market average
Analysis of Cost of Capital of
ETR
Equity cost of capital:
0.071
Equity cost of capital is 7.47% above industry mean WACC
Unlevered (without debt) cost of capital:
2.45%
Before-tax cost of debt:
3.08%
After-tax cost of debt:
2.43%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.43%
WACC is -7.61% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$57.89
Revenue growth rate per share of (3Y):
2.01
Annual revenue growth rate is 208.03% above the industry average
EPS:
$5.23
Expected Annual growth rate of EPS (3Y):
-4.50%
Expected future EPS growth rate is -27.29% lower than the Utilities�Regulated Electric industry
Free cash flow (FCF) per share:
-
Balance sheet equity growth per share: 8.21%
Equity growth rate per share is 39.94% higher than the industry
Debt per share
$128.68
EBITDA per share
$21.40
Valuation Analysis Today of
ETR
P/E Ratio:
19.22
P/E Ratio of Competitors/Peers:
24.85
P/E ratio is -22.63% lower than main peers & is -30.57% lower than the industry
Stock price/value with industry average P/E ratio: $144.81
ETR is -19.74% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $82.12
Present value of the expected future dividends only: $64.60
P/S (Price to Sales ratio):
2.01
Price to sales ratio is -30.84% below the industry mean
P/B (Price to book value ratio):
2.01
-
-
Net income growth rate (3Y):
17.08%
Net income growth rate is -679.82% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 19.79%
Dividend yeild: 3.42%
Previous Dividend: $1.01
Previous adjusted dividend: $1.01
Previous Dividend: $3.98
Expected next dividend best case: $1.04
Expected next dividend worst case: $0.98
Average dividend payment (long-term): $0.96
Average dividend increase/decrease (growth rate) % per period: 0.85%
Expected next dividend payment date: 30/08/2022
Expected next dividend record date: 08/03/2022
Expected next dividend declaration date: 07/11/2022
Previous dividend payment date: 06/01/2022
Previous dividend record date: 05/05/2022
Previous dividend declaration date: 04/11/2022
Dividend History:
2022-05-04--$1.01
2021-11-12--$1.01
2021-05-05--$0.95
2022-02-10--$1.01
2021-08-11--$0.95
2021-02-11--$0.95
Dividend growth rate is -185.00% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
222.27%
Net debt to equity ratio:
236.54%
Debt to assets ratio:
43.75%
Net debt to assets ratio:
46.56%
Debt-to-asset ratio is -30.39% below industry average
Ability to repay debt:
Interest coverage ratio:
4.96
Interest coverage ratio is 92.52% more than industry average
Looking forward:
Debt growth rate:
691.59%
Annual debt growth is 1406% higher than industry average debt growth rate
Debt repayment rate in last quarter: 4.47%
Analysis of Key Statistics
Correlation of price movement with the market:
0.637
Statistical significance of correlation:
ETR has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.597
Stock price is 6.70% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.597
Correlation of price movement with Nasdaq (^IXIC):
0.056
Covariance of price movement with the market:
0.067
Kurtosis
13.936
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
Skewness of returns:
-0.327
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
ETR
Gross Profit Margin Ratio:
165%
Operating Profit Margin Ratio:
16.17%
Operating profit margin is 38.95% higher than the industry
Net Profit Margin Ratio:
165%
Effective Tax Rate:
15.34%
Effective tax rate is -23.81% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
8.99%
Return on equity (ROE) is -1.06% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
1.77%
Return on assets (ROA) is -23.44% lower than the industry
Financial Leverage:
1.8x
Current Ratio:
0.72
Current ratio is -70.09% below industry average
Cash Conversion Cycle (days):
53.4
Cash conversion cycle is -43.51% below industry average
The remaining useful life of property plant & equipment is: 4.2 years
Stock based compensation to net income ratio:
-
In-depth Efficiency Analysis
Revenue generated per employee:
952.1K
Each employee generates -65% less revenue than industry average revenue per employee
EBITDA generated per employee:
352.0K
Each employee generates -70% less EBITDA than industry average revenue per employee
Profit generated per employee:
85.6K
Each employee generates -79% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 84.6K
Each employee generates 157% more free cash flow than industry average revenue per employee
Assets/Capital per employee
4.5M
Each employee generates 157% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
ETR
PPL CORPORATION (XNYS:PPL)
AMEREN CORPORATION (XNYS:AEE)
FTS International, Inc. (XNYS:FTSI)
FIRSTENERGY CORP. (XNYS:FE)
EDISON INTERNATIONAL (XNYS:EIX)
Avangrid, Inc. (XNYS:AGR)
CMS ENERGY CORPORATION (XNYS:CMS)
BROOKFIELD INFRASTRUCTURE PARTNERS L.P. (OTCM:BINFF)
DUKH
Current Analyst Ratings
Strong buy�13%
Buy�0%
Hold�54%
Sell�0%
Strong sell�4%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
11.78B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
6.90B
4.88B
-
-
-
-
2.71B
2.71B
309.07M
878.26M
2.22B
4.35B
1.90B
1.06B
1.25B
191.93M
1.06B
Statement of Cash Flow
Date:
Period:
561.73M
Differed Income Tax :
70.78M
Stock Based Compensation :
-
Change in Working Capital :
- 346437.00K
Accounts Receivables:
-
Other Working Capital:
- 153965.00K
Other Non-Cash Items:
- 27701.00K
Net Cash Provided by Operating Activities:
537.97M
Investments in PP&E:
- 83326.00K
Net Acquisitions:
-
Purchases of Investments:
- 517851.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
701.59M
-
701.59M
1.22B
1.21B
716.09M
3.84B
41.71B
377.17M
-
5.21B
58.39M
8.64B
55.99B
-
59.83B
1.74B
2.38B
339.89M
402.60M
837.39M
5.36B
26.18B
11.51B
42.69B
-
48.06B
2.72M
10.31B
- 336578.0K
1.80B
March 31, 2022 at 6:00:00 AM
9.61B
11.78B
59.83B
-
28.56B
27.9B
479.94M
- 1429979.00K
- 1551219.00K
- 1224091.00K
9.63M
-
- 209638.00K
2.70B
1.27B
-
259.03M
701.59M
442.56M
537.97M
- 1584904.00K
- 1046938.00K
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
ETR
2023
2024
2025
2026
2027
$130.46
$135.47
$140.67
$146.07
$151.68