Duke Energy Corporation
🇺🇸 DUK · NYSE/NASDAQ · US26441C2044
Utilities
USD 124.22 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
18.8
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 124.22 ÷ 6.61 = 18.8
TTM period through: 2026-03-31
Forward P/E (estimated): 18.1
Based on analyst estimates
Reference: Provider P/E (Trailing): 18.7
Net Debt/EBITDA (TTM)
5.5x
Latest quarter: 20.0x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 20.0x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
9.7%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
10.5x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
3.43%
TTM: 3.50%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 3.43%
Trailing Yield (TTM, last 12 months): 3.50%
Payout Ratio (Fwd)
64.5%
TTM: 66.4%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 64.5%
Payout (TTM): 66.4%
Cash Flow Payout (TTM): 55.5%
FCF Coverage (TTM): 1.02x
Growth Streak
1 yrs
Consec. increases
Div. Growth (5Y)
2.2%
Summary
Duke Energy is a premier regulated utility operating as a regional monopoly with highly predictable cash flows and a reliable dividend history. While the exceptional P/FFO highlights strong underlying operations, the current P/E of 18.80, elevated debt metrics, and massive capital funding requirements limit the current margin of safety. Existing shareholders should maintain positions given the secure 3.5% yield, but new investors may want to wait for a more attractive valuation entry point.
Sector Context
Duke Energy is one of the largest regulated electric and gas utilities in the United States, generating revenues through power production, transmission, and distribution across multiple states. In the utility sector, stable, state-regulated monopolies can sustain higher debt loads than other industries; however, investors must carefully monitor heavy capital expenditure cycles (like grid modernization) that can depress free cash flow and require ongoing debt or equity issuance.
📊 Strategy Analysis
- • Operates as a dominant regulated regional utility monopoly, providing essential electricity and gas services with highly predictable revenues.
- • Offers a reliable 3.5% dividend yield supported by a sustainable 65.6% payout ratio and a 9-year track record of consistent payments.
- • Strong underlying cash operations demonstrated by a P/FFO of 7.69, reflecting massive depreciating physical assets that generate steady economic value.
- • Consistent top-line expansion with a 5-year revenue CAGR of 5.1% and earnings growth CAGR of 6.6%.
⚠ What to Watch
- • Valuation is fully priced with a P/E of 18.80, exceeding the strategy's optimal 8-15x target range and limiting the margin of safety.
- • Deeply negative free cash flow (-$2.58 billion) driven by a massive $103 billion multi-year capital expenditure program, necessitating continued external financing.
- • Net Debt/EBITDA is elevated at 5.54x, increasing interest rate sensitivity and financing costs during an intensive infrastructure investment cycle.
- • Faces significant long-term structural liabilities, including estimated multibillion-dollar coal ash remediation mandates and stranded asset risks from fossil fuel fleet retirements.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-06-06
Disclaimer: This information is for educational purposes only. Not financial advice.