Duke Energy Corporation
🇺🇸 DUK · NYSE/NASDAQ · US26441C2044
Utilities
USD 127.66 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
20.0
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: 127.66 ÷ 6.39 = 20.0
TTM period through: 2025-12-31
Forward P/E (estimated): 19.0
Based on analyst estimates
Reference: Provider P/E (Trailing): 20.2
Yield (Fwd)
3.34%
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.
Trailing Yield (TTM): 3.30%
Div. Growth (5Y CAGR)
2.2%
Growth Streak
1 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
5.8x
Latest quarter: 24.3x
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: 2025-12-31
Latest quarter (2025-12-31): 24.3x
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).
Payout (Fwd)
66.6%
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 (TTM): 66.4%
Cash Flow Payout (TTM): 26.7%
FCF Coverage (TTM): -0.51x
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
11.2x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
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 underlying business remains exceptionally strong with massive capital investments planned to meet surging power demand, the current valuation near 20x earnings offers limited upside. Existing shareholders should maintain positions given the secure 3.3% yield and strong P/FFO metrics, but new investors may want to monitor the stock for a more attractive entry point.
Sector Context
Utilities provide essential electricity, water, and gas services, typically operating as highly regulated regional monopolies. For dividend investors, utilities offer stable, predictable cash flows and reliable dividends, though they routinely carry higher debt loads and frequently run negative free cash flow due to massive, continuous infrastructure investments that are eventually recovered through regulated rate hikes.
📊 Strategy Analysis
- • Operates as a highly regulated regional monopoly providing essential electricity and gas services with highly predictable cash flows.
- • Offers a reliable 3.3% dividend yield supported by a sustainable 67% payout ratio, which sits perfectly within the strategy's 40-70% ideal range.
- • Trading at a highly attractive P/FFO of 8.4x, highlighting the company's strong cash generation power from its physical assets despite GAAP earnings distortions.
- • Strong long-term earnings visibility supported by a $103 billion capital plan to meet surging data center power demand and recent regulatory approvals.
⚠ What to Watch
- • Current GAAP valuation is stretched with a P/E of 20.0, exceeding the strategy's ideal 8-15x target range and offering limited margin of safety.
- • Negative free cash flow (-$463 million) driven by massive infrastructure investments necessitates dilutive external financing, as evidenced by the recent $6 billion stock offering.
- • Net Debt/EBITDA of 5.8x remains elevated; while historically manageable for a regulated utility with pricing power, it increases financing costs.
📊 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: 2026-04-26
Disclaimer: This information is for educational purposes only. Not financial advice.