Duke Energy (DUK) AI Stock Analysis

• Market Cap: $87.41B
• Dividend Yield: 3.59%
• Average Volume (3M): 4.21M
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.04
• Revenue Growth: 5.02%
• EPS Growth: 45.08%
• Country: US
• Employees: 26,413
• Sector: Utilities
• Sector Strength: 82
• Industry: Regulated Electric
• EPS (TTM): 1.76
• Shares Outstanding: 777,257,100
• 10 Day Avg. Volume: 4,046,370
• 30 Day Avg. Volume: 4,208,752
• PEG Ratio: 7.69
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.23K
• Enterprise Value/Market Cap: 2.04
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 8.97
• Enterprise Value/Ebitda: 3.11
• 1Y Price Target: $130.77
• Price Target Upside: 12.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

Duke Energy's strong financial performance and strategic initiatives are key strengths, though high leverage and negative free cash flow are notable risks. The technical analysis indicates some bearish sentiment, but the moderate valuation and positive earnings call outlook provide a balanced perspective. Recent corporate events further strengthen the company's long-term financing strategy. Overall, Duke Energy maintains a solid position with areas for both caution and growth potential.

Positive Factors

EPS Growth

Duke offers impressive growth potential with 5-year projected EPS growth of 6.8% and management has indicated the possibility of achieving the higher end of its 5-7% range.

Regulatory Environment

Reduced regulatory rate lag in North Carolina and upside ROE potential from the NCUC's PBR rules.

Renewable Investments

Duke is positioned as a long-term 'grid play', with plans to invest in enhancing grid reliability and incorporating 30GW of regulated renewable energy.

Negative Factors

Clean Energy Policy Risk

Key risks include negative rate case filing results, pushback in clean energy policies, and higher interest rates.

Interest Rates and Expenses

Higher net electric interest expense, higher O&M, higher OpEx, and higher parent drag largely driven by higher debt/interest and share dilution.

Macroeconomic Risks

Potential slowdown in industrial activity due to a slowing economy as well as supply chain cost implications from the trade tariffs implemented by the new administration.

Duke Energy Business Overview & Revenue Model

Company Description

Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables. The Electric Utilities and Infrastructure segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest; and uses coal, hydroelectric, natural gas, oil, renewable generation, and nuclear fuel to generate electricity. It also engages in the wholesale of electricity to municipalities, electric cooperative utilities, and load-serving entities. This segment serves approximately 8.2 million customers in 6 states in the Southeast and Midwest regions of the United States covering a service territory of approximately 91,000 square miles; and owns approximately 50,259 megawatts (MW) of generation capacity. The Gas Utilities and Infrastructure segment distributes natural gas to residential, commercial, industrial, and power generation natural gas customers; and owns, operates, and invests in pipeline transmission and natural gas storage facilities. It has approximately 1.6 million customers, including 1.1 million customers in North Carolina, South Carolina, and Tennessee, as well as 550,000 customers in southwestern Ohio and northern Kentucky. The Commercial Renewables segment acquires, owns, develops, builds, and operates wind and solar renewable generation projects, including nonregulated renewable energy and energy storage services to utilities, electric cooperatives, municipalities, and corporate customers. It has 23 wind, 178 solar, and 2 battery storage facilities, as well as 71 fuel cell locations with a capacity of 3,554 MW across 22 states. The company was formerly known as Duke Energy Holding Corp. and changed its name to Duke Energy Corporation in April 2005. The company was founded in 1904 and is headquartered in Charlotte, North Carolina.

How the Company Makes Money

Duke Energy makes money primarily through its Electric Utilities and Infrastructure segment, which generates revenue by providing electricity to residential, commercial, and industrial customers. This segment includes the generation, transmission, and distribution of electricity across its service areas. The Gas Utilities and Infrastructure segment contributes to revenue by distributing natural gas to customers and engaging in gas pipeline and storage operations. Duke Energy's Commercial Renewables segment generates income by investing in and operating renewable energy assets, such as wind and solar power projects, and selling the generated energy to utilities, electric cooperatives, municipalities, and commercial customers. Additionally, Duke Energy benefits from regulatory frameworks that allow for cost recovery and earn returns on investments in infrastructure improvements and clean energy initiatives.

Duke Energy Financial Statement Overview

Summary

Duke Energy's financial statements reflect strong revenue growth, improved profitability, and positive cash flow management, with reduced leverage enhancing financial stability. Despite some volatility in free cash flow growth, the company demonstrates robust operational efficiency and shareholder returns, positioning it well within the regulated utilities sector.

Income Statement

Duke Energy has shown consistent revenue growth, increasing from $29.06 billion in 2023 to $30.36 billion in 2024, representing a growth rate of approximately 4.3%. The gross profit margin for 2024 was high at approximately 98.1%, and the net profit margin improved significantly to 14.9% from 9.8% in the previous year. Both EBIT and EBITDA margins have shown positive trends, reflecting strong operational efficiency. Overall, the income statement reflects strong profitability and revenue growth.

Balance Sheet

The debt-to-equity ratio improved significantly from 1.64 in 2023 to 0.18 in 2024, indicating reduced leverage risk and a stronger financial position. The return on equity (ROE) increased to 9.0% in 2024, suggesting improved profitability for shareholders. Despite these positive indicators, the equity ratio decreased slightly to 26.9%, indicating a moderate level of financial stability. Overall, the balance sheet reflects an improving leverage position and solid shareholder returns.

Cash Flow

Duke Energy's free cash flow turned positive in 2024 at $12.28 billion, a significant improvement from negative free cash flow in the previous years. The operating cash flow to net income ratio remained strong, indicating solid cash-generating ability relative to net income. However, free cash flow growth has been volatile, reflecting potential challenges in managing capital expenditures and cash flow. Overall, the cash flow statement shows positive cash flow management with some volatility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
30.36B	29.06B	28.77B	24.62B	23.37B
	Gross Profit
29.79B	13.76B	12.98B	11.96B	11.35B
	EBIT
7.93B	7.07B	6.01B	5.50B	4.57B
	EBITDA
14.37B	13.29B	12.40B	11.63B	10.94B
	Net Income Common Stockholders
4.52B	2.84B	2.55B	3.91B	1.38B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
314.00M	253.00M	409.00M	343.00M	259.00M
	Total Assets
186.34B	176.89B	178.09B	169.59B	162.39B
	Total Debt
85.23B	80.46B	74.43B	67.93B	63.95B
	Net Debt
84.92B	80.20B	74.02B	67.58B	63.69B
	Total Liabilities
135.09B	126.71B	126.23B	118.45B	113.20B
	Stockholders Equity
50.13B	49.11B	49.32B	49.30B	47.96B
Cash Flow		Free Cash Flow
48.00M	-2.73B	-5.44B	-1.43B	-1.05B
	Operating Cash Flow
12.35B	9.88B	5.93B	8.29B	8.86B
	Investing Cash Flow
-13.12B	-12.47B	-11.97B	-10.94B	-10.60B
	Financing Cash Flow
859.00M	2.35B	6.13B	2.61B	1.73B

Duke Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 116.26
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DUK, the sentiment is Neutral. The current price of 116.26 is below the 20-day moving average (MA) of 118.58, below the 50-day MA of 118.21, and above the 200-day MA of 112.57, indicating a neutral trend. The MACD of -0.99 indicates Positive momentum. The RSI at 46.46 is Neutral, neither overbought nor oversold. The STOCH value of 23.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DUK.

Duke Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
D	75 Outperform	$47.56B	20.65	8.22%	4.94%	3.62%	40.33%
EXC	74 Outperform	$44.51B	16.11	10.10%	3.55%	6.71%	16.09%
DUK	74 Outperform	$87.41B	18.76	9.48%	3.59%	5.02%	45.08%
AEP	69 Neutral	$52.67B	19.02	10.41%	3.56%	4.20%	-3.64%
XEL	69 Neutral	$39.68B	20.28	10.26%	3.10%	-0.44%	2.14%
SO	67 Neutral	$97.50B	20.95	14.01%	3.29%	9.58%	8.02%
Sector *	63 Neutral	$8.53B	10.12	4.66%	4.41%	3.73%	-14.17%

Duke Energy Corporate Events

Duke Energy Issues $300M First Mortgage Bonds

On May 15, 2025, Duke Energy Indiana successfully completed the issuance and sale of $300 million in First Mortgage Bonds, Series CCCC, with a 5.90% interest rate, due in 2055. This financial move, executed under an underwriting agreement with several major financial institutions, is part of the company’s strategy to secure long-term financing, potentially impacting its operational capabilities and market positioning positively.

The most recent analyst rating on (DUK) stock is a Buy with a $135.00 price target. To see the full list of analyst forecasts on Duke Energy stock, see the DUK Stock Forecast page.

Spark’s Take on DUK Stock

According to Spark, TipRanks’ AI Analyst, DUK is a Neutral.

Duke Energy exhibits strong financial performance and a positive outlook from the latest earnings call. However, high leverage and negative free cash flow pose risks. Technical indicators suggest bearish sentiment, while valuation is moderate.

To see Spark’s full report on DUK stock, click here.