Duke Energy (DUK) AI Stock Analysis

• Market Cap: $89.70B
• Dividend Yield: 3.62%
• Average Volume (3M): 3.38M
• Price to Earnings (P/E): 19.2
• Beta (1Y): <0.01
• Revenue Growth: 5.02%
• EPS Growth: 45.08%
• Country: US
• Employees: 26,413
• Sector: Utilities
• Sector Strength: 78
• Industry: Regulated Electric
• EPS (TTM): 1.76
• Shares Outstanding: 777,257,100
• 10 Day Avg. Volume: 2,851,080
• 30 Day Avg. Volume: 3,379,297
• PEG Ratio: 3.37
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -431.23
• Enterprise Value/Market Cap: 1.97
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 8.65
• Enterprise Value/Ebitda: 3.01
• 1Y Price Target: $131.33
• Price Target Upside: 13.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 72 Outperform
• Price Target: $128.00 ▲(10.92%Upside)

Duke Energy's solid financial performance, driven by strong revenue growth and profitability, is slightly overshadowed by high leverage and cash flow challenges. The positive sentiment from the earnings call and strategic corporate events contribute to an optimistic outlook. However, technical indicators suggest cautious short-term trading momentum.

Positive Factors

Regulatory Environment

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

Renewable Energy Expansion

Duke Energy is enhancing grid reliability and incorporating 30GW of regulated renewable energy, reflecting a strong commitment to renewable development and fossil fuel retirements.

Negative Factors

Interest Rates and Costs

Higher utilities interest expense, O&M, OpEx, and parent drag are partially offsetting the company's positive growth prospects.

Policy and Economic Risks

Key risks for Duke Energy include negative rate case filing results, pushback in clean energy policies, and macroeconomic uncertainties.

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 generates revenue through several key streams. The primary source of income is from the sale of electricity to residential, commercial, and industrial customers. This includes charges for energy usage, delivery, and related services. The company also earns revenue from its natural gas operations, which involve the distribution and sale of natural gas. Duke Energy's power generation assets, including its investments in renewable energy like wind and solar, contribute to its earnings by selling power to the grid or through power purchase agreements. The company benefits from regulated utility operations, which provide stable and predictable revenue through rates approved by state utility commissions. Additionally, Duke Energy engages in strategic partnerships and investments in infrastructure projects that support long-term growth and sustainability initiatives.

Duke Energy Financial Statement Overview

Summary

Duke Energy demonstrates strong revenue growth and profitability, supported by efficient operations. However, high leverage on the balance sheet presents risks, and challenges in generating positive free cash flow necessitate focused efforts to improve cash management.

Income Statement

Duke Energy has shown consistent revenue growth with a TTM revenue of $30.94B, a 2.74% increase from 2024. The gross profit margin is robust at 66.07%, and the net profit margin stands at 15.40%, indicating strong profitability. The EBIT margin is 26.84%, and the EBITDA margin is 48.90%, reflecting efficient operational performance. Overall, the company exhibits strong financial health with steady revenue and profit growth.

Balance Sheet

The debt-to-equity ratio is 1.73, indicating a high leverage but manageable given the industry context. The return on equity (ROE) is 9.40%, showing a reasonable return on shareholders' investments. The equity ratio is 27.02%, suggesting a moderate level of stability. While the company has a strong asset base, the high debt level poses potential risks if not managed effectively.

Cash Flow

The free cash flow has decreased significantly, resulting in a negative free cash flow of -$208M in the TTM period, highlighting potential challenges in generating cash after capital expenditures. The operating cash flow to net income ratio of 0.76 indicates a decent conversion of net income into operating cash flow. However, the negative free cash flow to net income ratio suggests room for improvement in cash generation.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
30.93B	30.36B	29.06B	28.77B	24.62B	23.37B
	Gross Profit
20.44B	29.79B	13.76B	12.98B	11.96B	11.35B
	EBIT
8.31B	7.93B	7.07B	6.01B	5.50B	4.57B
	EBITDA
15.13B	14.37B	13.29B	12.40B	11.63B	8.01B
	Net Income Common Stockholders
4.76B	4.52B	2.84B	2.55B	3.91B	1.38B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
475.00M	314.00M	253.00M	409.00M	341.00M	259.00M
	Total Assets
187.48B	186.34B	176.89B	178.09B	169.59B	162.39B
	Total Debt
87.48B	85.23B	80.46B	74.91B	68.26B	64.08B
	Net Debt
87.01B	84.92B	80.20B	74.50B	67.92B	63.82B
	Total Liabilities
135.68B	135.09B	126.71B	126.23B	118.45B	113.20B
	Stockholders Equity
50.67B	50.13B	49.11B	49.32B	49.30B	47.96B
Cash Flow		Free Cash Flow
-208.00M	48.00M	-2.73B	-5.44B	-1.43B	-1.05B
	Operating Cash Flow
3.65B	12.35B	9.88B	5.93B	8.29B	8.86B
	Investing Cash Flow
-4.07B	-13.12B	-12.47B	-11.97B	-10.94B	-10.60B
	Financing Cash Flow
385.00M	859.00M	2.35B	6.13B	2.61B	1.73B

Duke Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 115.40
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 115.4 is below the 20-day moving average (MA) of 115.97, below the 50-day MA of 117.39, and above the 200-day MA of 113.38, indicating a neutral trend. The MACD of -0.48 indicates Positive momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 26.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DUK.

Duke Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEP	74 Outperform	$54.35B	19.63	10.41%	3.66%	4.20%	-3.64%
EXC	74 Outperform	$43.01B	15.80	10.10%	3.75%	6.71%	16.09%
DUK	72 Outperform	$89.70B	19.25	9.48%	3.62%	5.02%	45.08%
SO	70 Outperform	$98.15B	21.41	14.01%	3.31%	9.58%	8.02%
XEL	68 Neutral	$38.44B	19.65	10.26%	3.42%	-0.44%	2.14%
Sector *	67 Neutral	$16.04B	16.83	4.58%	3.61%	4.77%	6.10%
D	67 Neutral	$46.24B	20.34	8.22%	4.92%	3.62%	40.33%

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.