Advertisement
UK markets closed
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • FTSE 250

    19,884.73
    +74.07 (+0.37%)
     
  • AIM

    743.26
    +1.15 (+0.15%)
     
  • GBP/EUR

    1.1706
    +0.0012 (+0.11%)
     
  • GBP/USD

    1.2625
    +0.0003 (+0.03%)
     
  • Bitcoin GBP

    56,150.66
    +1,115.42 (+2.03%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • NIKKEI 225

    40,298.37
    +130.30 (+0.32%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • CAC 40

    8,205.81
    +1.00 (+0.01%)
     

Has Duke Energy Corporation's (NYSE:DUK) Earnings Momentum Changed Recently?

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Understanding Duke Energy Corporation's (NYSE:DUK) performance as a company requires examining more than earnings from one point in time. Today I will take you through a basic sense check to gain perspective on how Duke Energy is doing by evaluating its latest earnings with its longer term trend as well as its industry peers' performance over the same period.

See our latest analysis for Duke Energy

Commentary On DUK's Past Performance

DUK's trailing twelve-month earnings (from 31 March 2019) of US$2.9b has declined by -1.4% compared to the previous year.

ADVERTISEMENT

Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 1.5%, indicating the rate at which DUK is growing has slowed down. What could be happening here? Well, let's look at what's occurring with margins and if the whole industry is facing the same headwind.

NYSE:DUK Income Statement, July 12th 2019
NYSE:DUK Income Statement, July 12th 2019

In terms of returns from investment, Duke Energy has fallen short of achieving a 20% return on equity (ROE), recording 6.4% instead. Furthermore, its return on assets (ROA) of 3.3% is below the US Electric Utilities industry of 4.4%, indicating Duke Energy's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Duke Energy’s debt level, has declined over the past 3 years from 4.6% to 3.8%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 102% to 131% over the past 5 years.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have volatile earnings, can have many factors impacting its business. I recommend you continue to research Duke Energy to get a more holistic view of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for DUK’s future growth? Take a look at our free research report of analyst consensus for DUK’s outlook.

  2. Financial Health: Are DUK’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.