Entergy Corporation Intrinsic Value – Entergy Corporation Reports Strong Second Quarter Earnings for FY2023
August 24, 2023
☀️Earnings Overview
ENTERGY CORPORATION ($NYSE:ETR) reported their second quarter earnings for FY2023 on June 30 2023.
Price History
This marks the sixth consecutive quarter of positive earnings growth for Entergy Corporation. Additionally, the company reported steady improvements in its operating performance and strong financial results. The company’s strong performance was mainly driven by its strategic investments in diversified energy sources and enhanced energy efficiency throughout its operations across seven states in the US. It also attributed its success to a strong focus on customer experience, which helped to significantly reduce customer complaints and improve customer satisfaction.
In addition, Entergy Corporation announced positive outlooks for the upcoming period and expects to maintain a steady financial performance with further improvements in its operational efficiencies. The company is committed to further expanding its renewable energy portfolio and increasing its presence across its operating states. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Entergy Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 13.32k | 1.37k | 9.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Entergy Corporation. More…
| Operations | Investing | Financing |
| 3.6k | -4.93k | 1.95k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Entergy Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 59.72k | 46.35k | 62.6 |
Key Ratios Snapshot
Some of the financial key ratios for Entergy Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.4% | 13.0% | 19.4% |
| FCF Margin | ROE | ROA |
| -10.6% | 12.3% | 2.7% |
Analysis – Entergy Corporation Intrinsic Value
At GoodWhale, we have conducted an extensive analysis of ENTERGY CORPORATION‘s financials. Our proprietary Valuation Line has calculated the fair value of ENTERGY CORPORATION’s share at around $113.7. However, the stock is currently trading at $101.4, which is 10.8% lower than the fair price, representing a great opportunity for investors. Thus, ENTERGY CORPORATION’s stock is a great undervalued buy right now. More…
Peers
In the electric utility industry, Entergy Corp competes with Pinnacle West Capital Corp, PPL Corp, and Southern Co. These companies are all large, well-established firms with a long history in the industry. While each company has its own strengths and weaknesses, Entergy Corp has been able to compete effectively against its rivals and maintain a strong market position.
– Pinnacle West Capital Corp ($NYSE:PNW)
Pinnacle West Capital Corporation is an electric utility holding company headquartered in Phoenix, Arizona, United States. It is the parent company of Arizona Public Service Company, one of the largest electric utilities in the United States. Pinnacle West also owns a real estate subsidiary, WestCorp, and an energy services company, Energy Solutions.
The company’s market capitalization is $7.24 billion as of 2022. Its return on equity is 9.57%.
Pinnacle West Capital Corporation is engaged in the business of providing electric service through its principal operating subsidiary, Arizona Public Service Company. Other subsidiaries include WestCorp and Energy Solutions.
– PPL Corp ($NYSE:PPL)
PPL Corporation is an energy and utility holding company headquartered in Allentown, Pennsylvania. It was founded in 1881 as Pennsylvania Power & Light Company. PPL Corporation’s subsidiaries include Louisville Gas & Electric Company and Kentucky Utilities Company, which serve customers in Kentucky and southern Indiana, and Western Power Distribution, which serves customers in the United Kingdom. PPL also has generation assets, including coal-fired, nuclear, hydroelectric, natural gas-fired, oil-fired, solar, and wind power plants.
– Southern Co ($NYSE:SO)
Southern Company is an American electric utility holding company based in Atlanta, Georgia, United States. It is currently the second largest utility company in the United States by customer base. The company serves nine million customers through its subsidiaries. Southern Company’s subsidiaries owns and operates electric utilities in four states: Alabama Power, Georgia Power, Gulf Power, and Mississippi Power. The company also owns a controlling interest in Southern Nuclear, a nuclear power plant operator.
Summary
Entergy Corporation‘s second quarter earnings results for 2023 represent a mixed performance. Total revenue saw a decrease of 16.2%, while net income saw a substantial increase of 139.0%. Investors should take note of the increased profitability, as well as the potential for further growth opportunities in the future.
At the same time, it is important to consider the company’s overall financial health, including its ability to sustain current operations and manage risk in a challenging economic climate. With careful analysis and research, investors can make informed decisions on whether to invest in Entergy Corporation.
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