Investment Thesis
Entergy demonstrates solid operational profitability with 24.7% operating margins and 13.6% net margins, supported by 9% revenue growth. However, significant financial leverage (1.79x debt-to-equity), negative free cash flow of -$2.5B, and capital expenditures exceeding operating cash flow raise concerns about the sustainability of dividend payments and financial flexibility.
ETR Strengths
- Strong operating margin of 24.7% indicates efficient utility operations and pricing power
- Robust revenue growth of 9% YoY demonstrates business expansion and demand recovery
- Substantial operating cash flow of $5.2B provides baseline liquidity for operations
- EPS growth of 59.6% YoY reflects accretive capital management or share repurchase programs
ETR Risks
- Negative free cash flow of -$2.5B indicates capital expenditures ($7.7B) significantly exceed operating cash generation, unsustainable long-term
- High financial leverage with 1.79x debt-to-equity ratio and $30.3B long-term debt creates refinancing risk in rising rate environments
- Weak current ratio of 0.74x suggests potential near-term liquidity pressures and limited working capital cushion
- Low interest coverage of 2.3x provides minimal buffer for interest payments if operational performance deteriorates
- Substantial capital intensity with capex at 59.6% of revenue signals ongoing infrastructure investment burdens
Key Metrics to Watch
- Free cash flow trend and trajectory toward positive generation
- Debt-to-equity ratio movement and refinancing requirements
- Operating cash flow sustainability relative to dividend and capital expenditure commitments
- Current ratio improvement and working capital management
- Interest coverage ratio and debt service capacity
ETR Financial Metrics
ETR Profitability Ratios
ETR Balance Sheet & Liquidity
ETR 5-Year Financial Trend
5-Year Trend Summary: ENTERGY CORP /DE/'s revenue has grown significantly by 24% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.55 reflects profitable operations.
ETR Growth Metrics (YoY)
ETR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2024 | $3.4B | $51.7M | $2.99 |
| Q2 2024 | $2.8B | $51.7M | $0.23 |
| Q1 2024 | $2.8B | $76.5M | $0.35 |
| Q3 2023 | $3.6B | $164.0M | $2.74 |
| Q2 2023 | $2.8B | $164.0M | $0.78 |
| Q1 2023 | $2.9B | $279.6M | $1.36 |
| Q3 2022 | $3.4B | -$1.4M | $2.63 |
| Q2 2022 | $2.8B | -$1.4M | $-0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ETR Capital Allocation
ETR SEC Filings
Access official SEC EDGAR filings for ENTERGY CORP /DE/ (CIK: 0000065984)