📊 ETR Key Takeaways
Is Entergy Corp. /DE/ (ETR) a Good Investment?
Entergy demonstrates solid operational performance with 9% revenue growth and 18% operating margins, but faces significant financial distress risks from critically low interest coverage (1.4x), high leverage (1.88x D/E), and persistent negative free cash flow. The company's capital-intensive business model exceeds cash generation capacity, creating debt service vulnerabilities.
Entergy shows solid regulated-utility fundamentals with healthy revenue growth, strong operating profitability, and dependable operating cash generation. However, growth quality is constrained by flat net income, deeply negative free cash flow driven by heavy capital spending, and a balance sheet carrying meaningful leverage with thin interest coverage. The fundamentals support stability more than clear upside.
Why Buy Entergy Corp. /DE/ Stock? ETR Key Strengths
- 9% year-over-year revenue growth indicates steady demand in service territory
- 18% operating margin demonstrates reasonable operational efficiency for utility sector
- Positive operating cash flow of $829M provides current liquidity support
- Revenue grew 9.0% year over year while operating margin remained strong at 24.7%
- Operating cash flow of $5.15B demonstrates solid cash generation from the core utility business
- ROE of 10.4% is respectable for a capital-intensive regulated electric utility
ETR Stock Risks: Entergy Corp. /DE/ Investment Risks
- Interest coverage of 1.4x is critically low; industry considers 2.5x minimum safe threshold, leaving minimal margin for error
- Negative free cash flow of -$1.4B despite positive operations indicates unsustainable capital structure and debt sustainability concerns
- Current ratio of 0.96x combined with 1.88x debt-to-equity suggests elevated financial distress risk and potential liquidity stress
- Free cash flow was negative $2.53B due to capital expenditures materially exceeding operating cash flow
- Leverage is elevated with debt-to-equity of 1.79x and long-term debt of $30.28B
- Liquidity is tight with a 0.74x current ratio and interest coverage of only 2.3x
Key Metrics to Watch
- Interest coverage ratio - must improve above 2.0x to demonstrate debt service stability
- Free cash flow trajectory - critical to return to positive territory to reduce leverage
- Debt-to-equity ratio and current ratio - both require improvement to reduce financial risk profile
- Free cash flow improvement relative to capital expenditure needs
- Debt service capacity, especially interest coverage and debt-to-equity trends
Entergy Corp. /DE/ (ETR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
ETR Profit Margin, ROE & Profitability Analysis
ETR vs Utilities Sector: How Entergy Corp. /DE/ Compares
How Entergy Corp. /DE/ compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Entergy Corp. /DE/ Stock Overvalued? ETR Valuation Analysis 2026
Based on fundamental analysis, Entergy Corp. /DE/ has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Entergy Corp. /DE/ Balance Sheet: ETR Debt, Cash & Liquidity
ETR Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
ETR Quarterly Earnings & 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.
Entergy Corp. /DE/ Dividends, Buybacks & Capital Allocation
ETR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Entergy Corp. /DE/ (CIK: 0000065984)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ETR
What is the AI rating for ETR?
Entergy Corp. /DE/ (ETR) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ETR's key strengths?
Claude: 9% year-over-year revenue growth indicates steady demand in service territory. 18% operating margin demonstrates reasonable operational efficiency for utility sector. ChatGPT: Revenue grew 9.0% year over year while operating margin remained strong at 24.7%. Operating cash flow of $5.15B demonstrates solid cash generation from the core utility business.
What are the risks of investing in ETR?
Claude: Interest coverage of 1.4x is critically low; industry considers 2.5x minimum safe threshold, leaving minimal margin for error. Negative free cash flow of -$1.4B despite positive operations indicates unsustainable capital structure and debt sustainability concerns. ChatGPT: Free cash flow was negative $2.53B due to capital expenditures materially exceeding operating cash flow. Leverage is elevated with debt-to-equity of 1.79x and long-term debt of $30.28B.
What is ETR's revenue and growth?
Entergy Corp. /DE/ reported revenue of $3.2B.
Does ETR pay dividends?
Entergy Corp. /DE/ pays dividends, with $292.9M distributed to shareholders in the trailing twelve months.
Where can I find ETR SEC filings?
Official SEC filings for Entergy Corp. /DE/ (CIK: 0000065984) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ETR's EPS?
Entergy Corp. /DE/ has a diluted EPS of $0.83.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ETR a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Entergy Corp. /DE/ has a HOLD rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ETR stock overvalued or undervalued?
Valuation metrics for ETR: ROE of 2.2% (sector avg: 10%), net margin of 12.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ETR stock in 2026?
Our dual AI analysis gives Entergy Corp. /DE/ a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ETR's free cash flow?
Entergy Corp. /DE/'s operating cash flow is $829.0M, with capital expenditures of $2.3B. FCF margin is -44.7%.
How does ETR compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 12.1% (avg: 12%), ROE 2.2% (avg: 10%), current ratio 0.96 (avg: 0.8).
Is Entergy Corp. /DE/ carrying too much debt?
ETR has a debt-to-equity ratio of 1.88x, which is above the Utilities sector average of 1.4x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.