Entergy (ETR)
Utilities · $53.4B market cap · SEC CIK 0000065984
ahead of 41% of the S&P 500 · #17 of 31 in Utilities
Next reports on Feb 10, 2027, after the close, with analysts expecting $0.73 in earnings per share.
52-week range $90.87 to $118.45. 6% below its 52-week high and 23% above its low.
The case for ETR
- Revenue growing 10.4% year over year.
- Pays a 4.5% dividend while you wait.
- Moves less than the market (beta 0.41).
The case against
- Burned $2.5B of free cash in FY2025.
- Long-term debt of $27.9B would take 5 years of operating cash flow to repay.
- P/E of 25.9× is higher than 93% of Utilities companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Utilities companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 43 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 52 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 42 |
| Momentumhow the price has behaved lately | 68 |
| Stabilityhow violently it moves, what it owes and what it pays you | 73 |
- Each factor except momentum is half fixed thresholds, half rank among the 31 Utilities companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +10.4% |
|---|---|
| Over 5 years | +7.0% a year |
| FY2025 revenue | $12.9B (+9%) |
Free cash flow
Is it generating real cash? No, it is burning cash
| FY2025 free cash flow | −$2.5B |
|---|---|
| Of revenue | −20% |
| Of profit | −143% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 42% |
|---|---|
| Operating margin | 25% |
| Net margin, FY24 → FY25 → now | 8.9% → 13.7% → 14.8% |
Debt vs. cash
Is the balance sheet healthy? Stretched
| Cash | $1.9B |
|---|---|
| Long-term debt | $27.9B |
| Net debt | $26.0B |
| Years to repay | 5.4 yrs |
Valuation
Is the stock price reasonable? Yes, about fair
| P/E | 25.9× |
|---|---|
| Fair P/E for its growth | 25× |
| Forward P/E | 22.1× |
| EV / EBITDA | 15.0× |
At 25.9× earnings it trades close to the 25× that 7% a year of growth plus a 4.5% dividend would justify. As a utility it is judged on earnings alone: it borrows to build, so its free cash flow says little about its price.
The financials, five years deep
Pulled from Entergy's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $12.9B | $11.9B | $12.1B | $13.8B | $11.7B |
| Change on the year | +9% | −2% | −12% | +17% | — |
| Free cash flow | |||||
| Free cash flow | −$2.5B | −$350M | −$146M | −$2.5B | −$3.8B |
| Of revenue | −20% | −3% | −1% | −18% | −32% |
| Profit margins | |||||
| Operating margin | 24.7% | 22.3% | 21.6% | 14.9% | 15.7% |
| Net margin | 13.7% | 8.9% | 19.4% | 8.0% | 9.5% |
| Debt vs. cash | |||||
| Cash | $1.9B | $860M | $133M | $224M | $443M |
| Long-term debt | $27.9B | $26.6B | $23.0B | $23.6B | $24.8B |
| Net cash (debt) | −$26.0B | −$25.8B | −$22.9B | −$23.4B | −$24.4B |
What Entergy says it does
RISK FACTORS SUMMARY Entergy’s business is subject to numerous risks and uncertainties that could affect its ability to successfully implement its business strategy and affect its financial results. Carefully consider all of the information in this report and, in particular, the following principal risks and all of the other specific factors described in Part I, Item 1A of this report, “Risk Factors,” before deciding whether to invest in Entergy or the Registrant Subsidiaries. Utility Regulatory Risks • The terms and conditions of service, including electric rates, of the Registrant Subsidiaries are determined through regulatory approval proceedings that can be lengthy and subject to appeal, potentially resulting in lengthy litigation and uncertainty as to ultimate results. • Entergy’s business could experience adverse effects related to changes to state or federal legislation or regulation, including increased tariffs, as well as…