81.00 +0.22 (0.27%)
Pre-market: 8:00AM EDT
|Bid||80.24 x 1200|
|Ask||81.00 x 900|
|Day's range||80.08 - 80.98|
|52-week range||71.96 - 91.80|
|PE ratio (TTM)||19.14|
|Earnings date||2 Aug 2018|
|Forward dividend & yield||3.71 (4.72%)|
|1y target est||83.67|
Top utility stock NextEra Energy (NEE) has an estimated stock upside of just 2% based on analysts’ mean target price of $172.86 and its current price of $169.52. Morgan Stanley raised NEE’s price target from $176 to $181 on July 16.
NextEra Energy (NEE), the biggest utility holding company by market cap, is currently trading at an EV-to-EBITDA (enterprise value-to-EBITDA) valuation multiple of ~15x, higher than its five-year average of ~12x. Peer Duke Energy (DUK) is trading at a valuation multiple of 10.6x, close to its historical average.
Duke Energy's (DUK) newly planned facility will aid Piedmont Natural Gas to continue providing local customers with a reliable supply of natural gas during peak usage days.
PPL Corporation (PPL) is currently trading at a dividend yield of 5.8%, which is much higher than utilities’ average yield of 3.4%. It’s trading at a yield more than double that of NextEra Energy (NEE), the biggest utility by market capitalization. Duke Energy (DUK) and Southern Company (SO) stocks currently offer dividend yields of 4.6% and 5%, respectively.
PPL Corporation (PPL) stock is trading at a PE multiple of 13x compared to its five-year historical average of 14x. It recently traded at an enterprise-value-to-EBITDA multiple of 9.7x. Its five-year historical average is 11x. So PPL seems to be trading at a discounted valuation to its historical multiples.
Duke Energy (DUK) continues to expand its green energy generation capacity in South Carolina and is working to produce 8 GW of clean energy by 2020.
The biggest utility by market capitalization, NextEra Energy (NEE), is currently trading at an enterprise-value-to-EBITDA valuation multiple of 15.5x, which is notably higher than its five-year average of 12.0x. Given its enterprise-value-to-EBITDA valuation, NEE seems to be trading at a premium to its historical average valuation.
With Solar Project buyout, Duke Energy's (DUK) renewables business has set foot in New York, thereby expanding its footprint across 14 states of America.
As green groups pressure the natural gas industry to clean up its act, an alternative to the fossil fuel is emerging in some unlikely places: pig farms and sewers. Duke Energy Corp., one of the largest U.S. utilities, began generating power in March for its North Carolina customers using “renewable” natural gas created by capturing methane from the waste produced by 62,000 hogs. National Grid Plc, meanwhile, is set to open a plant that will process gas from wastewater to serve New York customers.
NextEra Energy (NEE) is currently trading at a dividend yield of 2.7%, much lower than the industry average of 4.2%. It expects its double-digit dividend growth to continue for the next few years. In comparison, Southern Company (SO) and Duke Energy (DUK) are currently trading at dividend yields of 5.2% and 4.5%, respectively.
Whereas NextEra Energy (NEE) looks better placed than peers in terms of FCF (free cash flow), it should be noted that all of the utilities we’re looking at in this series have failed to report positive FCF in the last few years. In 2017, NextEra Energy reported FCF of -$746 million, while Southern Company (SO) and Duke Energy (DUK) reported FCF of -$1.613 billion and -$1.213 billion, respectively. Dominion Energy (D) reported FCF of -$993 million.
Utilities’ (XLU) leverage is a vital metric for comparing companies, especially as interest rates are steadily increasing. While the top three utilities’ leverage has largely been stable, Southern Company’s (SO) leverage rose significantly after Q3 2016 to fund its AGL Resources purchase.
The payout ratio represents the portion of a company’s profits distributed among shareholders in the form of dividends. Utilities usually have higher payout ratios. Duke Energy (DUK) is among the few utilities with higher payout ratios. For the last 12 months, Duke Energy’s payout ratio was 83%—higher than many of its peers. Its five-year average payout ratio is close to 86%.
The second-largest utility by market capitalization, Duke Energy (DUK), intends to raise its dividend per share 4%–6% annually for the next few years, which is in line with the industry average. Duke Energy’s dividend growth is expected to be driven by its earnings growth around similar levels.
Duke Energy’s (DUK) earnings in the longer term seem well placed, which might enable the targeted 4%–6% dividend growth in the next few years. Duke Energy is one of the more stable utilities, given its huge exposure to regulated operations, which ultimately facilitates earnings stability and predictability. Duke Energy stock, like broader utilities (XLU)(IDU), was largely weak in the first half of 2018.
The largest regulated utility in the country, Duke Energy (DUK), increased its quarterly dividend by 4.2% to $0.93 per share. In the last quarter, it paid a per-share dividend of $0.89. The dividend is payable on September 17 to shareholders of record on August 17. With this increase, Duke Energy is expected to pay annualized dividends of $3.71 per share in the next 12 months.
The Utilities Select Sector SPDR ETF (XLU) was trading deep in the “overbought” zone with its RSI (relative strength index) of 92. The RSI at extremes could indicate an impending reversal in the stock or fund’s direction. XLU’s RSI peaked at 91 in June last year. According to technical analysts, a stock is considered “oversold” when its RSI drops below 30 and “overbought” when its RSI rises above 70.
Utilities became expensive last month. The biggest of them all, NextEra Energy (NEE), is currently trading at an EV1-to-EBITDA valuation multiple of ~15x, notably higher than its five-year average of ~12x.
RALEIGH, N.C. (AP) — A string of decisions by North Carolina regulators means electricity consumers could be seeing a multibillion-dollar bill to clean up mountains of waste Duke Energy created by spending decades burning coal to produce power.
American Water Works' (AWK) unit Pennsylvania American Water will pass on the tax-reform savings to lower water and wastewater customers' bills.
The biggest regulated utility, Duke Energy (DUK), is currently trading at a PE multiple of 19x and an EV-to-EBITDA multiple of 10.7x, while Southern’s (SO) EV-to-EBITDA multiple is ~10.4x. Southern’s five-year historical average is ~11.0x. NextEra Energy (NEE) is trading at a PE multiple of ~13x, lower than its five-year historical average. Meanwhile, NextEra Energy’s EV-to-EBITDA multiple, 15.4x, is higher than its five-year historical average of ~11.0x.
Duke Energy (DUK), the second-largest utility by market capitalization, has a long dividend payment history. It has paid dividends to its shareholders for 368 consecutive quarters. DUK stock is currently trading at a dividend yield of 4.5%, which is higher than utilities’ (XLU) average yield of 4.2%.
Duke Energy (DUK) to pass on the $142 million tax cut benefits from the Tax Cuts and Jobs Act to its Indiana customers through rate savings.