Duke Energy Corp (NYSE:DUK) discussed its Q2 2013 earnings yesterday. Based on the preliminary financial results for the quarter ended 2013-06-30, we analyzed the company against its peers. (Scroll to the bottom for the peer list).
Does Duke’s recent performance suggest that its historical competitive advantage is slipping away? Find out with this Free Fundamental Analysis Report!
The table below shows the preliminary results along with the recent trend for revenues, net income and returns.
| Quarterly (USD million) | 2013-06-30 | 2013-03-31 | 2012-12-31 | 2012-09-30 | 2012-06-30 |
|---|---|---|---|---|---|
| Revenues | 5,879.0 | 5,974.0 | 5,666.0 | 6,772.0 | 3,577.0 |
| Revenue Growth % | (1.6) | 5.4 | (16.3) | 89.3 | (0.5) |
| Net Income | 342.0 | 634.0 | 404.0 | 590.0 | 445.0 |
| Net Income Growth % | (46.1) | 56.9 | (31.5) | 32.6 | 51.9 |
| Net Margin % | 5.8 | 10.6 | 7.1 | 8.7 | 12.4 |
| ROE % (Annualized) | 3.4 | 6.2 | 4.0 | 7.5 | 7.9 |
| ROA % (Annualized) | 1.2 | 2.2 | 1.4 | 2.7 | 2.9 |
Turnaround Likely?
Duke Energy Corp (NYSE:DUK) trades at a lower Price/Book multiple (1.2) than its peer median (1.6). The market expects Duke Energy Corp (NYSE:DUK) to grow faster than the median of its chosen peers (PE of 25.0 compared to peer median of 18.4) and to improve its current ROE of 6.3% which is below its peer median of 9.9%. Thus, the market seems to expect a turnaround in the company’s current performance.
Duke Energy Corp (NYSE:DUK)’s asset efficiency (asset turns of 0.3x) and net profit margins of 8.1% are both median for its peer group. The company’s net margin is its lowest relative to the last five years and compares to a high of 11.7% in 2011.
Heavily Betting on the Future?
Duke Energy Corp (NYSE:DUK) has grown its revenues faster than its peers (15.5% vs. 2.1% respectively for the past three years). The market also sees relatively higher long-term growth prospects for the company, giving it a better than peer median PE ratio of 25.0. Overall, we classify the company’s growth prospects as superior relative to its peers.
Duke Energy Corp (NYSE:DUK)’s annualized rate of change in capital of 28.1% over the past three years is greater than the peer median of 5.8%. This relatively high investment has generated a less than peer median return on capital of 3.4% averaged over the same three years. The relatively high investment and low current returns lead us to believe that the company is betting heavily on the future.
Trend Charts for Duke Energy Corp (NYSE:DUK)
Duke Energy Corp. (NYSE:DUK) Peers
Southern Co. (NYSE:SO), American Electric Power Co. Inc. (NYSE:AEP), PPL Corp. (NYSE:PPL), FirstEnergy Corp. (NYSE:FE), Xcel Energy Inc. (NYSE:XEL), SCANA Corp. (NYSE:SCG), TECO Energy Inc. (NYSE:TE), PG&E Corp. (NYSE:PCG) and Integrys Energy Group Inc. (NYSE:TEG).
Duke Energy: Free Fundamental Analysis Report!
Company Profile
Duke Energy Corp. is focused on electric power and gas distribution operations, and other energy services in the Americas, including a portfolio of renewable energy assets. The company operates its business through the following segments: U.S. Franchised Electric and Gas, Commercial Power and International Energy. The company’s business roots back to 1927. Duke Energy was founded on April 3, 2006 and is headquartered in Charlotte, NC.
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