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1. Company Snapshot

1.a. Company Description

Entergy Corporation, together with its subsidiaries, engages in the production and retail distribution of electricity in the United States.The company operates in two segments, Utility and Entergy Wholesale Commodities.The Utility segment generates, transmits, distributes, and sells electric power in portions of Arkansas, Louisiana, Mississippi, and Texas, including the City of New Orleans; and distributes natural gas.


The Entergy Wholesale Commodities segment engages in the ownership, operation, and decommissioning of nuclear power plants; and ownership of interests in non-nuclear power plants that sell electric power to wholesale customers, as well as provides services to other nuclear power plant owners.It generates electricity through gas, nuclear, coal, hydro, and solar power sources.The company sells energy to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies.


The company's power plants have approximately 26,000 megawatts (MW) of electric generating capacity, which include 6,000 MW of nuclear power.It delivers electricity to 3 million utility customers in Arkansas, Louisiana, Mississippi, and Texas.The company was founded in 1913 and is headquartered in New Orleans, Louisiana.

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1.b. Last Insights on ETR

Entergy Corporation's recent performance was driven by strong Q2 2025 earnings and revenue beat, with earnings up 9.4% and revenue rising 12.7% year-over-year, surpassing consensus estimates. The company's $37 billion investment plan, rising earnings, and strong dividend yield fueled its standout run in the utility space. Additionally, Entergy's expanded $40 billion capital plan, major data center projects, and green energy investments are set to drive industrial volume and revenue growth. The company's robust capital plan and strong 2027-2028 demand outlook support a positive valuation, with EPS expected to grow at a CAGR above 8% through 2028.

1.c. Company Highlights

2. Entergy's 2025 Earnings Report: A Year of Transformation and Growth

Entergy reported adjusted earnings per share (EPS) of $3.91 for 2025, within the top half of its guidance range. The company's financial performance was driven by a 4% sales growth, with industrial sales increasing by 7%. The revenue growth was partially offset by higher other O&M expenses and an increase in share count due to the settlement of equity forwards. The actual EPS for the quarter came in at $0.51, slightly below estimates of $0.522. Analysts estimate revenue growth to be around 7.5% for the next year.

Publication Date: Feb -16

📋 Highlights
  • 2025 Adjusted EPS:: $3.91, top half of guidance range with >8% annual growth expected through 2029.
  • Customer Satisfaction:: First quartile Net Promoter Score for both residential and business customers.
  • Sales Growth:: 4% retail sales growth (excluding weather), driven by 7% industrial sales increase; 8% CAGR projected through 2029.
  • Capital Plan Expansion:: $43 billion total, up $2 billion; 2026 plan at $11.6 billion (+$3.6 billion YoY).
  • Credit Metrics:: Moody’s cash flow/debt >17%, S&P FFO/debt ~16%, both above agency thresholds.

Operational Highlights

Entergy's customer initiatives yielded positive results, with the company ranking in the first quartile for Net Promoter Score for both residential and business customers. The company signed electric service agreements totaling approximately 3.5 gigawatts in 2025, with notable customer announcements in the steel, petrochem, and LNG sectors. The service area remains attractive due to low electricity rates, vertical integration, and a business-friendly environment.

Growth Prospects

Entergy expects its sales growth trend to accelerate, with an 8% compound annual growth rate through 2029, driven by 15% industrial growth. The company has a pipeline of 7 to 12 gigawatts for data centers and 3 to 5 gigawatts for other industries. The customer-centric capital plan has been increased to $43 billion, with $11.6 billion allocated for 2026. The equity associated with the 4-year plan remains unchanged at $4.4 billion.

Valuation and Financial Health

Entergy's current valuation metrics indicate a P/E Ratio of 26.79, P/B Ratio of 2.77, and an EV/EBITDA of 13.92. The company's financial health is bolstered by a strong balance sheet, with credit metrics above rating agency thresholds. Moody's cash flow from operations to debt is estimated to be greater than 17%, and S&P's FFO to debt is approximately 16%. The dividend yield stands at 2.36%, while the ROE is 10.76%.

Risk Management and Outlook

Entergy has taken steps to manage risk, including securing credit requirements and termination fees for large customers. The company expects to utilize the 8 gigawatts of gas turbine availability on the planned timeline, with reimbursement agreements in place if contractual arrangements are not met. The forecast for retail sales growth shows an increase in CAGRs, driven by large customers ramping up operations.

3. NewsRoom

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Aurora Investment Counsel Buys New Holdings in Entergy Corporation $ETR

Feb -22

Source: defenseworld.net

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Entergy (ETR) is a Great Momentum Stock: Should You Buy?

Feb -17

Source: zacks.com

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Entergy: The Earnings Base Continues To Move Higher

Feb -17

Source: seekingalpha.com

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Entergy Corporation (NYSE:ETR) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Feb -13

Source: defenseworld.net

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Entergy Corp (ETR) Q4 2025 Earnings Call Highlights: Strong Growth Projections Amid Operational Challenges

Feb -12

Source: gurufocus.com

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Entergy Corporation (ETR) Q4 2025 Earnings Call Transcript

Feb -12

Source: seekingalpha.com

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Barrow, Hanley, Mewhinney & Strauss Makes Significant Move with GE HealthCare Technologies Inc

Feb -12

Source: gurufocus.com

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Entergy's Q4 Earnings In Line With Estimates, Revenues Rise Y/Y

Feb -12

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.49%)

6. Segments

Utility

Expected Growth: 3.5%

Entergy Corporation's 3.5% utility growth is driven by increasing demand for electricity, investments in grid modernization, and strategic acquisitions. Additionally, favorable regulatory environments, cost savings initiatives, and a growing focus on renewable energy sources contribute to the company's growth momentum.

Parent & Other

Expected Growth: 2.5%

Entergy's Parent & Other segment growth of 2.5% is driven by increased transmission and distribution investments, favorable weather patterns, and strategic cost management. Additionally, the company's focus on grid modernization, renewable energy integration, and customer growth initiatives contribute to this growth.

Eliminations

Expected Growth: 0.0%

Entergy Corporation's 0.0% growth is attributed to eliminations, indicating a lack of significant acquisitions or divestitures. This stagnation may be due to the company's focus on optimizing existing operations, managing debt, and investing in infrastructure upgrades, rather than pursuing expansion through M&A activities.

7. Detailed Products

Electricity Generation

Entergy Corporation generates electricity through various sources including nuclear, fossil fuels, and renewable energy.

Electricity Transmission

Entergy Corporation transmits electricity from power plants to substations, ensuring reliable and efficient transmission of electricity.

Electricity Distribution

Entergy Corporation distributes electricity to customers through a network of power lines, substations, and distribution lines.

Natural Gas Distribution

Entergy Corporation distributes natural gas to customers through a network of pipelines and distribution systems.

Energy Efficiency Services

Entergy Corporation offers energy efficiency services to help customers reduce energy consumption and lower their energy bills.

Renewable Energy Solutions

Entergy Corporation offers renewable energy solutions, including solar and wind power, to customers.

8. Entergy Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Entergy Corporation operates in a highly regulated industry, and the threat of substitutes is moderate. While there are alternative energy sources available, the cost and convenience of traditional energy sources make them a preferred choice for many customers.

Bargaining Power Of Customers

Entergy Corporation's customers have limited bargaining power due to the lack of alternative energy providers in the region. This gives the company a significant advantage in negotiating prices and contracts.

Bargaining Power Of Suppliers

Entergy Corporation relies on a diverse range of suppliers for fuel, equipment, and services. While suppliers have some bargaining power, the company's scale and diversification of suppliers mitigate this risk.

Threat Of New Entrants

The threat of new entrants in the energy industry is low due to the high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise.

Intensity Of Rivalry

The energy industry is highly competitive, with several established players competing for market share. Entergy Corporation faces intense rivalry from other energy providers, which can lead to pricing pressures and competitive pricing strategies.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 64.17%
Debt Cost 3.95%
Equity Weight 35.83%
Equity Cost 7.41%
WACC 5.19%
Leverage 179.06%

11. Quality Control: Entergy Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Evergy

A-Score: 6.9/10

Value: 5.8

Growth: 4.7

Quality: 4.4

Yield: 8.0

Momentum: 8.5

Volatility: 10.0

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PGE

A-Score: 6.8/10

Value: 6.9

Growth: 4.3

Quality: 4.4

Yield: 8.0

Momentum: 7.0

Volatility: 10.0

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OGE Energy

A-Score: 6.7/10

Value: 5.4

Growth: 4.1

Quality: 5.4

Yield: 8.0

Momentum: 7.0

Volatility: 10.0

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FirstEnergy

A-Score: 6.6/10

Value: 5.4

Growth: 3.6

Quality: 4.9

Yield: 8.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Entergy

A-Score: 6.5/10

Value: 5.3

Growth: 3.4

Quality: 4.7

Yield: 7.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

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Avangrid

A-Score: 4.5/10

Value: 4.9

Growth: 4.3

Quality: 3.5

Yield: 4.0

Momentum: 7.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

104.02$

Current Price

104.02$

Potential

-0.00%

Expected Cash-Flows