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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 Q3 2025 Earnings: A Strong Performance

Entergy Corporation reported adjusted earnings per share (EPS) of $1.53 for the third quarter of 2025, beating analyst estimates of $1.43. The company's strong financial performance was driven by a 7% increase in sales, particularly in the industrial sector. The revenue growth was a key contributor to the company's ability to narrow its guidance range for 2025, raising the bottom by $0.10. With a compound annual growth rate of greater than 8%, Entergy's long-term growth outlook remains strong.

Publication Date: Nov -03

📋 Highlights
  • Adjusted EPS Growth:: Reported $1.53 EPS for Q3 2025, reflecting strong performance.
  • Guidance Upside:: Raised 2025 guidance range by $0.10, signaling confidence in execution.
  • Industrial Sales Surge:: 7% growth in industrial sector sales, a key revenue driver.
  • $41B Capital Plan:: $41 billion allocated for 2026-2029, with $4.4 billion in equity, targeting 8%+ CAGR.
  • Data Center Power Expansion:: 4.5 gigawatts of power island equipment planned for data centers, operational by 2031-2032.

Financial Performance and Guidance

The company's financial performance was robust, with adjusted EPS of $1.53. The company's growth is driven by strong sales, particularly in the industrial sector. Entergy's credit ratings and outlooks remain stable, with S&P and Moody's affirming their ratings. Analysts estimate next year's revenue growth at 7.0%, indicating a continued upward trajectory.

Investment and Growth Opportunities

Entergy's capital plan for 2026 through 2029 is $41 billion, with associated equity of $4.4 billion. The company has made significant progress on business and regulatory matters, including a $300 million investment to harden the grid and improve reliability in Mississippi. The company has a pipeline of opportunities around renewables based on customer needs and is exploring various options to meet clean energy needs.

Valuation and Metrics

Entergy's current valuation metrics indicate a relatively high price-to-earnings (P/E) ratio of 23.22 and a price-to-book (P/B) ratio of 2.5. The company's return on equity (ROE) is 11.47%, and its return on invested capital (ROIC) is 3.88%. The dividend yield is 2.5%, providing a relatively stable source of return for investors.

Data Center Growth and Renewable Energy

Entergy is well-positioned to support the growth of data centers, with 4.5 gigawatts of power island equipment for data center customers. The company expects additional solar commitments, similar to those seen with AWS (600 megawatts) and Meta (1,500 megawatts). These renewables could be upside opportunities to the gas gigawatts discussed.

Regulatory and Affordability Considerations

The company plans to file a rate case in Arkansas early next year, which will likely outline the benefits associated with large new customers helping existing customers. Entergy notes that hyperscalers, such as Google, are expected to help with customer affordability and pay their fair share.

3. NewsRoom

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American Century Companies Inc. Has $17.81 Million Position in Entergy Corporation $ETR

Dec -03

Source: defenseworld.net

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Entergy Louisiana breaks ground on new, state-of-the-art generation facilities to power reliability, growth and innovation

Dec -01

Source: prnewswire.com

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Entergy Corporation (NYSE:ETR) Given Average Rating of “Moderate Buy” by Brokerages

Nov -30

Source: defenseworld.net

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Boston Partners Purchases 3,710,814 Shares of Entergy Corporation $ETR

Nov -26

Source: defenseworld.net

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Entergy Corporation $ETR Shares Sold by Advisors Asset Management Inc.

Nov -26

Source: defenseworld.net

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4 Low-Beta Defensive Stocks to Buy as Consumer Sentiment Plummets

Nov -25

Source: zacks.com

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Here's Why ETR Stock Deserves a Spot in Your Portfolio Right Now

Nov -21

Source: zacks.com

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Is Entergy (ETR) Stock Outpacing Its Utilities Peers This Year?

Nov -19

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

Stock-Card
OGE Energy

A-Score: 6.8/10

Value: 5.5

Growth: 4.1

Quality: 5.6

Yield: 8.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

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Evergy

A-Score: 6.7/10

Value: 5.5

Growth: 4.7

Quality: 4.7

Yield: 7.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Entergy

A-Score: 6.5/10

Value: 4.8

Growth: 3.6

Quality: 4.7

Yield: 7.0

Momentum: 9.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
FirstEnergy

A-Score: 6.4/10

Value: 5.7

Growth: 3.6

Quality: 4.6

Yield: 8.0

Momentum: 6.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
PGE

A-Score: 6.1/10

Value: 6.8

Growth: 4.4

Quality: 4.1

Yield: 8.0

Momentum: 3.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Avangrid

A-Score: 5.2/10

Value: 6.2

Growth: 4.3

Quality: 3.8

Yield: 5.0

Momentum: 5.0

Volatility: 6.7

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

94.22$

Current Price

94.22$

Potential

-0.00%

Expected Cash-Flows