Duke Energy Story

DUK -- USA Stock

USD 85.59 1.53 1.76%

Macroaxis Story

Duke Energy Holdin is scheduled to announce its earnings today. The next earnings report is expected on the 11th of May 2021. Duke Energy Receivables Turnover is decreasing as compared to previous years. The last year's value of Receivables Turnover was reported at 7.29. The current Inventory Turnover is estimated to increase to 5.27, while Average Assets are projected to decrease to under 158.4 B. As many baby boomers are still indifferent towards utilities space, it makes sense to examine Duke Energy as a unique choice for millenniums.

Published over two weeks ago

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Is Duke Energy (NYSE:DUK) outlook still optimistic based on the recent debt level?

The company has 65.62 B in debt with debt to equity (D/E) ratio of 1.39, which is OK given its current industry classification. The firm shows a Beta (market volatility) of 0.4849, which means possible diversification benefits within a given portfolio. Let's try to break down what Duke Energy's beta means in this case. As returns on the market increase, Duke Energy returns are expected to increase less than the market. However, during the bear market, the loss on holding Duke Energy will be expected to be smaller as well. Even though it is essential to pay attention to Duke Energy Holdin historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards predicting any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Duke Energy exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Duke Energy Holdin has an expected return of -0.0609%. Please be advised to confirm Duke Energy Holdin downside variance, and the relationship between the sortino ratio and accumulation distribution to decide if Duke Energy Holdin stock performance from the past will be repeated at some point in the near future.

Duke Energy financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Duke Energy, including all of Duke Energy's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Duke Energy assets, the company is considered highly leveraged. Understanding the composition and structure of overall Duke Energy debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.

Please read more on our technical analysis page.

Understanding Duke Energy Total Liabilities

Duke Energy Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Duke Energy Corp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Duke Energy balance sheet include debt obligations and money owed to different Duke Energy vendors, workers, and loan providers. Below is the chart of Duke Energy short long-term liabilities accounts currently reported on its balance sheet.

You can use Duke Energy Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is Duke Energy's Liquidity

Duke Energy financial leverage refers to using borrowed capital as a funding source to finance Duke Energy Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Duke Energy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Duke Energy's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for Duke Energy, but it might be worth checking our own buy vs. sell analysis

Breaking down Duke Energy Indicators

The small plunge in market price for the last few months could raise concerns from traders as the firm it trading at a share price of 90.42 on 3,584,948 in volume. The company directors and management did not add much value to Duke Energy investors in January. However, diversifying your holdings with Duke Energy or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.26. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Asset Breakdown

153 B

Assets Non Current

Goodwill

Current Assets

	Total Assets	163.69 Billion
	Current Assets	10.7 Billion
	Assets Non Current	153 Billion
	Goodwill	20.43 Billion

Over 3 percent plunge for Duke Energy. What does it mean for traders?

Recent Jensen Alpha is up to -0.09. Price may plunge again. Duke Energy has relatively low volatility with skewness of 0.41 and kurtosis of 0.15. However, we advise all investors to independently investigate Duke Energy to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Take On Duke Energy

Although some firms in the utilities?regulated electric industry are either recovering or due for a correction, Duke Energy may not be as strong as the others in terms of longer-term growth potentials. On the whole, as of the 11th of February 2021, our overall 30 days buy-hold-sell recommendation on the firm is Strong Hold. We believe Duke Energy is fairly valued with close to average probability of bankruptcy for the next two years.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Duke Energy Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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