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Relative valuation derived from Utilities sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 49.5GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
9.8%
Sector: 9.9%
Dividend Analysis audit
INCOME
3.39%
Trailing Yield
$3.39
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
67%MID
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Duke Energy CORP (DUK) receives a "Hold" rating with a composite score of 50.7/100, ranked #138 out of 4446 stocks. Key factor scores: Quality 50/100, Value 59/100, Momentum 50/100. This is quantitative analysis only — not investment advice.
Duke Energy CORP (DUK) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Duke Energy CORP Do?
Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables. The Electric Utilities and Infrastructure segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest; and uses coal, hydroelectric, natural gas, oil, renewable generation, and nuclear fuel to generate electricity. It also engages in the wholesale of electricity to municipalities, electric cooperative utilities, and load-serving entities. This segment serves approximately 8.2 million customers in 6 states in the Southeast and Midwest regions of the United States covering a service territory of approximately 91,000 square miles; and owns approximately 50,259 megawatts (MW) of generation capacity. The Gas Utilities and Infrastructure segment distributes natural gas to residential, commercial, industrial, and power generation natural gas customers; and owns, operates, and invests in pipeline transmission and natural gas storage facilities. It has approximately 1.6 million customers, including 1.1 million customers in North Carolina, South Carolina, and Tennessee, as well as 550,000 customers in southwestern Ohio and northern Kentucky. The Commercial Renewables segment acquires, owns, develops, builds, and operates wind and solar renewable generation projects, including nonregulated renewable energy and energy storage services to utilities, electric cooperatives, municipalities, and corporate customers. It has 23 wind, 178 solar, and 2 battery storage facilities, as well as 71 fuel cell locations with a capacity of 3,554 MW across 22 states. The company was formerly known as Duke Energy Holding Corp. and changed its name to Duke Energy Corporation in April 2005. The company was founded in 1904 and is headquartered in Charlotte, North Carolina. Duke Energy CORP (DUK) is classified as a large-cap stock in the Utilities sector. The company is led by CEO Lynn J. Good and employs approximately 27,900 people, headquartered in Charlotte, North Carolina. With a market capitalization of $101.9B, DUK is one of the prominent companies in the Utilities sector.
Duke Energy CORP (DUK) Stock Rating — Hold (April 2026)
As of April 2026, Duke Energy CORP receives a Hold rating with a composite score of 50.7/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.DUK ranks #138 out of 4,446 stocks in our coverage universe. Within the Utilities sector, Duke Energy CORP ranks #14 of 112 stocks, placing it in the top quartile of its Utilities peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
DUK Stock Price and 52-Week Range
Duke Energy CORP (DUK) currently trades at $131.79. The stock lost $1.21 (0.9%) in the most recent trading session. The 52-week high for DUK is $134.49, which means the stock is currently trading -2.0% from its annual peak. The 52-week low is $111.22, putting the stock 18.5% above its annual trough. Recent trading volume was 2.8M shares, reflecting moderate market activity.
Is DUK Overvalued or Undervalued? — Valuation Analysis
Duke Energy CORP (DUK) carries a value factor score of 59/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 19.77x, compared to the Utilities sector average of 23.47x — a discount of 16%. The price-to-book ratio stands at 1.93x, versus the sector average of 1.98x. The price-to-sales ratio is 3.19x, compared to 0.82x for the average Utilities stock. On an enterprise value basis, DUK trades at 21.92x EV/EBITDA, versus 4.75x for the sector.
Overall, DUK's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Duke Energy CORP Profitability — ROE, Margins, and Quality Score
Duke Energy CORP (DUK) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 9.8%, compared to the Utilities sector average of 9.9%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 2.6% versus the sector average of 3.1%.
On a margin basis, Duke Energy CORP reports gross margins of 51.0%, compared to 53.1% for the sector. The operating margin is 26.9% (sector: 21.5%). Net profit margin stands at 16.1%, versus 12.8% for the average Utilities stock. Revenue growth is running at 17.1% on a trailing basis, compared to 20.1% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
DUK Debt, Balance Sheet, and Financial Health
Duke Energy CORP has a debt-to-equity ratio of 164.0%, compared to the Utilities sector average of 164.5%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.55x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $87.21B. Cash and equivalents stand at $688M.
DUK has a beta of -0.06, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Duke Energy CORP is 97/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Duke Energy CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, Duke Energy CORP reported revenue of $32.09B and earnings per share (EPS) of $6.31. Net income for the quarter was $5.18B. Gross margin was 51.0%. Operating income came in at $8.65B.
In FY 2025, Duke Energy CORP reported revenue of $31.74B and earnings per share (EPS) of $6.31. Net income for the quarter was $5.07B. Revenue grew 5.6% year-over-year compared to FY 2024. Operating income came in at $8.63B.
In Q3 2025, Duke Energy CORP reported revenue of $8.38B and earnings per share (EPS) of $1.81. Net income for the quarter was $1.45B. Revenue grew 3.1% year-over-year compared to Q3 2024. Operating income came in at $2.33B.
In Q2 2025, Duke Energy CORP reported revenue of $7.37B and earnings per share (EPS) of $1.25. Net income for the quarter was $1.01B. Revenue grew 3.1% year-over-year compared to Q2 2024. Operating income came in at $1.83B.
Over the past 8 quarters, Duke Energy CORP has demonstrated a growth trajectory, with revenue expanding from $7.15B to $32.09B. Investors analyzing DUK stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
DUK Dividend Yield and Income Analysis
Duke Energy CORP (DUK) currently pays a dividend yield of 3.4%. At this yield, a $10,000 investment in DUK stock would generate approximately $$339.00 in annual dividend income. This compares to the Utilities sector average dividend yield of 2.8%, meaning DUK offers above-average income for its sector. With a net margin of 16.1%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
DUK Momentum and Technical Analysis Profile
Duke Energy CORP (DUK) has a momentum factor score of 50/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 27/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 21/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
DUK vs Competitors — Utilities Sector Ranking and Peer Comparison
Comparing DUK against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full DUK vs S&P 500 (SPY) comparison to assess how Duke Energy CORP stacks up against the broader market across all factor dimensions.
DUK Next Earnings Date
No upcoming earnings date has been announced for Duke Energy CORP (DUK) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy DUK? — Investment Thesis Summary
Duke Energy CORP presents a balanced picture with arguments on both sides. Low volatility (stability score 97/100) reduces downside risk.
In summary, Duke Energy CORP (DUK) earns a Hold rating with a composite score of 50.7/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on DUK stock.
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Institutional Research Dossier
Duke Energy CORP (DUK) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Duke Energy (DUK) receives a Hold rating, justified by its stable, regulated business model offset by a high debt load and modest growth prospects. While the company benefits from a wide service area and essential service provision, its significant capital expenditures and regulatory constraints limit upside potential, making it a relatively safe but unexciting investment at its current valuation. The primary takeaway is that Duke Energy offers stability and dividend income, but investors should not expect substantial capital appreciation.
The company's transition to renewable energy sources presents both opportunities and challenges. While it aligns with long-term sustainability goals and could unlock new revenue streams, it also requires substantial investment and navigating complex regulatory landscapes. The current valuation appears fair, reflecting its defensive characteristics and dividend yield, but the high debt and negative free cash flow raise concerns about financial flexibility and future dividend sustainability. Therefore, a Hold rating is appropriate, pending clearer signs of successful execution of its renewable energy transition and debt reduction strategies.
Business Strategy & Overview
Duke Energy operates as a regulated utility, generating, transmitting, and distributing electricity and natural gas to a large customer base across the Southeast and Midwest regions of the United States. The company's core strategy revolves around providing reliable energy services while transitioning to cleaner energy sources. This involves significant investments in renewable energy projects, such as wind and solar farms, as well as modernizing its existing infrastructure to improve efficiency and reduce emissions. The regulated nature of its business provides a degree of predictability in revenue and earnings, as rates are typically set by state regulatory commissions.
The company's three segments – Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables – contribute to its overall revenue and earnings. The Electric Utilities segment is the largest, serving approximately 8.2 million customers and owning a substantial generation capacity. The Gas Utilities segment serves approximately 1.6 million customers and focuses on natural gas distribution and storage. The Commercial Renewables segment develops and operates renewable energy projects, selling electricity to utilities, cooperatives, and corporate customers. This segment is expected to be a key growth driver in the coming years as demand for renewable energy increases.
Duke Energy's strategic positioning within the utilities sector is characterized by its large scale, diverse service territory, and commitment to renewable energy. The company faces increasing pressure to reduce its carbon footprint and comply with environmental regulations. This requires significant capital investments in renewable energy projects and the retirement of coal-fired power plants. The company's ability to successfully navigate this transition will be critical to its long-term success. Furthermore, the company is actively involved in lobbying and regulatory proceedings to advocate for policies that support its business objectives.
The company's product pipeline primarily consists of renewable energy projects, including wind, solar, and battery storage facilities. These projects are designed to meet the growing demand for clean energy and reduce the company's reliance on fossil fuels. Duke Energy also invests in grid modernization projects to improve the reliability and efficiency of its electricity transmission and distribution systems. These investments are essential to support the integration of renewable energy sources and ensure a stable power supply. The company's success in developing and operating these projects will depend on its ability to secure regulatory approvals, manage costs, and maintain operational efficiency.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
17.1%
Sector: 20.1%
-15% VS SCTR
Economic Moat Analysis
Duke Energy possesses a Narrow economic moat, primarily derived from its regulated utility status and the essential nature of its services. The regulated nature of the electric and gas utility businesses creates barriers to entry, as new competitors must obtain regulatory approvals and invest significant capital to build infrastructure. This limits competition and allows Duke Energy to maintain a stable customer base and predictable revenue stream. The essential nature of electricity and natural gas also contributes to its moat, as customers are highly unlikely to switch providers unless there are significant cost savings or service improvements.
The company's large service territory and established infrastructure provide a cost advantage over potential new entrants. Duke Energy has already invested billions of dollars in its transmission and distribution networks, which would be difficult and expensive for a new competitor to replicate. This allows the company to deliver electricity and natural gas at a lower cost than a new entrant, giving it a competitive edge. However, this cost advantage is not insurmountable, as technological advancements and regulatory changes could potentially lower the barriers to entry in the future.
While Duke Energy benefits from its regulated status and established infrastructure, its moat is not as wide as some other utilities due to the increasing competition from renewable energy sources and the potential for regulatory changes. The growth of distributed generation, such as rooftop solar panels, could reduce demand for electricity from traditional utilities. Furthermore, regulatory commissions could impose stricter environmental regulations or limit the company's ability to recover costs, which could negatively impact its profitability. Therefore, while Duke Energy has a competitive advantage, it is not immune to disruption.
The company's intangible assets, such as its brand reputation and customer relationships, also contribute to its moat. Duke Energy has a long history of providing reliable energy services, which has helped it build trust and loyalty among its customers. This brand reputation makes it more difficult for new competitors to attract customers. However, the company's brand reputation could be damaged by service disruptions, environmental incidents, or negative publicity, which could weaken its moat. Therefore, Duke Energy must continue to invest in maintaining its infrastructure and providing excellent customer service to protect its competitive advantage.
Financial Health & Profitability
Duke Energy's financial health presents a mixed picture. The company exhibits strong revenue growth, with TTM revenue of $31.74 billion, a 17.1% increase compared to the sector average of 20.1%. Net income stands at $5.07 billion, resulting in a net margin of 16.1%, significantly higher than the sector average of 12.8%. This indicates efficient operations and effective cost management. However, the company's free cash flow is concerning, with a TTM value of negative $3.25 billion, suggesting that it is not generating enough cash to cover its capital expenditures and other obligations.
The company's balance sheet is heavily leveraged, with total debt of $87.21 billion and a debt-to-equity ratio of 164.00, in line with the sector average. This high level of debt increases the company's financial risk and limits its flexibility to invest in growth opportunities. The current ratio of 0.55 indicates a potential liquidity risk, as current liabilities exceed current assets. This suggests that the company may face challenges in meeting its short-term obligations. The company's profitability metrics, such as ROE of 9.8%, are slightly below the sector average of 10.0%, indicating that it is not generating as much profit from its equity as its peers.
Analyzing the quarterly financial history reveals a consistent trend of revenue growth and profitability. Revenue has increased steadily over the past few years, driven by higher electricity and natural gas sales. Net income has also increased, although it has fluctuated from quarter to quarter due to various factors, such as weather conditions and regulatory changes. The operating margin has remained relatively stable, ranging from 23.0% to 28.5%, indicating consistent operational efficiency. However, the lack of free cash flow data in the quarterly history makes it difficult to assess the company's cash flow generation trends.
Overall, Duke Energy's financial health is characterized by strong revenue growth and profitability, but also by high debt and negative free cash flow. The company's ability to generate positive free cash flow will be critical to its long-term financial stability. The high debt level increases the company's financial risk and limits its flexibility to invest in growth opportunities. Investors should closely monitor the company's cash flow generation and debt reduction efforts.
Valuation Assessment
Duke Energy's valuation metrics suggest a fair valuation relative to its peers in the utilities sector. The company's P/E ratio of 20.1x is slightly below the sector average of 22.7x, indicating that it is trading at a slightly lower multiple of its earnings. The EV/EBITDA ratio of 5.4x is slightly above the sector average of 4.8x, suggesting that it is trading at a slightly higher multiple of its earnings before interest, taxes, depreciation, and amortization. These metrics indicate that the company is not significantly overvalued or undervalued compared to its peers.
Considering the company's growth prospects, the current valuation appears reasonable. Duke Energy is expected to benefit from the increasing demand for electricity and natural gas, as well as its investments in renewable energy projects. However, its growth is likely to be limited by regulatory constraints and the slow-growing nature of the utilities sector. The company's high debt level also limits its ability to invest in growth opportunities. Therefore, the current valuation reflects the company's stable but modest growth prospects.
The company's dividend yield is an important factor to consider in its valuation. Duke Energy has a long history of paying dividends, and its current dividend yield is attractive compared to other income-generating investments. This makes the stock appealing to income-seeking investors. However, the company's negative free cash flow raises concerns about the sustainability of its dividend. If the company is unable to generate positive free cash flow in the future, it may be forced to reduce its dividend, which could negatively impact its stock price.
Overall, Duke Energy's valuation appears fair, reflecting its stable but modest growth prospects, attractive dividend yield, and high debt level. The company is not significantly overvalued or undervalued compared to its peers. However, investors should closely monitor the company's cash flow generation and debt reduction efforts, as these factors could impact its future valuation.
Risk & Uncertainty
Duke Energy faces several specific risks that could impact its business and financial performance. Regulatory risk is a significant concern, as the company's rates and operations are subject to regulation by state regulatory commissions. Changes in regulations could negatively impact the company's profitability and ability to recover costs. For example, stricter environmental regulations could require the company to invest in costly pollution control equipment or retire coal-fired power plants, which could reduce its earnings.
Competition from renewable energy sources is another risk factor. The growth of distributed generation, such as rooftop solar panels, could reduce demand for electricity from traditional utilities. Furthermore, the increasing availability of low-cost renewable energy could make it more difficult for Duke Energy to compete on price. The company must invest in renewable energy projects and adapt to the changing energy landscape to remain competitive.
The company's high debt level is a significant financial risk. High debt increases the company's vulnerability to economic downturns and rising interest rates. If the company is unable to generate sufficient cash flow to service its debt, it may be forced to reduce its dividend or sell assets, which could negatively impact its stock price. The negative free cash flow further exacerbates this risk, as it indicates that the company is not generating enough cash to cover its capital expenditures and other obligations.
Operational risks, such as power outages, equipment failures, and cyberattacks, could also impact the company's business. These events could disrupt the company's operations, damage its reputation, and result in financial losses. The company must invest in maintaining its infrastructure and implementing cybersecurity measures to mitigate these risks.
Bulls Say / Bears Say
The Bull Case
BULL VIEWDuke Energy's regulated utility business provides a stable and predictable revenue stream, making it a safe investment in a volatile market.
BULL VIEWThe company's commitment to renewable energy positions it to benefit from the growing demand for clean energy and potential government incentives.
BULL VIEWDuke Energy's attractive dividend yield provides a steady stream of income for investors, making it an appealing choice for income-seeking portfolios.
The Bear Case
BEAR VIEWDuke Energy's high debt level and negative free cash flow raise concerns about its financial stability and ability to sustain its dividend.
BEAR VIEWIncreasing competition from renewable energy sources and potential regulatory changes could negatively impact the company's profitability and growth prospects.
BEAR VIEWThe company's slow growth rate and limited upside potential make it an unattractive investment compared to other growth-oriented stocks.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score DUK and 4,400+ other equities.
Duke Energy CORP exhibits a 157% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
2.6%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
51.0%
Sector: 53.1%
Operating Margin
Core business profitability
26.9%
Sector: 21.5%
Net Margin
Bottom-line profitability
16.1%
Sector: 12.8%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.83%
Yield Delta+20%
Income Projection audit
A $10,000 investment would generate approximately $339 annually in dividends at the current trailing rate.
