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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: 50GRADE 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
12.8%
Sector: 9.9%
Dividend Analysis audit
INCOME
2.59%
Trailing Yield
$2.59
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
62%MID
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, ENTERGY CORP /DE/ (ETR) receives a "Hold" rating with a composite score of 50.3/100, ranked #457 out of 4446 stocks. Key factor scores: Quality 50/100, Value 56/100, Momentum 59/100. This is quantitative analysis only — not investment advice.
ENTERGY CORP /DE/ (ETR) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does ENTERGY CORP /DE/ Do?
Entergy Corporation, together with its subsidiaries, engages in the production and distribution of electricity in the United States. It 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 is involved in the ownership, operation, and decommissioning of nuclear power plants located in the northern United States; sale of electric power to wholesale customers; provision of services to other nuclear power plant owners; and ownership of interests in non-nuclear power plants that sell electric power to wholesale customers. The company generates electricity through gas, nuclear, coal, hydro, and solar power sources. It sells energy to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies. Its power plants have approximately 26,000 megawatts (MW) of electric generating capacity, which include 6,000 MW of nuclear power. The company delivers electricity to 3 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy Corporation was founded in 1913 and is based in New Orleans, Louisiana. ENTERGY CORP /DE/ (ETR) is classified as a large-cap stock in the Utilities sector. The company is led by CEO Andrew S. Marsh and employs approximately 11,700 people, headquartered in New Orleans, Louisiana. With a market capitalization of $52.0B, ETR is one of the prominent companies in the Utilities sector.
ENTERGY CORP /DE/ (ETR) Stock Rating — Hold (April 2026)
As of April 2026, ENTERGY CORP /DE/ receives a Hold rating with a composite score of 50.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.ETR ranks #457 out of 4,446 stocks in our coverage universe. Within the Utilities sector, ENTERGY CORP /DE/ ranks #44 of 112 stocks, placing it in the upper half 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%).
ETR Stock Price and 52-Week Range
ENTERGY CORP /DE/ (ETR) currently trades at $116.47. The stock lost $0.97 (0.8%) in the most recent trading session. The 52-week high for ETR is $107.21, which means the stock is currently trading 8.6% from its annual peak. The 52-week low is $75.57, putting the stock 54.1% above its annual trough. Recent trading volume was 1.9M shares, reflecting moderate market activity.
Is ETR Overvalued or Undervalued? — Valuation Analysis
ENTERGY CORP /DE/ (ETR) carries a value factor score of 56/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 23.93x, compared to the Utilities sector average of 23.47x — a premium of 2%. The price-to-book ratio stands at 3.06x, versus the sector average of 1.98x. The price-to-sales ratio is 3.90x, compared to 0.82x for the average Utilities stock. On an enterprise value basis, ETR trades at 21.79x EV/EBITDA, versus 4.75x for the sector.
Overall, ETR'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.
ENTERGY CORP /DE/ Profitability — ROE, Margins, and Quality Score
ENTERGY CORP /DE/ (ETR) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 12.8%, compared to the Utilities sector average of 9.9%, which is within a healthy range. Return on assets (ROA) comes in at 3.0% versus the sector average of 3.1%.
On a margin basis, ENTERGY CORP /DE/ reports gross margins of 71.0%, compared to 53.1% for the sector. The operating margin is 28.1% (sector: 21.5%). Net profit margin stands at 16.1%, versus 12.8% for the average Utilities stock. Revenue growth is running at 29.1% 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.
ETR Debt, Balance Sheet, and Financial Health
ENTERGY CORP /DE/ has a debt-to-equity ratio of 178.0%, 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 0.74x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $30.28B. Cash and equivalents stand at $1.52B.
ETR has a beta of 0.39, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for ENTERGY CORP /DE/ is 87/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
ENTERGY CORP /DE/ Revenue and Earnings History — Quarterly Trend
In TTM 2026, ENTERGY CORP /DE/ reported revenue of $13.38B and earnings per share (EPS) of $3.98. Net income for the quarter was $2.18B. Gross margin was 71.0%. Operating income came in at $3.78B.
In FY 2025, ENTERGY CORP /DE/ reported revenue of $12.95B and earnings per share (EPS) of $3.98. Net income for the quarter was $1.77B. Revenue grew 9.0% year-over-year compared to FY 2024. Operating income came in at $3.20B.
In Q3 2025, ENTERGY CORP /DE/ reported revenue of $3.81B and earnings per share (EPS) of $1.55. Net income for the quarter was $698M. Revenue grew 12.5% year-over-year compared to Q3 2024. Operating income came in at $1.12B.
In Q2 2025, ENTERGY CORP /DE/ reported revenue of $3.33B and earnings per share (EPS) of $1.07. Net income for the quarter was $472M. Revenue grew 12.7% year-over-year compared to Q2 2024. Operating income came in at $837M.
Over the past 8 quarters, ENTERGY CORP /DE/ has demonstrated a growth trajectory, with revenue expanding from $2.95B to $13.38B. Investors analyzing ETR stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
ETR Dividend Yield and Income Analysis
ENTERGY CORP /DE/ (ETR) currently pays a dividend yield of 2.6%. At this yield, a $10,000 investment in ETR stock would generate approximately $$259.00 in annual dividend income. This compares to the Utilities sector average dividend yield of 2.8%, meaning ETR yields less than the typical sector peer. With a net margin of 16.1%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
ETR Momentum and Technical Analysis Profile
ENTERGY CORP /DE/ (ETR) has a momentum factor score of 59/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 24/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 10/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
ETR vs Competitors — Utilities Sector Ranking and Peer Comparison
Comparing ETR against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ETR vs S&P 500 (SPY) comparison to assess how ENTERGY CORP /DE/ stacks up against the broader market across all factor dimensions.
ETR Next Earnings Date
No upcoming earnings date has been announced for ENTERGY CORP /DE/ (ETR) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy ETR? — Investment Thesis Summary
ENTERGY CORP /DE/ presents a balanced picture with arguments on both sides. Low volatility (stability score 87/100) reduces downside risk.
In summary, ENTERGY CORP /DE/ (ETR) earns a Hold rating with a composite score of 50.3/100 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 ETR stock.
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Institutional Research Dossier
ENTERGY CORP /DE/ (ETR) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Entergy Corporation (ETR) receives a Hold rating, reflecting a balanced view of its operational strengths and financial challenges. While Entergy benefits from a regulated utility business providing stable revenue and high margins, its significant debt burden and negative free cash flow raise concerns about its long-term financial flexibility. The company's valuation appears fair relative to its sector, but the risks associated with its nuclear decommissioning liabilities and regulatory environment warrant caution.
The company's strategic focus on regulated utility operations in the South, coupled with its ongoing investments in grid modernization and renewable energy, positions it favorably for future growth. However, investors should closely monitor Entergy's ability to manage its debt, improve its free cash flow, and navigate the complexities of the energy transition. The Hold rating acknowledges the company's inherent stability as a utility provider, while also recognizing the potential headwinds that could limit its upside potential.
Business Strategy & Overview
Entergy Corporation operates primarily as a regulated utility, generating, transmitting, and distributing electricity to approximately 3 million customers across Arkansas, Louisiana, Mississippi, and Texas. This core business provides a relatively stable and predictable revenue stream, as rates are typically set by regulatory commissions. The company's strategy revolves around maintaining and upgrading its existing infrastructure, expanding its renewable energy portfolio, and improving operational efficiency.
A significant portion of Entergy's generation capacity comes from nuclear power, which provides a low-carbon source of electricity. However, the company also operates gas, coal, hydro, and solar power plants, diversifying its energy mix. The Entergy Wholesale Commodities segment, while smaller than the utility segment, involves the ownership, operation, and decommissioning of nuclear power plants in the northern United States, as well as the sale of electric power to wholesale customers. This segment introduces additional complexity and risk, particularly related to decommissioning costs.
Entergy is actively investing in grid modernization projects to enhance reliability, improve resilience to extreme weather events, and integrate renewable energy sources. These investments are crucial for meeting the evolving needs of its customers and complying with regulatory requirements. The company is also focused on expanding its renewable energy portfolio through the development of new solar and wind projects, as well as the procurement of renewable energy from third-party providers. This aligns with the growing demand for clean energy and the increasing emphasis on decarbonization.
The company's strategic positioning within the Southeast region of the United States offers both opportunities and challenges. The region is experiencing population growth and economic development, which should drive increased demand for electricity. However, the region is also susceptible to extreme weather events, such as hurricanes, which can disrupt operations and require significant investments in infrastructure hardening. Entergy's ability to effectively manage these risks and capitalize on the growth opportunities will be critical to its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
29.1%
Sector: 20.1%
+45% VS SCTR
Economic Moat Analysis
Entergy's economic moat can be classified as Narrow, primarily due to its regulated utility operations. The regulated nature of the business provides a degree of protection from competition, as new entrants typically face significant barriers to entry, including high capital costs, regulatory hurdles, and the need to secure long-term contracts with customers. This regulatory framework allows Entergy to earn a reasonable rate of return on its investments, providing a stable and predictable revenue stream.
The company also benefits from a geographic advantage, as it operates in a region with limited competition from other utility providers. This allows Entergy to maintain a strong market position and exert some pricing power. However, the regulatory environment also limits the company's ability to raise prices excessively, as regulators are responsible for ensuring that rates are fair and reasonable for customers.
While Entergy's nuclear power plants provide a cost advantage due to their low operating costs and carbon-free electricity generation, they also introduce significant risks related to decommissioning liabilities and potential safety incidents. These risks can offset the cost advantages and limit the company's overall moat.
The company's investments in grid modernization and renewable energy are aimed at strengthening its competitive position and adapting to the changing energy landscape. However, these investments also require significant capital expenditures and may not generate immediate returns. Furthermore, the increasing penetration of distributed generation, such as rooftop solar, could erode Entergy's market share and weaken its moat over time. Therefore, while Entergy possesses a narrow moat due to its regulated utility operations, the moat is not particularly wide or durable, and it faces ongoing challenges from competition, regulation, and technological change.
Financial Health & Profitability
Entergy's financial health presents a mixed picture. The company's revenue has shown strong growth, with a 29.1% increase compared to the sector average of 20.1%. This growth is evident in the recent quarterly financial history, with FY2025 revenue at $12.95B compared to $11.88B in FY2024. The company's gross, operating, and net margins are also higher than the sector averages, indicating efficient operations. The net margin of 16.1% significantly exceeds the sector average of 12.8%.
However, Entergy's free cash flow is a significant concern, currently reported as negative $2.96B. This suggests that the company is not generating enough cash from its operations to cover its capital expenditures and other obligations. This negative free cash flow is a red flag, especially when compared to the positive cash flow generation that is typically expected from a utility company.
The company's balance sheet is also highly leveraged, with a debt-to-equity ratio of 178.00, which is higher than the sector average of 165.00. This high level of debt increases the company's financial risk and limits its financial flexibility. The current ratio of 0.74 indicates that the company may have difficulty meeting its short-term obligations.
Entergy's return on equity (ROE) of 12.8% is higher than the sector average of 10.0%, indicating that the company is generating a higher return on its shareholders' equity. However, this ROE is achieved with a high level of leverage, which increases the risk associated with the company's financial performance. The trend in net income has been volatile, with significant fluctuations in recent years. While FY2025 shows a net income of $1.77B, FY2024 was $1.06B, and FY2023 was $2.36B. This volatility adds uncertainty to the company's future earnings potential.
Valuation Assessment
Entergy's valuation metrics suggest that the stock is fairly valued relative to its sector. The company's price-to-earnings (P/E) ratio of 25.1x is slightly higher than the sector average of 22.7x, indicating that investors are willing to pay a premium for Entergy's earnings. However, this premium may be justified by the company's higher margins and revenue growth.
The company's enterprise value-to-EBITDA (EV/EBITDA) ratio of 5.9x is also higher than the sector average of 4.8x, suggesting that the company is more expensive on an enterprise value basis. This higher EV/EBITDA ratio may reflect the company's significant debt burden, which increases its enterprise value.
Given the negative free cash flow, a traditional free cash flow yield analysis is not applicable. This lack of positive free cash flow makes it difficult to assess the company's valuation based on its ability to generate cash. The high debt levels and negative free cash flow raise concerns about the company's ability to sustain its current valuation.
Considering the company's growth prospects, its regulated utility operations, and its financial challenges, the current valuation appears to be fair. However, investors should closely monitor the company's ability to improve its free cash flow and reduce its debt burden. Any deterioration in these metrics could lead to a decline in the company's valuation. The fair valuation, coupled with the inherent risks, supports the Hold rating.
Risk & Uncertainty
Entergy faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is the regulatory environment in which it operates. Changes in regulations, such as those related to renewable energy mandates, carbon emissions, or rate-setting policies, could increase the company's costs or limit its revenue potential. The regulatory approval process for new projects and rate increases can also be lengthy and uncertain, delaying or preventing the company from achieving its financial goals.
Another significant risk is the decommissioning of nuclear power plants. Entergy has a number of nuclear plants that are either currently being decommissioned or will need to be decommissioned in the future. The costs associated with decommissioning these plants can be substantial and difficult to predict, and any cost overruns could negatively impact the company's financial performance. The company's ability to effectively manage these decommissioning projects is critical to its long-term financial health.
Entergy also faces risks related to extreme weather events, such as hurricanes and floods. The company's service territory is located in a region that is particularly vulnerable to these events, which can disrupt operations, damage infrastructure, and increase costs. The company's ability to prepare for and respond to these events is crucial to minimizing their impact on its business. The company's high debt levels also pose a significant risk, as they increase its financial vulnerability to adverse events. A decline in earnings or an increase in interest rates could make it difficult for the company to service its debt, potentially leading to financial distress.
Bulls Say / Bears Say
The Bull Case
BULL VIEWEntergy's regulated utility business provides a stable and predictable revenue stream, ensuring consistent earnings and dividend payments.
BULL VIEWThe company's investments in grid modernization and renewable energy position it favorably for future growth and compliance with environmental regulations.
BULL VIEWEntergy's high margins compared to the sector indicate efficient operations and strong profitability.
The Bear Case
BEAR VIEWEntergy's negative free cash flow and high debt levels raise concerns about its financial flexibility and long-term sustainability.
BEAR VIEWThe company's exposure to nuclear decommissioning liabilities creates significant financial risks and uncertainties.
BEAR VIEWRegulatory changes and increasing competition from distributed generation could erode Entergy's market share and profitability.
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 ETR and 4,400+ other equities.
ENTERGY CORP /DE/ exhibits a 197% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
3.0%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
71.0%
Sector: 53.1%
Operating Margin
Core business profitability
28.1%
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-8%
Income Projection audit
A $10,000 investment would generate approximately $259 annually in dividends at the current trailing rate.
