Duke Energy Corporation (Holdin DUK
Regulated electric utility that generates, transmits, and distributes electricity in the Southeast and Midwest of the US. Duke Energy is a regulated utility with a highly leveraged balance sheet (Net Debt/EBITDA of 5.51) and negative free cash flow conversion (-26.94%), making it vulnerable to the rise in long-term interest rates, already reflected in its 52-week low. Its dividend (net yield 3.83%) is attractive and sustainable, but the risk profile is elevated.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Regulated electric utility that generates, transmits, and distributes electricity in the Southeast and Midwest of the US. Duke Energy is a regulated utility with a highly leveraged balance sheet (Net Debt/EBITDA of 5.51) and negative free cash flow conversion (-26.94%), making it vulnerable to the rise in long-term interest rates, already reflected in its 52-week low. Its dividend (net yield 3.83%) is attractive and sustainable, but the risk profile is elevated.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.6 |
| Quality / Moat | 3.9 |
| Valuation | 4.8 |
| Growth | 5.2 |
| Dividend | 7.6 |
| Momentum | 4.7 |
| Risk & Context | 8.0 |
OVERALL SCORE: 5.9/10
Context and risks
The sharp rise in long-term interest rates (30Y at 2004 highs) is a material risk for Duke Energy: its Net Debt/EBITDA of 5.51 and its position in the 4th percentile of the 52-week range reflect the pressure on its valuation. As a regulated utility, its business is capital-intensive and highly sensitive to long-term financing costs.
News considered in the analysis
- Duke Energy (DUK) Hits a 52-Week Low as the 30-Year Treasury Reaches a 2004 High — El repunte de los tipos de interés a largo plazo presiona la valoración de la utility, que ya cotiza en mínimos de 52 semanas.
- What Is Duke Energy (DUK) Changing With Joyce Mullen And Great Falls? — Titular especulativo sin información concreta sobre cambios operativos o estratégicos.
- How to Build a $6,850 Monthly Paycheck From Dividends — Listículo genérico sobre dividendos sin información específica sobre Duke Energy.
- Why Dominion Energy Halted Dividend Growth Despite Strong Operating Performance — Noticia sobre un competidor (Dominion), no sobre Duke Energy; sin impacto directo.
- VST Keeps Writing Checks To Its Shareholders — Noticia sobre otra empresa del sector (Vistra), sin impacto directo en Duke Energy.
Verdict: Hold, with caution: the dividend is solid, but high leverage and sensitivity to interest rates limit near-term upside potential.
Main risk: High leverage (Net Debt/EBITDA of 5.51) combined with rising long-term interest rates, which increases refinancing costs and pressures valuation.
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