Entergy ETR
Entergy is a regulated utility that generates, transmits, and distributes electricity and natural gas to approximately 3 million customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy shows moderate financial health (6.13) with high leverage (ND/EBITDA 5.56), but growth is boosted by AI demand, with contracts like Google's $2.1 billion. Valuation (P/E 25.21) is demanding, though the dividend (2.60% net) and momentum (17.49%) provide support.
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.
Entergy is a regulated utility that generates, transmits, and distributes electricity and natural gas to approximately 3 million customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy shows moderate financial health (6.13) with high leverage (ND/EBITDA 5.56), but growth is boosted by AI demand, with contracts like Google's $2.1 billion. Valuation (P/E 25.21) is demanding, though the dividend (2.60% net) and momentum (17.49%) provide support.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.5 |
| Quality / Moat | 3.8 |
| Valuation | 3.8 |
| Growth | 5.6 |
| Dividend | 6.7 |
| Momentum | 6.8 |
| Risk & Context | 8.0 |
OVERALL SCORE: 5.7/10
Context and risks
The rise in 10-year Treasury yields (5.17%) makes refinancing Entergy's debt more expensive, with ND/EBITDA of 5.56 and Debt/Equity of 186.77, pressuring its financial health. However, AI-driven electricity demand (Google contracts) partially mitigates this risk.
News considered in the analysis
- Entergy (ETR) Could Be 19% Undervalued Following Its Grid Modernization Push — Análisis de valoración que sugiere un potencial alcista del 19% tras la modernización de la red; es una opinión de analista, no un hecho material.
- How Is Entergy's Stock Performance Compared to Other Utility Stocks? — Comparativa genérica de rendimiento bursátil sin información nueva sobre la empresa.
- Entergy Says Google’s Arkansas Solar Payments Could Total $2.1 Billion. Is Power Becoming Alphabet’s New Bottleneck? — Contrato material con Google por 2.100 millones de dólares en pagos solares, confirmado por la empresa; refuerza la demanda de energía a largo plazo.
- Google’s Arkansas Data Center Reveals the Huge Power Bill Behind AI. Entergy Stands to Benefit — El centro de datos de Google en Arkansas, atendido por Entergy, demuestra la creciente demanda de electricidad por IA; beneficio directo para la utility.
- One Nuclear Signs Deal for 2.88-GW Gas-Fired Plant, Large BESS for Louisiana Data Center Campus — Acuerdo para una planta de gas de 2,88 GW y baterías para un campus de centro de datos en Luisiana; expansión significativa de capacidad para demanda de IA.
Verdict: Hold; AI demand and long-term contracts are positive, but high leverage and interest rate sensitivity limit upside potential.
Main risk: High leverage (ND/EBITDA 5.56) combined with rising 10-year Treasury yields (5.17%) makes debt refinancing more expensive, a key risk for a regulated utility with narrow margins.
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