Entergy Corporation (ETR) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Entergy Corporation

Updated on October 12, 2026 · accounts published on July 29, 2026

A regulated utility with record margins, heavy debt and a steadily rising dividend

Entergy trades at a P/E of 28.2 over the last 12 months, 42 % above its ten-year median of 19.9, while fiscal 2025 margins hit a 12-year high.

• Is Entergy expensive or cheap? Entergy trades at a P/E of 28.2, 42 % above its ten-year median and 36 % above the utility sector median.
• How is the business doing? Operating margin reached 24 % in fiscal 2025, the highest in 12 years and nearly double the 13 % average for 2014-2025.
• How strong is the balance sheet? Net debt was $68.64 per share in fiscal 2025, equal to 62 % of the share price, and interest was covered only 2.3×.
• Is the dividend sustainable with this debt? The fiscal 2025 payout was 62 % of earnings, well below the 80 % limit for utilities, after 8 straight years of dividend increases.
• What to expect from the next earnings? Analysts expect EPS of $1.65 when Entergy reports on November 4, 2026; it beat estimates in 7 of the last 8 quarters.

Is Entergy expensive or cheap?

Over the last 12 months Entergy trades at a P/E of 28.2. Its own ten-year median is 19.9, and the median across 122 utilities is 20.4. In 81 % of the last decade the stock traded at a lower P/E than today, within a range of 12.4 to 43.2. EV/EBITDA is 14.6× and price to book is 2.7×. The shares are up 17 % over the last 12 months but still 6 % below their 52-week high of $117.91. The earnings yield is 3.6 %, so the current price depends on the recent jump in earnings holding up.

How is the business doing?

Over the last 12 months revenue grew 9 % and EPS rose 60 %. That is far faster than the 2.7 % a year EPS grew over fiscal 2020-2025. The margins show where the jump came from. The operating margin is 22 % over the last 12 months, against an average of 13 % for fiscal 2014-2025, and fiscal 2025 was the best of those twelve years at 24 %. Returns on capital are still modest. ROIC is 3.2 % over the last 12 months, 0.8 points below the sector median of 4.0 %, and it has not passed 10 % in any of the last ten fiscal years. ROE of 10.4 % is inside the 8 % to 12 % range regulators allow.

How strong is the balance sheet?

Net debt in fiscal 2025 was $68.64 per share ($73.01 of debt minus $4.36 of cash), equal to 62 % of the current share price. Over the last 12 months debt to equity is 1.9× and the current ratio is 0.9×, so short-term obligations are larger than short-term assets. Net debt to EBITDA was 5.0× in fiscal 2025. That is below the 5.5× ceiling considered healthy for utilities, but not by much. Interest coverage is the weak spot: 2.3× in fiscal 2025, below the 3× the sector treats as healthy. On the positive side, a Piotroski score of 7 out of 9 over the last 12 months points to improving fundamentals.

Is the dividend sustainable with this debt?

Utilities are regulated, slow-growing businesses that work like bonds with extra upside. That is why investors in the sector watch debt, interest rates and whether the payout is consistent, and care less about fast growth or a high ROIC. Entergy's dividend yield is 2.3 % over the last 12 months, and it has raised the dividend per share for 8 consecutive fiscal years through 2025. The fiscal 2025 payout of 62 % leaves room below the 80 % healthy limit. Growth is the weaker part. The dividend grew 3.7 % a year over 2015-2025, just under the sector's 4 % benchmark, and EPS grew 2.7 % a year over 2020-2025, below the 4 % to 7 % range. With interest covered only 2.3×, higher rates would eat into that room first.

What to expect from the next earnings?

Entergy reports on November 4, 2026, and analysts expect EPS of $1.65 for the quarter. The company has beaten EPS estimates in 7 of the last 8 quarters. The most recent was on July 29, 2026: $1.03 against $1.01 expected, a 2 % surprise. Expectations for the full year are stable. The 2026 EPS consensus has stayed at $4.40 over the last 27 days across 13 analysts, and revenue estimates have barely moved. Of the 32 analysts covering Entergy, 19 rate it a buy, 13 a hold and none a sell. With the P/E already 42 % above its decade median, the stock needs these beats to continue.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.