Entergy Texas, Inc. Fundamental Analysis (NYSE: ETI)
Entergy Texas, Inc. (NYSE: ETI) shows moderate financial fundamentals with a PE ratio of 25.37, profit margin of 14.71%, and ROE of 11.32%. The company generates $13.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ETI's fundamental strength across five key dimensions:
Efficiency Score
WeakETI struggles to generate sufficient returns from assets.
Valuation Score
WeakETI trades at a premium to fair value.
Growth Score
WeakETI faces weak or negative growth trends.
Financial Health Score
ModerateETI shows balanced financial health with some risks.
Profitability Score
WeakETI struggles to sustain strong margins.
Key Financial Metrics
Is ETI Expensive or Cheap?
P/E Ratio
ETI trades at 25.37 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ETI's PEG of 3.74 indicates potential overvaluation.
Price to Book
The market values Entergy Texas, Inc. at 2.63 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.50 times EBITDA. This is generally considered low.
How Well Does ETI Make Money?
Net Profit Margin
For every $100 in sales, Entergy Texas, Inc. keeps $14.71 as profit after all expenses.
Operating Margin
Core operations generate 24.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.32 in profit for every $100 of shareholder equity.
ROA
Entergy Texas, Inc. generates $2.52 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Entergy Texas, Inc. generates strong operating cash flow of $5.77B, reflecting robust business health.
Free Cash Flow
Entergy Texas, Inc. generates weak or negative free cash flow of $-3.58B, restricting financial flexibility.
FCF Per Share
Each share generates $-8.15 in free cash annually.
FCF Yield
ETI converts -7.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.74
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How ETI Stacks Against Its Sector Peers
| Metric | ETI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.37 | 19.23 | Worse (Expensive) |
| ROE | 11.32% | 1035.00% | Weak |
| Net Margin | 14.71% | -2197.00% (disorted) | Strong |
| Debt/Equity | 1.74 | 1.79 | Neutral |
| Current Ratio | 1.18 | 1.75 | Neutral |
| ROA | 2.52% | 506.00% | Weak |
ETI outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Entergy Texas, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Income
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Income
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Income