MeritValue

ENTERGY CORP /DE/

ETRdata completeness 100%19 fiscal years on file
The thesis, from the filings

ENTERGY CORP /DE/ earns about 3% on invested capital, but has diluted owners by 123% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $25.75 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$11.7B1$13.8B1$12.1B1$11.9B2$12.9B2
Net income$1.12B3$1.1B3$2.36B3$1.06B4$1.77B4
Operating cash flow$2.3B5$2.59B6$4.29B7$4.49B7$5.15B7
Capital expenditure$168.3M8$5.07B9$4.44B10$4.84B10$7.68B10
Free cash flow (derived)$2.13B5−$2.48B6−$146.3M7−$349.8M7−$2.53B7
Total debt$53B11$52.7B12$51.4B13$56.9B14$61.2B14
Cash & equivalents$442.6M15$224.2M16$132.5M17$859.7M18$1.93B18
Diluted shares201.9M411.1M424.8M431.6M450.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$375.94
your share of equity
Profit it earned you last year
$39.39
Free cash flow it threw off
−$56.3
Debt you’d be carrying
$1,359.81

10 shares is a claim on $375.94 of net worth that earned you $39.39 and generated −$56.3 of cash last year, against $1,359.81 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
3% avg · 5y
FY21 3%FY22 3%FY23 4%FY24 3%FY25 4%

It earned an average 3% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+123% shares · 5y

Share count is up 123% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 16% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$25.75
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.12B
  • growthAssumed0.0%
Graham Number
$57.51
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000065984-24-000012 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2024-12-31 · accession 0000065984-26-000174 (Revenues)
  3. 10-K · period ending 2021-12-31 · accession 0000065984-24-000012 (NetIncomeLoss)
  4. 10-K · period ending 2024-12-31 · accession 0000065984-26-000174 (ProfitLoss)
  5. 10-K · period ending 2021-12-31 · accession 0000065984-24-000012 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2022-12-31 · accession 0000065984-25-000012 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2023-12-31 · accession 0000065984-26-000174 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2021-12-31 · accession 0000065984-24-000012 (PaymentsToAcquireProductiveAssets)
  9. 10-K · period ending 2022-12-31 · accession 0000065984-25-000012 (PaymentsToAcquirePropertyPlantAndEquipment)
  10. 10-K · period ending 2023-12-31 · accession 0000065984-26-000174 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2021-12-31 · accession 0000065984-23-000014 (LongTermDebtNoncurrent)
  12. 10-K · period ending 2022-12-31 · accession 0000065984-24-000012 (LongTermDebtNoncurrent)
  13. 10-K · period ending 2023-12-31 · accession 0000065984-25-000012 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2024-12-31 · accession 0000065984-26-000174 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2021-12-31 · accession 0000065984-23-000014 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-12-31 · accession 0000065984-24-000012 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-12-31 · accession 0000065984-25-000012 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2024-12-31 · accession 0000065984-26-000174 (CashAndCashEquivalentsAtCarryingValue)