Based on the key profitability measurements obtained from Duke Energy's financial statements, Duke Energy Corp is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in January. Profitability indicators assess Duke Energy's ability to earn profits and add value for shareholders.
For Duke Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Duke Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Duke Energy Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Duke Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Duke Energy Corp over time as well as its relative position and ranking within its peers.
Duke
Duke Energy's Revenue Breakdown by Earning Segment
Is Electric Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Duke Energy. If investors know Duke will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Duke Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Duke Energy Corp is measured differently than its book value, which is the value of Duke that is recorded on the company's balance sheet. Investors also form their own opinion of Duke Energy's value that differs from its market value or its book value, called intrinsic value, which is Duke Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Duke Energy's market value can be influenced by many factors that don't directly affect Duke Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Duke Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Duke Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Duke Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Duke Energy Corp Net Income vs. Total Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Duke Energy's current stock value. Our valuation model uses many indicators to compare Duke Energy value to that of its competitors to determine the firm's financial worth.
Duke Energy Corp is one of the top stocks in total asset category among its peers. It also is one of the top stocks in net income category among its peers making up about 0.02 of Net Income per Total Asset. The ratio of Total Asset to Net Income for Duke Energy Corp is roughly 61.55 . At present, Duke Energy's Total Assets are projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Duke Energy's earnings, one of the primary drivers of an investment's value.
Duke Net Income vs. Total Asset
Total Asset is everything that a business owns. It is the sum of current and long-term assets owned by a firm at a given time. These assets are listed on a balance sheet and typically valued based on their purchasing prices, not the current market value.
Duke Energy
Total Asset
=
Tangible Assets
+
Intangible Assets
=
176.89 B
Total Asset is typically divided on the balance sheet on current asset and long-term asset. Long-term is the value of company property and other capital assets that are expected to be useable for more than one year. Long term assets are reported net of depreciation. On the other hand current assets are assets that are expected to be sold or converted to cash as part of normal business operation.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Duke Energy
Net Income
=
(Rev + Gain)
-
(Exp + Loss)
=
2.87 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Duke Net Income Comparison
Duke Energy is currently under evaluation in net income category among its peers.
Duke Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Duke Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Duke Energy will eventually generate negative long term returns. The profitability progress is the general direction of Duke Energy's change in net profit over the period of time. It can combine multiple indicators of Duke Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Profitability drivers are factors that can directly affect your investment outlook on Duke Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Duke Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Duke Energy's important profitability drivers and their relationship over time.
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Duke Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Duke Energy will appreciate offsetting losses from the drop in the long position's value.
Duke Energy Pair Trading
Duke Energy Corp Pair Trading Analysis
The ability to find closely correlated positions to Duke Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Duke Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Duke Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Duke Energy Corp to buy it.
The correlation of Duke Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Duke Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Duke Energy Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Duke Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Use Investing Themes to Complement your Duke Energy position
In addition to having Duke Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.
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Hybrid Mix Funds
Funds or Etfs that are made of portfolios of stocks, bonds, or cash instruments with different maturity horizons and characteristics. The Hybrid Mix Funds theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Hybrid Mix Funds Theme or any other thematic opportunities.
When determining whether Duke Energy Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Duke Energy's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Duke Energy Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Duke Energy Corp Stock:
For information on how to trade Duke Stock refer to our How to Trade Duke Stock guide.You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
To fully project Duke Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Duke Energy Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Duke Energy's income statement, its balance sheet, and the statement of cash flows.
Potential Duke Energy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Duke Energy investors may work on each financial statement separately, they are all related. The changes in Duke Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Duke Energy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
