Entergy Texas, Inc. Fundamental Analysis
Entergy Texas, Inc. (ETI-P) shows moderate financial fundamentals with a PE ratio of 9.04, profit margin of 15.11%, and ROE of 17.14%. The company generates $7.8B 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 49.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ETI-P's fundamental strength across five key dimensions:
Efficiency Score
ExcellentETI-P demonstrates superior asset utilization.
Valuation Score
ExcellentETI-P trades at attractive valuation levels.
Growth Score
ModerateETI-P shows steady but slowing expansion.
Financial Health Score
ExcellentETI-P maintains a strong and stable balance sheet.
Profitability Score
ModerateETI-P maintains healthy but balanced margins.
Key Financial Metrics
Is ETI-P Expensive or Cheap?
P/E Ratio
ETI-P trades at 9.04 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ETI-P's PEG of 0.13 indicates potential undervaluation.
Price to Book
The market values Entergy Texas, Inc. at 2.54 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.69 times EBITDA. This is generally considered low.
How Well Does ETI-P Make Money?
Net Profit Margin
For every $100 in sales, Entergy Texas, Inc. keeps $15.11 as profit after all expenses.
Operating Margin
Core operations generate 23.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.14 in profit for every $100 of shareholder equity.
ROA
Entergy Texas, Inc. generates $11.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Entergy Texas, Inc. generates limited operating cash flow of $-24.35M, signaling weaker underlying cash strength.
Free Cash Flow
Entergy Texas, Inc. generates weak or negative free cash flow of $-1.53B, restricting financial flexibility.
FCF Per Share
Each share generates $-3.49 in free cash annually.
FCF Yield
ETI-P converts -1.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.93
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How ETI-P Stacks Against Its Sector Peers
| Metric | ETI-P Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.04 | 19.45 | Better (Cheaper) |
| ROE | 17.14% | 875.00% | Weak |
| Net Margin | 15.11% | 4119.00% | Weak |
| Debt/Equity | 0.93 | 19.93 | Strong (Low Leverage) |
| Current Ratio | 1.20 | 1.39 | Neutral |
| ROA | 11.74% | -4725.00% (disorted) | Strong |
ETI-P outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
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