Orin
DUKNYSE·Regulated Electric

Duke Energy Corporation DUK

Market cap $89.2BP/E 17.1× trailingGross margin 68.2%Reports Thu 5 Nov, before the open
$114.40
+0.23 (+0.20%)live 09:45 ET
52-wk $113.90 – $134.49
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Orin's take
0.62conviction · moderate
Refreshed 19 Aug · take v8. A new filing or a print queues the next refresh.

Duke Energy trades at a meaningful discount to regulated-utility peers—18.6x P/E versus a 21.7x median and 11.6x EV/EBITDA versus 14.2x—while FY2025 EPS grew 10.5% to $6.31 on 6.2% revenue growth and operating margin expanded to 26.6%. However, free cash flow remains deeply negative at -$1.7B against $14.0B of capex, total debt has climbed to $90.9B, the stock sits below its 50-day MA at $123.99 with a bearish MACD histogram, and smart-money flows turned slightly negative (-0.018) as of the quarter ended 2026-06-30.

The valuation cushion is real, but the heavy capex cycle, rising leverage, and weak technicals argue for patience until margin and cash-flow trends show a clearer inflection.

What could go wrong

  • Negative free cash flow. FY2025 FCF of -$1.7B against $14.0B capex and $90.9B total debt signals sustained external financing needs that could pressure the stock if rates stay elevated.
  • Gross margin compression. Gross margin fell from 50.1% in FY2024 to 31.6% in FY2025; while likely fuel-cost pass-through for a regulated utility, sustained compression could signal cost recovery challenges.
  • Bearish technical setup. As of 2026-08-18, DUK closed at $123.99, below its 50-day MA of $125.66, with a negative MACD histogram of -0.13 and RSI at 46.4, suggesting near-term downside momentum.
  • Insider selling. Over the trailing 24 months, insider net value is -$16.1M with 82 dispositions versus 62 acquisitions; the CEO sold 20,000 shares at $124.37 in May 2026.

What would change my mind

Technical stabilization above 50-day MA. DUK closes above $125.66 (50-day MA) on rising volume with MACD histogram turning positivebullish
FCF improvement. Next annual or interim filing shows free cash flow narrowing meaningfully from the -$1.7B FY2025 level as capex moderatesbullish
Smart-money outflow acceleration. 13F composite score deteriorates further below -0.018 with fund count dropping below 55bearish
Rate-case or regulatory setback. A key Carolinas or Florida rate case is denied or slashed, impairing the capex recovery thesis that underpins the heavy investment cyclebearish

Where this comes from: peer_relative (as of 2026-08-18) · peer_relative (as of 2026-08-18) · FMP FY2025 + derived_metrics · FMP FY2025. Orin's read on DUK; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$6.4B0.1% of fund
State Street$5.7B0.2% of fund
Geode Capital Management$2.6B0.1% of fund
Vanguard Portfolio Management$2.6B0.1% of fund
Morgan Stanley$1.7B0.1% of fund
Massachusetts Financial Services /Ma/$1.6B0.5% of fund

126 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 144 Form 4 filings, net −$16.1M. Of the 50 on hand, 0 were open-market purchases and 2 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Utilities
MetricNowOwn medianSector
P/E17.1×18.4×25.9×
EV/EBITDA11.1×11.6×
P/S2.67×2.76×
P/B1.6×1.6×

Its P/E sits below all 5 of the last 5 years (−0.80σ from its own mean).

What Wall Street published

32 firms · 2026-09-23
Consensus target

$135

$127$140 · +18% against today's price

How they rate it
  • 13 buy or overweight
  • 19 hold
  • 0 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 19.5× of 9 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
DUKDuke Energy Corporation$89B17.1×11.1×68.2%15.7%10%
AEPAmerican Electric Power Company, Inc.$64B20.3×13.7×49.0%13.9%10%
DDominion Energy, Inc.$54B21.2×14.5×49.3%13.9%9%
DTEDTE Energy Company$26B19.3×12.5×36.7%8.1%11%
ETREntergy Corporation$46B25.1×13.8×38.9%13.5%10%
EXCExelon Corporation$42B14.9×10.3×24.5%11.0%10%
PEGPublic Service Enterprise Group Incorporated$34B16.7×13.3×85.4%16.0%12%
SOThe Southern Company$96B20.0×12.0×43.4%15.4%13%
WECWEC Energy Group, Inc.$33B19.5×13.6×62.0%16.7%12%
XELXcel Energy Inc.$44B19.3×12.6×48.8%15.3%10%

The median is of the 9 peers listed above and nothing else — check it against the column. This company trades 11.9% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 31.4×FY25 18.6×

What its sector has traded at

Utilities
FY14 14.0×FY26 27.4×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$97$125.54 · −22%2026-06-10
Levered DCF$92$125.54 · −27%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $114.40
52-week range$114 – $134
Analyst targets$127 – $140
Standard DCF$97 as of 2026-06-10, when it was $125.54
Levered DCF$92 as of 2026-06-10, when it was $125.54
At own 5y-median P/E (18×)$123
At 5y P/E range (17–31×)$116 – $207
At sector P/E (26×)$172

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.