DUK
Duke Energy Corporation
Utilities · Utilities - Regulated Electric · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 58.1/100 reflects solid but not exceptional growth rates (6.2% revenue, 10.5% EPS) and healthy utility-level margins (26.8% operating, 15.4% net) that support a mid-range result.
- Strong quarterly momentum through 2026Q1 and consistent dividend growth contributed positively, while elevated leverage and a high payout ratio tempered the overall score.
- The Grid-Scale Battery Storage theme assignment contributed zero points under the current model methodology, preventing a higher composite result despite the thematic relevance.
Why Not Higher
- The interest coverage ratio of 2.4x and debt-to-equity of 1.68 in FY2025 signal meaningful financial leverage that limits the financial health score and introduces balance sheet risk.
- The 66.4% dividend payout ratio and growth rates that, while positive, were not exceptional enough to earn top-tier scores across growth and dividend factors held the overall score to the mid-range.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $30,357,000,000 to FY2025's $32,237,000,000 (+6.2%), while net income rose from FY2024's $4,524,000,000 to FY2025's $4,968,000,000 (+9.8%), and diluted EPS increased from FY2024's $5.71 to FY2025's $6.31 (+10.5%).
The model rewarded consistent top- and bottom-line expansion across FY2024 to FY2025, but the mid-range score suggests the growth rates, while positive, were not exceptional enough to earn a top-tier result.
In FY2025, Duke Energy posted an operating margin of 26.8%, a net margin of 15.4%, and a return on assets of 2.5%.
The model rewarded the solid operating and net margins, which are characteristic of a regulated utility with stable pricing power; the relatively low return on assets of 2.5% in FY2025 reflects the capital-intensive asset base typical of the sector and likely tempered the score from reaching the maximum.
In FY2025, Duke Energy carried a debt-to-equity ratio of 1.68, an interest coverage ratio of 2.4, and total assets of $195,736,000,000.
The model reflects a capital-heavy balance sheet typical of large regulated utilities; the interest coverage of 2.4 in FY2025 indicates that operating income covers interest expense, though with limited headroom, while the elevated debt-to-equity of 1.68 in FY2025 signals meaningful leverage that the model likely discounted against the otherwise large asset base.
Over the last four reported quarters, revenue rose from $7,508,000,000 in 2025Q2 to $9,178,000,000 in 2026Q1, net income climbed from $984,000,000 in 2025Q2 to $1,550,000,000 in 2026Q1, and operating income increased from $1,830,000,000 in 2025Q2 to $2,725,000,000 in 2026Q1, with 2026Q1 representing the peak across all three metrics in the trailing period.
The model rewarded the clear upward trajectory across revenue, net income, and operating income from 2025Q2 through 2026Q1, with the most recent quarter showing the highest readings, signaling accelerating near-term performance.
Duke Energy's dividends per share have grown incrementally from $3.98 in FY2022 to $4.06 in FY2023, $4.14 in FY2024, and $4.22 in FY2025, while the dividend payout ratio stood at 66.4% of net income in FY2025.
The model recognized the consistent, multi-year dividend growth trend, but the high payout ratio of 66.4% in FY2025 leaves limited retained earnings for reinvestment and signals constrained dividend flexibility, which likely weighed on the score despite the unbroken growth streak.
Duke Energy is assigned to the Grid-Scale Battery Storage macro theme.
Although the company carries the Grid-Scale Battery Storage theme assignment, this alignment did not translate into score under the model's current methodology, which may reflect the weighting or timing criteria applied to theme-based scoring rather than any absence of thematic relevance.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Duke Energy posted solid FY2025 results with revenue rising 6.2% to $32.2 billion and net income growing 9.8% to nearly $5.0 billion, supported by a 26.8% operating margin and 15.4% net margin characteristic of a regulated utility. Quarterly momentum has been strong, with revenue, net income, and operating income all reaching their trailing peaks in 2026Q1. However, the balance sheet carries meaningful leverage—a debt-to-equity ratio of 1.68 and interest coverage of just 2.4x—while the 66.4% dividend payout ratio limits financial flexibility. The company is assigned to the Grid-Scale Battery Storage macro theme, though this alignment did not contribute to the model score under current methodology.
Plain English
Duke Energy is a large electric utility that is growing steadily and paying a reliable dividend, but it carries a lot of debt and pays out most of its profits to shareholders, leaving less room to maneuver if conditions get tough.
Bull Case vs. Bear Case
Bull Case
- Consistent top- and bottom-line growth: revenue rose 6.2% and diluted EPS climbed 10.5% from FY2024 to FY2025, demonstrating durable earnings expansion.
- Strong near-term momentum with 2026Q1 representing the peak across revenue ($9.18B), net income ($1.55B), and operating income ($2.73B) in the trailing four quarters.
- Unbroken multi-year dividend growth from $3.98 per share in FY2022 to $4.22 in FY2025 signals management's commitment to returning capital to shareholders.
Bear Case
- The interest coverage ratio of just 2.4x in FY2025 leaves limited headroom to absorb earnings pressure or rising interest costs on a capital-heavy balance sheet with $195.7 billion in total assets.
- A dividend payout ratio of 66.4% in FY2025 constrains retained earnings available for reinvestment, potentially limiting the company's ability to self-fund growth initiatives.
- The Grid-Scale Battery Storage theme assignment did not translate into any model score, suggesting the thematic alignment has not yet been validated by the scoring methodology.
What Could Change the Picture
Bullish Triggers
- A sustained acceleration in quarterly earnings beyond the 2026Q1 peak—particularly if operating income continues to expand—could signal that the growth trajectory is stronger than the mid-range score implies.
- A reduction in the debt-to-equity ratio or improvement in interest coverage would indicate strengthening financial health and could support a more favorable assessment.
Bearish Triggers
- A reversal in the quarterly momentum trend—such as revenue or net income declining from the 2026Q1 peak—would undermine the key near-term positive signal.
- Any increase in the payout ratio above the current 66.4% or deterioration in interest coverage below 2.4x would heighten concerns about financial flexibility and leverage risk.
Risk Profile
Medium RiskDuke Energy's interest coverage ratio of 2.4x in FY2025 provides only modest protection against earnings volatility on a balance sheet with $195.7 billion in total assets and a debt-to-equity ratio of 1.68, indicating that the company operates with meaningful financial leverage typical of large regulated utilities. While quarterly momentum has been positive through 2026Q1, any sustained reversal in operating income could quickly compress the already-limited coverage cushion.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.