Duke Energy (NYSE:DUK) Has Compensated Shareholders With A Respectable 47% Return On Their Investment
NYSE:DUK) shareholders might be concerned after seeing the share price drop 10% in the last quarter. But the silver lining is the stock is up over five years. Unfortunately its return of 19% is below the market return of 90%. Unfortunately not all shareholders will have held it for the long term, so spare a thought for those caught in the 14% decline over the last twelve months.” data-reactid=”28″>Duke Energy Corporation (NYSE:DUK) shareholders might be concerned after seeing the share price drop 10% in the last quarter. But the silver lining is the stock is up over five years. Unfortunately its return of 19% is below the market return of 90%. Unfortunately not all shareholders will have held it for the long term, so spare a thought for those caught in the 14% decline over the last twelve months.
See our latest analysis for Duke Energy ” data-reactid=”29″> See our latest analysis for Duke Energy
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During five years of share price growth, Duke Energy actually saw its EPS drop 3.4% per year.
Since EPS is down a bit, and the share price is up, it’s probably that the market previously had some concerns about the company, but the reality has been better than feared. In the long term, though, it will be hard for the share price rises to continue without improving EPS.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
earnings, revenue and cash flow.” data-reactid=”50″>Dive deeper into Duke Energy’s key metrics by checking this interactive graph of Duke Energy’s earnings, revenue and cash flow.
What About Dividends?
A Different Perspective
We’ve identified 3 warning signs with Duke Energy (at least 1 which doesn’t sit too well with us) , and understanding them should be part of your investment process.” data-reactid=”54″>Duke Energy shareholders are down 9.8% for the year (even including dividends), but the market itself is up 19%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 8.1% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We’ve identified 3 warning signs with Duke Energy (at least 1 which doesn’t sit too well with us) , and understanding them should be part of your investment process.
list of growing companies with considerable, recent, insider buying.” data-reactid=”55″>We will like Duke Energy better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”57″>This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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