Upside case
Bull case
$27+29.7%
The bull case prices EAI at 7x on FY1 earnings, assuming continued execution and no meaningful deceleration in the core business.
Analysis OverviewNo CoverageUpdated —
Entergy Arkansas, Inc. 1M BD 4.875%66 (EAI) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Mixed
Covering
—
analysts
0 bullish · 0 bearish · 0 covering EAI
Strong Buy
0
Buy
0
Hold
0
Sell
0
Strong Sell
0
Consensus Target
—
— vs today
Scenario Range
$3 – $27
Model bear to bull value window
Coverage
—
Published analyst ratings
Valuation Context
—
Forward P/E · Market cap $9.6B
EAI price targets
Three scenarios for where EAI stock could go
Current
~$21
Confidence
44 / 100
Updated
—
Where we are now
Current · $21
Bear
$3
Base
$19
Bull
$27
Market caseClosest to today
Base case
$19-7.4%
At 5x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$3-86.4%
The bear case assumes sentiment or fundamentals disappoint enough to push EAI down roughly 86% from the current price.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Entergy Arkansas, Inc. 1M BD 4.875%66
EAI · NYSEUtilitiesRegulated ElectricDecember year-end
Entergy Arkansas is a regulated electric utility that generates, transmits, and distributes electricity to retail customers across its service territory. It earns revenue primarily through regulated rate structures approved by state commissions — collecting customer payments for electricity usage and infrastructure investments. Its key advantage is its monopoly franchise status in its service area, protected by regulatory barriers to entry.
Market Cap
$9.6B
Revenue TTM
$13.3B
Net Income TTM
$1.8B
Net Margin
13.4%
EAI Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
—No data
8 quarters tracked
Revenue Beat Rate
—No data
vs consensus estimates
Avg EPS Surprise
—
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2023
Q3 2023
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 0 of 4Q2 2023
EPS
$0.00/—
Revenue
$2.85T/—
Q3 2023
EPS
$3.32/—
Revenue
$3.60T/—
Q1 2026
EPS
$0.52/—
Revenue
$3.0B/—
Q2 2026
EPS
$0.84/—
Revenue
$3.2B/—
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2023 | $0.00/— | — | $2.85T/— | — |
| Q3 2023 | $3.32/— | — | $3.60T/— | — |
| Q1 2026 | $0.52/— | — | $3.0B/— | — |
| Q2 2026 | $0.84/— | — | $3.2B/— | — |
FY1–FY2 Estimates
Revenue Outlook
FY1
$14.4B
+8.0% YoY
FY2
$15.5B
+8.0% YoY
EPS Outlook
FY1
$3.73
-3.1% YoY
FY2
$3.62
-3.0% YoY
Trailing FCF (TTM)$3.8B
FCF Margin: 28.5%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
EAI beat EPS estimates in 0 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
EAI Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $12.9B
Product Mix
Latest annual revenue by segment or product family
Electricity, US Regulated
98.7%
+9.9% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Electricity, US Regulated is the largest disclosed segment at 98.7% of FY 2025 revenue, up 9.9% YoY.
EAI Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $639 — implies +2997.7% from today's price.
Upside to Fair Value
2997.7%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
EAI
5.3x
vs
S&P 500
25.2x
79% discount
vs Utilities Trailing P/E
EAI
5.3x
vs
Utilities
19.7x
73% discount
vs EAI 5Y Avg P/E
Today
5.3x
vs
5Y Average
3.3x
+61% premium
Forward PE
—
S&P 500
19.1x
—
Utilities
17.2x
—
5Y Avg
—
—
Trailing PE
5.3x
S&P 500
25.2x
-79%
Utilities
19.7x
-73%
5Y Avg
3.3x
+61%
PEG Ratio
—
S&P 500
1.75x
—
Utilities
1.73x
—
5Y Avg
—
—
EV/EBITDA
2.4x
S&P 500
15.3x
-84%
Utilities
11.5x
-79%
5Y Avg
4.3x
-45%
Price/FCF
15.2x
S&P 500
21.3x
-29%
Utilities
15.4x
-1%
5Y Avg
14.9x
+2%
Price/Sales
0.7x
S&P 500
3.1x
-76%
Utilities
2.2x
-66%
5Y Avg
0.4x
+72%
Dividend Yield
—
S&P 500
1.88%
—
Utilities
3.07%
—
5Y Avg
6.49%
—
| Metric | EAI | S&P 500 | Utilities | 5Y Avg EAI |
|---|---|---|---|---|
| Forward PE | — | 19.1x | 17.2x | — |
| Trailing PE | 5.3x | 25.2x-79% | 19.7x-73% | 3.3x+61% |
| PEG Ratio | — | 1.75x | 1.73x | — |
| EV/EBITDA | 2.4x | 15.3x-84% | 11.5x-79% | 4.3x-45% |
| Price/FCF | 15.2x | 21.3x-29% | 15.4x | 14.9x |
| Price/Sales | 0.7x | 3.1x-76% | 2.2x-66% | 0.4x+72% |
| Dividend Yield | — | 1.88% | 3.07% | 6.49% |
EAI trades above S&P 500 benchmarks on 0 of 4 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolEAI Financial Health
Verdict
Strong
EAI earns 23.1% operating margin on regulated earnings. Utilities carry higher leverage than industrials as a structural feature of the business model.
Regulated Operations
Revenue, regulated margins, and earnings
Revenue (TTM)
Trailing-twelve-month sales base
$13.3B
Revenue Growth
TTM vs prior year
+79.3%
Operating Margin
Operating income divided by revenue
23.1%
Net Margin
Net income divided by revenue
13.4%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$3.85
Operating Margin
Operating income over revenue — primary regulated earnings signal
23.1%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
16.2%
ROA
Return on assets, trailing twelve months
0.1%
Cash & Equivalents
Liquid assets on the balance sheet
$5M
Net Debt
Total debt minus cash
$3.0B
Debt Serviceability
Net debt as a multiple of annual free cash flow
0.8× FCF
Regulated utilities typically operate at 3–5× net debt/FCF — this is structural, not a risk flag.
ROE
Return on equity, trailing twelve months
—
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.0%
Dividend
—
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Current diluted share count
463M
All figures from the trailing twelve months. Utilities operate with structural leverage (3–5× net debt/FCF) due to regulated, predictable cash flows.
Open full ratios pageEAI Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
Based on the latest company results, valuation, and market data
High Risk
Electricity, US Regulated dependence
Electricity, US Regulated contributes 98.7% of the disclosed revenue mix, with the latest annual change at 9.9%. If demand in the lead segment cools, the rest of the portfolio may not be large enough to fully offset the slowdown.
Medium
Valuation de-rating
EAI trades at 5.3x trailing earnings versus 25.2x for the S&P 500 and 19.7x for its sector. If earnings delivery or sentiment slips, the stock could re-rate lower and move closer to the bear case target of $3.
Medium
Estimate execution
The next fiscal year requires Street estimates of $14.4B in revenue (8.0% growth) and $3.73 in EPS. Missing those operating targets would undermine the premium multiple investors are paying today.
Lower
Capital return support
Part of the per-share support comes from capital returns, backed by $3.8B in trailing free cash flow, a 0.0% buyback yield. If cash generation softens, the EPS lift and downside cushion from repurchases can narrow.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why EAI Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
Based on recent company results and analyst estimates
High-margin cash engine
Entergy Arkansas, Inc. 1M BD 4.875%66 already operates from a position of scale, with 67.5% gross margin, 23.1% operating margin, and $3.8B in trailing free cash flow. That combination gives management room to keep funding product investment without relying on outside capital.
Electricity, US Regulated still matters
Electricity, US Regulated accounts for 98.7% of disclosed revenue and the latest annual change was 9.9%. When the biggest revenue lines are still holding up, even modest execution improvement can translate into meaningful earnings leverage.
Upside and capital returns align
Consensus still points to —, while the modeled bull target reaches $27. If $14.4B in forward revenue and $3.73 in EPS are delivered, ongoing shareholder returns running at 0.0% can amplify the equity upside.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
EAI Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$20.66
52W Range Position
91%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$5.72
+261.2% from the low
52-Week High
$22.22
-7.0% from the high
1 Month
+1.57%
3 Month
-2.59%
YTD
-0.2%
1 Year
-1.1%
3Y CAGR
-3.7%
5Y CAGR
-4.2%
10Y CAGR
-12.0%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
EAI vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
—
vs 18.8x median
Peer median unavailable
Revenue Growth
+8.0%
vs +4.9% median
+62% above peer median
Net Margin
13.4%
vs 13.5% median
-1% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
EAI EAI Entergy Arkansas, Inc. 1M BD 4.875%66 | $9.6B | — | +8.0% | 13.4% | — | — |
ETR ETR Entergy Corporation | $51.7B | 25.7x | +4.9% | 13.6% | Buy | +3.5% |
ENO ENO Entergy New Orleans, LLC First Mortgage Bonds, 5.50% Series due April 1, 2066 | $10.2B | 12.6x | -3.7% | 13.4% | — | — |
EMP EMP Entergy Mississippi, Inc. 1M BD 66 | $9.7B | — | +8.0% | 13.4% | — | — |
SO SO The Southern Company | $105.4B | 20.4x | +4.5% | 14.5% | Hold | +6.5% |
D D Dominion Energy, Inc. | $54.2B | 17.2x | +5.7% | 13.5% | Hold | +7.5% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
EAI Dividend and Capital Return
EAI does not currently return meaningful capital to shareholders.
Dividend UnknownFCF Unknown
Total Shareholder Yield
0.0%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
—
Payout Ratio
—
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$1.22
Growth Streak
Consecutive years of dividend increases
1Y
3Y Div CAGR
0.0%
5Y Div CAGR
0.0%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
463M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.30 | — | — | — |
| 2025 | $1.22 | +0.0% | 0.0% | 0.0% |
| 2024 | $1.22 | 0.0% | 0.0% | 26.3% |
| 2023 | $1.22 | 0.0% | 0.0% | 37.8% |
| 2022 | $1.22 | 0.0% | 0.0% | 9.1% |
FAQ
6 questionsEAI Investor Questions
Common questions answered from live analyst data and company financials.
01Is Entergy Arkansas, Inc. 1M BD 4.875%66 (EAI) stock a buy or sell in 2026?
Entergy Arkansas, Inc. 1M BD 4.875%66 (EAI) has limited published analyst coverage at this time. The model scenario range runs from $3 to $27 around a current price of $21. Use the scenario targets and valuation multiples on this page as a guide.
02Is Entergy Arkansas, Inc. 1M BD 4.875%66 (EAI) stock overvalued in 2026?
Forward earnings data for EAI is not currently available. Review the valuation table above for trailing P/E, EV/EBITDA, and price-to-sales comparisons against market and sector benchmarks.
03What are the main risks for Entergy Arkansas, Inc. 1M BD 4.875%66 (EAI) stock in 2026?
The primary risks for EAI in 2026 are: (1) Electricity, US Regulated dependence — Electricity, US Regulated contributes 98. (2) Valuation de-rating — EAI trades at 5. (3) Estimate execution — The next fiscal year requires Street estimates of $14. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
04What is Entergy Arkansas, Inc. 1M BD 4.875%66's revenue and earnings forecast?
Analyst consensus estimates EAI will report consensus revenue of $14.4B (+8.0% year-over-year) and EPS of $3.73 (-3.1% year-over-year) for the upcoming fiscal year. The following year, analysts project $15.5B in revenue.
05When does Entergy Arkansas, Inc. 1M BD 4.875%66 (EAI) report its next earnings?
A confirmed upcoming earnings date for EAI is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
06How much free cash flow does Entergy Arkansas, Inc. 1M BD 4.875%66 generate?
Entergy Arkansas, Inc. 1M BD 4.875%66 (EAI) generated $3.8B in free cash flow over the trailing twelve months — a free cash flow margin of 28.5%. EAI returns capital to shareholders through and share repurchases ($0 TTM).