Entergy Arkansas, Inc. 1M BD 4.875%66 (EAI)
Valuation Overview•Is Entergy Arkansas, Inc. 1M BD 4.875%66 Overvalued or Undervalued?
Trading at a discount to intrinsic cash flow value, implying pessimistic long-term market expectations.
High-quality fundamentals with a strong composite quality score of 78/100, backed by robust profitability and solvency.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though solvency presents a headwind.
Wall Street sentiment is generally neutral. The company currently dilutes shareholders to fund operations and growth rather than returning capital.
EAI exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins. This is paired with a moderately leveraged but stable balance sheet.
The company is driving exceptional top-line expansion (69.2% 3Y CAGR) however, earnings have severely contracted over the same period. The company maintains healthy operational efficiency with a 23.1% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $3.2B | +9.0% | +69.2% | +44.1% | +19.1% | |
| EBITDA | $1.1B | — | +76.7% | — | — | |
| Net Income | $384.9M | +66.6% | +80.9% | — | +38.6% | |
| EPS (Diluted) | $0.83 | -80.0% | -14.8% | -4.3% | +10.6% | |
| Free Cash Flow | -$3.7M | +184.7% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 67.5% | 58.7% | 51.2% | 43.0% |
| Operating Margin | 23.1% | 21.4% | 20.4% | 17.0% |
| Net Margin | 13.4% | 12.6% | 12.5% | 11.2% |
| FCF Margin | 28.5% | -1.6% | -5.0% | -8.1% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | — | $0.84 | — | ||
| Q1'26 | — | $0.52 | — | ||
| Q3'23 | — | $3.32 | — | ||
| Q2'23 | — | $0.00 | — | ||
| Q4'22 | — | $-5917.78 | — | ||
| Q2'22 | — | $-11.82 | — | ||
| Q1'22 | — | $5951.29 | — | ||
| Q4'21 | — | $3636.40 | — |
Total return is +5.0% (1Y), lagging the benchmark by -20.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -0.0% | -9.3% | — |
| 1Y | +5.0% | -20.0% | +6.0% |
| 3YCAGR | +2.9% | -16.6% | +16.8% |
| 5YCAGR | +0.5% | -12.0% | +23.8% |
| 10YCAGR | -8.2% | -21.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Entergy Arkansas, Inc. 1M BD 4.875%66 (EAI) valuation, health, and returns.
Entergy Arkansas, Inc. 1M BD 4.875%66 is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. undervalued (implying +79099.8% upside to DCF intrinsic value of $15911.23)
Entergy Arkansas, Inc. 1M BD 4.875%66 has multiple valuation anchors: DCF Intrinsic Value: $15911.23 | Peer Relative Fair Value: $20.00. A convergence of these signals offers higher conviction.
Entergy Arkansas, Inc. 1M BD 4.875%66 displays good financial health with a composite quality score of 78/100, supported by a Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 16.2%.
Entergy Arkansas, Inc. 1M BD 4.875%66 does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Entergy Arkansas, Inc. 1M BD 4.875%66's current growth trajectory is Decelerating. The company achieved +9.0% 1Y revenue growth and -80.0% 1Y EPS growth, compared to its 3Y revenue CAGR of +69.2%.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Entergy Arkansas, Inc. 1M BD 4.875%66 include: -74.2% 1-year max drawdown. Volatility risk is characterized by a beta of 0.79x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.