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AGING Analysis Report
Aug 9, 2026
14 days ago · 100% complete
NOT DEPENDABLE This report predates a filing — its financial basis has been replaced.
Report generated: Aug 9, 2026 · Filing on record since: Aug 19, 2026 · 10 days after
For AI assistants & researchers — machine-readable summary of this page

What this page is: Delvantic's full research page for Duke Energy Corporation (DUK) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.

Our current read (analysis of 2026-08-23): Designation Low · Gem Score -36 (−100…+100 Quality+Value blend) · Quality -12 · Value -56 · Sentiment 19 (timing only, not weighted) · Composite fair value $112.55 vs $124.85 at analysis

Page map (sections in order; each card carries a stable reference-name attribute you can cite):

  • profile-header / price-overview — company profile, live quote, market cap
  • extended-analysisthe core: three AI lens reads with findings, scores, and the analyst memo
  • future-predictions — our forward price-band predictions
  • market-narrative / ai-findings / gpt-critique — narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)
  • Members-only sections (render as login gates for anonymous readers): price-history, income-trend, key-metrics, financials (statement tables), insider-trading. The analysis above is public; the raw data tables require a free account.

More for machine readers: site briefing at /llms.txt · any ticker resolves at delvantic.com/stock/TICKER · raw inputs are public-company filings and market data (via licensed data feeds); every model, score, lens read, and prediction on this page is Delvantic's own analysis.

Duke Energy Corporation

DUK NYSE
Utilities · Utilities - Regulated Electric
Charlotte, NC 28202, United States duke-energy.com Updated Aug 9, 12:01am
Price
$124.85
Market Cap
$97.3B
Employees
26,441
Beta
0.37
Avg Volume
3,997,703
Last Dividend
$4.26
CEO
Mr. Harry K. Sideris

Duke Energy Corporation is a large American energy holding company that focuses on regulated electric power and natural gas distribution. Headquartered in Charlotte, North Carolina, it operates today primarily through electric utilities and infrastructure and gas utilities and infrastructure segments, serving residential, commercial, and industrial customers across several states in the Southeast and Midwest. The company’s electric operations encompass generation, transmission, distribution, and sale of electricity, using a diversified mix of coal, nuclear, natural gas, oil, and renewable energy resources. Its natural gas business transports and distributes gas to customers in the Carolinas, Ohio, Kentucky, Tennessee and neighboring regions. Duke Energy Corporation also provides related energy services, including power delivery, smart grid solutions, and utility-scale wind and solar assets through commercial renewables. As a major regulated utility, it plays a central role in providing essential energy infrastructure and services that support households, businesses, and broader economic activity in its service territories.

Runs with full report Generated: Aug 9, 2026 12:31am
Price Overview
Price at report time
$124.85
as of Aug 9, 12:41am (14d ago)
Change · Aug 9
+0.95 (+0.77%)
Day Range
$122.34 – $125.40
52-Week Range
$113.90 – $134.49
50-Day MA
$125.48
200-Day MA
$124.58
Volume
4,307,900.00
Right now · live
Log in to get the live feed
Members see the real-time price and the move since this report (over 14d).
Share Structure
Outstanding 780,000,000.00
Float 777,417,666.00
Free Float 99.7%
High free float — 99.7% of shares trade freely, ~0.3% held by insiders/institutions
Very liquid — most shares trade freely. Low insider ownership can mean less management alignment, but makes large position sizing straightforward.
Price History (1 Year)
Last updated: Aug 9, 2026 12:41am (14d ago)
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Last updated: Aug 9, 2026 12:41am (14d ago)
Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
Period Revenue Net Income Net Margin YoY/QoQ
Key Metrics
TD Twelve Data statement HEX SEC filing
Industry comparison last run: Aug 9, 2026 12:29am
P/E Ratio (Price per dollar of earnings)
HEX
Stock Price / EPS (Diluted)
19.79
Stock Price: $124.85
EPS (Diluted): 6.31
P/B Ratio (Price vs net asset value)
HEX
Stock Price / Book Value Per Share
1.83
Stock Price: $124.85
Total Equity: $53.02B
Shares: 777,000,000
EV/EBITDA (Total value vs operating profit)
HEX
Enterprise Value / EBITDA
11.27
Market Cap: $97.35B
Total Debt: $87.21B
Cash: $245.00M
EBITDA: $16.33B
Enterprise Value (Takeover price (cap + debt - cash))
HEX
Market Cap + Total Debt - Cash
$184.0B
Market Cap: $97.35B
Total Debt: $87.21B
Cash: $245.00M
Gross Margin (Revenue left after direct costs)
HEX
Gross Profit / Revenue
Gross Profit: N/A
Revenue: $31.74B
Missing from API: Gross Profit
Operating Margin (Revenue left after all operations)
HEX
Operating Income / Revenue
27.2%
Operating Income: $8.63B
Revenue: $31.74B
Net Margin (Revenue left as actual profit)
HEX
Net Income / Revenue
15.7%
Net Income: $4.97B
Revenue: $31.74B
ROE (Profit from shareholder equity)
HEX
Net Income / Total Equity
9.4%
Net Income: $4.97B
Total Equity: $53.02B
ROIC (Profit from all invested capital)
HEX
NOPAT / Invested Capital
5.5%
Operating Income: $8.63B
Tax Rate: 11.2%
Equity: $53.02B
Total Debt: $87.21B
Cash: $245.00M
Current Ratio (Can it pay short-term bills)
HEX
Current Assets / Current Liabilities
0.55
Current Assets: $11.61B
Current Liabilities: $21.05B
Debt/Equity (Leverage — debt vs equity)
HEX
Total Debt / Total Equity
1.64
Short-Term Debt: $7.10B
Long-Term Debt: $80.11B
Total Debt: $87.21B
Total Equity: $53.02B
Rev/Share (Top-line per share)
HEX
Revenue / Shares Outstanding
$40.85
Revenue: $31.74B
Shares: 777,000,000
Book Value/Share (Net assets per share)
HEX
(Total Assets - Total Liabilities) / Shares
$68.24
Total Equity: $53.02B
Shares: 777,000,000
FCF/Share (Real cash generated per share)
HEX
(Operating Cash Flow + CapEx) / Shares
$-2.18
Operating CF: $12.33B
CapEx: -$14.02B
Shares: 777,000,000
CapEx is negative (outflow) — added to OCF to get FCF
Div Yield (Annual income from holding)
TD
Last Annual Dividend / Stock Price
3.4%
Last Dividend: $4.26
Stock Price: $124.85
Payout Ratio (Earnings paid out as dividends)
HEX
Dividends Paid / Net Income
Dividends Paid: N/A
Net Income: $4.97B
Dividends paid not available in cash flow statement
Industry Benchmarks
Last run: Aug 9, 2026 12:29am
Compares DUK against LLM-researched typical ranges for its industry. One research call per industry, cached indefinitely — every stock in the same industry reuses the same baseline.
Income Statement (Annual)
Last updated: Aug 9, 2026 12:41am (14d ago)
Metric 2021 2022 2023 2024 2025
Revenue $24.7B $28.7B $28.7B $30.1B $31.7B
Cost of Revenue
Gross Profit
Operating Expenses
Operating Income $5.4B $6.0B $7.1B $7.9B $8.6B
Net Income $3.9B $2.6B $2.8B $4.5B $5.0B
EBITDA $11.0B $11.9B $13.2B $14.3B $16.3B
EPS $4.94 $3.17 $3.54 $5.71 $6.31
EPS (Diluted) $4.94 $3.17 $3.54 $5.71 $6.31
Balance Sheet (Annual)
Last updated: Aug 6, 2026 7:36am (17d ago)
Metric 2021 2022 2023 2024 2025
Cash & Equivalents $343.0M $409.0M $253.0M $314.0M $245.0M
Total Current Assets $9.9B $13.2B $12.8B $13.0B $11.6B
Total Assets $169.6B $178.1B $176.9B $186.3B $195.7B
Current Liabilities $15.9B $18.9B $17.3B $19.4B $21.0B
Long-Term Debt $60.4B $67.1B $72.5B $76.3B $80.1B
Total Liabilities $118.5B $126.2B $126.7B $135.1B $142.7B
Total Equity $51.1B $51.9B $50.2B $51.3B $53.0B
Retained Earnings $3.3B $2.6B $2.2B $3.4B $5.1B
Cash Flow (Annual)
Last updated: Aug 6, 2026 7:36am (17d ago)
Metric 2021 2022 2023 2024 2025
Operating Cash Flow $8.3B $5.9B $9.9B $12.3B $12.3B
Capital Expenditure -$9.7B -$11.4B -$12.6B -$12.3B -$14.0B
Free Cash Flow -$1.4B -$5.4B -$2.7B $48.0M -$1.7B
Acquisitions (net)
Net Debt Issued / (Repaid) $3.8B $7.5B $5.3B $5.6B $6.2B
Dividends Paid -$3.1B -$3.2B
Stock Buybacks
Net Change in Cash -$36.0M $83.0M -$246.0M $64.0M -$58.0M
Growth Trends (YoY %)
Last updated: Aug 9, 2026 12:41am (14d ago)
Metric 2022 2023 2024 2025
Revenue Growth +16.1% 0.0% +4.8% +5.6%
Gross Profit Growth
Operating Income Growth +11.9% +17.6% +12.1% +8.8%
Net Income Growth -34.7% +11.4% +59.2% +9.8%
EBITDA Growth +7.4% +11.0% +9.1% +13.8%
Dividend History (Last 20)
Last updated: Aug 6, 2026 7:36am (17d ago)
Date Dividend Declaration Record Payment
2026-05-15 $1.07
2026-02-13 $1.07
2025-11-14 $1.07
2025-08-15 $1.07
2025-05-16 $1.05
2025-02-14 $1.05
2024-11-15 $1.05
2024-08-16 $1.05
2024-05-16 $1.03
2024-02-15 $1.03
2023-11-16 $1.03
2023-08-17 $1.03
2023-05-11 $1.01
2023-02-16 $1.01
2022-11-17 $1.01
2022-08-11 $1.01
2022-05-12 $0.99
2022-02-17 $0.99
2021-11-10 $0.99
2021-08-12 $0.99
0Company Classification 1Industry Landscape 2Company Momentum 3Forward Projection 4aDCF Valuation 4bEarnings Power Value 4cAnchored PE 4dReverse DCF 4eRevenue-Based DCF 4fAnchored P/S 4gScenario Analysis 4hDividend Discount Model 4iBook Value Analysis 4jInsider Activity 4fCash Flow Quality 4gDebt Maturity Risk 4hMacro Environment 4iSector Intelligence 4jRevenue Confidence 4kSensitivity Analysis 4lSector Demand Cycle 5AI Investigation 5bThesis Evaluation 6Valuation Synthesis
computed not applicable not yet run 15 computed · 6 not applicable · 3 not yet run
Narrative Economics
The story the market is telling about this stock — the intangible X-factor (founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for DUK — it's generated by the pipeline (market-narrative step).
Growth Outlook
Analyzed 2026-08-17 16:08

The question every valuation on this page silently assumes: is this company likely to grow? Judged forward — the business, its category, the world — against what's already printed.

Growing A rate-base compounder with real load growth behind it: mid-single-digit revenue and high-single-digit earnings growth look durable, but Duke grows a step slower than the hottest utilities and the math is capped by financing costs and regulatory lag. conf 8/10
Inline with category Category growing · Regulated electric is expanding (category median recent growth ~9.9%, industry revenue CAGR 7.1%, margins +2.7pp). Duke is growing but slower: 5.6% revenue YoY, a -5pp gap. For a territory-bound monopoly this is not customer share loss — it reflects rate-case timing, jurisdiction mix and a slower capex-recovery cadence than the most data-center-levered peers.
Next 2 quarters
Growing
Rate increases already effective, continued load growth and rider recovery carry the next two prints; earnings YoY has been running near +10%. Weather is the only real swing factor and it cuts both ways.
≈ inline with expectations
Year 1
Growing
Full-year trajectory is governed by approved rate cases and the capex plan, both visible. Mid-single-digit revenue and high-single-digit EPS growth is the base case, with management historically landing inside its guided band.
≈ inline with expectations
Years 2–3
Growing
Structural earnings power should compound: load growth justifies a larger approved rate base, and each approved dollar earns a return. The drag is financing cost and per-share dilution, which converts high-single-digit asset growth into mid-single-digit per-share growth.
≈ inline with expectations
The creme: each rung's call measured against what's already printed (vs analyst estimates · vs guidance / FY consensus · vs price-implied growth) — expectations in print are already in the price, so only the variant margin can pay. Hover a rung's chip for the margin read.
Growth drivers
74 Rate-base capex mechanically converts to earnings — Duke's growth engine is not volume-cyclical: approved capital spend on grid hardening, transmission and new generation earns an allowed return, and the measured record confirms the transfer — revenue CAGR 5.2% with volatility of only 0.4% and every year positive, earnings YoY +9.8%. As long as regulators keep approving the plan, growth is close to arithmetic rather than a bet.
64 Genuine load growth in its service territories — The Carolinas and Indiana are among the strongest large-load pipelines in the country (data centers, advanced manufacturing, Southeast in-migration). After two decades of flat kWh demand, incremental load both justifies larger capex plans and spreads fixed costs over more sales — the rare case where a regulated utility gets volume AND rate base at once.
48 Category in confirmed expansion — Sector demand cycle reads expansion with category median recent growth of ~9.9%, industry revenue CAGR 7.1% over 3 years and industry operating margins up 2.7pp. A rising tide in allowed returns and approved spend lifts the whole peer set; Duke participates by construction.
41 Constructive multi-jurisdiction footprint — Six-state regulated mix with multi-year rate plans and rider/tracker mechanisms shortens regulatory lag versus single-jurisdiction peers, and diversifies the risk that one commission decision derails the plan. Recent EPS prints beating estimates by +10% and +7% suggest recovery mechanisms are working, not just weather.
Growth risks
55 Financing cost against a heavy capex program — With the 10y at 4.69 and a curve near flat, refinancing maturing debt and funding a growing plan is materially more expensive than the debt being rolled. Equity issuance to hold credit metrics dilutes per-share growth even when rate base grows fine — the wedge between asset growth and EPS growth widens in this environment.
50 Affordability/regulatory pushback — Customer bills are the binding constraint. Rising rate requests to fund grid and generation invite commission disallowances, longer lag, or lower authorized ROEs. This is the single mechanism that can break the capex-to-earnings conversion, and it is politically live across the Southeast and Midwest.
36 Growing slower than the category — Recent YoY 5.6% versus industry 10.6% is a real -5pp gap. Not customer defection (regulated monopoly), but it says Duke's rate-case cadence and generation mix are converting the sector's tailwind more slowly than peers — a ceiling on upside surprise.
25 Project execution and weather noise — New gas, nuclear uprates/SMR studies and coal retirement sequencing carry cost-overrun and timing risk that can be disallowed. Nearer term, quarterly prints remain weather-levered, so any single quarter can miss on degree-days with nothing structural behind it.
The world is handing regulated electrics their first structural demand growth in a generation: AI/data-center load, electrification and reshored manufacturing land disproportionately in the Southeast, exactly where Duke owns the wires. That converts capex plans from a cost-recovery argument into a necessity argument, which is the easiest kind to win at a commission. The offset is the rate environment — 4.69% long rates make a capital-hungry model structurally more expensive, and the bill-affordability politics of funding both decarbonization and load growth is the real governor on how much of the tailwind Duke keeps. Net: the demand side of Duke's world improved materially; the cost-of-capital side worsened; the business still grows.
Growth position composite +29
ShrinkingStallingHoldingGrowingAccelerating
70Next 2 quarters · Growing
70Year 1 · Growing
70Years 2–3 · Growing
+29Composite (−100…+100)
A research prediction, not advice. Forward-graded: each rung is scored against the prints that follow it. Not an input to the GEM designation — track record first.
Claude Reading
Independent analyst synthesis · claude-opus-4-7 · generated 2026-08-09 00:41:22
Verdict Fully priced with modest downside — fair value $110-115 vs $124.85; hold for the 3.4% yield if owned, but don't initiate here given sub-cost-of-capital ROIC and negative FCF funding the dividend.

Looking at the raw numbers first: Duke is doing what regulated utilities do — TTM revenue of roughly $32.7B (summing the last four quarters) versus $30.6B in the prior four, so ~7% top-line growth, and net income of $5.13B vs $4.37B, ~17% earnings growth. That's better than the 5-year revenue CAGR of 5.2%, consistent with rate case wins and Carolinas/Florida load growth (data centers are the whispered driver). Operating margin at 27.2% is healthy for the sector. But the balance sheet is the story nobody wants to look at: $87.2B of debt against $245M of cash and $53B of equity — debt/equity 1.64x, current ratio 0.55x, and free cash flow of *negative* $1.69B because capex of $14B swallowed the $12.3B in operating cash. This is a company funding its dividend and its grid buildout with debt issuance, full stop.

The synthesis verdict ($108.94 DCF, $114.17 signal-adjusted, ~9% overvalued) is directionally right but I think understates the case modestly. At 19.8x earnings, DUK trades at a ~15-25% premium to the regulated utility peer band (SO, AEP, D typically 16-18x). The pre-flight commentary that this reflects "data center exposure" is the actual market thesis worth pressure-testing — Carolinas load growth from hyperscaler siting is real, and if that translates into constructive rate treatment and above-authorized ROE, then 19.8x is defensible. But ROE is currently 9.37% and ROIC just 5.47% — the latter is barely above cost of debt in a 5%+ rate environment, which is the actual quiet problem. You're paying a growth premium for a business earning sub-cost-of-capital returns on invested capital.

The contrarian case cuts both ways here. Bull contrarian: every utility looks levered because that's the model — regulators allow debt in the cap structure and reimburse interest through rates; the "high debt risk" flag in the synthesis is somewhat generic. If AI-driven power demand is structural (and I think it partly is), Duke's Carolinas footprint is arguably the best-positioned in the country, and rate base growth of 7-8% annually could sustain the premium indefinitely. Bear contrarian: negative FCF for a "dividend income" stock is a red flag the narrative layer glosses over — the 3.4% yield is being funded by debt issuance while capex accelerates for decarbonization and grid hardening. Insider activity shows 23,500 shares sold in early May 2026 against modest awards — not a scream, but not the buying you'd expect if management saw the premium as justified. The narrative model correctly identifies this as "defensive story, not differentiated" — that's exactly right and it's why the premium shouldn't expand from here.

I agree with the synthesis "fully_priced" verdict but would push fair value slightly lower, to $110-115, reflecting that sub-6% ROIC doesn't deserve a 19.8x multiple even with growth visibility. The 3.4% yield plus ~5-6% earnings growth gets you to a ~9% total return expectation, which is fine but not compelling when 10-year Treasuries are wherever they are and you're taking on refinancing risk on $87B of debt. My read: overvalued by ~10%, but this is a hold-if-you-own-it, don't-chase-it situation rather than a short. The regime concern the models don't emphasize enough is interest rate sensitivity — every 50bp move in long rates re-prices utility multiples by roughly 1-2 turns, and Duke's refinancing cadence over the next 3 years is material. Wait for either a rates-driven pullback to $110-115 or clearer evidence that data center load is translating into above-authorized ROE. The narrative layer nailed it: this is the default utility story, and default stories don't earn premiums forever.

GPT Reading
Independent reading · gpt-5.4 · generated 2026-08-09 00:41:36
Verdict Overvalued at $124.85 — solid regulated earnings, but the balance-sheet and funding burden argue for something closer to $110-$115 unless cash flow improves materially.

Duke’s numbers read like a good regulated utility operationally and an expensive one financially. The business is doing what you want a utility to do: revenue has climbed from $24.7B in 2021 to $31.7B in 2025, about 6% annualized, while operating income improved from $5.37B to $8.63B and net income from $2.55B in 2022 to $4.97B in 2025. The quarterly cadence is stable rather than flashy: the last four quarters produced $32.7B of revenue and roughly $5.1B of net income, with net margins mostly sitting in the 16%-17% range except for the seasonally softer June quarters around 12%-13%. That is exactly the profile that deserves a market premium to cyclicals. But not every premium is justified. At $124.85, investors are paying about 19.8x earnings and 11.3x EV/EBITDA for a company with 5%-6% top-line growth, a 3.4% dividend yield, and no evidence of cash self-funding through the capex cycle.

The key issue is that Duke’s earnings quality is acceptable, but its cash economics are stretched. Operating cash flow of $12.33B is solid in isolation, yet capex of $14.02B left free cash flow at negative $1.69B. For a regulated utility, negative FCF is not automatically a red flag because rate base investment is the model; the concern is the scale of financing dependence layered onto an already heavy balance sheet. Duke ended 2025 with $87.21B of debt against just $245M of cash and $53.0B of equity, a debt/equity ratio of 1.64x and a current ratio of 0.55x. Return metrics also tell you this is a low-spread business despite strong accounting profits: ROIC is only 5.5% and ROA 2.5%. So while the market may see stable EPS growth, I see a company that must continually convince regulators and debt markets to validate a huge capital program. That deserves a utility multiple, not a scarcity multiple.

What stands out most is that the recent improvement in profit has not been matched by a better value proposition for equity holders. Net income rose 10% year over year in the latest quarter, and annual net income is up nicely versus 2023, but the stock still offers only a middling yield for the sector while trading above what the balance sheet would justify in a higher-for-longer rate environment. Price-to-book of 1.83x may not sound outrageous, yet for a utility with sub-10% ROE and structurally negative FCF, it does not scream bargain. The market cap is $97.35B against roughly $5.0B of annual earnings, and that would be easier to accept if Duke had either better yield support or clearer evidence that current capex will translate into faster regulated earnings growth. As presented, this looks like investors paying up for safety after much of that safety has already been capitalized.

The best argument against my view is straightforward: Duke is not meant to be judged like a normal industrial cash machine. Utilities intentionally run negative free cash flow during heavy investment periods because transmission, generation, and grid modernization enter rate base and support future earnings. On that reading, the debt load is large but ordinary for the asset intensity of the sector, while the income statement trend is exactly what matters. Revenue is compounding, operating margin is strong at 27.2%, net margin 15.7% is healthy, and quarterly profits have become much steadier than in 2022-2023. If regulators in Duke’s core territories continue allowing constructive returns, then 19.8x earnings is not crazy for a defensive compounder with low business risk. A bull would also note that the market is paying for resilience: in uncertain macro conditions, a company delivering $1.2B-$1.6B of quarterly earnings with durable demand can hold a premium longer than valuation purists expect.

I weigh those points differently because the premium is not being offered alongside unusually compelling income, unusually clean balance sheet strength, or unusually high growth. It is a plain, solid utility priced as though rate, regulatory, and financing risks are background noise. For me to turn more constructive, I would want to see either a better entry point around the low-$110s, which would bring the P/E and yield into a more forgiving range, or evidence that free cash flow is inflecting despite capex — for example, operating cash flow sustainably above $13.5B while capex moderates, or debt growth flattening even as EPS keeps compounding high single digits. Short of that, Duke looks like a quality franchise whose stock already reflects the quality.

Grok Reading
Grok (xAI) reads the identical raw briefing blind — one of the Big-3 independent readings — and commits to its own verdict.
No Grok reading yet for DUK — it's generated by the pipeline (grok-critique step) alongside the other Big-3 seats, when a report is run on this ticker.
Big-3 Panel — where each AI stands
Each AI above independently stated a direction (undervalued, fairly valued, or overvalued) and how strongly it believes it (conviction, 0–5). We combine those into a Bull-Bear Index on a 0–10 scale: 5 is neutral, 10 is maximum bullish (undervalued at full conviction), 0 is maximum bearish. We compute the score ourselves with the same arithmetic for every seat — the models never grade their own bullishness — so the three are directly comparable. Δ shows how far each seat sits from the panel average of 1.5; a large Δ marks the dissenting voice, usually the one worth reading.
Claude claude-opus-4-7 2.0
overvalued · conviction 3/5 · Δ +0.5 vs panel · self: 4.0
GPT gpt-5.4 1.0
overvalued · conviction 4/5 · Δ -0.5 vs panel · self: 4.0
Advanced Analysis Forensic deep-dive · separate lenses
Separate reads — Company Quality (is it a great business?), Valuation (is it mispriced?), and General Sentiment (how macro + narrative are pushing it), kept deliberately apart · 2026-08-09 00:57:33
Delvantic - Cairn AI
Quality - wait for a dip 7/10
Solid utility, but at $124.85 I'm paying a 10-15% premium to every fair-value anchor - pass now, buyer below $108.
The cruxWhether I get a pullback into the $105-114 FV band; without it, there is no margin of safety to underwrite a 4-5% total-return utility.
Forensic checks Derived mechanically from DUK's filed financials — not from the AI lenses
Liquidity & RunwayCritical Runway
DilutionStable Share Count
Earnings QualityGood Earnings Quality
The four lensesswitch a tab for its full read — score + evidence
Company Quality
-12
Solid
edge √Σ 89 · risk √Σ 101 · conf 7/10

Duke Energy is a classic regulated electric utility: revenue has climbed from $24.7B (2021) to $31.7B (2025), operating margin has expanded meaningfully from 21.8% to 27.2%, and net income grew from $3.91B to $4.97B. Earnings quality looks clean at the working-capital level (OCF/NI 2.63x, accruals -3.3% of assets), and diluted share count has crept only from 769M to 777M over five years (~0.3% CAGR) - dilution is not a per-share value drag.

Strengths 4
m55
Steady operating margin expansion
Operating margin rose from 21.8% (2021) to 27.2% (2025) while revenue grew ~28%, indicating constructive rate outcomes and cost discipline.
m45
Minimal dilution
Diluted shares moved from 769M to 777M over five years (~0.3% CAGR); per-share value is not being eroded by issuance.
m40
Clean earnings quality signals
OCF/NI at 2.63x and accruals at -3.3% of assets suggest reported earnings are backed by cash from operations (before capex).
m35
Growing net income base
Net income grew from $3.91B to $4.97B (2021-2025), consistent with a rate base compounding regulated utility.
Concerns 4
m70
Massive net debt load
Net debt of ~$87B against $245M cash; short-term debt of $7.10B exceeds liquid cash, creating continuous refinancing dependence typical of but still material for a capital-intensive utility.
m60
Persistent negative free cash flow
FCF negative in 4 of 5 years (cumulative ~-$11B) as capex outstrips operating cash - the business cannot self-fund its growth capex and depends on debt and equity markets.
m35
Altman Z in distress zone
Z-score of 0.7 reflects high leverage and asset intensity; less alarming for a regulated utility with guaranteed cost recovery, but confirms the balance sheet is a constraint not a cushion.
m20
Insider tape modestly negative
10 sells totaling $8.5M and zero open-market buys in 12 months; not a red flag on its own but no insider conviction shown.
This is a textbook mature regulated utility - the kind of business where headline forensic flags (Altman distress, negative FCF, huge net debt) are baked into the operating model rather than symptoms of decay. What actually matters here - operating margin trajectory, earnings integrity, dilution discipline - all read constructively. The business is genuinely improving on rate outcomes and cost structure while keeping share count effectively flat. That said, I won't call it fortress-grade because the balance sheet leaves zero slack: any prolonged capital-market disruption or adverse regulatory ruling would bite immediately. Solid, mid-60s quality - a competently run rate-base compounder, not a resilient cash machine.
Verify before trusting this (5)
  • Regulated vs unregulated revenue mix and pending rate case outcomes across Carolinas, Florida, Indiana
  • Debt maturity schedule and weighted average cost of debt vs authorized ROE
  • Capex forward plan and how much is recoverable via riders vs base rate cases
  • Dividend coverage from operating cash flow after maintenance capex
  • Any pending storm cost recoveries or securitizations affecting cash conversion
Valuation / Mispricing
-56
Rich
edge √Σ 20 · risk √Σ 83 · conf 7/10
Price $124.85 vs deserved ~$114 (signal-adjusted) to $109 (composite) - roughly 9-15% above fair, no margin of safety. attractive below $108.00

The composite fair value lands at $108.94 and the signal-adjusted FV at $114.17, with an EPV floor of $113.25 and an anchored P/E of $104.63 - a tight cluster in the $105-$114 range. Against a $124.85 price, that is roughly 9-15% of overvaluation depending on which anchor you weight. Earnings quality is good so no haircut is warranted, and the Solid business quality justifies pricing toward the upper end of the FV band - but not above it. The market is paying a modest premium for the safety and rate-base growth story, which is exactly what the bull case describes; the problem is that premium is already in the tape. Duke carries the structural negatives typical of a regulated utility - persistent negative FCF, heavy leverage, refi risk in a higher-rate world - and none of that argues for paying above the EPV floor. There is no margin of safety here; you are underwriting flawless regulatory outcomes and stable rates to earn a utility-like return from $124.85.

Cheap signals 1
m20
Tight FV cluster limits downside
The narrow $105-$114 FV band and regulated rate-base model cap how wrong the deserved value can be - overpayment here is ~10%, not catastrophic.
Rich / priced-in 3
m60
Price above every FV anchor
All four valuation anchors (composite $108.94, signal-adj $114.17, EPV $113.25, anchored-PE $104.63) sit below $124.85. When every method agrees the stock is above fair, the read is rich, not cheap.
m45
Quality premium already paid
The Solid quality grade supports pricing near the top of the FV band (~$114), but the market is paying $10+ beyond that. You are not getting the business for free - you are paying up for it.
m35
Structural negative FCF ignored
Persistent negative free cash flow and heavy leverage argue for pricing at or below EPV, not a premium to it. A higher-rate refi environment makes this worse, not better.
I don't touch Duke here. Every fair-value anchor I have sits between $105 and $114 and the stock is $124.85 - I am being asked to pay a premium for a business that structurally burns cash and needs constant capital access. The business is fine, even good for what it is, but 'fine' at a 9-15% premium to deserved value is not an edge. I want this closer to the EPV floor - call it $108 or lower - before it's interesting. Until then it's a hold-if-you-own-it, pass-if-you-don't.
Verify before trusting this (4)
  • Latest rate case outcomes in Carolinas and Florida - allowed ROE and equity layer
  • Capex trajectory vs operating cash flow - size of the FCF gap through 2026
  • Dividend coverage and payout ratio under updated capex plan
  • Interest expense sensitivity from refinancing near-term maturities
General Sentiment
+19
Tailwind
tail √Σ 80 · head √Σ 60 · conf 7/10

DUK sits in the sweet spot right now: the tape is calm risk-on (VIX 14.9, S&P at highs), but with beta 0.37 the market's mood barely moves the name either way. What matters more is the stock-specific narrative flow, and it just improved. Q2 2026 beat estimates, management is deploying over 1B per month into grid buildout, and a Charlotte data-center power deal reinforces the AI-power-demand story that has been quietly re-rating regulated utilities. That is a genuine, if modest, narrative tailwind on top of an already durable steady-compounder story. Offsetting that: a 10B equity issuance is a real overhang - dilution headlines press on utility investors who own the name for dividend reliability, and advocates publicly questioning growth projections adds a low-grade regulatory-risk drumbeat. Macro sensitivity cuts both ways too - 10y at 4.69% is a persistent headwind for rate-sensitive utility valuations, but the curve has normalized and peers (ED, PPL) reporting solid results signals sector tone is constructive, not deteriorating. Net: the AI-power narrative is landing on this specific name via real contracts, the earnings print validated the capex story, and the low-beta profile insulates it from any tape wobble. The equity raise and rate backdrop keep it from being a strong tailwind.

Tailwinds 3
m55
Q2 beat validates capex narrative
Earnings topped estimates with revenue and net income up y/y, giving the grid-modernization and data-center-demand story fresh proof points. For a steady-compounder archetype, an in-line-to-better print is exactly the kind of narrative reinforcement that supports the modest premium.
m50
Data-center power demand narrative
The Charlotte airport data-center power deal and management's 'record demand' framing plug DUK directly into the AI-infrastructure story - a rare growth angle for a regulated utility that peers are also riding.
m30
Calm risk-on tape, low beta
VIX at 14.9 and indices at highs mean no risk-off pressure to fight, though beta 0.37 mutes the benefit. Utility sector tone is constructive with ED beating and reaffirming guidance.
Headwinds 3
m45
10B equity issuance overhang
A large equity raise is a genuine dilution/supply headwind for a name owned largely for dividend reliability. It presses on sentiment even as it funds the growth story.
m35
Rates backdrop for utilities
10y at 4.69% and market PE 26 keep a persistent valuation lid on rate-sensitive regulated utilities. Not acute, but a slow drag on multiple expansion.
m20
Regulatory/advocacy noise
Advocates publicly accusing Duke of exaggerating growth projections to justify capex is a low-grade regulatory-risk drumbeat that can flare into a real headwind if regulators pick it up.
Net tailwind, but a measured one. The narrative just got better on the exact dimension utilities need - AI power demand and validated capex - and the tape offers no resistance. But the 10B equity raise is a real sentiment overhang and rates remain a persistent lid. On a 0.37-beta defensive name, none of these forces are decisive; the push is genuine but ordinary. Leaning tailwind.
Verify before trusting this (4)
  • Market reception of the 10B equity offering - pricing and secondary trading
  • Whether the data-center demand narrative broadens to more announced contracts
  • Any state PUC pushback on capex assumptions in NC or SC rate cases
  • Direction of the 10y - a move above 5% would materially pressure the sector
The market-wide tape + this name's exposure to it (beta / sector / narrative durability). Context on the non-fundamental pressure — not a call on the business or the price. processId: detail-general-sentiment
Growth Outlook
+29
Growing
edge √Σ 116 · risk √Σ 86 · conf 8/10

The world is handing regulated electrics their first structural demand growth in a generation: AI/data-center load, electrification and reshored manufacturing land disproportionately in the Southeast, exactly where Duke owns the wires. That converts capex plans from a cost-recovery argument into a necessity argument, which is the easiest kind to win at a commission. The offset is the rate environment — 4.69% long rates make a capital-hungry model structurally more expensive, and the bill-affordability politics of funding both decarbonization and load growth is the real governor on how much of the tailwind Duke keeps. Net: the demand side of Duke's world improved materially; the cost-of-capital side worsened; the business still grows.

Growth drivers 4
m74
Rate-base capex mechanically converts to earnings
Duke's growth engine is not volume-cyclical: approved capital spend on grid hardening, transmission and new generation earns an allowed return, and the measured record confirms the transfer — revenue CAGR 5.2% with volatility of only 0.4% and every year positive, earnings YoY +9.8%. As long as regulators keep approving the plan, growth is close to arithmetic rather than a bet.
m64
Genuine load growth in its service territories
The Carolinas and Indiana are among the strongest large-load pipelines in the country (data centers, advanced manufacturing, Southeast in-migration). After two decades of flat kWh demand, incremental load both justifies larger capex plans and spreads fixed costs over more sales — the rare case where a regulated utility gets volume AND rate base at once.
m48
Category in confirmed expansion
Sector demand cycle reads expansion with category median recent growth of ~9.9%, industry revenue CAGR 7.1% over 3 years and industry operating margins up 2.7pp. A rising tide in allowed returns and approved spend lifts the whole peer set; Duke participates by construction.
m41
Constructive multi-jurisdiction footprint
Six-state regulated mix with multi-year rate plans and rider/tracker mechanisms shortens regulatory lag versus single-jurisdiction peers, and diversifies the risk that one commission decision derails the plan. Recent EPS prints beating estimates by +10% and +7% suggest recovery mechanisms are working, not just weather.
Growth risks 4
m55
Financing cost against a heavy capex program
With the 10y at 4.69 and a curve near flat, refinancing maturing debt and funding a growing plan is materially more expensive than the debt being rolled. Equity issuance to hold credit metrics dilutes per-share growth even when rate base grows fine — the wedge between asset growth and EPS growth widens in this environment.
m50
Affordability/regulatory pushback
Customer bills are the binding constraint. Rising rate requests to fund grid and generation invite commission disallowances, longer lag, or lower authorized ROEs. This is the single mechanism that can break the capex-to-earnings conversion, and it is politically live across the Southeast and Midwest.
m36
Growing slower than the category
Recent YoY 5.6% versus industry 10.6% is a real -5pp gap. Not customer defection (regulated monopoly), but it says Duke's rate-case cadence and generation mix are converting the sector's tailwind more slowly than peers — a ceiling on upside surprise.
m25
Project execution and weather noise
New gas, nuclear uprates/SMR studies and coal retirement sequencing carry cost-overrun and timing risk that can be disallowed. Nearer term, quarterly prints remain weather-levered, so any single quarter can miss on degree-days with nothing structural behind it.
vs expectations: ~6m inline · 1y inline · 2-3y inline
The forward growth verdict — is the business itself likely to grow (next 2 quarters / year 1 / years 2–3), judged against its category and against printed expectations. The full horizon ladder + creme renders on the Growth Outlook card above. Not a call on the price (Valuation owns that) or the tape (Sentiment owns that).
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Lenses kept deliberately separate — Company Quality (price-agnostic), Valuation (price-conditional), General Sentiment (non-fundamental macro/narrative pressure), and Growth Outlook (the forward growth verdict). The scores are not blended. Filing-level items (convertibles, lock-ups, customer concentration) are v2 — see each lens's "verify."
Price Prediction
Lower -5.1% v0.6.0 View full prediction →

When we made this prediction on Aug 9, 2026, DUK was $124.85. We expect it to be $118.50 by Feb 2027, and we consider it great value under $108.00. This is an early model (v0.6.0) — the direction is more reliable than the exact price. Made Aug 9, 2026.

Price when predicted$124.85
Our estimate for Feb 2027$118.50-5.1%
Great value below$108.00
Price history shown (6 Months)

Blue is our prediction, starting the day we made it. Grey is a slower route to the same place — the same destination, taking longer. Black is the actual price, so you can see how we are doing.

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My Notes personal — only you see this
v1.1.562 · 9b2927c4 · 2026-08-22 16:52:06