Business Analysis of Entergy

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Entergy

Business Overview

Entergy Corporation, together with its subsidiaries, engages in the production and distribution of electricity in the United States. It operates through two segments, Utility and Entergy Wholesale Commodities. The Utility segment generates, transmits, distributes, and sells electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and distributes natural gas. The Entergy Wholesale Commodities segment engages in the ownership, operation, and decommissioning of nuclear power plants located in the northern United States; sells electric power to wholesale customers; offers services to other nuclear power plant owners; and owns interests in non-nuclear power plants that sell electric power to wholesale customers. It sells energy to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies. The company generates electricity through gas/oil, nuclear, coal, and hydro power. Its power plants have approximately 30,000 megawatts (MW) of electric generating capacity, including approximately 10,000 MW of nuclear power. The company delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy Corporation was founded in 1989 and is based in New Orleans, Louisiana.

Entergy

Entergy


R&P Rank: 270
Sector: Utilities
Industry:Electric Utilities
H.Q Location:Louisiana
Website: www.entergy.com
Company Address:
639 LOYOLA AVE, NEW ORLEANS LA 70113
Ph:504-576-4000

Business Analysis of Entergy

The Utilities Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Entergy compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Entergy to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Entergy with an interactive chart.

  1. Revenue Growth: Entergy reported a revenue growth of -5.8% year-on-year during 2016. Electric Utilities Industry grew at 0.2% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Entergy spent 65.7% of its total revenues on COGS. Electric Utilities industry average (COGS share of revenue) in the same period was 64.7%
  3. R&D share of Revenues: Entergy R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: Entergy SG&A share of Revenues details are not available because either company does not share the data or we do not have it
  5. Inventory share of Revenues: As a percentage of revenue, Entergy spent 8.1% of its total revenues on Inventories. Electric Utilities industry average Inventory spending in the same period was 7.6%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Entergy invested 11.9% of its total revenues on Accounts Payable (A/P) Electric Utilities industry average Accounts Payable investment in the same period was 11.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Entergy invested 34.0% of its total revenues on Accounts Receivable (A/R). Electric Utilities industry average Accounts Receivable investment in the same period was 14.5%
  8. PP&E share of Revenues: As a percentage of revenue, Entergy invested 259.6% of its total revenues on Property, Plants, and Equipments (PP&E). Electric Utilities industry average PPE investment in the same period was 286.7%
  9. Intangibles share of Revenues: As a percentage of revenue, Entergy invested 3.5% of its total revenues on Intangibles. Electric Utilities industry average Intangibles investment in the same period was 22.3%
  10. Net Margins: Entergy Net Margins in the year 2016 were -5.4%. Electric Utilities industry average Net Margins in the same period were 3.3%

Sector and Industry Association of Entergy

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Entergy is associated with Utilities Sector and Electric Utilities Industry.

Utilities sector is comprised of the following industries: Electric Utilities; Gas, Water, & Multiutlities. The definitions for each of the industries is as follows:

  • Electric Utilities industry includes companies engaged in generation, transmission, and/or distribution of electric energy for sale.
  • Gas, Water, & Multiutlities industry includes companies engaged in transmission and/or storage of natural gas for sale and those engaged in distributing water for sale for domestic, commercial, and industrial use. It also includes companies with significant presence in more than one utility.

Industry Ranking of Entergy

With $10.8 billion revenues, Entergy ranked number 9 of all the companies in the US Electric Utilities industry. There were a total of 33 public companies in the US Electric Utilities industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Electric Utilities industry by revenues during 2016 were:

  1. Southern ($19.9 billion)
  2. American Electric Power ($16.4 billion)
  3. NextEra Energy ($16.2 billion)
  4. FirstEnergy ($14.6 billion)
  5. AES ($13.6 billion)
  6. NRG Energy ($12.4 billion)
  7. Edison International ($11.9 billion)
  8. Dominion Resources ($11.7 billion)
  9. Entergy ($10.8 billion)
  10. DTE Energy ($10.6 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Entergyand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of entergy

NRG Energy (NRG) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

NRG Energy, Inc. with $12 billion revenues in the year 2016 was the number 6 Electric Utilities company. Read this report to know the top competitors of NRG Energy and identify growth and cost optimization opportunities of NRG Energy

Edison International (EIX) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Edison International with $12 billion revenues in the year 2016 was the number 7 Electric Utilities company. Read this report to know the top competitors of Edison International and identify growth and cost optimization opportunities of Edison International

Dominion Resources (D) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Dominion Resources Inc with $12 billion revenues in the year 2016 was the number 8 Electric Utilities company. Read this report to know the top competitors of Dominion Resources and identify growth and cost optimization opportunities of Dominion Resources

DTE Energy (DTE) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

DTE Energy Co with $11 billion revenues in the year 2016 was the number 10 Electric Utilities company. Read this report to know the top competitors of DTE Energy and identify growth and cost optimization opportunities of DTE Energy

Eversource Energy (ES) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Eversource Energy with $8 billion revenues in the year 2016 was the number 11 Electric Utilities company. Read this report to know the top competitors of Eversource Energy and identify growth and cost optimization opportunities of Eversource Energy

CenterPoint Energy (CNP) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

CenterPoint Energy Inc with $8 billion revenues in the year 2016 was the number 12 Electric Utilities company. Read this report to know the top competitors of CenterPoint Energy and identify growth and cost optimization opportunities of CenterPoint Energy

Revenues Analysis

Entergy (ETR) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Entergy Corp (ETR) from 2012 to 2016. Entergy generated a total of $10.8 billion revenues during 2016. Entergy reported a revenue growth of -5.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Entergy (ETR) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Entergy Corp (ETR) from 2002 to 2016. Entergy generated a total of $10.8 billion revenues during 2016. Entergy reported a revenue growth of -5.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Entergy (ETR) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Entergy Corp (ETR) revenue growth with Electric Utilities industry growth during the last five years from 2012 to 2016. Entergy reported a revenue growth of -5.8% year-over-year during 2016. The Electric Utilities industry growth was 0.2% year-over-year during 2016. Entergy growth was slower than the industry during 2016.

Profit Analysis

Entergy (ETR) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of Entergy Corp (ETR) from 2012 to 2016. Entergy reported a total net income of -$583.6 million during 2016. Entergy generated a total of $10.8 billion revenues during 2016. Entergy net profit margin was -5.4% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.

Entergy (ETR) Net Profit And Net Margin From 2002 To 2016

This report provides the last fifteen years net profit and net margin of Entergy Corp (ETR) from 2002 to 2016. Entergy reported a total net income of -$583.6 million during 2016. Entergy generated a total of $10.8 billion revenues during 2016. Entergy net profit margin was -5.4% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.