Duke Energy CORP

Where It Passes

Where It Falls Short

• Efficiency0% pass✓ 1✗ 10▾

  No clean pass — all 8 investors flag at least one efficiency criterion

  Current Ratio0.68

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)4.4%

  ✗Buffett> 10%

  ROIC - WACC-5.6%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)7.0%

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.67 -> 0.55

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.16x -> 0.16x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities0.68

  ✗Dreman> 1.5

  Return on Invested Capital5.2%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=4.5%; FY2024: ROIC=4.8%; FY2025: ROIC=4.9%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC1.9% (RR=37% x ROIC=5.2%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 4.9%)

  ✗SleepROIC > 12% in a majority of years
• Debt & Leverage8% pass✓ 1✗ 14▾

  11 of 12 flag DUK's debt & leverage — Graham, Buffett, Lynch +8 more

  LT Debt vs Net Current AssetsLT Debt $84.3B vs NCA $-6.3B

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.68, IC: 2.4x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity1.63

  ✗Lynch< 0.33

  Cash - Long-term Debt$-83.9B

  ✗LynchPositive preferred

  LT Debt / Total Assets Change40.97% -> 40.93%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities0.68

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity1.63

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels1.63

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=2.4x, D/EBITDA=5.3x

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity1.63

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.6333; #3648/4210 (top 86.7%)

  ✗AsnessTop 30% of eligible cross-section
• Valuation models11% pass✓ 1✗ 8▾

  Models split on DUK at $129.16 — fair values range $54.71–$157.75

  Graham fair value$97.27

  ✗Graham-32.8% margin vs $129.16

  Buffett fair value$75.46

  ✗Buffett-71.2% margin vs $129.16

  Lynch fair value$157.75

  ✓Lynch+18.1% margin vs $129.16

  Greenblatt fair value$79.95

  ✗Greenblatt-61.6% margin vs $129.16

  Dreman fair value$77.80

  ✗Dreman-66.0% margin vs $129.16

  Pabrai fair value$54.71

  ✗Pabrai-136.1% margin vs $129.16

  Akre fair value$68.11

  ✗Akre-89.6% margin vs $129.16

  Marks fair value$62.52

  ✗Marks-106.6% margin vs $129.16

  Templeton fair value$71.01

  ✗Templeton-81.9% margin vs $129.16
• Valuation15% pass✓ 7✗ 21▾

  11 of 13 flag DUK's valuation — Graham, Greenblatt, Dreman +8 more

  Net income / market capitalization+5.35%; #1575/6340 (top 24.8%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Price / 3-yr avg EPS24.9x

  ✗Graham<= 15x

  Price-to-Book Ratio1.9x

  ✗Graham<= 1.5x

  P/E x P/B48.30

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)0.69

  ✓Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value5.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=5.1%, ROC=7.0%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS20.5x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)8.1x

  ✗Dreman< 8x

  Price / Book Value per Share1.9x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=20.5x, OE Yield=-1.3%

  ✓MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=20.5x, FCF Yield=-1.7%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=20.5x, P/B=1.9x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-66.0% (IV=$77.80 vs Price=$129.16)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low115% of trailing low ($111.99)

  ✓Templeton<= 120% of trailing low (certified split-adjusted live window)

  Positive book equity / market capitalization+0.5499; #2693/6449 (top 41.8%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS20.5x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E1.61

  ✓Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share3.09x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+6.8%

  ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.3306; #3180/5247 (top 60.6%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-5.13%; #2987/4519 (top 66.1%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+5.24%; #2144/6202 (top 34.6%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Profitability19% pass✓ 16✗ 19▾

  13 of 16 flag DUK's profitability — Graham, Buffett, Lynch +10 more

  Net income / market capitalization+5.35%; #1575/6340 (top 24.8%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive EPS (10 years)18/24 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)24/24 years positive

  ✓BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)7.5%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)27.2% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$5.0B

  ✓BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)0.69

  ✓Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR29.7%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  ROE9.7%

  ✗Lynch> 15%

  EBIT / Enterprise Value5.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=5.1%, ROC=7.0%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets2.54%

  ✓PiotroskiROA > 0

  ROA Change YoY2.43% -> 2.54% (delta: +0.11%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=6.30%, ROA=2.54%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue19.5%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity9.7%

  ✗Dreman> 12%

  Margin of SafetyP/E=20.5x, P/B=1.9x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity8.1% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-66.0% (IV=$77.80 vs Price=$129.16)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency24/24 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue29.0%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity9.7%

  ✗Ackman>= 15%

  5-Year EPS CAGR29.7% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend24.7% (2023) -> 27.2% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 24.7% -> 27.2%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  Gross profit / total assets

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+9.74%; #1848/5226 (top 35.4%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0045; #452/5884 (top 7.7%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR29.7% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years10/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Verdicts21% pass✓ 3✗ 11▾

  Split decision: 10 FAIL · 3 NEUTRAL · 3 PASS

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (2/9)✗LynchFAIL (3/7)✗GreenblattRank #1460•PiotroskiNEUTRAL (F-Score 6)✗DremanFAIL (2/11)✓MungerPASS (2/4)✗PabraiFAIL (0/3)✗AkreFAIL (0/6)✗MarksFAIL (2/5)✓AckmanPASS (4/9)•TempletonNEUTRAL (5/8)✓SleepPASS (3/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (3/6)✗SchlossFAIL (3/7)✗OshaughnessyFAIL (Rank #544/963 (Top 56.5%))
• Cash Flow30% pass✓ 4✗ 8▾

  7 of 10 flag DUK's cash flow — Lynch, Dreman, Pabrai +4 more

  Free Cash Flow Proxy$5.0B

  ✓BuffettPositive and growing

  FCF Positive and Growing$-5.2B

  ✗LynchPositive and growing

  Operating Cash Flow$12.3B

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=6.30%, ROA=2.54%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)8.1x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=20.5x, FCF Yield=-1.7%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive3/18 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-5.1%

  ✗Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency23/23 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-5.2B

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization-5.13%; #2987/4519 (top 66.1%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth38% pass✓ 7✗ 6▾

  5 of 8 flag DUK's growth — Graham, Dreman, Ackman +2 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)0.69

  ✓Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR29.7%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency24/24 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth4.8%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency4/5 years with positive EPS growth

  ✓AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR29.7% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 24.7% -> 27.2%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR6.4%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR29.7% over 5 years

  ✗Neff7%-20% annualized