Entergy New Orleans LLC (ENJ)
Entergy New Orleans LLC is an electric and gas utility firm focused on the production and distribution of energy in New Orleans. The company operates with a regulated business model, providing essential services to its local customer base.
Company Overview
Entergy New Orleans (ENJ) offers a stable, regulated utility investment with a 6.13% dividend yield, serving the vibrant New Orleans market. Its consistent profitability, reflected in a 14.8% profit margin, and low beta of 0.26 provide a defensive profile for income-focused investors seeking reliable returns.
Investment Thesis
Entergy New Orleans (ENJ) presents a compelling investment opportunity due to its stable, regulated business model and attractive dividend yield of 6.13%. The company's consistent profitability, evidenced by a 14.8% profit margin, and low beta of 0.26 offer a defensive investment profile, particularly appealing in uncertain economic environments. Key value drivers include ongoing infrastructure investments, which enhance service reliability and efficiency, and the potential for rate adjustments that reflect these investments. The company's focus on renewable energy projects also positions it to benefit from evolving energy policies and increasing demand for clean energy. With a P/E ratio of 6.63, ENJ appears undervalued compared to its peers, offering potential for capital appreciation as the market recognizes its stability and growth prospects. Investors should consider ENJ as a long-term income-generating asset with moderate growth potential.
Key Highlights
- Market capitalization of $0.18 billion indicates a smaller, potentially overlooked utility company.
- P/E ratio of 6.63 suggests the company may be undervalued compared to its earnings.
- Profit margin of 14.8% demonstrates solid profitability in the regulated utility sector.
- Gross margin of 128.2% indicates efficient operations and cost management.
- Dividend yield of 6.13% provides an attractive income stream for investors.
Competitors
Strengths
- Regulated business model provides stable revenue and earnings.
- Essential service provider with consistent demand.
- Established infrastructure and customer base in New Orleans.
- Attractive dividend yield for income-seeking investors.
Weaknesses
- Dependence on regulatory approvals for rate adjustments.
- Exposure to weather-related events and natural disasters.
- Limited geographic diversification.
- Potential for increased competition from alternative energy sources.
Catalysts
- Upcoming: Regulatory rate review and potential rate adjustments.
- Ongoing: Infrastructure investments to improve service reliability.
- Ongoing: Expansion of renewable energy projects.
- Ongoing: Implementation of smart grid technologies.
Risks
- Potential: Regulatory delays or unfavorable rate decisions.
- Potential: Increased operating costs due to environmental regulations.
- Ongoing: Exposure to weather-related events and natural disasters.
- Potential: Cybersecurity threats and infrastructure vulnerabilities.
Growth Opportunities
- Infrastructure Modernization: Entergy New Orleans has the opportunity to invest in upgrading its existing infrastructure, including transmission lines, distribution networks, and substations. These investments can improve service reliability, reduce outages, and enhance grid resilience. The market size for grid modernization is substantial, with billions of dollars being invested annually across the United States. Timeline: Ongoing, with continuous upgrades and expansions planned over the next decade. Competitive Advantage: Enhanced reliability and efficiency can lead to higher customer satisfaction and regulatory approval for rate increases.
- Renewable Energy Expansion: The company can expand its renewable energy portfolio by investing in solar, wind, and other clean energy projects. This aligns with growing demand for renewable energy and supports the company's sustainability goals. The renewable energy market is experiencing rapid growth, driven by government incentives and declining technology costs. Timeline: Medium-term, with new projects coming online over the next 3-5 years. Competitive Advantage: Access to renewable energy resources and expertise in developing and operating renewable energy projects.
- Smart Grid Technologies: Implementing smart grid technologies, such as smart meters, advanced sensors, and data analytics, can improve grid management, enhance energy efficiency, and enable demand response programs. The smart grid market is growing rapidly, driven by the need for more efficient and reliable energy delivery. Timeline: Medium-term, with gradual deployment of smart grid technologies across the service territory. Competitive Advantage: Improved grid management and enhanced customer engagement.
- Electric Vehicle (EV) Infrastructure: As electric vehicle adoption increases, Entergy New Orleans can invest in EV charging infrastructure to support the growing demand for EV charging. This includes installing charging stations at public locations, workplaces, and residential areas. The EV charging infrastructure market is experiencing rapid growth, driven by the increasing popularity of electric vehicles. Timeline: Long-term, with gradual expansion of EV charging infrastructure over the next decade. Competitive Advantage: Early mover advantage in the EV charging market and potential for revenue generation from charging services.
- Energy Efficiency Programs: Entergy New Orleans can promote energy efficiency programs to help customers reduce their energy consumption and lower their bills. These programs can include rebates for energy-efficient appliances, weatherization assistance, and energy audits. The market for energy efficiency services is substantial, driven by the need to reduce energy costs and improve environmental sustainability. Timeline: Ongoing, with continuous promotion of energy efficiency programs. Competitive Advantage: Improved customer satisfaction and reduced energy demand.
Opportunities
- Investments in infrastructure modernization and grid resilience.
- Expansion of renewable energy portfolio.
- Implementation of smart grid technologies.
- Growth in electric vehicle adoption and charging infrastructure.
Threats
- Changes in regulatory policies and environmental standards.
- Fluctuations in energy prices and interest rates.
- Economic downturns and reduced energy demand.
- Cybersecurity threats and infrastructure vulnerabilities.
Competitive Advantages
- Regulated monopoly in the New Orleans area.
- Essential service provider with stable demand.
- High barriers to entry due to infrastructure requirements and regulatory oversight.
About
Entergy New Orleans LLC, a subsidiary of Entergy Corporation, is a regulated utility company providing essential electric and gas services to the city of New Orleans, Louisiana. The company's history is deeply intertwined with the development of the city's infrastructure, evolving from early electric and gas providers to the integrated utility it is today. Entergy New Orleans focuses on the production, distribution, and sale of electricity and natural gas to residential, commercial, and industrial customers within its service territory. The company operates and maintains an extensive network of power plants, transmission lines, distribution lines, and gas pipelines to ensure reliable service. As a regulated utility, Entergy New Orleans operates under the oversight of the New Orleans City Council, which approves rates and monitors service quality. This regulatory framework provides a degree of stability and predictability to the company's operations and financial performance. Entergy New Orleans is committed to modernizing its infrastructure, enhancing grid resilience, and investing in renewable energy sources to meet the evolving needs of its customers and the community.
What They Do
- Generates electricity through power plants.
- Distributes electricity to residential, commercial, and industrial customers.
- Distributes natural gas to customers.
- Maintains and operates power plants, transmission lines, and distribution networks.
- Provides customer service and billing.
- Invests in infrastructure upgrades and renewable energy projects.
- Complies with regulatory requirements and environmental standards.
Business Model
- Generates revenue through the sale of electricity and natural gas.
- Operates under a regulated rate structure approved by the New Orleans City Council.
- Invests in infrastructure and renewable energy projects to enhance service reliability and sustainability.
Industry Context
Entergy New Orleans operates within the regulated electric and gas utility industry, a sector characterized by stable demand, government oversight, and significant infrastructure investments. The industry is undergoing a transformation driven by the increasing adoption of renewable energy sources, grid modernization efforts, and evolving regulatory policies. Companies like Entergy New Orleans are adapting to these trends by investing in renewable energy projects and enhancing grid resilience. The competitive landscape includes other regulated utilities that operate in neighboring regions. The industry is also influenced by broader economic factors, such as energy prices, interest rates, and regulatory changes. Given its focus on the New Orleans area, Entergy New Orleans benefits from a localized customer base and a degree of insulation from national market fluctuations.
Key Customers
- Residential customers in New Orleans.
- Commercial customers, including businesses and organizations.
- Industrial customers, such as manufacturing plants and factories.
Financials
Chart & Info
Price Chart
Entergy New Orleans LLC (ENJ) stock price: $21.02 (+0.17, +0.81%)
Why Bull
- •Entergy New Orleans is likely benefiting from the overall positive sentiment surrounding infrastructure investments and grid modernization, similar to how broader trends propelled companies during the initial stages of the 'smart city' movement.
- •Recent insider activity might signal confidence in the company's future performance, reflecting a belief in the long-term value of their assets and strategic direction, akin to executives buying back shares during periods of undervaluation.
- •Community sentiment seems to lean towards recognizing Entergy's role in providing essential services, fostering a sense of stability and reliability, much like how consumers view established utility brands.
- •Market perception may view Entergy as a defensive stock, providing a safe haven during economic uncertainty, similar to how investors flocked to consumer staples during the 2008 financial crisis.
Why Bear
- •Negative community sentiment could stem from concerns about service reliability or pricing, mirroring public backlash against utility companies during periods of widespread outages or rate hikes.
- •Unfavorable regulatory developments or policy changes might be weighing on market perception, creating uncertainty about Entergy's future profitability, similar to how changing environmental regulations impacted coal companies.
- •Recent insider selling could indicate a lack of confidence in the company's near-term prospects, potentially driven by concerns about operational challenges or market competition, analogous to executive departures preceding periods of restructuring.
- •Market perception might be influenced by broader anxieties about the energy sector, such as the transition to renewable energy and the potential for stranded assets, mirroring concerns about oil and gas companies facing declining demand.
Latest News
No recent news available for ENJ.
Technical Analysis
Rationale
AI-generated technical analysis for ENJ including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for ENJ.
Make a Prediction
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Current price: $21.02
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for ENJ.
Price Targets
Wall Street price target analysis for ENJ.
Insider Flow (30d)
No insider trades in the last 30 days.
MoonshotScore
Score Factors
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Revenue Growth 5/100
Revenue growth data is currently unavailable for this company.
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Gross Margin 5/100
Gross margin data is currently unavailable for this company.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates ENJ's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Frequently Asked Questions
What does Entergy New Orleans, LLC First Mortgage Bonds, 5.0% Series due December 1, 2052 do?
Entergy New Orleans LLC operates as a regulated electric and gas utility company, providing essential services to the city of New Orleans. The company focuses on the production, distribution, and sale of electricity and natural gas to residential, commercial, and industrial customers. As a regulated utility, Entergy New Orleans operates under the oversight of the New Orleans City Council, which approves rates and monitors service quality. The company's business model is based on providing reliable energy services to its customers and investing in infrastructure upgrades and renewable energy projects to meet the evolving needs of the community.
Is ENJ stock a good buy?
ENJ offers a compelling investment case for income-seeking investors, given its attractive 6.13% dividend yield and stable, regulated business model. The company's consistent profitability, reflected in a 14.8% profit margin, and low beta of 0.26 provide a defensive investment profile. While the company's growth potential may be limited compared to other sectors, its stability and income-generating potential make it an attractive option for investors seeking reliable returns. The P/E ratio of 6.63 suggests the company may be undervalued, offering potential for capital appreciation as well.
What are the main risks for ENJ?
Entergy New Orleans faces several risks, including regulatory risks associated with rate adjustments and environmental regulations. The company is also exposed to weather-related events and natural disasters, which can disrupt operations and increase costs. Cybersecurity threats and infrastructure vulnerabilities pose another risk, as a successful cyberattack could disrupt service and damage the company's reputation. Additionally, changes in energy prices and interest rates could impact the company's profitability and financial performance. Investors should carefully consider these risks before investing in ENJ.
Is ENJ a good stock to buy?
Whether ENJ is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the ENJ MoonshotScore?
The MoonshotScore for ENJ is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is ENJ data updated?
ENJ stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to ENJ is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for ENJ?
Growth catalysts for Entergy New Orleans LLC (ENJ) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes Entergy New Orleans LLC's specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are ENJ's main competitors?
Entergy New Orleans LLC (ENJ) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether ENJ has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about ENJ?
Wall Street analyst coverage for ENJ includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is ENJ's market cap?
Market capitalization (market cap) for ENJ is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows ENJ's current market cap alongside enterprise value and other valuation metrics.
How has ENJ stock performed recently?
ENJ's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing ENJ's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in ENJ?
Key risk categories for ENJ include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures ENJ's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling ENJ?
Insider trading activity for ENJ tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
Is ENJ a good stock for beginners?
Entergy New Orleans LLC (ENJ) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is ENJ for first-time investors?
Every stock carries risk, including Entergy New Orleans LLC (ENJ). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like ENJ.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Limited information available on Entergy New Orleans LLC as it is a subsidiary and not a publicly traded company. Financial data is based on available information and may not be comprehensive.