Duke Energy Corporation 5.625% (DUKB): fair value, margin of safety and Wheel Score

Is DUKB undervalued?

Duke Energy Corporation 5.625% (DUKB) closed at 20.90 on 16 Oct 2026. The GLS average fair value - the simple average of the 7 valuation models that produced a positive number - is 36.60, which puts the price 43% below it. 4 of the 7 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.

The 7 models disagree widely: Lynch gives 7.84 while Graham Number gives 103.21. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files DUKB under Defensive: a low beta, a dividend and positive earnings.

Nine valuation models for DUKB

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

On financial health DUKB scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 4.3 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.

Returns on capital are thin or negative - ROIC 3.5%, ROE 9.6%, ROA 2.5% - with debt at 1.77 times equity and negative free cash flow.

The dividend yield is 3.60% at a payout ratio of 79%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Other Revenues 100% (fiscal year FY2025).

Institutional ownership scores 1/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 39: No options

DUKB has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.

Volume runs at 69k shares a day on a market cap of $16.3B, with a beta of 0.50 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 12 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

Duke Energy Corporation 5.625% reports earnings on 29 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Regulated Electric

The 12 companies below are the closest to Duke Energy Corporation 5.625% by market cap within the Regulated Electric industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

⚖ Compare DUKB with 7 of them   All Utilities stocks →