ENTERGY ARKANSAS, LLC (EAI) Stock Analysis
ENTERGY ARKANSAS, LLC
▾ What's in the 45/100 risk score? (higher = riskier)
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend). See the Financial Health section for the full balance-sheet read.
How to read EAI (regulated utility)
A regulator sets what a utility can earn, so its value tracks book value, dividend yield and payout — not a free-market DCF.
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Utility lens (P/B, yield, payout) ↓
These are the metrics utility-fund managers actually use.
It files little or nothing with the SEC — so our cash-flow models, financial statements, and U.S. insider data (Form 4) don't apply. What's still real: the live U.S. price and short positioning. Here's what we could pull from other sources:
📑 Read the real filings: latest SEC 10-Q ↗
Identity, share count and tier from FINRA + OTC Markets; not a substitute for the home-market financial statements. Thin U.S. disclosure + OTC trading is itself a risk factor.
Quality & solvency checks
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
Regulated utilities carry high leverage backed by long-life assets and regulator-set rate-base returns — Altman Z flags both as distress signals even when the business is stable. See the Utility Lens above for the metrics that matter (P/B, dividend yield, payout ratio).
Why it matters: High score = fundamentals improving. Low score = deteriorating. Especially powerful for filtering cheap stocks: cheap + high F-score historically outperforms; cheap + low F-score is often a value trap.
Reference: 7–9 = strong · 4–6 = mediocre · 0–3 = weak
Full explanation →
Piotroski F's checks (operating cash flow, gross-margin trend, current ratio, asset turnover) assume an industrial cost structure, so they misread asset-heavy or financial businesses like this one — a healthy REIT, utility, pipeline, BDC/fund or holding company can score low for reasons that aren't weakness. See the sector lens above for the metrics that actually matter.
A standard discounted cash flowDCF — Discounted Cash Flow — sums up all future cash a business will produce, adjusted for the fact that future dollars are worth less than dollars today.
Why it matters: It is the most fundamentally honest valuation method when applicable — but only works for companies with predictable, positive cash flow.
Reference: Best for: mature, profitable businesses. Fails for: pre-profit growth, banks, REITs.
Full explanation → valuation is not meaningful for Entergy Arkansas, LLC due to its nature as a regulated utility, which often exhibits stable but low growth and specific capital expenditure cycles. The market likely focuses on regulatory stability, consistent dividend payments (if any), and the predictable demand for its essential services. The primary quantifiable risk is its low franchise/durability score of 0/5, indicating limited competitive advantages.
As of 2 months ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
- Future regulatory rate case outcomes
- Trends in electricity demand in Arkansas
- Capital expenditure plans and execution
Management & Leadership
Entergy Arkansas, LLC is a subsidiary of Entergy Corporation, a major utility company. The CEO of the parent company, Entergy Corporation, is Drew Marsh, who assumed the role in November 2022. Rod West serves as Group President, Utility Operations for Entergy Corporation.
What They Make
Entergy Arkansas, LLC is an electric utility company that generates, transmits, and distributes electricity to residential, commercial, and industrial customers primarily in Arkansas.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
The income statement and balance sheet are also too incomplete here to substitute another lens honestly, so this page carries price, momentum and disclosure facts only.
The market prices EAI based on its predictable, regulated revenue streams and the essential nature of its services, rather than high growth. The low franchise/durability score of 0/5 suggests that while stable, it lacks significant competitive advantages that would drive a premium, leading to a valuation focused on consistent, if modest, returns.
Business Model & Valuation
How They Make Money
Dividend Discount
Utility (Electric Utilities): dividend discount model - growth is regulated and yield is the primary driver.
Show advanced inputs
What this model does NOT do: this is a consolidated owner-earnings FCF model. Standalone segment assumptions: none. It does not project rate-base growth, allowed ROE and dividend growth independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
Moat Signals
Geography & Markets
Entergy Arkansas, LLC primarily operates within the state of Arkansas, serving a defined service territory as a regulated utility.
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)37.6NeutralMomentum is balanced — neither overbought nor oversold.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BearishLine below signalThe fast trend is below the slow trend — short-term momentum is currently downward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (7 notes — click to expand/collapse)
Guardrail Notes (7)
- No dividend data. Assuming 3% yield.
- Shares from unknown — per-share values may be less accurate.
- Illiquidity discount 25% applied (small/micro-cap — harder to exit, demand a margin).
- Dividend data sparse; DDM using estimated yield. Confidence reduced.
- Shares/market cap missing or defaulted; per-share valuation unreliable.
- Shares defaulted to 1; IV is NOT meaningful — treat as data-unavailable.
- DATA UNAVAILABLE: per-share values suppressed due to missing/unreliable shares data.
FINANCIALS
Financial Statements (5-year tables — click to expand)
From ENTERGY ARKANSAS, LLC's SEC filings (EDGAR).