P G & E CORP (PCG) Stock Fundamental Analysis
NYSE:PCG - New York Stock Exchange, Inc. - US69331C1080 - Common Stock - Currency: USD
PCG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. While PCG is still in line with the averages on profitability rating, there are concerns on its financial health. PCG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PCG had positive earnings in the past year.
PCG had a positive operating cash flow in the past year.
In multiple years PCG reported negative net income over the last 5 years.
Of the past 5 years PCG 4 years had a positive operating cash flow.
1.2 Ratios
PCG has a worse Return On Assets (1.85%) than 65.22% of its industry peers.
The Return On Equity of PCG (8.21%) is comparable to the rest of the industry.
PCG's Return On Invested Capital of 3.28% is on the low side compared to the rest of the industry. PCG is outperformed by 60.87% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PCG is below the industry average of 4.69%.
The 3 year average ROIC (2.53%) for PCG is below the current ROIC(3.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.85% | ||
| ROE | 8.21% | ||
| ROIC | 3.28% |
ROA(3y)1.72%
ROA(5y)0.74%
ROE(3y)8.35%
ROE(5y)3.66%
ROIC(3y)2.53%
ROIC(5y)2.43%
1.3 Margins
PCG's Profit Margin of 10.14% is in line compared to the rest of the industry. PCG outperforms 45.65% of its industry peers.
PCG's Operating Margin of 20.21% is in line compared to the rest of the industry. PCG outperforms 54.35% of its industry peers.
PCG's Operating Margin has improved in the last couple of years.
PCG has a Gross Margin of 85.86%. This is amongst the best in the industry. PCG outperforms 80.43% of its industry peers.
In the last couple of years the Gross Margin of PCG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.21% | ||
| PM (TTM) | 10.14% | ||
| GM | 85.86% |
OM growth 3Y16.22%
OM growth 5Y20.89%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.91%
GM growth 5Y2.03%
2. Health
2.1 Basic Checks
PCG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PCG has more shares outstanding
The number of shares outstanding for PCG has been increased compared to 5 years ago.
PCG has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.50, we must say that PCG is in the distress zone and has some risk of bankruptcy.
PCG's Altman-Z score of 0.50 is on the low side compared to the rest of the industry. PCG is outperformed by 69.57% of its industry peers.
PCG has a Debt/Equity ratio of 1.83. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.83, PCG is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.5 |
ROIC/WACC0.58
WACC5.61%
2.3 Liquidity
PCG has a Current Ratio of 1.05. This is a normal value and indicates that PCG is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.05, PCG is doing good in the industry, outperforming 78.26% of the companies in the same industry.
PCG has a Quick Ratio of 1.00. This is a normal value and indicates that PCG is financially healthy and should not expect problems in meeting its short term obligations.
PCG has a Quick ratio of 1.00. This is amongst the best in the industry. PCG outperforms 80.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.57% over the past year.
Measured over the past years, PCG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.12% on average per year.
The Revenue has decreased by -0.04% in the past year.
The Revenue has been growing slightly by 7.35% on average over the past years.
EPS 1Y (TTM)10.57%
EPS 3Y12.31%
EPS 5Y-19.12%
EPS Q2Q%-34.04%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y5.76%
Revenue growth 5Y7.35%
Sales Q2Q%-5.82%
3.2 Future
The Earnings Per Share is expected to grow by 9.33% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.96% on average over the next years.
EPS Next Y11.36%
EPS Next 2Y9.98%
EPS Next 3Y9.79%
EPS Next 5Y9.33%
Revenue Next Year3.3%
Revenue Next 2Y2.98%
Revenue Next 3Y3.14%
Revenue Next 5Y2.96%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.79, the valuation of PCG can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of PCG indicates a somewhat cheap valuation: PCG is cheaper than 73.91% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.92, PCG is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.48, the valuation of PCG can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PCG indicates a rather cheap valuation: PCG is cheaper than 82.61% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.65, PCG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 11.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PCG indicates a somewhat cheap valuation: PCG is cheaper than 69.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.29 |
4.3 Compensation for Growth
PCG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.13
PEG (5Y)N/A
EPS Next 2Y9.98%
EPS Next 3Y9.79%
5. Dividend
5.1 Amount
PCG has a yearly dividend return of 0.41%, which is pretty low.
Compared to an average industry Dividend Yield of 3.47, PCG's dividend is way lower than its industry peers. On top of this 86.96% of the companies listed in the same industry pay a better dividend than PCG!
Compared to an average S&P500 Dividend Yield of 2.51, PCG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
The dividend of PCG decreases each year by -53.24%.
PCG has paid a dividend for at least 10 years, which is a reliable track record.
PCG has decreased its dividend recently.
Dividend Growth(5Y)-53.24%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PCG pays out 3.47% of its income as dividend. This is a sustainable payout ratio.
DP3.47%
EPS Next 2Y9.98%
EPS Next 3Y9.79%
17.39
-0.15 (-0.86%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.44%
Inst Owner Change0.09%
Ins Owners0.12%
Ins Owner Change0.33%
Market Cap38.22B
Analysts76.52
Price Target20.83 (19.78%)
Short Float %1.61%
Short Ratio1.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend0.04
Dividend Growth(5Y)-53.24%
DP3.47%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.33%
Min EPS beat(2)-1.04%
Max EPS beat(2)11.69%
EPS beat(4)3
Avg EPS beat(4)4.63%
Min EPS beat(4)-1.04%
Max EPS beat(4)11.69%
EPS beat(8)4
Avg EPS beat(8)-0.29%
EPS beat(12)6
Avg EPS beat(12)2.93%
EPS beat(16)6
Avg EPS beat(16)-0.67%
Revenue beat(2)0
Avg Revenue beat(2)-10.02%
Min Revenue beat(2)-11%
Max Revenue beat(2)-9.05%
Revenue beat(4)1
Avg Revenue beat(4)-7.97%
Min Revenue beat(4)-12.05%
Max Revenue beat(4)0.2%
Revenue beat(8)4
Avg Revenue beat(8)-0.34%
Revenue beat(12)5
Avg Revenue beat(12)-1.69%
Revenue beat(16)7
Avg Revenue beat(16)-1.69%
PT rev (1m)-1.76%
PT rev (3m)-14.54%
EPS NQ rev (1m)-8.45%
EPS NQ rev (3m)-8.2%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.65%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)-0.76%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 11.48 | ||
| P/S | 1.57 | ||
| P/FCF | N/A | ||
| P/OCF | 4.76 | ||
| P/B | 1.27 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 10.29 |
EPS(TTM)1.36
EY7.82%
EPS(NY)1.51
Fwd EY8.71%
FCF(TTM)-1.06
FCFYN/A
OCF(TTM)3.66
OCFY21.02%
SpS11.11
BVpS13.72
TBVpS13.72
PEG (NY)1.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.85% | ||
| ROE | 8.21% | ||
| ROCE | 4.21% | ||
| ROIC | 3.28% | ||
| ROICexc | 3.31% | ||
| ROICexgc | 3.31% | ||
| OM | 20.21% | ||
| PM (TTM) | 10.14% | ||
| GM | 85.86% | ||
| FCFM | N/A |
ROA(3y)1.72%
ROA(5y)0.74%
ROE(3y)8.35%
ROE(5y)3.66%
ROIC(3y)2.53%
ROIC(5y)2.43%
ROICexc(3y)2.55%
ROICexc(5y)2.44%
ROICexgc(3y)2.55%
ROICexgc(5y)2.44%
ROCE(3y)3.27%
ROCE(5y)3.16%
ROICexcg growth 3Y11.41%
ROICexcg growth 5Y18.86%
ROICexc growth 3Y11.41%
ROICexc growth 5Y18.86%
OM growth 3Y16.22%
OM growth 5Y20.89%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.91%
GM growth 5Y2.03%
F-Score7
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.04 | ||
| Cap/Depr | 247.53% | ||
| Cap/Sales | 42.46% | ||
| Interest Coverage | 2.04 | ||
| Cash Conversion | 88.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 0.5 |
F-Score7
WACC5.61%
ROIC/WACC0.58
Cap/Depr(3y)251.98%
Cap/Depr(5y)240.73%
Cap/Sales(3y)42.15%
Cap/Sales(5y)41.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.57%
EPS 3Y12.31%
EPS 5Y-19.12%
EPS Q2Q%-34.04%
EPS Next Y11.36%
EPS Next 2Y9.98%
EPS Next 3Y9.79%
EPS Next 5Y9.33%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y5.76%
Revenue growth 5Y7.35%
Sales Q2Q%-5.82%
Revenue Next Year3.3%
Revenue Next 2Y2.98%
Revenue Next 3Y3.14%
Revenue Next 5Y2.96%
EBIT growth 1Y49.49%
EBIT growth 3Y22.92%
EBIT growth 5Y29.77%
EBIT Next Year98.19%
EBIT Next 3Y32.62%
EBIT Next 5Y22.91%
FCF growth 1Y53.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y69.26%
OCF growth 3Y52.58%
OCF growth 5Y10.78%