P G & E CORP (PCG)
US69331C1080 - Common Stock
We assign a fundamental rating of 3 out of 10 to PCG. PCG was compared to 47 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
In the past year PCG was profitable.
PCG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PCG reported negative net income in multiple 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 (1.93%) than 80.00% of its industry peers.
PCG's Return On Equity of 9.60% is in line compared to the rest of the industry. PCG outperforms 60.00% of its industry peers.
PCG has a worse Return On Invested Capital (3.03%) than 75.56% of its industry peers.
PCG had an Average Return On Invested Capital over the past 3 years of 2.23%. This is below the industry average of 4.77%.
The last Return On Invested Capital (3.03%) for PCG is above the 3 year average (2.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 9.6% | ||
| ROIC | 3.03% |
ROA(3y)1.07%
ROA(5y)-1.43%
ROE(3y)5.45%
ROE(5y)-27.8%
ROIC(3y)2.23%
ROIC(5y)2.05%
1.3 Margins
PCG's Profit Margin of 10.17% is on the low side compared to the rest of the industry. PCG is outperformed by 64.44% of its industry peers.
PCG has a Operating Margin of 18.15%. This is in the lower half of the industry: PCG underperforms 60.00% of its industry peers.
PCG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 85.35%, PCG belongs to the top of the industry, outperforming 82.22% of the companies in the same industry.
PCG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.15% | ||
| PM (TTM) | 10.17% | ||
| GM | 85.35% |
OM growth 3Y1.06%
OM growth 5Y1.81%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.63%
GM growth 5Y2.51%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PCG is destroying value.
PCG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PCG has been increased compared to 5 years ago.
PCG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.55, we must say that PCG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.55, PCG is doing worse than 82.22% of the companies in the same industry.
A Debt/Equity ratio of 2.20 is on the high side and indicates that PCG has dependencies on debt financing.
PCG has a worse Debt to Equity ratio (2.20) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.55 |
ROIC/WACC0.5
WACC6.06%
2.3 Liquidity
A Current Ratio of 0.90 indicates that PCG may have some problems paying its short term obligations.
PCG's Current ratio of 0.90 is on the low side compared to the rest of the industry. PCG is outperformed by 62.22% of its industry peers.
A Quick Ratio of 0.86 indicates that PCG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.86, PCG is in line with its industry, outperforming 51.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.91% over the past year.
The earnings per share for PCG have been decreasing by -21.01% on average. This is quite bad
The Revenue has grown by 11.29% in the past year. This is quite good.
Measured over the past years, PCG shows a small growth in Revenue. The Revenue has been growing by 7.83% on average per year.
EPS 1Y (TTM)29.91%
EPS 3Y-19.41%
EPS 5Y-21.01%
EPS Q2Q%34.78%
Revenue 1Y (TTM)11.29%
Revenue growth 3Y9.77%
Revenue growth 5Y7.83%
Sales Q2Q%13.16%
3.2 Future
Based on estimates for the next years, PCG will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.25% on average per year.
The Revenue is expected to grow by 2.97% on average over the next years.
EPS Next Y11.47%
EPS Next 2Y10.41%
EPS Next 3Y9.71%
EPS Next 5Y9.25%
Revenue Next Year5.77%
Revenue Next 2Y4.66%
Revenue Next 3Y4.03%
Revenue Next 5Y2.97%
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
PCG is valuated correctly with a Price/Earnings ratio of 14.42.
62.22% of the companies in the same industry are more expensive than PCG, based on the Price/Earnings ratio.
PCG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.10.
With a Price/Forward Earnings ratio of 13.36, PCG is valued correctly.
71.11% of the companies in the same industry are more expensive than PCG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.06. PCG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 13.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PCG is valued a bit more expensive than 64.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.95 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.26
PEG (5Y)N/A
EPS Next 2Y10.41%
EPS Next 3Y9.71%
5. Dividend
5.1 Amount
With a yearly dividend of 0.19%, PCG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.41, PCG's dividend is way lower than its industry peers. On top of this 84.44% of the companies listed in the same industry pay a better dividend than PCG!
Compared to an average S&P500 Dividend Yield of 2.23, PCG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
5.2 History
PCG has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of PCG decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y10.41%
EPS Next 3Y9.71%
P G & E CORP
NYSE:PCG (11/1/2024, 8:21:44 PM)
After market: 20.22 +0.18 (+0.9%)20.04
-0.18 (-0.89%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap52.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 13.36 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 9.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.15% | ||
| PM (TTM) | 10.17% | ||
| GM | 85.35% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)29.91%
EPS 3Y-19.41%
EPS 5Y
EPS Q2Q%
EPS Next Y11.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.29%
Revenue growth 3Y9.77%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y