P G & E CORP (PCG) Stock Fundamental Analysis
NYSE:PCG - New York Stock Exchange, Inc. - US69331C1080 - Common Stock - Currency: USD
Taking everything into account, PCG scores 3 out of 10 in our fundamental rating. PCG was compared to 47 industry peers in the Electric Utilities industry. There are concerns on the financial health of PCG while its profitability can be described as average. 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.
PCG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.74%, PCG is not doing good in the industry: 89.36% of the companies in the same industry are doing better.
The Return On Equity of PCG (7.66%) is worse than 78.72% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.27%, PCG is doing worse than 80.85% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PCG is significantly below the industry average of 38.54%.
The 3 year average ROIC (2.53%) for PCG is below the current ROIC(3.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 7.66% | ||
| ROIC | 3.27% |
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 9.58% is on the low side compared to the rest of the industry. PCG is outperformed by 74.47% of its industry peers.
PCG's Operating Margin of 20.08% is in line compared to the rest of the industry. PCG outperforms 48.94% of its industry peers.
PCG's Operating Margin has improved in the last couple of years.
PCG has a better Gross Margin (85.75%) than 80.85% of its industry peers.
PCG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.08% | ||
| PM (TTM) | 9.58% | ||
| GM | 85.75% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PCG is destroying value.
PCG has more shares outstanding than it did 1 year ago.
PCG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PCG has an improved debt to assets ratio.
2.2 Solvency
PCG has an Altman-Z score of 0.43. This is a bad value and indicates that PCG is not financially healthy and even has some risk of bankruptcy.
PCG's Altman-Z score of 0.43 is on the low side compared to the rest of the industry. PCG is outperformed by 85.11% of its industry peers.
PCG has a Debt/Equity ratio of 1.77. This is a high value indicating a heavy dependency on external financing.
PCG has a Debt to Equity ratio of 1.77. This is in the lower half of the industry: PCG underperforms 70.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.43 |
ROIC/WACC0.62
WACC5.29%
2.3 Liquidity
A Current Ratio of 0.95 indicates that PCG may have some problems paying its short term obligations.
The Current ratio of PCG (0.95) is comparable to the rest of the industry.
PCG has a Quick Ratio of 0.95. This is a bad value and indicates that PCG is not financially healthy enough and could expect problems in meeting its short term obligations.
PCG has a Quick ratio (0.90) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
PCG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.76%.
The earnings per share for PCG have been decreasing by -19.12% on average. This is quite bad
The Revenue has been growing slightly by 1.91% in the past year.
The Revenue has been growing slightly by 7.35% on average over the past years.
EPS 1Y (TTM)0.76%
EPS 3Y12.31%
EPS 5Y-19.12%
EPS Q2Q%-10.81%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y5.76%
Revenue growth 5Y7.35%
Sales Q2Q%2.08%
3.2 Future
The Earnings Per Share is expected to grow by 9.40% on average over the next years. This is quite good.
PCG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.76% yearly.
EPS Next Y11.45%
EPS Next 2Y10.03%
EPS Next 3Y9.79%
EPS Next 5Y9.4%
Revenue Next Year3.55%
Revenue Next 2Y3.22%
Revenue Next 3Y3.26%
Revenue Next 5Y2.76%
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 reasonably with a Price/Earnings ratio of 10.19.
Based on the Price/Earnings ratio, PCG is valued a bit cheaper than 70.21% of the companies in the same industry.
PCG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.50.
A Price/Forward Earnings ratio of 8.17 indicates a reasonable valuation of PCG.
Based on the Price/Forward Earnings ratio, PCG is valued cheaply inside the industry as 82.98% of the companies are valued more expensively.
PCG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.19 | ||
| Fwd PE | 8.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PCG is valued a bit cheaper than 63.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.25 |
4.3 Compensation for Growth
PCG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.89
PEG (5Y)N/A
EPS Next 2Y10.03%
EPS Next 3Y9.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.74%, PCG is not a good candidate for dividend investing.
The stock price of PCG dropped by -21.94% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.64, PCG's dividend is way lower than its industry peers. On top of this 82.98% of the companies listed in the same industry pay a better dividend than PCG!
Compared to an average S&P500 Dividend Yield of 2.35, PCG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
The dividend of PCG decreases each year by -53.24%.
PCG has been paying a dividend for at least 10 years, so it has 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
6.09% of the earnings are spent on dividend by PCG. This is a low number and sustainable payout ratio.
DP6.09%
EPS Next 2Y10.03%
EPS Next 3Y9.79%
13.45
+0.19 (+1.43%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners96.71%
Inst Owner Change0%
Ins Owners0.17%
Ins Owner Change0.41%
Market Cap29.56B
Analysts77.27
Price Target20.87 (55.17%)
Short Float %1.46%
Short Ratio1.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend0.04
Dividend Growth(5Y)-53.24%
DP6.09%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.59%
Min EPS beat(2)-4.14%
Max EPS beat(2)-1.04%
EPS beat(4)2
Avg EPS beat(4)2.07%
Min EPS beat(4)-4.14%
Max EPS beat(4)11.69%
EPS beat(8)4
Avg EPS beat(8)-0.6%
EPS beat(12)5
Avg EPS beat(12)1.17%
EPS beat(16)6
Avg EPS beat(16)-0.15%
Revenue beat(2)0
Avg Revenue beat(2)-6.24%
Min Revenue beat(2)-9.05%
Max Revenue beat(2)-3.44%
Revenue beat(4)1
Avg Revenue beat(4)-5.82%
Min Revenue beat(4)-11%
Max Revenue beat(4)0.2%
Revenue beat(8)3
Avg Revenue beat(8)-1.39%
Revenue beat(12)4
Avg Revenue beat(12)-2.8%
Revenue beat(16)7
Avg Revenue beat(16)-1.69%
PT rev (1m)-1.92%
PT rev (3m)0.18%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)0.03%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.19 | ||
| Fwd PE | 8.17 | ||
| P/S | 1.2 | ||
| P/FCF | N/A | ||
| P/OCF | 3.43 | ||
| P/B | 0.96 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 9.25 |
EPS(TTM)1.32
EY9.81%
EPS(NY)1.65
Fwd EY12.24%
FCF(TTM)-0.79
FCFYN/A
OCF(TTM)3.92
OCFY29.17%
SpS11.17
BVpS13.96
TBVpS13.96
PEG (NY)0.89
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 7.66% | ||
| ROCE | 4.19% | ||
| ROIC | 3.27% | ||
| ROICexc | 3.32% | ||
| ROICexgc | 3.32% | ||
| OM | 20.08% | ||
| PM (TTM) | 9.58% | ||
| GM | 85.75% | ||
| 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-Score5
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.9 | ||
| Cap/Depr | 243.11% | ||
| Cap/Sales | 42.24% | ||
| Interest Coverage | 2.04 | ||
| Cash Conversion | 93.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 0.43 |
F-Score5
WACC5.29%
ROIC/WACC0.62
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)0.76%
EPS 3Y12.31%
EPS 5Y-19.12%
EPS Q2Q%-10.81%
EPS Next Y11.45%
EPS Next 2Y10.03%
EPS Next 3Y9.79%
EPS Next 5Y9.4%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y5.76%
Revenue growth 5Y7.35%
Sales Q2Q%2.08%
Revenue Next Year3.55%
Revenue Next 2Y3.22%
Revenue Next 3Y3.26%
Revenue Next 5Y2.76%
EBIT growth 1Y26%
EBIT growth 3Y22.92%
EBIT growth 5Y29.77%
EBIT Next Year95.66%
EBIT Next 3Y32.46%
EBIT Next 5Y21.41%
FCF growth 1Y72.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y165.7%
OCF growth 3Y52.58%
OCF growth 5Y10.78%