P G & E CORP (PCG) Stock Fundamental Analysis
NYSE:PCG - New York Stock Exchange, Inc. - US69331C1080 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to PCG. PCG was compared to 46 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 valuation in line with the averages, but it does not seem to be growing.
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
PCG has a Return On Assets of 1.85%. This is in the lower half of the industry: PCG underperforms 65.22% of its industry peers.
PCG has a Return On Equity (8.21%) which 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.
Measured over the past 3 years, the Average Return On Invested Capital for PCG is below the industry average of 4.69%.
The last Return On Invested Capital (3.28%) for PCG is above the 3 year average (2.53%), which is a sign of increasing profitability.
| 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 has a Profit Margin (10.14%) which is in line with its industry peers.
PCG has a Operating Margin (20.21%) which is in line with its industry peers.
PCG's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 85.86%, PCG belongs to the best of the industry, outperforming 80.43% of the companies in the same industry.
PCG's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PCG is destroying value.
The number of shares outstanding for PCG has been increased compared to 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
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.
A Debt/Equity ratio of 1.83 is on the high side and indicates that PCG has dependencies on debt financing.
The Debt to Equity ratio of PCG (1.83) is worse than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.5 |
ROIC/WACC0.59
WACC5.56%
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.
PCG has a better Current ratio (1.05) than 78.26% of its industry peers.
A Quick Ratio of 1.00 indicates that PCG should not have too much problems paying 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 been growing slightly by 0.76% over the past year.
PCG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.12% yearly.
The Revenue has decreased by -0.04% in the past year.
Measured over the past years, PCG shows a small growth in Revenue. The Revenue has been growing by 7.35% on average per year.
EPS 1Y (TTM)0.76%
EPS 3Y12.31%
EPS 5Y-19.12%
EPS Q2Q%-10.81%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y5.76%
Revenue growth 5Y7.35%
Sales Q2Q%2.08%
3.2 Future
PCG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.33% yearly.
Based on estimates for the next years, PCG will show a small growth in Revenue. The Revenue will grow by 2.96% on average per year.
EPS Next Y11.36%
EPS Next 2Y9.98%
EPS Next 3Y9.79%
EPS Next 5Y9.33%
Revenue Next Year3.54%
Revenue Next 2Y3.11%
Revenue Next 3Y3.18%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.98 indicates a correct valuation of PCG.
Based on the Price/Earnings ratio, PCG is valued a bit cheaper than 73.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of PCG to the average of the S&P500 Index (28.79), we can say PCG is valued rather cheaply.
A Price/Forward Earnings ratio of 10.42 indicates a reasonable valuation of PCG.
Based on the Price/Forward Earnings ratio, PCG is valued cheaper than 82.61% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PCG to the average of the S&P500 Index (21.38), we can say PCG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 10.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PCG is valued a bit cheaper than the industry average as 71.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.25 |
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)1.14
PEG (5Y)N/A
EPS Next 2Y9.98%
EPS Next 3Y9.79%
5. Dividend
5.1 Amount
PCG has a yearly dividend return of 0.40%, which is pretty low.
Compared to an average industry Dividend Yield of 3.46, 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 | 0.4% |
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
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%
17.14
-0.25 (-1.44%)
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 Cap37.67B
Analysts76.52
Price Target20.95 (22.23%)
Short Float %2.11%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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 | 12.98 | ||
| Fwd PE | 10.42 | ||
| P/S | 1.54 | ||
| P/FCF | N/A | ||
| P/OCF | 4.69 | ||
| P/B | 1.25 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 10.25 |
EPS(TTM)1.32
EY7.7%
EPS(NY)1.65
Fwd EY9.6%
FCF(TTM)-1.06
FCFYN/A
OCF(TTM)3.66
OCFY21.33%
SpS11.11
BVpS13.72
TBVpS13.72
PEG (NY)1.14
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
WACC5.56%
ROIC/WACC0.59
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 Y11.36%
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%2.08%
Revenue Next Year3.54%
Revenue Next 2Y3.11%
Revenue Next 3Y3.18%
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%