P G & E CORP (PCG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PCG - US69331C1080 - Common Stock
15.19 USD
+0.24 (+1.61%)
15.2 USD
+0.01 (+0.07%)
PCG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. PCG has a medium profitability rating, but doesn't score so well on its financial health evaluation. PCG has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- PCG had positive earnings in the past year.
- In the past year PCG had a positive cash flow from operations.
- 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 (1.88%) than 84.78% of its industry peers.
- Looking at the Return On Equity, with a value of 8.12%, PCG is doing worse than 76.09% of the companies in the same industry.
- PCG has a Return On Invested Capital of 3.20%. This is in the lower half of the industry: PCG underperforms 71.74% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PCG is below the industry average of 4.58%.
- The 3 year average ROIC (2.53%) for PCG is below the current ROIC(3.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 8.12% | ||
| ROIC | 3.2% |
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
- The Profit Margin of PCG (10.49%) is worse than 69.57% of its industry peers.
- Looking at the Operating Margin, with a value of 20.31%, PCG is in line with its industry, outperforming 50.00% of the companies in the same industry.
- PCG's Operating Margin has improved in the last couple of years.
- PCG's Gross Margin of 86.01% is fine compared to the rest of the industry. PCG outperforms 78.26% of its industry peers.
- PCG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.31% | ||
| PM (TTM) | 10.49% | ||
| GM | 86.01% |
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.
- Compared to 1 year ago, PCG has more shares outstanding
- Compared to 5 years ago, PCG has more shares outstanding
- Compared to 1 year ago, PCG has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.47, we must say that PCG is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.47, PCG is not doing good in the industry: 84.78% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 1.77 is on the high side and indicates that PCG has dependencies on debt financing.
- PCG has a Debt to Equity ratio of 1.77. This is in the lower half of the industry: PCG underperforms 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.47 |
ROIC/WACC0.6
WACC5.37%
2.3 Liquidity
- PCG has a Current Ratio of 0.94. 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's Current ratio of 0.94 is fine compared to the rest of the industry. PCG outperforms 65.22% of its industry peers.
- PCG has a Quick Ratio of 0.94. 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 of 0.89. This is in the better half of the industry: PCG outperforms 71.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
- PCG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.61%.
- 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.
- Looking at the last year, PCG shows a decrease in Revenue. The Revenue has decreased by -0.27% in the last year.
- PCG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.35% yearly.
EPS 1Y (TTM)-4.61%
EPS 3Y12.31%
EPS 5Y-19.12%
EPS Q2Q%35.14%
Revenue 1Y (TTM)-0.27%
Revenue growth 3Y5.76%
Revenue growth 5Y7.35%
Sales Q2Q%5.2%
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 9.62% on average per year.
- The Revenue is expected to grow by 3.10% on average over the next years.
EPS Next Y11.44%
EPS Next 2Y9.98%
EPS Next 3Y9.88%
EPS Next 5Y9.62%
Revenue Next Year2.43%
Revenue Next 2Y3.54%
Revenue Next 3Y3.52%
Revenue Next 5Y3.1%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- With a Price/Earnings ratio of 10.48, the valuation of PCG can be described as very reasonable.
- PCG's Price/Earnings ratio is a bit cheaper when compared to the industry. PCG is cheaper than 78.26% of the companies in the same industry.
- When comparing the Price/Earnings ratio of PCG to the average of the S&P500 Index (27.25), we can say PCG is valued rather cheaply.
- With a Price/Forward Earnings ratio of 9.23, the valuation of PCG can be described as very reasonable.
- 80.43% of the companies in the same industry are more expensive than PCG, based on the Price/Forward Earnings ratio.
- PCG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.48 | ||
| Fwd PE | 9.23 |
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 67.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.73 |
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)0.92
PEG (5Y)N/A
EPS Next 2Y9.98%
EPS Next 3Y9.88%
5. Dividend
5.1 Amount
- PCG has a Yearly Dividend Yield of 1.32%.
- Compared to an average industry Dividend Yield of 2.90, PCG's dividend is way lower than its industry peers. On top of this 80.43% of the companies listed in the same industry pay a better dividend than PCG!
- Compared to the average S&P500 Dividend Yield of 1.82, PCG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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 10.01% of its income as dividend. This is a sustainable payout ratio.
DP10.01%
EPS Next 2Y9.98%
EPS Next 3Y9.88%
P G & E CORP / PCG FAQ
What is the fundamental rating for PCG stock?
ChartMill assigns a fundamental rating of 3 / 10 to PCG.
Can you provide the valuation status for P G & E CORP?
ChartMill assigns a valuation rating of 5 / 10 to P G & E CORP (PCG). This can be considered as Fairly Valued.
Can you provide the profitability details for P G & E CORP?
P G & E CORP (PCG) has a profitability rating of 4 / 10.
What is the financial health of P G & E CORP (PCG) stock?
The financial health rating of P G & E CORP (PCG) is 1 / 10.
What is the earnings growth outlook for P G & E CORP?
The Earnings per Share (EPS) of P G & E CORP (PCG) is expected to grow by 11.44% in the next year.