P G & E CORP (PCG) Stock Fundamental Analysis
NYSE:PCG - New York Stock Exchange, Inc. - US69331C1080 - Common Stock - Currency: USD
Overall PCG gets a fundamental rating of 3 out of 10. We evaluated PCG against 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 decent growth rate and is not valued too expensively.
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's Return On Assets of 1.74% is on the low side compared to the rest of the industry. PCG is outperformed by 89.36% of its industry peers.
Looking at the Return On Equity, with a value of 7.66%, PCG is doing worse than 78.72% of the companies in the same industry.
PCG has a Return On Invested Capital of 3.27%. This is amonst the worse of the industry: PCG underperforms 80.85% of its industry peers.
PCG had an Average Return On Invested Capital over the past 3 years of 2.53%. This is significantly below the industry average of 38.54%.
The last Return On Invested Capital (3.27%) for PCG is above the 3 year average (2.53%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 9.58%, PCG is doing worse than 74.47% of the companies in the same industry.
PCG has a Operating Margin (20.08%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PCG has grown nicely.
The Gross Margin of PCG (85.75%) is better than 80.85% of its industry peers.
In the last couple of years the Gross Margin of PCG has grown nicely.
| 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.
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.
The debt/assets ratio for PCG has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.44, 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 0.44, PCG is doing worse than 85.11% of the companies in the same industry.
A Debt/Equity ratio of 1.77 is on the high side and indicates that PCG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.77, PCG is doing worse than 70.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.44 |
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.
Looking at the Current ratio, with a value of 0.95, PCG is in line with its industry, outperforming 55.32% of the companies in the same 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 of 0.90. This is comparable to the rest of the industry: PCG outperforms 59.57% of its industry peers.
| 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
Looking at the last year, PCG shows a small growth in Revenue. The Revenue has grown by 1.91% 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)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.
The Revenue is expected to grow by 2.76% on average over the next years.
EPS Next Y11.41%
EPS Next 2Y9.81%
EPS Next 3Y9.6%
EPS Next 5Y9.4%
Revenue Next Year3.4%
Revenue Next 2Y3.19%
Revenue Next 3Y3.26%
Revenue Next 5Y2.76%
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
PCG is valuated reasonably with a Price/Earnings ratio of 10.54.
Compared to the rest of the industry, the Price/Earnings ratio of PCG indicates a somewhat cheap valuation: PCG is cheaper than 70.21% of the companies listed in the same industry.
PCG is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.48, the valuation of PCG can be described as very reasonable.
Based on the Price/Forward Earnings ratio, PCG is valued cheaper than 82.98% of the companies in the same industry.
PCG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 8.48 |
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 | 9.41 |
4.3 Compensation for Growth
The 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 2Y9.81%
EPS Next 3Y9.6%
5. Dividend
5.1 Amount
PCG has a yearly dividend return of 0.72%, which is pretty low.
Compared to an average industry Dividend Yield of 3.63, 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 2.37, PCG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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 6.09% of its income as dividend. This is a sustainable payout ratio.
DP6.09%
EPS Next 2Y9.81%
EPS Next 3Y9.6%
13.91
-0.08 (-0.57%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners96.71%
Inst Owner Change-53.16%
Ins Owners0.17%
Ins Owner Change0.41%
Market Cap30.57B
Analysts77.27
Price Target20.87 (50.04%)
Short Float %1.19%
Short Ratio1.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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)-1.69%
PT rev (3m)0.18%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)0.53%
EPS NY rev (1m)0%
EPS NY rev (3m)0.27%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 8.48 | ||
| P/S | 1.25 | ||
| P/FCF | N/A | ||
| P/OCF | 3.55 | ||
| P/B | 1 | ||
| P/tB | 1 | ||
| EV/EBITDA | 9.41 |
EPS(TTM)1.32
EY9.49%
EPS(NY)1.64
Fwd EY11.79%
FCF(TTM)-0.79
FCFYN/A
OCF(TTM)3.92
OCFY28.2%
SpS11.17
BVpS13.96
TBVpS13.96
PEG (NY)0.92
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 | 0.44 |
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 Y11.41%
EPS Next 2Y9.81%
EPS Next 3Y9.6%
EPS Next 5Y9.4%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y5.76%
Revenue growth 5Y7.35%
Sales Q2Q%2.08%
Revenue Next Year3.4%
Revenue Next 2Y3.19%
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%