PUBLIC SERVICE ENTERPRISE GP (PEG) Stock Fundamental Analysis
NYSE:PEG - New York Stock Exchange, Inc. - US7445731067 - Common Stock - Currency: USD
Overall PEG gets a fundamental rating of 4 out of 10. We evaluated PEG against 25 industry peers in the Multi-Utilities industry. There are concerns on the financial health of PEG while its profitability can be described as average. PEG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PEG had positive earnings in the past year.
PEG had a positive operating cash flow in the past year.
Of the past 5 years PEG 4 years were profitable.
PEG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PEG has a Return On Assets of 3.29%. This is amongst the best in the industry. PEG outperforms 96.00% of its industry peers.
Looking at the Return On Equity, with a value of 11.17%, PEG is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
The Return On Invested Capital of PEG (4.44%) is better than 88.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PEG is in line with the industry average of 3.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.29% | ||
| ROE | 11.17% | ||
| ROIC | 4.44% |
ROA(3y)3.47%
ROA(5y)2.58%
ROE(3y)11.69%
ROE(5y)8.5%
ROIC(3y)4.83%
ROIC(5y)4.45%
1.3 Margins
With an excellent Profit Margin value of 17.01%, PEG belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
PEG's Profit Margin has been stable in the last couple of years.
PEG's Operating Margin of 22.98% is fine compared to the rest of the industry. PEG outperforms 72.00% of its industry peers.
PEG's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.98% | ||
| PM (TTM) | 17.01% | ||
| GM | N/A |
OM growth 3Y7.76%
OM growth 5Y-0.3%
PM growth 3YN/A
PM growth 5Y0.49%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PEG is destroying value.
PEG has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, PEG has less shares outstanding
The debt/assets ratio for PEG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that PEG is in the distress zone and has some risk of bankruptcy.
PEG has a better Altman-Z score (1.26) than 92.00% of its industry peers.
PEG has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
PEG has a Debt to Equity ratio of 1.27. This is in the better half of the industry: PEG outperforms 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.26 |
ROIC/WACC0.63
WACC7.04%
2.3 Liquidity
PEG has a Current Ratio of 0.82. This is a bad value and indicates that PEG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.82, PEG is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
PEG has a Quick Ratio of 0.82. This is a bad value and indicates that PEG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.65, PEG perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.76% over the past year.
Measured over the past 5 years, PEG shows a small growth in Earnings Per Share. The EPS has been growing by 2.33% on average per year.
Looking at the last year, PEG shows a small growth in Revenue. The Revenue has grown by 4.98% in the last year.
PEG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.42% yearly.
EPS 1Y (TTM)11.76%
EPS 3Y0.27%
EPS 5Y2.33%
EPS Q2Q%9.16%
Revenue 1Y (TTM)4.98%
Revenue growth 3Y1.91%
Revenue growth 5Y0.42%
Sales Q2Q%16.74%
3.2 Future
Based on estimates for the next years, PEG will show a small growth in Earnings Per Share. The EPS will grow by 7.87% on average per year.
The Revenue is expected to grow by 6.11% on average over the next years.
EPS Next Y10.46%
EPS Next 2Y9.12%
EPS Next 3Y8.15%
EPS Next 5Y7.87%
Revenue Next Year9.77%
Revenue Next 2Y7.68%
Revenue Next 3Y6.66%
Revenue Next 5Y6.11%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.36, the valuation of PEG can be described as rather expensive.
84.00% of the companies in the same industry are cheaper than PEG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PEG to the average of the S&P500 Index (27.45), we can say PEG is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.52, the valuation of PEG can be described as rather expensive.
Based on the Price/Forward Earnings ratio, PEG is valued more expensive than 80.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. PEG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 18.52 |
4.2 Price Multiples
92.00% of the companies in the same industry are cheaper than PEG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.04
PEG (5Y)9.18
EPS Next 2Y9.12%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
PEG has a Yearly Dividend Yield of 3.10%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 3.10, PEG pays less dividend than the industry average, which is at 4.00. 84.00% of the companies listed in the same industry pay a better dividend than PEG!
PEG's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
5.2 History
The dividend of PEG has a limited annual growth rate of 4.96%.
PEG has been paying a dividend for at least 10 years, so it has a reliable track record.
PEG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.96%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
PEG pays out 66.21% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PEG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.21%
EPS Next 2Y9.12%
EPS Next 3Y8.15%
81.17
-0.05 (-0.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners76.57%
Inst Owner Change0.21%
Ins Owners0.12%
Ins Owner Change9.34%
Market Cap40.50B
Analysts70.83
Price Target87.91 (8.3%)
Short Float %1.55%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
Yearly Dividend2.4
Dividend Growth(5Y)4.96%
DP66.21%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.46%
Min EPS beat(2)-1.44%
Max EPS beat(2)0.53%
EPS beat(4)2
Avg EPS beat(4)-0.09%
Min EPS beat(4)-1.44%
Max EPS beat(4)1.95%
EPS beat(8)5
Avg EPS beat(8)2.92%
EPS beat(12)8
Avg EPS beat(12)3.02%
EPS beat(16)11
Avg EPS beat(16)3.77%
Revenue beat(2)1
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-3.86%
Max Revenue beat(2)1.51%
Revenue beat(4)3
Avg Revenue beat(4)4.82%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)16.94%
Revenue beat(8)6
Avg Revenue beat(8)6.56%
Revenue beat(12)10
Avg Revenue beat(12)12.58%
Revenue beat(16)10
Avg Revenue beat(16)5.09%
PT rev (1m)-0.98%
PT rev (3m)-3.25%
EPS NQ rev (1m)-1.01%
EPS NQ rev (3m)-4.07%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.91%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)3.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 18.52 | ||
| P/S | 3.77 | ||
| P/FCF | N/A | ||
| P/OCF | 16.07 | ||
| P/B | 2.47 | ||
| P/tB | 2.47 | ||
| EV/EBITDA | 16.17 |
EPS(TTM)3.8
EY4.68%
EPS(NY)4.38
Fwd EY5.4%
FCF(TTM)-1.38
FCFYN/A
OCF(TTM)5.05
OCFY6.22%
SpS21.55
BVpS32.81
TBVpS32.81
PEG (NY)2.04
PEG (5Y)9.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.29% | ||
| ROE | 11.17% | ||
| ROCE | 4.97% | ||
| ROIC | 4.44% | ||
| ROICexc | 4.52% | ||
| ROICexgc | 4.52% | ||
| OM | 22.98% | ||
| PM (TTM) | 17.01% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)3.47%
ROA(5y)2.58%
ROE(3y)11.69%
ROE(5y)8.5%
ROIC(3y)4.83%
ROIC(5y)4.45%
ROICexc(3y)4.84%
ROICexc(5y)4.48%
ROICexgc(3y)4.84%
ROICexgc(5y)4.49%
ROCE(3y)5.52%
ROCE(5y)5.13%
ROICexcg growth 3Y6%
ROICexcg growth 5Y-2.47%
ROICexc growth 3Y6.02%
ROICexc growth 5Y-2.41%
OM growth 3Y7.76%
OM growth 5Y-0.3%
PM growth 3YN/A
PM growth 5Y0.49%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.37 | ||
| Cap/Depr | 229.36% | ||
| Cap/Sales | 29.86% | ||
| Interest Coverage | 2.9 | ||
| Cash Conversion | 65.13% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.26 |
F-Score4
WACC7.04%
ROIC/WACC0.63
Cap/Depr(3y)240.8%
Cap/Depr(5y)223.04%
Cap/Sales(3y)30.64%
Cap/Sales(5y)30.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.76%
EPS 3Y0.27%
EPS 5Y2.33%
EPS Q2Q%9.16%
EPS Next Y10.46%
EPS Next 2Y9.12%
EPS Next 3Y8.15%
EPS Next 5Y7.87%
Revenue 1Y (TTM)4.98%
Revenue growth 3Y1.91%
Revenue growth 5Y0.42%
Sales Q2Q%16.74%
Revenue Next Year9.77%
Revenue Next 2Y7.68%
Revenue Next 3Y6.66%
Revenue Next 5Y6.11%
EBIT growth 1Y-9.45%
EBIT growth 3Y9.82%
EBIT growth 5Y0.12%
EBIT Next Year58%
EBIT Next 3Y23.47%
EBIT Next 5Y17.57%
FCF growth 1Y-845.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.1%
OCF growth 3Y7.11%
OCF growth 5Y-8.79%