PUBLIC SERVICE ENTERPRISE GP (PEG) Stock Fundamental Analysis
NYSE:PEG - New York Stock Exchange, Inc. - US7445731067 - Common Stock - Currency: USD
Taking everything into account, PEG scores 4 out of 10 in our fundamental rating. PEG was compared to 25 industry peers in the Multi-Utilities industry. While PEG belongs to the best of the industry regarding profitability, there are concerns on its financial health. PEG does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year PEG was profitable.
PEG had a positive operating cash flow in the past year.
PEG had positive earnings in 4 of the past 5 years.
Each year in the past 5 years PEG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PEG (3.76%) is better than 100.00% of its industry peers.
The Return On Equity of PEG (12.63%) is better than 100.00% of its industry peers.
PEG's Return On Invested Capital of 4.45% is amongst the best of the industry. PEG outperforms 96.00% 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 3.68%.
The last Return On Invested Capital (4.45%) for PEG is above the 3 year average (4.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 12.63% | ||
| ROIC | 4.45% |
ROA(3y)1.95%
ROA(5y)2.64%
ROE(3y)6.53%
ROE(5y)8.54%
ROIC(3y)4.22%
ROIC(5y)4.21%
1.3 Margins
With an excellent Profit Margin value of 19.48%, PEG belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
PEG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 25.00%, PEG belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
In the last couple of years the Operating Margin of PEG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25% | ||
| PM (TTM) | 19.48% | ||
| GM | N/A |
OM growth 3Y13.69%
OM growth 5Y6.75%
PM growth 3Y4.76%
PM growth 5Y8.99%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
PEG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PEG has been increased compared to 1 year ago.
PEG has less shares outstanding than it did 5 years ago.
PEG has a better debt/assets ratio than last year.
2.2 Solvency
PEG has an Altman-Z score of 1.30. This is a bad value and indicates that PEG is not financially healthy and even has some risk of bankruptcy.
PEG has a Altman-Z score of 1.30. This is amongst the best in the industry. PEG outperforms 96.00% of its industry peers.
PEG has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.21, PEG is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.3 |
ROIC/WACC0.63
WACC7.02%
2.3 Liquidity
PEG has a Current Ratio of 0.68. This is a bad value and indicates that PEG is not financially healthy enough and could expect problems in meeting its short term obligations.
PEG has a worse Current ratio (0.68) than 72.00% of its industry peers.
PEG has a Quick Ratio of 0.68. This is a bad value and indicates that PEG is not financially healthy enough and could expect problems in meeting its short term obligations.
PEG has a Quick ratio (0.48) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
PEG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.59%.
PEG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.21% yearly.
The Revenue for PEG has decreased by -11.39% in the past year. This is quite bad
PEG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.99% yearly.
EPS 1Y (TTM)-5.59%
EPS 3Y0.48%
EPS 5Y2.21%
EPS Q2Q%5.88%
Revenue 1Y (TTM)-11.39%
Revenue growth 3Y5.38%
Revenue growth 5Y2.99%
Sales Q2Q%7.57%
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 6.96% on average per year.
Based on estimates for the next years, PEG will show a small growth in Revenue. The Revenue will grow by 2.70% on average per year.
EPS Next Y6.37%
EPS Next 2Y7.92%
EPS Next 3Y7.98%
EPS Next 5Y6.96%
Revenue Next Year-5.22%
Revenue Next 2Y0.18%
Revenue Next 3Y1.75%
Revenue Next 5Y2.7%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.84 indicates a rather expensive valuation of PEG.
Compared to the rest of the industry, the Price/Earnings ratio of PEG indicates a rather expensive valuation: PEG more expensive than 88.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. PEG is around the same levels.
PEG is valuated rather expensively with a Price/Forward Earnings ratio of 20.71.
Based on the Price/Forward Earnings ratio, PEG is valued more expensive than 88.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PEG to the average of the S&P500 Index (22.68), we can say PEG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.84 | ||
| Fwd PE | 20.71 |
4.2 Price Multiples
88.00% 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 | 15.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PEG does not grow enough to justify the current Price/Earnings ratio.
PEG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.9
PEG (5Y)11.25
EPS Next 2Y7.92%
EPS Next 3Y7.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.98%, PEG has a reasonable but not impressive dividend return.
PEG's Dividend Yield is slightly below the industry average, which is at 3.76.
Compared to an average S&P500 Dividend Yield of 2.27, PEG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
The dividend of PEG has a limited annual growth rate of 4.85%.
PEG has paid a dividend for at least 10 years, which is a reliable track record.
PEG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.85%
Div Incr Years12
Div Non Decr Years33
5.3 Sustainability
58.12% of the earnings are spent on dividend by PEG. This is a bit on the high side, but may be sustainable.
PEG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP58.12%
EPS Next 2Y7.92%
EPS Next 3Y7.98%
83.96
-0.71 (-0.84%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners76.72%
Inst Owner Change0.52%
Ins Owners0.1%
Ins Owner Change0.68%
Market Cap41.83B
Analysts72.8
Price Target91.4 (8.86%)
Short Float %0.99%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend2.29
Dividend Growth(5Y)4.85%
DP58.12%
Div Incr Years12
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.28%
Min EPS beat(2)-1.38%
Max EPS beat(2)1.95%
EPS beat(4)2
Avg EPS beat(4)0.48%
Min EPS beat(4)-1.38%
Max EPS beat(4)2.68%
EPS beat(8)6
Avg EPS beat(8)4.58%
EPS beat(12)9
Avg EPS beat(12)4.79%
EPS beat(16)11
Avg EPS beat(16)4.61%
Revenue beat(2)2
Avg Revenue beat(2)10.81%
Min Revenue beat(2)4.68%
Max Revenue beat(2)16.94%
Revenue beat(4)3
Avg Revenue beat(4)4.55%
Min Revenue beat(4)-10.82%
Max Revenue beat(4)16.94%
Revenue beat(8)7
Avg Revenue beat(8)16.59%
Revenue beat(12)9
Avg Revenue beat(12)11.14%
Revenue beat(16)9
Avg Revenue beat(16)3.46%
PT rev (1m)0.11%
PT rev (3m)1.47%
EPS NQ rev (1m)0.9%
EPS NQ rev (3m)0.68%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)8.69%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.84 | ||
| Fwd PE | 20.71 | ||
| P/S | 4.01 | ||
| P/FCF | N/A | ||
| P/OCF | 16.89 | ||
| P/B | 2.6 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 15.98 |
EPS(TTM)3.38
EY4.03%
EPS(NY)4.05
Fwd EY4.83%
FCF(TTM)-1.79
FCFYN/A
OCF(TTM)4.97
OCFY5.92%
SpS20.93
BVpS32.3
TBVpS32.3
PEG (NY)3.9
PEG (5Y)11.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 12.63% | ||
| ROCE | 5.41% | ||
| ROIC | 4.45% | ||
| ROICexc | 4.47% | ||
| ROICexgc | 4.47% | ||
| OM | 25% | ||
| PM (TTM) | 19.48% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)1.95%
ROA(5y)2.64%
ROE(3y)6.53%
ROE(5y)8.54%
ROIC(3y)4.22%
ROIC(5y)4.21%
ROICexc(3y)4.26%
ROICexc(5y)4.24%
ROICexgc(3y)4.26%
ROICexgc(5y)4.25%
ROCE(3y)5.3%
ROCE(5y)5.24%
ROICexcg growth 3Y18.34%
ROICexcg growth 5Y7.21%
ROICexc growth 3Y18.48%
ROICexc growth 5Y7.3%
OM growth 3Y13.69%
OM growth 5Y6.75%
PM growth 3Y4.76%
PM growth 5Y8.99%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.92 | ||
| Cap/Depr | 248.3% | ||
| Cap/Sales | 32.28% | ||
| Interest Coverage | 3.49 | ||
| Cash Conversion | 62.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.3 |
F-Score4
WACC7.02%
ROIC/WACC0.63
Cap/Depr(3y)223.34%
Cap/Depr(5y)218.21%
Cap/Sales(3y)29.01%
Cap/Sales(5y)29.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.59%
EPS 3Y0.48%
EPS 5Y2.21%
EPS Q2Q%5.88%
EPS Next Y6.37%
EPS Next 2Y7.92%
EPS Next 3Y7.98%
EPS Next 5Y6.96%
Revenue 1Y (TTM)-11.39%
Revenue growth 3Y5.38%
Revenue growth 5Y2.99%
Sales Q2Q%7.57%
Revenue Next Year-5.22%
Revenue Next 2Y0.18%
Revenue Next 3Y1.75%
Revenue Next 5Y2.7%
EBIT growth 1Y-34.66%
EBIT growth 3Y19.81%
EBIT growth 5Y9.95%
EBIT Next Year60.23%
EBIT Next 3Y24.67%
EBIT Next 5Y17.37%
FCF growth 1Y40.68%
FCF growth 3Y39.03%
FCF growth 5YN/A
OCF growth 1Y96.66%
OCF growth 3Y7.06%
OCF growth 5Y5.49%