PUBLIC SERVICE ENTERPRISE GP (PEG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PEG - US7445731067 - Common Stock
78.6 USD
-0.08 (-0.1%)
78.6 USD
0 (0%)
PEG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 26 industry peers in the Multi-Utilities industry. While PEG has a great profitability rating, there are quite some concerns on its financial health. PEG is quite expensive at the moment. It does show a decent growth rate.
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.
PEG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PEG's Return On Assets of 3.66% is amongst the best of the industry. PEG outperforms 100.00% of its industry peers.
PEG has a better Return On Equity (12.24%) than 96.15% of its industry peers.
With an excellent Return On Invested Capital value of 4.99%, PEG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PEG had an Average Return On Invested Capital over the past 3 years of 4.83%. This is in line with the industry average of 3.94%.
The 3 year average ROIC (4.83%) for PEG is below the current ROIC(4.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.66% | ||
| ROE | 12.24% | ||
| ROIC | 4.99% |
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
PEG's Profit Margin of 17.77% is amongst the best of the industry. PEG outperforms 100.00% of its industry peers.
PEG's Profit Margin has been stable in the last couple of years.
PEG's Operating Margin of 24.92% is amongst the best of the industry. PEG outperforms 84.62% of its industry peers.
In the last couple of years the Operating Margin of PEG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.92% | ||
| PM (TTM) | 17.77% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PEG is destroying value.
Compared to 1 year ago, PEG has about the same amount of shares outstanding.
Compared to 5 years ago, PEG has less shares outstanding
Compared to 1 year ago, PEG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that PEG is in the distress zone and has some risk of bankruptcy.
PEG's Altman-Z score of 1.29 is amongst the best of the industry. PEG outperforms 92.31% of its industry peers.
PEG has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 1.32, PEG is doing good in the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC0.72
WACC6.89%
2.3 Liquidity
A Current Ratio of 0.93 indicates that PEG may have some problems paying its short term obligations.
PEG has a Current ratio (0.93) which is in line with its industry peers.
PEG has a Quick Ratio of 0.93. 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 of 0.69. This is in the better half of the industry: PEG outperforms 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
PEG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.37%, which is quite impressive.
PEG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.33% yearly.
Looking at the last year, PEG shows a quite strong growth in Revenue. The Revenue has grown by 12.35% 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)23.37%
EPS 3Y0.27%
EPS 5Y2.33%
EPS Q2Q%25.56%
Revenue 1Y (TTM)12.35%
Revenue growth 3Y1.91%
Revenue growth 5Y0.42%
Sales Q2Q%22.1%
3.2 Future
The Earnings Per Share is expected to grow by 8.34% on average over the next years. This is quite good.
Based on estimates for the next years, PEG will show a small growth in Revenue. The Revenue will grow by 6.42% on average per year.
EPS Next Y10.97%
EPS Next 2Y10.12%
EPS Next 3Y8.94%
EPS Next 5Y8.34%
Revenue Next Year18.64%
Revenue Next 2Y10.43%
Revenue Next 3Y8.3%
Revenue Next 5Y6.42%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.85, which indicates a rather expensive current valuation of PEG.
PEG's Price/Earnings ratio is a bit more expensive when compared to the industry. PEG is more expensive than 65.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. PEG is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.61, which indicates a rather expensive current valuation of PEG.
PEG's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PEG is more expensive than 69.23% of the companies in the same industry.
PEG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 17.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PEG indicates a rather expensive valuation: PEG more expensive than 88.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.07 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.72
PEG (5Y)8.1
EPS Next 2Y10.12%
EPS Next 3Y8.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.25%, PEG has a reasonable but not impressive dividend return.
PEG's Dividend Yield is slightly below the industry average, which is at 4.11.
PEG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
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 59.65% of its income as dividend. 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.
DP59.65%
EPS Next 2Y10.12%
EPS Next 3Y8.94%
78.6
-0.08 (-0.1%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners77.04%
Inst Owner Change0.3%
Ins Owners0.11%
Ins Owner Change-3.42%
Market Cap39.23B
Revenue(TTM)11.72B
Net Income(TTM)2.08B
Analysts73.08
Price Target90.45 (15.08%)
Short Float %1.57%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
Yearly Dividend2.4
Dividend Growth(5Y)4.96%
DP59.65%
Div Incr Years13
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.62%
Min EPS beat(2)9.16%
Max EPS beat(2)10.08%
EPS beat(4)3
Avg EPS beat(4)4.58%
Min EPS beat(4)-1.44%
Max EPS beat(4)10.08%
EPS beat(8)5
Avg EPS beat(8)2.53%
EPS beat(12)9
Avg EPS beat(12)4.58%
EPS beat(16)12
Avg EPS beat(16)4.74%
Revenue beat(2)2
Avg Revenue beat(2)12.03%
Min Revenue beat(2)11.89%
Max Revenue beat(2)12.17%
Revenue beat(4)3
Avg Revenue beat(4)5.43%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)12.17%
Revenue beat(8)6
Avg Revenue beat(8)4.99%
Revenue beat(12)10
Avg Revenue beat(12)12.87%
Revenue beat(16)12
Avg Revenue beat(16)9.71%
PT rev (1m)-2.58%
PT rev (3m)-1.52%
EPS NQ rev (1m)-2.99%
EPS NQ rev (3m)-11.56%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)3.72%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)6.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 17.61 | ||
| P/S | 3.35 | ||
| P/FCF | N/A | ||
| P/OCF | 13.33 | ||
| P/B | 2.31 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | 14.07 |
EPS(TTM)4.17
EY5.31%
EPS(NY)4.46
Fwd EY5.68%
FCF(TTM)-0.35
FCFYN/A
OCF(TTM)5.9
OCFY7.5%
SpS23.48
BVpS34.08
TBVpS34.08
PEG (NY)1.72
PEG (5Y)8.1
Graham Number56.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.66% | ||
| ROE | 12.24% | ||
| ROCE | 5.63% | ||
| ROIC | 4.99% | ||
| ROICexc | 5.02% | ||
| ROICexgc | 5.02% | ||
| OM | 24.92% | ||
| PM (TTM) | 17.77% | ||
| 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%
ROICexgc growth 3Y6%
ROICexgc 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-Score5
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.15 | ||
| Cap/Depr | 215.69% | ||
| Cap/Sales | 26.63% | ||
| Interest Coverage | 3.16 | ||
| Cash Conversion | 67.41% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.29 |
F-Score5
WACC6.89%
ROIC/WACC0.72
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)23.37%
EPS 3Y0.27%
EPS 5Y2.33%
EPS Q2Q%25.56%
EPS Next Y10.97%
EPS Next 2Y10.12%
EPS Next 3Y8.94%
EPS Next 5Y8.34%
Revenue 1Y (TTM)12.35%
Revenue growth 3Y1.91%
Revenue growth 5Y0.42%
Sales Q2Q%22.1%
Revenue Next Year18.64%
Revenue Next 2Y10.43%
Revenue Next 3Y8.3%
Revenue Next 5Y6.42%
EBIT growth 1Y12.01%
EBIT growth 3Y9.82%
EBIT growth 5Y0.12%
EBIT Next Year67.07%
EBIT Next 3Y24.92%
EBIT Next 5Y16.48%
FCF growth 1Y-123.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-24.47%
OCF growth 3Y7.11%
OCF growth 5Y-8.79%
PUBLIC SERVICE ENTERPRISE GP / PEG FAQ
Can you provide the ChartMill fundamental rating for PUBLIC SERVICE ENTERPRISE GP?
ChartMill assigns a fundamental rating of 5 / 10 to PEG.
What is the valuation status of PUBLIC SERVICE ENTERPRISE GP (PEG) stock?
ChartMill assigns a valuation rating of 2 / 10 to PUBLIC SERVICE ENTERPRISE GP (PEG). This can be considered as Overvalued.
What is the profitability of PEG stock?
PUBLIC SERVICE ENTERPRISE GP (PEG) has a profitability rating of 7 / 10.
Can you provide the financial health for PEG stock?
The financial health rating of PUBLIC SERVICE ENTERPRISE GP (PEG) is 3 / 10.
What is the earnings growth outlook for PUBLIC SERVICE ENTERPRISE GP?
The Earnings per Share (EPS) of PUBLIC SERVICE ENTERPRISE GP (PEG) is expected to grow by 10.97% in the next year.