PUBLIC SERVICE ENTERPRISE GP (PEG) Stock Fundamental Analysis
NYSE:PEG - New York Stock Exchange, Inc. - US7445731067 - Common Stock
We assign a fundamental rating of 4 out of 10 to PEG. PEG was compared to 25 industry peers in the Multi-Utilities industry. PEG has an excellent profitability rating, but there are concerns on its financial health. PEG has a expensive valuation and it also scores bad on growth.
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
The Return On Assets of PEG (3.76%) is better than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 12.63%, PEG is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
PEG has a better Return On Invested Capital (4.45%) than 92.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
Looking at the Profit Margin, with a value of 19.48%, PEG belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
In the last couple of years the Profit Margin of PEG has grown nicely.
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.
PEG's Operating Margin has improved in the last couple of years.
| 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.
PEG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PEG has been reduced compared to 5 years ago.
The debt/assets ratio for PEG has been reduced compared to a year ago.
2.2 Solvency
PEG has an Altman-Z score of 1.35. This is a bad value and indicates that PEG is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.35, PEG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 1.21 is on the high side and indicates that PEG has dependencies on debt financing.
The Debt to Equity ratio of PEG (1.21) is better than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.35 |
ROIC/WACC0.61
WACC7.25%
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's Current ratio of 0.68 is on the low side compared to the rest of the industry. PEG is outperformed by 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 of 0.48. This is in the lower half of the industry: PEG underperforms 72.00% of 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%.
Measured over the past 5 years, PEG shows a small growth in Earnings Per Share. The EPS has been growing by 2.21% on average per year.
Looking at the last year, PEG shows a very negative growth in Revenue. The Revenue has decreased by -11.39% in the last year.
The Revenue has been growing slightly by 2.99% on average over the past years.
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
The Earnings Per Share is expected to grow by 6.94% on average over the next years.
The Revenue is expected to grow by 2.58% on average over the next years.
EPS Next Y6.29%
EPS Next 2Y8.35%
EPS Next 3Y8.03%
EPS Next 5Y6.94%
Revenue Next Year-4.58%
Revenue Next 2Y0.43%
Revenue Next 3Y1.8%
Revenue Next 5Y2.58%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.30, PEG can be considered very expensive at the moment.
Based on the Price/Earnings ratio, PEG is valued expensively inside the industry as 88.00% of the companies are valued cheaper.
PEG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.76, which indicates a rather expensive current valuation of PEG.
Based on the Price/Forward Earnings ratio, PEG is valued expensively inside the industry as 88.00% of the companies are valued cheaper.
PEG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.3 | ||
| Fwd PE | 21.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEG is valued more expensive than 88.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.7 |
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)4.18
PEG (5Y)11.91
EPS Next 2Y8.35%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
PEG has a Yearly Dividend Yield of 2.71%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.71, PEG pays less dividend than the industry average, which is at 3.82. 92.00% of the companies listed in the same industry pay a better dividend than PEG!
Compared to an average S&P500 Dividend Yield of 2.28, PEG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.85%
Div Incr Years12
Div Non Decr Years33
5.3 Sustainability
PEG pays out 58.12% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of PEG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.12%
EPS Next 2Y8.35%
EPS Next 3Y8.03%
PUBLIC SERVICE ENTERPRISE GP
NYSE:PEG (1/22/2025, 11:34:04 AM)
88.9
-1.49 (-1.65%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners76.72%
Inst Owner Change-0.05%
Ins Owners0.1%
Ins Owner Change-4.9%
Market Cap44.29B
Analysts73.85
Price Target92.47 (4.02%)
Short Float %0.98%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Yearly Dividend2.29
Dividend Growth(5Y)4.85%
DP58.12%
Div Incr Years12
Div Non Decr Years33
Ex-DateN/A
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)1.65%
PT rev (3m)7.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)26.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.02%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.3 | ||
| Fwd PE | 21.76 | ||
| P/S | 4.25 | ||
| P/FCF | N/A | ||
| P/OCF | 17.89 | ||
| P/B | 2.75 | ||
| P/tB | 2.75 | ||
| EV/EBITDA | 16.7 |
EPS(TTM)3.38
EY3.8%
EPS(NY)4.09
Fwd EY4.6%
FCF(TTM)-1.79
FCFYN/A
OCF(TTM)4.97
OCFY5.59%
SpS20.93
BVpS32.3
TBVpS32.3
PEG (NY)4.18
PEG (5Y)11.91
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 | 1.35 |
F-Score4
WACC7.25%
ROIC/WACC0.61
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 Y6.29%
EPS Next 2Y8.35%
EPS Next 3Y8.03%
EPS Next 5Y6.94%
Revenue 1Y (TTM)-11.39%
Revenue growth 3Y5.38%
Revenue growth 5Y2.99%
Sales Q2Q%7.57%
Revenue Next Year-4.58%
Revenue Next 2Y0.43%
Revenue Next 3Y1.8%
Revenue Next 5Y2.58%
EBIT growth 1Y-34.66%
EBIT growth 3Y19.81%
EBIT growth 5Y9.95%
EBIT Next Year60.85%
EBIT Next 3Y24.71%
EBIT Next 5Y17.34%
FCF growth 1Y40.68%
FCF growth 3Y39.03%
FCF growth 5YN/A
OCF growth 1Y96.66%
OCF growth 3Y7.06%
OCF growth 5Y5.49%