PUBLIC SERVICE ENTERPRISE GP (PEG)
US7445731067 - Common Stock
PEG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 25 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 valued expensive and it does not seem to be growing.
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.
In the past 5 years PEG always reported a positive cash flow from operatings.
1.2 Ratios
PEG has a Return On Assets of 3.76%. This is amongst the best in the industry. PEG outperforms 100.00% of its industry peers.
PEG's Return On Equity of 12.63% is fine compared to the rest of the industry. PEG outperforms 68.00% of its industry peers.
PEG has a Return On Invested Capital of 4.45%. This is amongst the best in the industry. PEG outperforms 88.00% of its industry peers.
PEG had an Average Return On Invested Capital over the past 3 years of 4.22%. This is in line with the industry average of 3.69%.
The 3 year average ROIC (4.22%) for PEG is below the current ROIC(4.45%), indicating increased profibility in the last year.
| 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.
PEG has a better Operating Margin (25.00%) than 88.00% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PEG is destroying value.
Compared to 1 year ago, PEG has more shares outstanding
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
Based on the Altman-Z score of 1.35, we must say that PEG is in the distress zone and has some risk of bankruptcy.
PEG has a Altman-Z score of 1.35. This is amongst the best in the industry. PEG outperforms 100.00% 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 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.35 |
ROIC/WACC0.62
WACC7.14%
2.3 Liquidity
A Current Ratio of 0.68 indicates that PEG may have some problems paying its short term obligations.
PEG has a Current ratio of 0.68. This is in the lower half of the industry: PEG underperforms 68.00% 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 worse Quick ratio (0.48) than 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The earnings per share for PEG have decreased by -5.59% in the last year.
The Earnings Per Share has been growing slightly by 2.21% on average over the past years.
The Revenue for PEG has decreased by -11.39% in the past year. This is quite bad
Measured over the past years, PEG shows a small growth in Revenue. The Revenue has been growing by 2.99% on average per year.
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 7.54% on average over the next years.
The Revenue is expected to grow by 2.40% on average over the next years.
EPS Next Y6.3%
EPS Next 2Y8.75%
EPS Next 3Y8.33%
EPS Next 5Y7.54%
Revenue Next Year-4.91%
Revenue Next 2Y0.4%
Revenue Next 3Y1.78%
Revenue Next 5Y2.4%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.32, PEG can be considered very expensive at the moment.
88.00% of the companies in the same industry are cheaper than PEG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.96, PEG is valued at the same level.
The Price/Forward Earnings ratio is 22.44, which indicates a rather expensive current valuation of PEG.
PEG's Price/Forward Earnings ratio is rather expensive when compared to the industry. PEG is more expensive than 88.00% of the companies in the same industry.
PEG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.32 | ||
| Fwd PE | 22.44 |
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 | 16.71 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.33
PEG (5Y)12.37
EPS Next 2Y8.75%
EPS Next 3Y8.33%
5. Dividend
5.1 Amount
PEG has a Yearly Dividend Yield of 2.76%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.95, PEG's dividend is way lower than its industry peers. On top of this 88.00% 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 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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 2Y8.75%
EPS Next 3Y8.33%
PUBLIC SERVICE ENTERPRISE GP
NYSE:PEG (11/21/2024, 8:04:00 PM)
After market: 92.35 0 (0%)92.35
+1.86 (+2.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap46.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.32 | ||
| Fwd PE | 22.44 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.33
PEG (5Y)12.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 12.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25% | ||
| PM (TTM) | 19.48% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-5.59%
EPS 3Y0.48%
EPS 5Y
EPS Q2Q%
EPS Next Y6.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.39%
Revenue growth 3Y5.38%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y