PUBLIC SERVICE ENTERPRISE GP (PEG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PEG - US7445731067 - Common Stock
78.68 USD
+1.25 (+1.61%)
78.68 USD
0 (0%)
Taking everything into account, PEG scores 5 out of 10 in our fundamental rating. PEG was compared to 26 industry peers in the Multi-Utilities industry. PEG scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, PEG is valued expensive at the moment.
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.
Each year in the past 5 years PEG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.66%, PEG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
PEG's Return On Equity of 12.24% is amongst the best of the industry. PEG outperforms 96.15% of its industry peers.
The Return On Invested Capital of PEG (4.99%) is better than 100.00% of its industry peers.
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
The Profit Margin of PEG (17.77%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of PEG has remained more or less at the same level.
The Operating Margin of PEG (24.92%) is better than 84.62% of its industry peers.
PEG's Operating Margin has been stable in the last couple of years.
| 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
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 remains at a similar level compared to 1 year ago.
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
PEG has an Altman-Z score of 1.29. 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 1.29, PEG belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
PEG has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
PEG's Debt to Equity ratio of 1.32 is fine compared to the rest of the industry. PEG outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC0.72
WACC6.89%
2.3 Liquidity
PEG has a Current 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.
Looking at the Current ratio, with a value of 0.93, PEG is in line with its industry, outperforming 57.69% of the companies in the same industry.
A Quick Ratio of 0.69 indicates that PEG may have some problems paying its short term obligations.
The Quick ratio of PEG (0.69) is better than 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.
The Earnings Per Share has been growing slightly by 2.33% on average over the past years.
The Revenue has grown by 12.35% in the past year. This is quite good.
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
PEG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.34% yearly.
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.
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
The Price/Earnings ratio is 18.87, which indicates a rather expensive current valuation of PEG.
Based on the Price/Earnings ratio, PEG is valued a bit more expensive than the industry average as 65.38% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of PEG to the average of the S&P500 Index (27.19), we can say PEG is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.63, the valuation of PEG can be described as rather expensive.
Based on the Price/Forward Earnings ratio, PEG is valued a bit 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 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.87 | ||
| Fwd PE | 17.63 |
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 | 14.08 |
4.3 Compensation for Growth
PEG's 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
PEG has a Yearly Dividend Yield of 3.25%.
Compared to an average industry Dividend Yield of 4.11, PEG is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 1.92, PEG pays a better dividend.
| 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.
The dividend of PEG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP59.65%
EPS Next 2Y10.12%
EPS Next 3Y8.94%
78.68
+1.25 (+1.61%)
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 Cap39.27B
Revenue(TTM)11.72B
Net Income(TTM)2.08B
Analysts73.08
Price Target90.45 (14.96%)
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 | 18.87 | ||
| Fwd PE | 17.63 | ||
| P/S | 3.35 | ||
| P/FCF | N/A | ||
| P/OCF | 13.34 | ||
| P/B | 2.31 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | 14.08 |
EPS(TTM)4.17
EY5.3%
EPS(NY)4.46
Fwd EY5.67%
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.