PUBLIC SERVICE ENTERPRISE GP (PEG)
US7445731067 - Common Stock
Overall PEG gets a fundamental rating of 4 out of 10. We evaluated PEG 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 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.
In the past 5 years PEG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.76%, PEG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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.
The Return On Invested Capital of PEG (4.45%) is better 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
PEG has a better Profit Margin (19.48%) than 92.00% of its industry peers.
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.
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
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 more shares outstanding
Compared to 5 years ago, PEG has less shares outstanding
Compared to 1 year ago, PEG has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.31, we must say that PEG is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.31, PEG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 | 1.31 |
ROIC/WACC0.62
WACC7.14%
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 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
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.
PEG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.39%.
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
PEG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.94% yearly.
Based on estimates for the next years, PEG will show a small growth in Revenue. The Revenue will grow by 2.58% on average per year.
EPS Next Y6.29%
EPS Next 2Y8.35%
EPS Next 3Y8.03%
EPS Next 5Y6.94%
Revenue Next Year-4.68%
Revenue Next 2Y0.45%
Revenue Next 3Y1.77%
Revenue Next 5Y2.58%
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
PEG is valuated quite expensively with a Price/Earnings ratio of 25.17.
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 27.73, PEG is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.82, the valuation of PEG can be described as rather expensive.
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 (22.83), we can say PEG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.17 | ||
| Fwd PE | 20.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEG is valued expensively inside the industry as 88.00% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.03 |
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
PEG (5Y)11.4
EPS Next 2Y8.35%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
PEG has a Yearly Dividend Yield of 2.88%.
Compared to an average industry Dividend Yield of 3.92, PEG's dividend is way lower than its industry peers. On top of this 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 2.34, PEG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
5.2 History
The dividend of PEG has a limited annual growth rate of 4.85%.
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)4.85%
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 2Y8.35%
EPS Next 3Y8.03%
PUBLIC SERVICE ENTERPRISE GP
NYSE:PEG (12/20/2024, 8:04:00 PM)
After market: 85.65 +0.59 (+0.69%)85.06
+1.87 (+2.25%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners76.72%
Inst Owner Change1.2%
Ins Owners0.1%
Ins Owner Change-2.88%
Market Cap42.37B
Analysts73.85
Price Target90.97 (6.95%)
Short Float %0.98%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
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)-0.29%
PT rev (3m)9.04%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)26.69%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)8.48%
Revenue NQ rev (3m)4.02%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)-1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.17 | ||
| Fwd PE | 20.82 | ||
| P/S | 4.06 | ||
| P/FCF | N/A | ||
| P/OCF | 17.11 | ||
| P/B | 2.63 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | 16.03 |
EPS(TTM)3.38
EY3.97%
EPS(NY)4.09
Fwd EY4.8%
FCF(TTM)-1.79
FCFYN/A
OCF(TTM)4.97
OCFY5.84%
SpS20.94
BVpS32.31
TBVpS32.31
PEG (NY)4
PEG (5Y)11.4
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 | 1.31 |
F-Score4
WACC7.14%
ROIC/WACC0.62
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-4.68%
Revenue Next 2Y0.45%
Revenue Next 3Y1.77%
Revenue Next 5Y2.58%
EBIT growth 1Y-34.66%
EBIT growth 3Y19.81%
EBIT growth 5Y9.95%
EBIT Next Year61.4%
EBIT Next 3Y24.97%
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%