PUBLIC SERVICE ENTERPRISE GP (PEG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PEG - US7445731067 - Common Stock
81.45 USD
+1.03 (+1.28%)
81.42 USD
-0.03 (-0.04%)
We assign a fundamental rating of 5 out of 10 to PEG. 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. PEG is valied quite expensively at the moment, while 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.
- Of the past 5 years PEG 4 years were profitable.
- In the past 5 years PEG always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 3.66%, PEG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- PEG has a Return On Equity of 12.24%. This is amongst the best in the industry. PEG outperforms 96.15% of its industry peers.
- PEG's Return On Invested Capital of 4.99% is amongst the best of the industry. PEG outperforms 100.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PEG is in line with the industry average of 3.94%.
- The last Return On Invested Capital (4.99%) for PEG is above the 3 year average (4.83%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 17.77%, PEG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- 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.
- The number of shares outstanding for PEG has been reduced compared to 5 years ago.
- Compared to 1 year ago, PEG has a worse debt to assets ratio.
2.2 Solvency
- PEG has an Altman-Z score of 1.30. 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 1.30, 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 | 1.3 |
ROIC/WACC0.72
WACC6.94%
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.
- The Current ratio of PEG (0.93) is comparable to the rest of the industry.
- A Quick Ratio of 0.69 indicates that PEG may have some problems paying 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
- The Earnings Per Share has grown by an impressive 23.37% over the past year.
- 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.
- The Revenue has been growing slightly by 0.42% on average over the past years.
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 Y10.91%
EPS Next 2Y9.84%
EPS Next 3Y8.87%
EPS Next 5Y8.34%
Revenue Next Year17.77%
Revenue Next 2Y10.1%
Revenue Next 3Y8.05%
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
- With a Price/Earnings ratio of 19.53, PEG is valued on the expensive side.
- Based on the Price/Earnings ratio, PEG is valued a bit more expensive than 65.38% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, PEG is valued a bit cheaper.
- PEG is valuated rather expensively with a Price/Forward Earnings ratio of 18.34.
- Based on the Price/Forward Earnings ratio, PEG is valued a bit more expensive than 69.23% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. PEG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.53 | ||
| Fwd PE | 18.34 |
4.2 Price Multiples
- PEG's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. PEG is more expensive than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.28 |
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)1.79
PEG (5Y)8.39
EPS Next 2Y9.84%
EPS Next 3Y8.87%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.17%, PEG has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.77, PEG is paying slightly less dividend.
- PEG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
5.2 History
- The dividend of PEG has a limited annual growth rate of 4.96%.
- 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)4.96%
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 2Y9.84%
EPS Next 3Y8.87%
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 10.91% in the next year.