PUBLIC SERVICE ENTERPRISE GP (PEG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PEG - US7445731067 - Common Stock
78.28 USD
-1.12 (-1.41%)
78.28 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
- In the past year PEG was profitable.
- In the past year PEG had a positive cash flow from operations.
- 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
- The Return On Assets of PEG (3.66%) is better than 100.00% of its industry peers.
- 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.
- Looking at the Return On Invested Capital, with a value of 4.99%, PEG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- 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.
- With an excellent Operating Margin value of 24.92%, PEG belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
- 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.
- PEG has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for PEG has been reduced compared to 5 years ago.
- PEG has a worse debt/assets ratio than last year.
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.
- PEG has a Altman-Z score of 1.29. This is amongst the best in the industry. PEG outperforms 92.31% of its industry peers.
- PEG has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
- PEG has a better Debt to Equity ratio (1.32) than 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
WACC6.93%
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.
- PEG has a Current ratio of 0.93. This is comparable to the rest of the industry: PEG outperforms 57.69% of its industry peers.
- A Quick Ratio of 0.69 indicates that PEG may have some problems paying its short term obligations.
- PEG's Quick ratio of 0.69 is fine compared to the rest 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.
- Looking at the last year, PEG shows a quite strong growth in Revenue. The Revenue has grown by 12.35% in the last year.
- 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
- The Earnings Per Share is expected to grow by 8.34% on average over the next years. This is quite good.
- PEG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.42% yearly.
EPS Next Y10.97%
EPS Next 2Y10.12%
EPS Next 3Y8.94%
EPS Next 5Y8.34%
Revenue Next Year17.76%
Revenue Next 2Y10.11%
Revenue Next 3Y8.02%
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
- A Price/Earnings ratio of 18.77 indicates a rather expensive valuation of PEG.
- Compared to the rest of the industry, the Price/Earnings ratio of PEG indicates a slightly more expensive valuation: PEG is more expensive than 61.54% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, PEG is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 17.54, the valuation of PEG can be described as rather expensive.
- 69.23% of the companies in the same industry are cheaper than PEG, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, PEG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.77 | ||
| Fwd PE | 17.54 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PEG is valued expensively inside the industry as 84.62% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.16 |
4.3 Compensation for Growth
- PEG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of PEG may justify a higher PE ratio.
PEG (NY)1.71
PEG (5Y)8.06
EPS Next 2Y10.12%
EPS Next 3Y8.94%
5. Dividend
5.1 Amount
- PEG has a Yearly Dividend Yield of 3.17%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 4.14, 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 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
- 59.65% of the earnings are spent on dividend by PEG. 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%
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.