PUBLIC SERVICE ENTERPRISE GP (PEG) Stock Fundamental Analysis
USA - NYSE:PEG - US7445731067 - Common Stock
82.73 USD
-1.06 (-1.27%)
82.73 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to PEG. PEG was compared to 25 industry peers in the Multi-Utilities industry. PEG has a medium profitability rating, but doesn't score so well on its financial health evaluation. PEG is quite expensive at the moment. 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.
PEG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PEG (3.53%) is better than 100.00% of its industry peers.
The Return On Equity of PEG (11.88%) is better than 64.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.68%, PEG belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
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 3.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 11.88% | ||
| ROIC | 4.68% |
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
PEG has a better Profit Margin (17.78%) than 88.00% of its industry peers.
In the last couple of years the Profit Margin of PEG has remained more or less at the same level.
With a decent Operating Margin value of 24.30%, PEG is doing good in the industry, outperforming 80.00% 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 | 24.3% | ||
| PM (TTM) | 17.78% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
The debt/assets ratio for PEG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.32, we must say that PEG is in the distress zone and has some risk of bankruptcy.
PEG has a Altman-Z score of 1.32. This is amongst the best in the industry. PEG outperforms 96.00% of its industry peers.
A Debt/Equity ratio of 1.34 is on the high side and indicates that PEG has dependencies on debt financing.
PEG's Debt to Equity ratio of 1.34 is fine compared to the rest of the industry. PEG outperforms 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC0.69
WACC6.81%
2.3 Liquidity
PEG has a Current Ratio of 1.00. This is a normal value and indicates that PEG is financially healthy and should not expect problems in meeting its short term obligations.
PEG has a better Current ratio (1.00) than 84.00% of its industry peers.
PEG has a Quick Ratio of 1.00. 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 Quick ratio of PEG (0.76) is better than 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.32% 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 8.69% in the last year.
Measured over the past years, PEG shows a small growth in Revenue. The Revenue has been growing by 0.42% on average per year.
EPS 1Y (TTM)18.32%
EPS 3Y0.27%
EPS 5Y2.33%
EPS Q2Q%22.22%
Revenue 1Y (TTM)8.69%
Revenue growth 3Y1.91%
Revenue growth 5Y0.42%
Sales Q2Q%15.77%
3.2 Future
The Earnings Per Share is expected to grow by 8.59% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.94% on average over the next years.
EPS Next Y10.44%
EPS Next 2Y10.09%
EPS Next 3Y8.98%
EPS Next 5Y8.59%
Revenue Next Year11.88%
Revenue Next 2Y8.34%
Revenue Next 3Y7.2%
Revenue Next 5Y4.94%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.00, which indicates a rather expensive current valuation of PEG.
68.00% of the companies in the same industry are cheaper than PEG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PEG to the average of the S&P500 Index (27.67), we can say PEG is valued slightly cheaper.
With a Price/Forward Earnings ratio of 18.55, PEG is valued on the expensive side.
PEG's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PEG is more expensive than 68.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.33. PEG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21 | ||
| Fwd PE | 18.55 |
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 | 15.42 |
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.
The decent profitability rating of PEG may justify a higher PE ratio.
PEG (NY)2.01
PEG (5Y)9.02
EPS Next 2Y10.09%
EPS Next 3Y8.98%
5. Dividend
5.1 Amount
PEG has a Yearly Dividend Yield of 2.99%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.74, PEG is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.35, PEG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.96%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
61.97% of the earnings are spent on dividend by PEG. This is not a sustainable payout ratio.
PEG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP61.97%
EPS Next 2Y10.09%
EPS Next 3Y8.98%
82.73
-1.06 (-1.27%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners76.92%
Inst Owner Change-0.04%
Ins Owners0.12%
Ins Owner Change-0.13%
Market Cap41.29B
Revenue(TTM)11.13B
Net Income(TTM)1.98B
Analysts70.91
Price Target91.85 (11.02%)
Short Float %1.57%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend2.4
Dividend Growth(5Y)4.96%
DP61.97%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.86%
Min EPS beat(2)-1.44%
Max EPS beat(2)9.16%
EPS beat(4)3
Avg EPS beat(4)2.55%
Min EPS beat(4)-1.44%
Max EPS beat(4)9.16%
EPS beat(8)5
Avg EPS beat(8)2.78%
EPS beat(12)9
Avg EPS beat(12)3.92%
EPS beat(16)12
Avg EPS beat(16)4.43%
Revenue beat(2)2
Avg Revenue beat(2)6.7%
Min Revenue beat(2)1.51%
Max Revenue beat(2)11.89%
Revenue beat(4)3
Avg Revenue beat(4)3.55%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)11.89%
Revenue beat(8)6
Avg Revenue beat(8)5.19%
Revenue beat(12)10
Avg Revenue beat(12)12.49%
Revenue beat(16)11
Avg Revenue beat(16)6.94%
PT rev (1m)-0.42%
PT rev (3m)3.8%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-3.21%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21 | ||
| Fwd PE | 18.55 | ||
| P/S | 3.71 | ||
| P/FCF | N/A | ||
| P/OCF | 16.4 | ||
| P/B | 2.48 | ||
| P/tB | 2.48 | ||
| EV/EBITDA | 15.42 |
EPS(TTM)3.94
EY4.76%
EPS(NY)4.46
Fwd EY5.39%
FCF(TTM)-1.29
FCFYN/A
OCF(TTM)5.04
OCFY6.1%
SpS22.31
BVpS33.4
TBVpS33.4
PEG (NY)2.01
PEG (5Y)9.02
Graham Number54.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 11.88% | ||
| ROCE | 5.26% | ||
| ROIC | 4.68% | ||
| ROICexc | 4.7% | ||
| ROICexgc | 4.7% | ||
| OM | 24.3% | ||
| PM (TTM) | 17.78% | ||
| 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-Score7
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.39 | ||
| Cap/Depr | 221.2% | ||
| Cap/Sales | 28.39% | ||
| Interest Coverage | 3.12 | ||
| Cash Conversion | 60.87% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.32 |
F-Score7
WACC6.81%
ROIC/WACC0.69
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)18.32%
EPS 3Y0.27%
EPS 5Y2.33%
EPS Q2Q%22.22%
EPS Next Y10.44%
EPS Next 2Y10.09%
EPS Next 3Y8.98%
EPS Next 5Y8.59%
Revenue 1Y (TTM)8.69%
Revenue growth 3Y1.91%
Revenue growth 5Y0.42%
Sales Q2Q%15.77%
Revenue Next Year11.88%
Revenue Next 2Y8.34%
Revenue Next 3Y7.2%
Revenue Next 5Y4.94%
EBIT growth 1Y7.51%
EBIT growth 3Y9.82%
EBIT growth 5Y0.12%
EBIT Next Year63.96%
EBIT Next 3Y24.92%
EBIT Next 5Y16.57%
FCF growth 1Y-225.05%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-29.22%
OCF growth 3Y7.11%
OCF growth 5Y-8.79%