PORTLAND GENERAL ELECTRIC CO (POR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:POR - US7365088472 - Common Stock
49.33 USD
-0.61 (-1.22%)
49.34 USD
+0.01 (+0.02%)
POR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. POR may be in some trouble as it scores bad on both profitability and health. POR is valied quite expensively at the moment, while it does show a decent growth rate. Finally POR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year POR was profitable.
- POR had a positive operating cash flow in the past year.
- POR had positive earnings in each of the past 5 years.
- Each year in the past 5 years POR had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 2.33%, POR is not doing good in the industry: 76.09% of the companies in the same industry are doing better.
- POR has a Return On Equity of 7.67%. This is in the lower half of the industry: POR underperforms 78.26% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.95%, POR is in line with its industry, outperforming 41.30% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for POR is in line with the industry average of 4.58%.
- The last Return On Invested Capital (3.95%) for POR is above the 3 year average (3.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 7.67% | ||
| ROIC | 3.95% |
ROA(3y)2.25%
ROA(5y)2.21%
ROE(3y)7.83%
ROE(5y)7.69%
ROIC(3y)3.68%
ROIC(5y)3.51%
1.3 Margins
- Looking at the Profit Margin, with a value of 8.63%, POR is doing worse than 76.09% of the companies in the same industry.
- In the last couple of years the Profit Margin of POR has declined.
- Looking at the Operating Margin, with a value of 15.67%, POR is doing worse than 71.74% of the companies in the same industry.
- In the last couple of years the Operating Margin of POR has declined.
- POR's Gross Margin of 47.96% is in line compared to the rest of the industry. POR outperforms 47.83% of its industry peers.
- In the last couple of years the Gross Margin of POR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.67% | ||
| PM (TTM) | 8.63% | ||
| GM | 47.96% |
OM growth 3Y-1.92%
OM growth 5Y-2.79%
PM growth 3Y-3.68%
PM growth 5Y-2.03%
GM growth 3Y-4.39%
GM growth 5Y-3.94%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so POR is destroying value.
- POR has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, POR has more shares outstanding
- The debt/assets ratio for POR has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.98, we must say that POR is in the distress zone and has some risk of bankruptcy.
- POR has a Altman-Z score of 0.98. This is in the better half of the industry: POR outperforms 63.04% of its industry peers.
- POR has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
- With a decent Debt to Equity ratio value of 1.25, POR is doing good in the industry, outperforming 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.98 |
ROIC/WACC0.63
WACC6.32%
2.3 Liquidity
- POR has a Current Ratio of 1.08. This is a normal value and indicates that POR is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.08, POR is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
- A Quick Ratio of 0.95 indicates that POR may have some problems paying its short term obligations.
- POR has a Quick ratio of 0.95. This is in the better half of the industry: POR outperforms 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
- POR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.33%.
- POR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.52% yearly.
- POR shows a small growth in Revenue. In the last year, the Revenue has grown by 5.09%.
- The Revenue has been growing by 10.13% on average over the past years. This is quite good.
EPS 1Y (TTM)-17.33%
EPS 3Y4.77%
EPS 5Y5.52%
EPS Q2Q%11.11%
Revenue 1Y (TTM)5.09%
Revenue growth 3Y12.81%
Revenue growth 5Y10.13%
Sales Q2Q%2.48%
3.2 Future
- Based on estimates for the next years, POR will show a small growth in Earnings Per Share. The EPS will grow by 4.96% on average per year.
- POR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.86% yearly.
EPS Next Y4.11%
EPS Next 2Y4.49%
EPS Next 3Y4.61%
EPS Next 5Y4.96%
Revenue Next Year11.47%
Revenue Next 2Y8.2%
Revenue Next 3Y6.96%
Revenue Next 5Y6.86%
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 stable.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- POR is valuated correctly with a Price/Earnings ratio of 16.95.
- Based on the Price/Earnings ratio, POR is valued a bit cheaper than 60.87% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, POR is valued a bit cheaper.
- POR is valuated correctly with a Price/Forward Earnings ratio of 14.39.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of POR indicates a somewhat cheap valuation: POR is cheaper than 65.22% of the companies listed in the same industry.
- POR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 14.39 |
4.2 Price Multiples
- 71.74% of the companies in the same industry are more expensive than POR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.41 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.12
PEG (5Y)3.07
EPS Next 2Y4.49%
EPS Next 3Y4.61%
5. Dividend
5.1 Amount
- POR has a Yearly Dividend Yield of 4.26%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.93, POR pays a better dividend. On top of this POR pays more dividend than 84.78% of the companies listed in the same industry.
- POR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
5.2 History
- The dividend of POR has a limited annual growth rate of 4.85%.
- POR has paid a dividend for at least 10 years, which is a reliable track record.
- POR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.85%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
- 72.28% of the earnings are spent on dividend by POR. This is not a sustainable payout ratio.
- POR's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP72.28%
EPS Next 2Y4.49%
EPS Next 3Y4.61%
PORTLAND GENERAL ELECTRIC CO / POR FAQ
Can you provide the ChartMill fundamental rating for PORTLAND GENERAL ELECTRIC CO?
ChartMill assigns a fundamental rating of 4 / 10 to POR.
What is the valuation status for POR stock?
ChartMill assigns a valuation rating of 3 / 10 to PORTLAND GENERAL ELECTRIC CO (POR). This can be considered as Overvalued.
What is the profitability of POR stock?
PORTLAND GENERAL ELECTRIC CO (POR) has a profitability rating of 3 / 10.
Can you provide the expected EPS growth for POR stock?
The Earnings per Share (EPS) of PORTLAND GENERAL ELECTRIC CO (POR) is expected to grow by 4.11% in the next year.
How sustainable is the dividend of PORTLAND GENERAL ELECTRIC CO (POR) stock?
The dividend rating of PORTLAND GENERAL ELECTRIC CO (POR) is 8 / 10 and the dividend payout ratio is 72.28%.