P G & E CORP (PCG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PCG - US69331C1080 - Common Stock
14.95 USD
-0.15 (-0.99%)
14.94 USD
-0.01 (-0.07%)
Overall PCG gets a fundamental rating of 3 out of 10. We evaluated PCG against 46 industry peers in the Electric Utilities industry. There are concerns on the financial health of PCG while its profitability can be described as average. PCG has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- PCG had positive earnings in the past year.
- In the past year PCG had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: PCG reported negative net income in multiple years.
- Of the past 5 years PCG 4 years had a positive operating cash flow.
1.2 Ratios
- PCG's Return On Assets of 1.88% is on the low side compared to the rest of the industry. PCG is outperformed by 84.78% of its industry peers.
- The Return On Equity of PCG (8.12%) is worse than 76.09% of its industry peers.
- PCG's Return On Invested Capital of 3.20% is on the low side compared to the rest of the industry. PCG is outperformed by 71.74% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PCG is below the industry average of 4.58%.
- The 3 year average ROIC (2.53%) for PCG is below the current ROIC(3.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 8.12% | ||
| ROIC | 3.2% |
ROA(3y)1.72%
ROA(5y)0.74%
ROE(3y)8.35%
ROE(5y)3.66%
ROIC(3y)2.53%
ROIC(5y)2.43%
1.3 Margins
- Looking at the Profit Margin, with a value of 10.49%, PCG is doing worse than 69.57% of the companies in the same industry.
- The Operating Margin of PCG (20.31%) is comparable to the rest of the industry.
- PCG's Operating Margin has improved in the last couple of years.
- The Gross Margin of PCG (86.01%) is better than 78.26% of its industry peers.
- In the last couple of years the Gross Margin of PCG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.31% | ||
| PM (TTM) | 10.49% | ||
| GM | 86.01% |
OM growth 3Y16.22%
OM growth 5Y20.89%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.91%
GM growth 5Y2.03%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PCG is destroying value.
- The number of shares outstanding for PCG has been increased compared to 1 year ago.
- The number of shares outstanding for PCG has been increased compared to 5 years ago.
- Compared to 1 year ago, PCG has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.47, we must say that PCG is in the distress zone and has some risk of bankruptcy.
- PCG's Altman-Z score of 0.47 is on the low side compared to the rest of the industry. PCG is outperformed by 84.78% of its industry peers.
- PCG has a Debt/Equity ratio of 1.77. This is a high value indicating a heavy dependency on external financing.
- PCG has a Debt to Equity ratio of 1.77. This is in the lower half of the industry: PCG underperforms 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.47 |
ROIC/WACC0.6
WACC5.35%
2.3 Liquidity
- A Current Ratio of 0.94 indicates that PCG may have some problems paying its short term obligations.
- PCG has a Current ratio of 0.94. This is in the better half of the industry: PCG outperforms 65.22% of its industry peers.
- A Quick Ratio of 0.89 indicates that PCG may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.89, PCG is in the better half of the industry, outperforming 71.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
- PCG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.61%.
- Measured over the past years, PCG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.12% on average per year.
- Looking at the last year, PCG shows a decrease in Revenue. The Revenue has decreased by -0.27% in the last year.
- Measured over the past years, PCG shows a small growth in Revenue. The Revenue has been growing by 7.35% on average per year.
EPS 1Y (TTM)-4.61%
EPS 3Y12.31%
EPS 5Y-19.12%
EPS Q2Q%35.14%
Revenue 1Y (TTM)-0.27%
Revenue growth 3Y5.76%
Revenue growth 5Y7.35%
Sales Q2Q%5.2%
3.2 Future
- The Earnings Per Share is expected to grow by 9.62% on average over the next years. This is quite good.
- Based on estimates for the next years, PCG will show a small growth in Revenue. The Revenue will grow by 3.10% on average per year.
EPS Next Y11.44%
EPS Next 2Y10.05%
EPS Next 3Y9.93%
EPS Next 5Y9.62%
Revenue Next Year1.93%
Revenue Next 2Y3.4%
Revenue Next 3Y3.46%
Revenue Next 5Y3.1%
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.
- 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
- With a Price/Earnings ratio of 10.31, the valuation of PCG can be described as very reasonable.
- Based on the Price/Earnings ratio, PCG is valued a bit cheaper than 76.09% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. PCG is valued rather cheaply when compared to this.
- PCG is valuated reasonably with a Price/Forward Earnings ratio of 9.08.
- PCG's Price/Forward Earnings ratio is rather cheap when compared to the industry. PCG is cheaper than 80.43% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of PCG to the average of the S&P500 Index (24.26), we can say PCG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.31 | ||
| Fwd PE | 9.08 |
4.2 Price Multiples
- 67.39% of the companies in the same industry are more expensive than PCG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.71 |
4.3 Compensation for Growth
- PCG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y10.05%
EPS Next 3Y9.93%
5. Dividend
5.1 Amount
- PCG has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.93, PCG's dividend is way lower than its industry peers. On top of this 80.43% of the companies listed in the same industry pay a better dividend than PCG!
- PCG's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
- The dividend of PCG decreases each year by -53.24%.
- PCG has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of PCG decreased recently.
Dividend Growth(5Y)-53.24%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 10.01% of the earnings are spent on dividend by PCG. This is a low number and sustainable payout ratio.
DP10.01%
EPS Next 2Y10.05%
EPS Next 3Y9.93%
P G & E CORP / PCG FAQ
What is the fundamental rating for PCG stock?
ChartMill assigns a fundamental rating of 3 / 10 to PCG.
Can you provide the valuation status for P G & E CORP?
ChartMill assigns a valuation rating of 5 / 10 to P G & E CORP (PCG). This can be considered as Fairly Valued.
Can you provide the profitability details for P G & E CORP?
P G & E CORP (PCG) has a profitability rating of 4 / 10.
What is the financial health of P G & E CORP (PCG) stock?
The financial health rating of P G & E CORP (PCG) is 1 / 10.
What is the earnings growth outlook for P G & E CORP?
The Earnings per Share (EPS) of P G & E CORP (PCG) is expected to grow by 11.44% in the next year.