P G & E CORP (PCG) Stock Fundamental Analysis
NYSE:PCG - New York Stock Exchange, Inc. - US69331C1080 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to PCG. PCG was compared to 47 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
PCG had positive earnings in the past year.
PCG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PCG reported negative net income in multiple years.
PCG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
PCG's Return On Assets of 1.74% is on the low side compared to the rest of the industry. PCG is outperformed by 89.36% of its industry peers.
Looking at the Return On Equity, with a value of 7.66%, PCG is doing worse than 78.72% of the companies in the same industry.
The Return On Invested Capital of PCG (3.27%) is worse than 80.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PCG is significantly below the industry average of 38.54%.
The 3 year average ROIC (2.53%) for PCG is below the current ROIC(3.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 7.66% | ||
| ROIC | 3.27% |
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
The Profit Margin of PCG (9.58%) is worse than 74.47% of its industry peers.
PCG has a Operating Margin (20.08%) which is in line with its industry peers.
PCG's Operating Margin has improved in the last couple of years.
PCG's Gross Margin of 85.75% is amongst the best of the industry. PCG outperforms 80.85% of its industry peers.
PCG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.08% | ||
| PM (TTM) | 9.58% | ||
| GM | 85.75% |
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
PCG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PCG has been increased compared to 1 year ago.
PCG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PCG has been reduced compared to a year ago.
2.2 Solvency
PCG has an Altman-Z score of 0.46. This is a bad value and indicates that PCG is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.46, PCG is doing worse than 85.11% of the companies in the same industry.
PCG has a Debt/Equity ratio of 1.77. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.77, PCG is not doing good in the industry: 70.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.46 |
ROIC/WACC0.59
WACC5.51%
2.3 Liquidity
PCG has a Current Ratio of 0.95. This is a bad value and indicates that PCG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of PCG (0.95) is comparable to the rest of the industry.
A Quick Ratio of 0.90 indicates that PCG may have some problems paying its short term obligations.
PCG has a Quick ratio (0.90) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.76% over the past year.
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 small growth in Revenue. The Revenue has grown by 1.91% in the last year.
The Revenue has been growing slightly by 7.35% on average over the past years.
EPS 1Y (TTM)0.76%
EPS 3Y12.31%
EPS 5Y-19.12%
EPS Q2Q%-10.81%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y5.76%
Revenue growth 5Y7.35%
Sales Q2Q%2.08%
3.2 Future
PCG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.33% yearly.
PCG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.00% yearly.
EPS Next Y11.41%
EPS Next 2Y9.98%
EPS Next 3Y9.76%
EPS Next 5Y9.33%
Revenue Next Year3.42%
Revenue Next 2Y3.19%
Revenue Next 3Y3.26%
Revenue Next 5Y3%
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
PCG is valuated reasonably with a Price/Earnings ratio of 11.85.
PCG's Price/Earnings ratio is a bit cheaper when compared to the industry. PCG is cheaper than 68.09% of the companies in the same industry.
When comparing the Price/Earnings ratio of PCG to the average of the S&P500 Index (26.55), we can say PCG is valued rather cheaply.
The Price/Forward Earnings ratio is 9.51, which indicates a very decent valuation of PCG.
Based on the Price/Forward Earnings ratio, PCG is valued a bit cheaper than the industry average as 76.60% of the companies are valued more expensively.
PCG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 9.51 |
4.2 Price Multiples
61.70% 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 | 9.82 |
4.3 Compensation for Growth
PCG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y9.98%
EPS Next 3Y9.76%
5. Dividend
5.1 Amount
PCG has a yearly dividend return of 0.63%, which is pretty low.
With a Dividend Yield of 0.63, PCG pays less dividend than the industry average, which is at 3.54. 85.11% of the companies listed in the same industry pay a better dividend than PCG!
With a Dividend Yield of 0.63, PCG pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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
PCG pays out 6.09% of its income as dividend. This is a sustainable payout ratio.
DP6.09%
EPS Next 2Y9.98%
EPS Next 3Y9.76%
15.64
-0.29 (-1.82%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.44%
Inst Owner Change1.03%
Ins Owners0.12%
Ins Owner Change0.41%
Market Cap34.37B
Analysts77.39
Price Target21.27 (36%)
Short Float %1.37%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Yearly Dividend0.04
Dividend Growth(5Y)-53.24%
DP6.09%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.59%
Min EPS beat(2)-4.14%
Max EPS beat(2)-1.04%
EPS beat(4)2
Avg EPS beat(4)2.07%
Min EPS beat(4)-4.14%
Max EPS beat(4)11.69%
EPS beat(8)4
Avg EPS beat(8)-0.6%
EPS beat(12)5
Avg EPS beat(12)1.17%
EPS beat(16)6
Avg EPS beat(16)-0.15%
Revenue beat(2)0
Avg Revenue beat(2)-6.24%
Min Revenue beat(2)-9.05%
Max Revenue beat(2)-3.44%
Revenue beat(4)1
Avg Revenue beat(4)-5.82%
Min Revenue beat(4)-11%
Max Revenue beat(4)0.2%
Revenue beat(8)3
Avg Revenue beat(8)-1.39%
Revenue beat(12)4
Avg Revenue beat(12)-2.8%
Revenue beat(16)7
Avg Revenue beat(16)-1.69%
PT rev (1m)1.54%
PT rev (3m)0.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.8%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)1.67%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 9.51 | ||
| P/S | 1.4 | ||
| P/FCF | N/A | ||
| P/OCF | 3.99 | ||
| P/B | 1.12 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 9.82 |
EPS(TTM)1.32
EY8.44%
EPS(NY)1.65
Fwd EY10.52%
FCF(TTM)-0.79
FCFYN/A
OCF(TTM)3.92
OCFY25.08%
SpS11.17
BVpS13.96
TBVpS13.96
PEG (NY)1.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 7.66% | ||
| ROCE | 4.19% | ||
| ROIC | 3.27% | ||
| ROICexc | 3.32% | ||
| ROICexgc | 3.32% | ||
| OM | 20.08% | ||
| PM (TTM) | 9.58% | ||
| GM | 85.75% | ||
| FCFM | N/A |
ROA(3y)1.72%
ROA(5y)0.74%
ROE(3y)8.35%
ROE(5y)3.66%
ROIC(3y)2.53%
ROIC(5y)2.43%
ROICexc(3y)2.55%
ROICexc(5y)2.44%
ROICexgc(3y)2.55%
ROICexgc(5y)2.44%
ROCE(3y)3.27%
ROCE(5y)3.16%
ROICexcg growth 3Y11.41%
ROICexcg growth 5Y18.86%
ROICexc growth 3Y11.41%
ROICexc growth 5Y18.86%
OM growth 3Y16.22%
OM growth 5Y20.89%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.91%
GM growth 5Y2.03%
F-Score5
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.9 | ||
| Cap/Depr | 243.11% | ||
| Cap/Sales | 42.24% | ||
| Interest Coverage | 2.04 | ||
| Cash Conversion | 93.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 0.46 |
F-Score5
WACC5.51%
ROIC/WACC0.59
Cap/Depr(3y)251.98%
Cap/Depr(5y)240.73%
Cap/Sales(3y)42.15%
Cap/Sales(5y)41.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.76%
EPS 3Y12.31%
EPS 5Y-19.12%
EPS Q2Q%-10.81%
EPS Next Y11.41%
EPS Next 2Y9.98%
EPS Next 3Y9.76%
EPS Next 5Y9.33%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y5.76%
Revenue growth 5Y7.35%
Sales Q2Q%2.08%
Revenue Next Year3.42%
Revenue Next 2Y3.19%
Revenue Next 3Y3.26%
Revenue Next 5Y3%
EBIT growth 1Y26%
EBIT growth 3Y22.92%
EBIT growth 5Y29.77%
EBIT Next Year95.66%
EBIT Next 3Y32.46%
EBIT Next 5Y22.19%
FCF growth 1Y72.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y165.7%
OCF growth 3Y52.58%
OCF growth 5Y10.78%