PUBLIC SERVICE ENTERPRISE GP (PEG) Stock Fundamental Analysis
NYSE:PEG - New York Stock Exchange, Inc. - US7445731067 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to PEG. PEG was compared to 25 industry peers in the Multi-Utilities industry. There are concerns on the financial health of PEG while its profitability can be described as average. PEG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PEG had positive earnings in the past year.
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
PEG has a Return On Assets of 3.29%. This is amongst the best in the industry. PEG outperforms 96.00% of its industry peers.
PEG has a Return On Equity of 11.17%. This is in the better half of the industry: PEG outperforms 64.00% of its industry peers.
PEG's Return On Invested Capital of 4.44% is amongst the best of the industry. PEG outperforms 88.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PEG is in line with the industry average of 3.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.29% | ||
| ROE | 11.17% | ||
| ROIC | 4.44% |
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's Profit Margin of 17.01% is amongst the best of the industry. PEG outperforms 88.00% of its industry peers.
PEG's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 22.98%, PEG is doing good in the industry, outperforming 72.00% 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 | 22.98% | ||
| PM (TTM) | 17.01% | ||
| 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.
The number of shares outstanding for PEG remains at a similar level compared to 1 year ago.
PEG has less shares outstanding than it did 5 years ago.
PEG has a worse debt/assets ratio than last year.
2.2 Solvency
PEG has an Altman-Z score of 1.25. This is a bad value and indicates that PEG is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.25, PEG belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
A Debt/Equity ratio of 1.27 is on the high side and indicates that PEG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.27, PEG is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.25 |
ROIC/WACC0.62
WACC7.11%
2.3 Liquidity
PEG has a Current Ratio of 0.82. This is a bad value and indicates that PEG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.82, PEG is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
PEG has a Quick Ratio of 0.82. 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 Quick ratio (0.65) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.76% 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 small growth in Revenue. The Revenue has grown by 4.98% in the last year.
The Revenue has been growing slightly by 0.42% on average over the past years.
EPS 1Y (TTM)11.76%
EPS 3Y0.27%
EPS 5Y2.33%
EPS Q2Q%9.16%
Revenue 1Y (TTM)4.98%
Revenue growth 3Y1.91%
Revenue growth 5Y0.42%
Sales Q2Q%16.74%
3.2 Future
The Earnings Per Share is expected to grow by 7.36% on average over the next years.
The Revenue is expected to grow by 5.79% on average over the next years.
EPS Next Y10.45%
EPS Next 2Y9.17%
EPS Next 3Y8.17%
EPS Next 5Y7.36%
Revenue Next Year9.6%
Revenue Next 2Y7.65%
Revenue Next 3Y6.7%
Revenue Next 5Y5.79%
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
With a Price/Earnings ratio of 21.27, PEG is valued on the expensive side.
Based on the Price/Earnings ratio, PEG is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
The average S&P500 Price/Earnings ratio is at 26.59. PEG is valued slightly cheaper when compared to this.
PEG is valuated rather expensively with a Price/Forward Earnings ratio of 18.43.
Based on the Price/Forward Earnings ratio, PEG is valued a bit more expensive than the industry average as 76.00% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.39. PEG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.27 | ||
| Fwd PE | 18.43 |
4.2 Price Multiples
92.00% 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 | 15.95 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.04
PEG (5Y)9.13
EPS Next 2Y9.17%
EPS Next 3Y8.17%
5. Dividend
5.1 Amount
PEG has a Yearly Dividend Yield of 3.16%.
Compared to an average industry Dividend Yield of 3.70, PEG is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.39, PEG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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
66.21% of the earnings are spent on dividend by PEG. This is not a sustainable payout ratio.
The dividend of PEG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.21%
EPS Next 2Y9.17%
EPS Next 3Y8.17%
80.81
+1.38 (+1.74%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners76.72%
Inst Owner Change0.21%
Ins Owners0.1%
Ins Owner Change9.34%
Market Cap40.32B
Analysts72
Price Target88.51 (9.53%)
Short Float %1.95%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
Yearly Dividend2.4
Dividend Growth(5Y)4.96%
DP66.21%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.46%
Min EPS beat(2)-1.44%
Max EPS beat(2)0.53%
EPS beat(4)2
Avg EPS beat(4)-0.09%
Min EPS beat(4)-1.44%
Max EPS beat(4)1.95%
EPS beat(8)5
Avg EPS beat(8)2.92%
EPS beat(12)8
Avg EPS beat(12)3.02%
EPS beat(16)11
Avg EPS beat(16)3.77%
Revenue beat(2)1
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-3.86%
Max Revenue beat(2)1.51%
Revenue beat(4)3
Avg Revenue beat(4)4.82%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)16.94%
Revenue beat(8)6
Avg Revenue beat(8)6.56%
Revenue beat(12)10
Avg Revenue beat(12)12.58%
Revenue beat(16)10
Avg Revenue beat(16)5.09%
PT rev (1m)-0.31%
PT rev (3m)-2.8%
EPS NQ rev (1m)-7.69%
EPS NQ rev (3m)-3.39%
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)-3.72%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)2.83%
Revenue NY rev (3m)2.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.27 | ||
| Fwd PE | 18.43 | ||
| P/S | 3.75 | ||
| P/FCF | N/A | ||
| P/OCF | 16 | ||
| P/B | 2.46 | ||
| P/tB | 2.46 | ||
| EV/EBITDA | 15.95 |
EPS(TTM)3.8
EY4.7%
EPS(NY)4.39
Fwd EY5.43%
FCF(TTM)-1.38
FCFYN/A
OCF(TTM)5.05
OCFY6.25%
SpS21.55
BVpS32.81
TBVpS32.81
PEG (NY)2.04
PEG (5Y)9.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.29% | ||
| ROE | 11.17% | ||
| ROCE | 4.97% | ||
| ROIC | 4.44% | ||
| ROICexc | 4.52% | ||
| ROICexgc | 4.52% | ||
| OM | 22.98% | ||
| PM (TTM) | 17.01% | ||
| 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%
ROICexcg growth 3Y6%
ROICexcg 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-Score4
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.37 | ||
| Cap/Depr | 229.36% | ||
| Cap/Sales | 29.86% | ||
| Interest Coverage | 2.9 | ||
| Cash Conversion | 65.13% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.25 |
F-Score4
WACC7.11%
ROIC/WACC0.62
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)11.76%
EPS 3Y0.27%
EPS 5Y2.33%
EPS Q2Q%9.16%
EPS Next Y10.45%
EPS Next 2Y9.17%
EPS Next 3Y8.17%
EPS Next 5Y7.36%
Revenue 1Y (TTM)4.98%
Revenue growth 3Y1.91%
Revenue growth 5Y0.42%
Sales Q2Q%16.74%
Revenue Next Year9.6%
Revenue Next 2Y7.65%
Revenue Next 3Y6.7%
Revenue Next 5Y5.79%
EBIT growth 1Y-9.45%
EBIT growth 3Y9.82%
EBIT growth 5Y0.12%
EBIT Next Year58%
EBIT Next 3Y23.47%
EBIT Next 5Y16.66%
FCF growth 1Y-845.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.1%
OCF growth 3Y7.11%
OCF growth 5Y-8.79%