PUBLIC SERVICE ENTERPRISE GP (PEG) Stock Fundamental Analysis
NYSE:PEG - New York Stock Exchange, Inc. - US7445731067 - Common Stock - Currency: USD
PEG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PEG had positive earnings in the past year.
PEG had a positive operating cash flow in the past year.
Of the past 5 years PEG 4 years were profitable.
In the past 5 years PEG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.29%, PEG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of PEG (11.17%) is better than 64.00% of its industry peers.
PEG has a better Return On Invested Capital (4.44%) than 92.00% 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 3.83%.
| 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 has a better Profit Margin (17.01%) than 88.00% of its industry peers.
PEG's Profit Margin has been stable in the last couple of years.
PEG's Operating Margin of 22.98% is fine compared to the rest of the industry. PEG outperforms 72.00% of its industry peers.
PEG's Operating Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PEG is destroying value.
Compared to 1 year ago, PEG has about the same amount of shares outstanding.
PEG has less shares outstanding than it did 5 years ago.
PEG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.24, we must say that PEG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.24, PEG belongs to the top of the industry, outperforming 96.00% 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.
With a decent Debt to Equity ratio value of 1.27, PEG is doing good in 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 | 1.24 |
ROIC/WACC0.63
WACC7.07%
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.
PEG's Current ratio of 0.82 is on the low side compared to the rest of the industry. PEG is outperformed by 64.00% of its industry peers.
A Quick Ratio of 0.65 indicates that PEG may have some problems paying its short term obligations.
With a Quick ratio value of 0.65, PEG perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
PEG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.76%, which is quite good.
The Earnings Per Share has been growing slightly by 2.33% on average over the past years.
The Revenue has been growing slightly by 4.98% in the past 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)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
Based on estimates for the next years, PEG will show a small growth in Earnings Per Share. The EPS will grow by 7.48% on average per year.
PEG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.79% yearly.
EPS Next Y10.45%
EPS Next 2Y9.17%
EPS Next 3Y8.17%
EPS Next 5Y7.48%
Revenue Next Year9.46%
Revenue Next 2Y7.47%
Revenue Next 3Y6.66%
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
Based on the Price/Earnings ratio of 20.35, the valuation of PEG can be described as rather expensive.
68.00% of the companies in the same industry are cheaper than PEG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.03. PEG is valued slightly cheaper when compared to this.
PEG is valuated rather expensively with a Price/Forward Earnings ratio of 17.64.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PEG indicates a slightly more expensive valuation: PEG is more expensive than 68.00% of the companies listed in the same industry.
PEG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.35 | ||
| Fwd PE | 17.64 |
4.2 Price Multiples
PEG's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. PEG is more expensive than 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.74 |
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)1.95
PEG (5Y)8.74
EPS Next 2Y9.17%
EPS Next 3Y8.17%
5. Dividend
5.1 Amount
PEG has a Yearly Dividend Yield of 3.21%. Purely for dividend investing, there may be better candidates out there.
PEG's Dividend Yield is comparable with the industry average which is at 3.67.
PEG's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
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 Years12
Div Non Decr Years33
5.3 Sustainability
66.21% 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.
DP66.21%
EPS Next 2Y9.17%
EPS Next 3Y8.17%
NYSE:PEG (5/22/2025, 11:20:08 AM)
77.34
-0.55 (-0.71%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners76.72%
Inst Owner Change-0.01%
Ins Owners0.1%
Ins Owner Change9.34%
Market Cap38.56B
Analysts72
Price Target88.78 (14.79%)
Short Float %1.71%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
Yearly Dividend2.4
Dividend Growth(5Y)4.96%
DP66.21%
Div Incr Years12
Div Non Decr Years33
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)-1.14%
PT rev (3m)-4.1%
EPS NQ rev (1m)-5.47%
EPS NQ rev (3m)-2.75%
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.27%
Revenue NQ rev (1m)-1.02%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)3.17%
Revenue NY rev (3m)3.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.35 | ||
| Fwd PE | 17.64 | ||
| P/S | 3.59 | ||
| P/FCF | N/A | ||
| P/OCF | 15.29 | ||
| P/B | 2.36 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 15.74 |
EPS(TTM)3.8
EY4.91%
EPS(NY)4.39
Fwd EY5.67%
FCF(TTM)-1.38
FCFYN/A
OCF(TTM)5.06
OCFY6.54%
SpS21.57
BVpS32.83
TBVpS32.83
PEG (NY)1.95
PEG (5Y)8.74
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 | 1.24 |
F-Score4
WACC7.07%
ROIC/WACC0.63
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 5Y7.48%
Revenue 1Y (TTM)4.98%
Revenue growth 3Y1.91%
Revenue growth 5Y0.42%
Sales Q2Q%16.74%
Revenue Next Year9.46%
Revenue Next 2Y7.47%
Revenue Next 3Y6.66%
Revenue Next 5Y5.79%
EBIT growth 1Y-9.45%
EBIT growth 3Y9.82%
EBIT growth 5Y0.12%
EBIT Next Year60.51%
EBIT Next 3Y23.17%
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%