PUBLIC SERVICE ENTERPRISE GP (PEG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PEG - US7445731067 - Common Stock
78.28 USD
-1.12 (-1.41%)
78.28 USD
0 (0%)
Overall PEG gets a fundamental rating of 5 out of 10. We evaluated PEG against 26 industry peers in the Multi-Utilities industry. PEG has an excellent profitability rating, but there are concerns on its financial health. 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.
- In the past year PEG had a positive cash flow from operations.
- Of the past 5 years PEG 4 years were profitable.
- PEG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of PEG (3.66%) is better than 100.00% of its industry peers.
- The Return On Equity of PEG (12.24%) is better than 96.15% of its industry peers.
- PEG's Return On Invested Capital of 4.99% is amongst the best of the industry. PEG outperforms 100.00% of its industry peers.
- PEG had an Average Return On Invested Capital over the past 3 years of 4.83%. This is in line with the industry average of 3.94%.
- The last Return On Invested Capital (4.99%) for PEG is above the 3 year average (4.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.66% | ||
| ROE | 12.24% | ||
| ROIC | 4.99% |
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
- The Profit Margin of PEG (17.77%) is better than 100.00% of its industry peers.
- PEG's Profit Margin has been stable in the last couple of years.
- The Operating Margin of PEG (24.92%) is better than 84.62% of its industry peers.
- 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 | 24.92% | ||
| PM (TTM) | 17.77% | ||
| 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.
- PEG has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for PEG has been reduced compared to 5 years ago.
- The debt/assets ratio for PEG is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.29, we must say that PEG is in the distress zone and has some risk of bankruptcy.
- PEG has a better Altman-Z score (1.29) than 92.31% of its industry peers.
- A Debt/Equity ratio of 1.32 is on the high side and indicates that PEG has dependencies on debt financing.
- PEG has a better Debt to Equity ratio (1.32) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC0.72
WACC6.93%
2.3 Liquidity
- A Current Ratio of 0.93 indicates that PEG may have some problems paying its short term obligations.
- With a Current ratio value of 0.93, PEG perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
- PEG has a Quick Ratio of 0.93. 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 decent Quick ratio value of 0.69, PEG is doing good in the industry, outperforming 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 23.37% over the past year.
- The Earnings Per Share has been growing slightly by 2.33% on average over the past years.
- The Revenue has grown by 12.35% in the past year. This is quite good.
- 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)23.37%
EPS 3Y0.27%
EPS 5Y2.33%
EPS Q2Q%25.56%
Revenue 1Y (TTM)12.35%
Revenue growth 3Y1.91%
Revenue growth 5Y0.42%
Sales Q2Q%22.1%
3.2 Future
- The Earnings Per Share is expected to grow by 8.34% on average over the next years. This is quite good.
- Based on estimates for the next years, PEG will show a small growth in Revenue. The Revenue will grow by 6.42% on average per year.
EPS Next Y10.97%
EPS Next 2Y10.12%
EPS Next 3Y8.94%
EPS Next 5Y8.34%
Revenue Next Year17.76%
Revenue Next 2Y10.11%
Revenue Next 3Y8.02%
Revenue Next 5Y6.42%
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 18.77, PEG is valued on the expensive side.
- 61.54% of the companies in the same industry are cheaper than PEG, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, PEG is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 17.54, the valuation of PEG can be described as rather expensive.
- 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 69.23% of the companies listed in the same industry.
- PEG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.77 | ||
| Fwd PE | 17.54 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PEG is valued more expensive than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.16 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- PEG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.71
PEG (5Y)8.06
EPS Next 2Y10.12%
EPS Next 3Y8.94%
5. Dividend
5.1 Amount
- PEG has a Yearly Dividend Yield of 3.17%.
- PEG's Dividend Yield is slightly below the industry average, which is at 4.14.
- Compared to an average S&P500 Dividend Yield of 1.82, PEG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
5.2 History
- The dividend of PEG has a limited annual growth rate of 4.96%.
- PEG has been paying a dividend for at least 10 years, so it has a reliable track record.
- PEG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.96%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
- PEG pays out 59.65% of its income as dividend. This is a bit on the high side, but may be sustainable.
- PEG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.65%
EPS Next 2Y10.12%
EPS Next 3Y8.94%
PUBLIC SERVICE ENTERPRISE GP / PEG FAQ
Can you provide the ChartMill fundamental rating for PUBLIC SERVICE ENTERPRISE GP?
ChartMill assigns a fundamental rating of 5 / 10 to PEG.
What is the valuation status of PUBLIC SERVICE ENTERPRISE GP (PEG) stock?
ChartMill assigns a valuation rating of 2 / 10 to PUBLIC SERVICE ENTERPRISE GP (PEG). This can be considered as Overvalued.
What is the profitability of PEG stock?
PUBLIC SERVICE ENTERPRISE GP (PEG) has a profitability rating of 7 / 10.
Can you provide the financial health for PEG stock?
The financial health rating of PUBLIC SERVICE ENTERPRISE GP (PEG) is 3 / 10.
What is the earnings growth outlook for PUBLIC SERVICE ENTERPRISE GP?
The Earnings per Share (EPS) of PUBLIC SERVICE ENTERPRISE GP (PEG) is expected to grow by 10.97% in the next year.