PUBLIC SERVICE ENTERPRISE GP (PEG)
US7445731067 - Common Stock
PEG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 26 industry peers in the Multi-Utilities industry. While PEG has a great profitability rating, there are quite some concerns on its financial health. PEG does not seem to be growing, but still is valued expensively.
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.
PEG had positive earnings in 4 of the past 5 years.
PEG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 3.45%, PEG belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
PEG's Return On Equity of 11.50% is fine compared to the rest of the industry. PEG outperforms 76.92% of its industry peers.
The Return On Invested Capital of PEG (4.78%) is better than 96.15% 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 3.59%.
The last Return On Invested Capital (4.78%) for PEG is above the 3 year average (4.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.45% | ||
| ROE | 11.5% | ||
| ROIC | 4.78% |
ROA(3y)1.95%
ROA(5y)2.64%
ROE(3y)6.53%
ROE(5y)8.54%
ROIC(3y)4.22%
ROIC(5y)4.21%
1.3 Margins
Looking at the Profit Margin, with a value of 17.65%, PEG belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
In the last couple of years the Profit Margin of PEG has grown nicely.
PEG has a Operating Margin of 26.65%. This is amongst the best in the industry. PEG outperforms 100.00% of its industry peers.
PEG's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.65% | ||
| PM (TTM) | 17.65% | ||
| GM | N/A |
OM growth 3Y13.69%
OM growth 5Y6.75%
PM growth 3Y4.76%
PM growth 5Y8.99%
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 more shares outstanding than it did 1 year ago.
The number of shares outstanding for PEG has been reduced compared to 5 years ago.
PEG has a better debt/assets ratio than last year.
2.2 Solvency
PEG has an Altman-Z score of 1.27. This is a bad value and indicates that PEG is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.27, PEG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 1.23 is on the high side and indicates that PEG has dependencies on debt financing.
PEG's Debt to Equity ratio of 1.23 is fine compared to the rest of the industry. PEG outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.27 |
ROIC/WACC0.7
WACC6.81%
2.3 Liquidity
PEG has a Current Ratio of 0.79. This is a bad value and indicates that PEG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of PEG (0.79) is better than 61.54% of its industry peers.
PEG has a Quick Ratio of 0.79. 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 Quick ratio of 0.62 is in line compared to the rest of the industry. PEG outperforms 53.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
PEG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.68%.
PEG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.21% yearly.
The Revenue has decreased by -8.90% in the past year.
Measured over the past years, PEG shows a small growth in Revenue. The Revenue has been growing by 2.99% on average per year.
EPS 1Y (TTM)-3.68%
EPS 3Y0.48%
EPS 5Y2.21%
EPS growth Q2Q-5.76%
Revenue 1Y (TTM)-8.9%
Revenue growth 3Y5.38%
Revenue growth 5Y2.99%
Revenue growth Q2Q-26.5%
3.2 Future
PEG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.51% yearly.
PEG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.15% yearly.
EPS Next Y6.55%
EPS Next 2Y7.98%
EPS Next 3Y7.18%
EPS Next 5Y6.51%
Revenue Next Year-4.77%
Revenue Next 2Y-0.38%
Revenue Next 3Y1.44%
Revenue Next 5Y2.15%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.83, the valuation of PEG can be described as rather expensive.
PEG's Price/Earnings ratio is rather expensive when compared to the industry. PEG is more expensive than 80.77% of the companies in the same industry.
PEG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.83.
PEG is valuated rather expensively with a Price/Forward Earnings ratio of 18.29.
84.62% of the companies in the same industry are cheaper than PEG, based on the Price/Forward Earnings ratio.
PEG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.47, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 18.29 |
4.2 Price Multiples
84.62% 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 | 14.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of PEG may justify a higher PE ratio.
PEG (NY)3.33
PEG (5Y)9.89
EPS Next 2Y7.98%
EPS Next 3Y7.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.26%, PEG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.08, PEG is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, PEG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
5.2 History
The dividend of PEG has a limited annual growth rate of 4.85%.
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)4.85%
Div Incr Years12
Div Non Decr Years15
5.3 Sustainability
63.72% 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.
DP63.72%
EPS Next 2Y7.98%
EPS Next 3Y7.18%
PUBLIC SERVICE ENTERPRISE GP
NYSE:PEG (5/16/2024, 7:10:15 PM)
After market: 74.22 0 (0%)74.22
-0.23 (-0.31%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap37.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 18.29 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.33
PEG (5Y)9.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.45% | ||
| ROE | 11.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.65% | ||
| PM (TTM) | 17.65% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-3.68%
EPS 3Y0.48%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.9%
Revenue growth 3Y5.38%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y