PUBLIC SERVICE ENTERPRISE GP (PEG) Stock Fundamental Analysis
USA - NYSE:PEG - US7445731067 - Common Stock
84.75 USD
+0.41 (+0.49%)
84.75 USD
0 (0%)
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. While showing a medium growth rate, PEG is valued expensive at the moment.
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.
In the past 5 years PEG always reported a positive cash flow from operatings.
1.2 Ratios
PEG has a Return On Assets of 3.53%. This is amongst the best in the industry. PEG outperforms 100.00% of its industry peers.
PEG has a better Return On Equity (11.88%) than 64.00% of its industry peers.
The Return On Invested Capital of PEG (4.68%) is better than 96.00% 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 3.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 11.88% | ||
| ROIC | 4.68% |
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
With an excellent Profit Margin value of 17.78%, PEG belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
In the last couple of years the Profit Margin of PEG has remained more or less at the same level.
Looking at the Operating Margin, with a value of 24.30%, PEG is in the better half of the industry, outperforming 80.00% 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 | 24.3% | ||
| PM (TTM) | 17.78% | ||
| 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.
Compared to 5 years ago, PEG has less shares outstanding
Compared to 1 year ago, PEG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.33, we must say that PEG is in the distress zone and has some risk of bankruptcy.
PEG has a Altman-Z score of 1.33. This is amongst the best in the industry. PEG outperforms 96.00% of its industry peers.
PEG has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
PEG has a better Debt to Equity ratio (1.34) than 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.33 |
ROIC/WACC0.68
WACC6.87%
2.3 Liquidity
PEG has a Current Ratio of 1.00. This is a normal value and indicates that PEG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.00, PEG belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that PEG may have some problems paying its short term obligations.
PEG's Quick ratio of 0.76 is fine compared to the rest of the industry. PEG outperforms 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
PEG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.32%, which is quite good.
Measured over the past 5 years, PEG shows a small growth in Earnings Per Share. The EPS has been growing by 2.33% on average per year.
Looking at the last year, PEG shows a quite strong growth in Revenue. The Revenue has grown by 8.69% in the last 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)18.32%
EPS 3Y0.27%
EPS 5Y2.33%
EPS Q2Q%22.22%
Revenue 1Y (TTM)8.69%
Revenue growth 3Y1.91%
Revenue growth 5Y0.42%
Sales Q2Q%15.77%
3.2 Future
PEG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.59% yearly.
The Revenue is expected to grow by 4.94% on average over the next years.
EPS Next Y10.44%
EPS Next 2Y10.09%
EPS Next 3Y8.98%
EPS Next 5Y8.59%
Revenue Next Year11.88%
Revenue Next 2Y8.34%
Revenue Next 3Y7.2%
Revenue Next 5Y4.94%
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 21.51, PEG is valued on the expensive side.
68.00% of the companies in the same industry are cheaper than PEG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PEG to the average of the S&P500 Index (27.40), we can say PEG is valued slightly cheaper.
With a Price/Forward Earnings ratio of 19.00, PEG is valued on the expensive side.
Based on the Price/Forward Earnings ratio, PEG is valued a bit more expensive than 68.00% of the companies in the same industry.
PEG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.51 | ||
| Fwd PE | 19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PEG indicates a rather expensive valuation: PEG more expensive than 88.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.61 |
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.
PEG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.06
PEG (5Y)9.24
EPS Next 2Y10.09%
EPS Next 3Y8.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.99%, PEG has a reasonable but not impressive dividend return.
PEG's Dividend Yield is slightly below the industry average, which is at 4.14.
Compared to an average S&P500 Dividend Yield of 2.36, PEG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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
61.97% 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.
DP61.97%
EPS Next 2Y10.09%
EPS Next 3Y8.98%
84.75
+0.41 (+0.49%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners76.92%
Inst Owner Change-0.04%
Ins Owners0.12%
Ins Owner Change0.02%
Market Cap42.30B
Analysts70.91
Price Target91.85 (8.38%)
Short Float %1.57%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend2.4
Dividend Growth(5Y)4.96%
DP61.97%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.86%
Min EPS beat(2)-1.44%
Max EPS beat(2)9.16%
EPS beat(4)3
Avg EPS beat(4)2.55%
Min EPS beat(4)-1.44%
Max EPS beat(4)9.16%
EPS beat(8)5
Avg EPS beat(8)2.78%
EPS beat(12)9
Avg EPS beat(12)3.92%
EPS beat(16)12
Avg EPS beat(16)4.43%
Revenue beat(2)2
Avg Revenue beat(2)6.7%
Min Revenue beat(2)1.51%
Max Revenue beat(2)11.89%
Revenue beat(4)3
Avg Revenue beat(4)3.55%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)11.89%
Revenue beat(8)6
Avg Revenue beat(8)5.19%
Revenue beat(12)10
Avg Revenue beat(12)12.49%
Revenue beat(16)11
Avg Revenue beat(16)6.94%
PT rev (1m)-0.42%
PT rev (3m)4.48%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-3.29%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.51 | ||
| Fwd PE | 19 | ||
| P/S | 3.8 | ||
| P/FCF | N/A | ||
| P/OCF | 16.8 | ||
| P/B | 2.54 | ||
| P/tB | 2.54 | ||
| EV/EBITDA | 15.61 |
EPS(TTM)3.94
EY4.65%
EPS(NY)4.46
Fwd EY5.26%
FCF(TTM)-1.29
FCFYN/A
OCF(TTM)5.04
OCFY5.95%
SpS22.31
BVpS33.4
TBVpS33.4
PEG (NY)2.06
PEG (5Y)9.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 11.88% | ||
| ROCE | 5.26% | ||
| ROIC | 4.68% | ||
| ROICexc | 4.7% | ||
| ROICexgc | 4.7% | ||
| OM | 24.3% | ||
| PM (TTM) | 17.78% | ||
| 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-Score7
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.39 | ||
| Cap/Depr | 221.2% | ||
| Cap/Sales | 28.39% | ||
| Interest Coverage | 3.12 | ||
| Cash Conversion | 60.87% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.33 |
F-Score7
WACC6.87%
ROIC/WACC0.68
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)18.32%
EPS 3Y0.27%
EPS 5Y2.33%
EPS Q2Q%22.22%
EPS Next Y10.44%
EPS Next 2Y10.09%
EPS Next 3Y8.98%
EPS Next 5Y8.59%
Revenue 1Y (TTM)8.69%
Revenue growth 3Y1.91%
Revenue growth 5Y0.42%
Sales Q2Q%15.77%
Revenue Next Year11.88%
Revenue Next 2Y8.34%
Revenue Next 3Y7.2%
Revenue Next 5Y4.94%
EBIT growth 1Y7.51%
EBIT growth 3Y9.82%
EBIT growth 5Y0.12%
EBIT Next Year63.96%
EBIT Next 3Y24.92%
EBIT Next 5Y16.57%
FCF growth 1Y-225.05%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-29.22%
OCF growth 3Y7.11%
OCF growth 5Y-8.79%