PORTLAND GENERAL ELECTRIC CO (POR) Stock Fundamental Analysis
NYSE:POR - New York Stock Exchange, Inc. - US7365088472 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to POR. POR was compared to 46 industry peers in the Electric Utilities industry. POR may be in some trouble as it scores bad on both profitability and health. POR is quite expensive at the moment. It does show a decent growth rate. POR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
POR had positive earnings in the past year.
In the past year POR had a positive cash flow from operations.
Each year in the past 5 years POR has been profitable.
Each year in the past 5 years POR had a positive operating cash flow.
1.2 Ratios
POR's Return On Assets of 2.39% is on the low side compared to the rest of the industry. POR is outperformed by 69.57% of its industry peers.
POR has a Return On Equity of 7.91%. This is in the lower half of the industry: POR underperforms 76.09% of its industry peers.
The Return On Invested Capital of POR (3.80%) is worse than 65.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for POR is significantly below the industry average of 45.26%.
The 3 year average ROIC (3.68%) for POR is below the current ROIC(3.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 7.91% | ||
| ROIC | 3.8% |
ROA(3y)2.25%
ROA(5y)2.21%
ROE(3y)7.83%
ROE(5y)7.69%
ROIC(3y)3.68%
ROIC(5y)3.51%
1.3 Margins
With a Profit Margin value of 8.84%, POR is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of POR has declined.
POR's Operating Margin of 15.06% is on the low side compared to the rest of the industry. POR is outperformed by 78.26% of its industry peers.
In the last couple of years the Operating Margin of POR has declined.
POR's Gross Margin of 46.84% is in line compared to the rest of the industry. POR outperforms 50.00% of its industry peers.
POR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.06% | ||
| PM (TTM) | 8.84% | ||
| GM | 46.85% |
OM growth 3Y-1.92%
OM growth 5Y-2.79%
PM growth 3Y-3.68%
PM growth 5Y-2.03%
GM growth 3Y-4.39%
GM growth 5Y-3.94%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so POR is destroying value.
Compared to 1 year ago, POR has more shares outstanding
The number of shares outstanding for POR has been increased compared to 5 years ago.
Compared to 1 year ago, POR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.91, we must say that POR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of POR (0.91) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.28 is on the high side and indicates that POR has dependencies on debt financing.
The Debt to Equity ratio of POR (1.28) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.91 |
ROIC/WACC0.61
WACC6.19%
2.3 Liquidity
A Current Ratio of 1.06 indicates that POR should not have too much problems paying its short term obligations.
POR's Current ratio of 1.06 is in line compared to the rest of the industry. POR outperforms 58.70% of its industry peers.
POR has a Quick Ratio of 1.06. This is a bad value and indicates that POR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.94, POR is doing good in the industry, outperforming 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
POR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.16%.
The Earnings Per Share has been growing slightly by 5.52% on average over the past years.
POR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.79%.
The Revenue has been growing by 10.13% on average over the past years. This is quite good.
EPS 1Y (TTM)2.16%
EPS 3Y4.77%
EPS 5Y5.52%
EPS Q2Q%-24.79%
Revenue 1Y (TTM)10.79%
Revenue growth 3Y12.81%
Revenue growth 5Y10.13%
Sales Q2Q%-0.11%
3.2 Future
POR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.16% yearly.
Based on estimates for the next years, POR will show a small growth in Revenue. The Revenue will grow by 6.65% on average per year.
EPS Next Y4.03%
EPS Next 2Y4.05%
EPS Next 3Y4.16%
EPS Next 5Y5.16%
Revenue Next Year12.52%
Revenue Next 2Y8.57%
Revenue Next 3Y6.98%
Revenue Next 5Y6.65%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
POR is valuated correctly with a Price/Earnings ratio of 14.79.
63.04% of the companies in the same industry are more expensive than POR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of POR to the average of the S&P500 Index (25.82), we can say POR is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.36 indicates a correct valuation of POR.
POR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. POR is cheaper than 65.22% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. POR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.79 | ||
| Fwd PE | 12.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of POR indicates a somewhat cheap valuation: POR is cheaper than 67.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates POR does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.67
PEG (5Y)2.68
EPS Next 2Y4.05%
EPS Next 3Y4.16%
5. Dividend
5.1 Amount
POR has a Yearly Dividend Yield of 5.00%, which is a nice return.
POR's Dividend Yield is rather good when compared to the industry average which is at 3.47. POR pays more dividend than 91.30% of the companies in the same industry.
POR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
5.2 History
The dividend of POR has a limited annual growth rate of 4.85%.
POR has been paying a dividend for at least 10 years, so it has a reliable track record.
POR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.85%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
POR pays out 68.09% of its income as dividend. This is not a sustainable payout ratio.
POR's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP68.09%
EPS Next 2Y4.05%
EPS Next 3Y4.16%
42
+0.26 (+0.62%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners100.4%
Inst Owner Change2.61%
Ins Owners0.52%
Ins Owner Change9.85%
Market Cap4.60B
Analysts73.33
Price Target49.4 (17.62%)
Short Float %4.08%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
Yearly Dividend1.9
Dividend Growth(5Y)4.85%
DP68.09%
Div Incr Years18
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.32%
Min EPS beat(2)-7.86%
Max EPS beat(2)-2.78%
EPS beat(4)2
Avg EPS beat(4)0.39%
Min EPS beat(4)-7.86%
Max EPS beat(4)9.41%
EPS beat(8)3
Avg EPS beat(8)-3.39%
EPS beat(12)7
Avg EPS beat(12)0.94%
EPS beat(16)7
Avg EPS beat(16)-2.03%
Revenue beat(2)1
Avg Revenue beat(2)8.83%
Min Revenue beat(2)-5.32%
Max Revenue beat(2)22.99%
Revenue beat(4)3
Avg Revenue beat(4)7.35%
Min Revenue beat(4)-5.32%
Max Revenue beat(4)22.99%
Revenue beat(8)6
Avg Revenue beat(8)6.82%
Revenue beat(12)10
Avg Revenue beat(12)9.52%
Revenue beat(16)14
Avg Revenue beat(16)9.63%
PT rev (1m)-0.51%
PT rev (3m)-1.27%
EPS NQ rev (1m)9.38%
EPS NQ rev (3m)6.24%
EPS NY rev (1m)0.28%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)1.97%
Revenue NQ rev (3m)2.05%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)7.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.79 | ||
| Fwd PE | 12.36 | ||
| P/S | 1.34 | ||
| P/FCF | N/A | ||
| P/OCF | 5.51 | ||
| P/B | 1.2 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 9.18 |
EPS(TTM)2.84
EY6.76%
EPS(NY)3.4
Fwd EY8.09%
FCF(TTM)-4.27
FCFYN/A
OCF(TTM)7.62
OCFY18.13%
SpS31.4
BVpS35.1
TBVpS35.1
PEG (NY)3.67
PEG (5Y)2.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 7.91% | ||
| ROCE | 4.4% | ||
| ROIC | 3.8% | ||
| ROICexc | 3.83% | ||
| ROICexgc | 3.83% | ||
| OM | 15.06% | ||
| PM (TTM) | 8.84% | ||
| GM | 46.85% | ||
| FCFM | N/A |
ROA(3y)2.25%
ROA(5y)2.21%
ROE(3y)7.83%
ROE(5y)7.69%
ROIC(3y)3.68%
ROIC(5y)3.51%
ROICexc(3y)3.75%
ROICexc(5y)3.58%
ROICexgc(3y)4.12%
ROICexgc(5y)3.94%
ROCE(3y)4.28%
ROCE(5y)4.08%
ROICexcg growth 3Y0.98%
ROICexcg growth 5Y-0.73%
ROICexc growth 3Y1.2%
ROICexc growth 5Y-0.49%
OM growth 3Y-1.92%
OM growth 5Y-2.79%
PM growth 3Y-3.68%
PM growth 5Y-2.03%
GM growth 3Y-4.39%
GM growth 5Y-3.94%
F-Score7
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.78 | ||
| Cap/Depr | 252.82% | ||
| Cap/Sales | 37.86% | ||
| Interest Coverage | 2.71 | ||
| Cash Conversion | 80.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 0.91 |
F-Score7
WACC6.19%
ROIC/WACC0.61
Cap/Depr(3y)245.28%
Cap/Depr(5y)213.19%
Cap/Sales(3y)37.42%
Cap/Sales(5y)35.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.16%
EPS 3Y4.77%
EPS 5Y5.52%
EPS Q2Q%-24.79%
EPS Next Y4.03%
EPS Next 2Y4.05%
EPS Next 3Y4.16%
EPS Next 5Y5.16%
Revenue 1Y (TTM)10.79%
Revenue growth 3Y12.81%
Revenue growth 5Y10.13%
Sales Q2Q%-0.11%
Revenue Next Year12.52%
Revenue Next 2Y8.57%
Revenue Next 3Y6.98%
Revenue Next 5Y6.65%
EBIT growth 1Y17.46%
EBIT growth 3Y10.64%
EBIT growth 5Y7.06%
EBIT Next Year113.78%
EBIT Next 3Y35.01%
EBIT Next 5Y24.92%
FCF growth 1Y3.9%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y116.06%
OCF growth 3Y13.51%
OCF growth 5Y7.34%