Public Service Enterprise Group Incorporated Fundamental Analysis (NYSE: PEG)
Public Service Enterprise Group Incorporated Fundamental Analysis (NYSE: PEG)
Public Service Enterprise Group Incorporated (NYSE: PEG) shows moderate financial fundamentals with a PE ratio of 18.86, profit margin of 16.04%, and ROE of 11.73%. The company generates $12.5B in annual revenue with strong year-over-year growth of 18.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PEG's fundamental strength across five key dimensions:
Efficiency Score
WeakPEG struggles to generate sufficient returns from assets.
Valuation Score
ModeratePEG shows balanced valuation metrics.
Growth Score
ExcellentPEG delivers strong and consistent growth momentum.
Financial Health Score
WeakPEG carries high financial risk with limited liquidity.
Profitability Score
ModeratePEG maintains healthy but balanced margins.
Key Financial Metrics
Is PEG Expensive or Cheap?
P/E Ratio
PEG trades at 18.86 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PEG's PEG of 9.34 indicates potential overvaluation.
Price to Book
The market values Public Service Enterprise Group Incorporated at 2.19 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.09 times EBITDA. This is generally considered low.
How Well Does PEG Make Money?
Net Profit Margin
For every $100 in sales, Public Service Enterprise Group Incorporated keeps $16.04 as profit after all expenses.
Operating Margin
Core operations generate 23.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.73 in profit for every $100 of shareholder equity.
ROA
Public Service Enterprise Group Incorporated generates $3.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Public Service Enterprise Group Incorporated generates strong operating cash flow of $3.59B, reflecting robust business health.
Free Cash Flow
Public Service Enterprise Group Incorporated generates strong free cash flow of $1.98B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.98 in free cash annually.
FCF Yield
PEG converts 5.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How PEG Stacks Against Its Sector Peers
| Metric | PEG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.86 | 20.43 | Neutral |
| ROE | 11.73% | 1037.00% | Weak |
| Net Margin | 16.04% | -667.00% (disorted) | Strong |
| Debt/Equity | 1.42 | 1.68 | Neutral |
| Current Ratio | 0.88 | 1.72 | Weak Liquidity |
| ROA | 3.42% | 4578092.00% | Weak |
PEG outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Public Service Enterprise Group Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
27.98%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
11.92%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
-22.90%
Industry Style: Defensive, Dividend, Income
Declining