Southern California Gas Company PFD SER A 6% Fundamental Analysis
Southern California Gas Company PFD SER A 6% (SOCGP) shows moderate financial fundamentals with a PE ratio of 28.79, profit margin of 15.21%, and ROE of 6.53%. The company generates $1.9B in annual revenue with moderate year-over-year growth of 5.83%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SOCGP's fundamental strength across five key dimensions:
Efficiency Score
WeakSOCGP struggles to generate sufficient returns from assets.
Valuation Score
ModerateSOCGP shows balanced valuation metrics.
Growth Score
ModerateSOCGP shows steady but slowing expansion.
Financial Health Score
ModerateSOCGP shows balanced financial health with some risks.
Profitability Score
WeakSOCGP struggles to sustain strong margins.
Key Financial Metrics
Is SOCGP Expensive or Cheap?
P/E Ratio
SOCGP trades at 28.79 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SOCGP's PEG of -0.91 indicates potential undervaluation.
Price to Book
The market values Southern California Gas Company PFD SER A 6% at 1.85 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.91 times EBITDA. This is generally considered low.
How Well Does SOCGP Make Money?
Net Profit Margin
For every $100 in sales, Southern California Gas Company PFD SER A 6% keeps $15.21 as profit after all expenses.
Operating Margin
Core operations generate 25.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.53 in profit for every $100 of shareholder equity.
ROA
Southern California Gas Company PFD SER A 6% generates $1.82 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Southern California Gas Company PFD SER A 6% generates strong operating cash flow of $681.12M, reflecting robust business health.
Free Cash Flow
Southern California Gas Company PFD SER A 6% generates weak or negative free cash flow of $-813.81M, restricting financial flexibility.
FCF Per Share
Each share generates $-8.94 in free cash annually.
FCF Yield
SOCGP converts -9.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How SOCGP Stacks Against Its Sector Peers
| Metric | SOCGP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.79 | 20.85 | Worse (Expensive) |
| ROE | 6.53% | 1014.00% | Weak |
| Net Margin | 15.21% | -57829.00% (disorted) | Strong |
| Debt/Equity | 1.13 | -0.46 (disorted) | Distorted |
| Current Ratio | 1.69 | 4.93 | Neutral |
| ROA | 1.82% | -10983113.00% (disorted) | Weak |
SOCGP outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Southern California Gas Company PFD SER A 6%'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7.72%
Industry Style: Cyclical, Value, Commodity
GrowingEPS CAGR
-58.34%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
57.14%
Industry Style: Cyclical, Value, Commodity
High Growth