DB:PCG

Stock Analysis Report

Executive Summary

PG&E Corporation, through its subsidiary, Pacific Gas and Electric Company, engages in the sale and delivery of electricity and natural gas to residential, commercial, industrial, and agricultural customers in northern and central California, the United States.


Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has PG&E's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PCG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.0%

PCG

-4.7%

DE Electric Utilities

-6.8%

DE Market


1 Year Return

-0.9%

PCG

28.1%

DE Electric Utilities

6.5%

DE Market

Return vs Industry: PCG underperformed the German Electric Utilities industry which returned 26.3% over the past year.

Return vs Market: PCG underperformed the German Market which returned 6.1% over the past year.


Shareholder returns

PCGIndustryMarket
7 Day5.0%-4.7%-6.8%
30 Day27.7%4.3%-3.7%
90 Day130.6%14.8%-3.6%
1 Year-0.9%-0.9%33.1%28.1%9.8%6.5%
3 Year-73.9%-74.5%77.8%54.9%6.8%-2.6%
5 Year-64.0%-67.1%64.4%27.2%12.5%-2.9%

Price Volatility Vs. Market

How volatile is PG&E's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is PG&E undervalued compared to its fair value and its price relative to the market?

29.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PCG (€15.91) is trading below our estimate of fair value (€22.58)

Significantly Below Fair Value: PCG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PCG is unprofitable, so we can't compare its PE Ratio to the Electric Utilities industry average.

PE vs Market: PCG is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PCG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PCG is overvalued based on its PB Ratio (1.8x) compared to the XE Electric Utilities industry average (0.9x).


Next Steps

Future Growth

How is PG&E forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

124.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PCG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: PCG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PCG's is expected to become profitable in the next 3 years.

Revenue vs Market: PCG's revenue (4.8% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: PCG's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PCG's Return on Equity is forecast to be low in 3 years time (9.5%).


Next Steps

Past Performance

How has PG&E performed over the past 5 years?

-69.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PCG is currently unprofitable.

Growing Profit Margin: PCG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PCG is unprofitable, and losses have increased over the past 5 years at a rate of -69.7% per year.

Accelerating Growth: Unable to compare PCG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PCG is unprofitable, making it difficult to compare its past year earnings growth to the Electric Utilities industry (6%).


Return on Equity

High ROE: PCG has a negative Return on Equity (-142.09%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PG&E's financial position?


Financial Position Analysis

Short Term Liabilities: PCG's short term assets ($10.2B) exceed its short term liabilities ($8.8B).

Long Term Liabilities: PCG's short term assets ($10.2B) do not cover its long term liabilities ($71.0B).


Debt to Equity History and Analysis

Debt Level: PCG's debt to equity ratio (456.9%) is considered high.

Reducing Debt: PCG's debt to equity ratio has increased from 98% to 456.9% over the past 5 years.


Balance Sheet

Inventory Level: PCG has a high level of physical assets or inventory.

Debt Coverage by Assets: PCG's debt is not covered by short term assets (assets are 0.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PCG has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PCG has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is PG&E's current dividend yield, its reliability and sustainability?

0.077%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage3.7%forecastin3Years0.08%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate PCG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PCG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PCG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PCG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PCG is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PCG's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Bill Johnson (65yo)

0.8yrs

Tenure

0

Mr. William Dean Johnson, also known as Bill, has been Chief Executive Officer and President of PG&E Corporation since April 2019. Mr. Johnson had been Chief Executive Officer and President of Pacific Gas  ...


Leadership Team

NamePositionTenureCompensationOwnership
Jason Wells
Executive VP & CFO4.1yrsUS$3.20m0.012% $1.1m
John Simon
Executive Vice President of Law1.1yrsUS$3.12m0.012% $1.1m
David Thomason
VP & Controller3.7yrsUS$708.66k0.0019% $160.7k
William Johnson
CEO, President & Director0.8yrsno datano data
Christopher Foster
Vice President of Investor Relations0yrsno datano data
Janet Loduca
Senior VP & General Counsel1.1yrsno data0.0048% $409.4k
Julie Kane
Senior VP4.8yrsno data0.0032% $270.1k
Dinyar Mistry
Senior Vice President of Human Resources3.9yrsUS$2.41m0.0061% $518.0k
Stephen Cairns
VP of Internal Audit & Chief Risk Officer2.8yrsno datano data
James Mesterharm
Chief Restructuring Officer1yrsno datano data

2.8yrs

Average Tenure

51yo

Average Age

Experienced Management: PCG's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Johnson
CEO, President & Director0.8yrsno datano data
Fred Fowler
Independent Director7.9yrsUS$260.06k0.0027% $226.5k
Eric Mullins
Independent Director3.4yrsUS$260.06k0.00040% $34.2k
Meridee Moore
Independent Director0.8yrsno data0.026% $2.3m
Michael Leffell
Independent Director0.8yrsno data0.015% $1.3m
Richard Barrera
Independent Director0.8yrsno datano data
Nora Brownell
Independent Non-Executive Chairman0.8yrsno datano data
Dominique Mielle
Independent Director0.8yrsno datano data
Kristine Schmidt
Independent Director0.8yrsno datano data
Jeffrey Bleich
Independent Director0.8yrsno datano data

0.8yrs

Average Tenure

59yo

Average Age

Experienced Board: PCG's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

PG&E Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PG&E Corporation
  • Ticker: PCG
  • Exchange: DB
  • Founded: 1905
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: US$9.299b
  • Listing Market Cap: US$8.548b
  • Shares outstanding: 529.25m
  • Website: https://www.pgecorp.com

Number of Employees


Location

  • PG&E Corporation
  • 77 Beale Street
  • PO Box 770000
  • San Francisco
  • California
  • 94177
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PCGNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1992
PCGDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
0QR3LSE (London Stock Exchange)YesCommon SharesGBUSDJan 1992
PCGETLX (Eurotlx)YesCommon SharesITEURJan 1992

Biography

PG&E Corporation, through its subsidiary, Pacific Gas and Electric Company, engages in the sale and delivery of electricity and natural gas to residential, commercial, industrial, and agricultural customers in northern and central California, the United States. The company’s electricity distribution network consists of approximately 107,000 circuit miles of distribution lines, 50 transmission switching substations, and 769 distribution substations; and electricity transmission network comprises approximately 18,000 circuit miles of interconnected transmission lines and 84 electric transmission substations. Its natural gas system consists of approximately 43,100 miles of distribution pipelines, approximately 6,400 miles of backbone and local transmission pipelines, and various storage facilities. The company also owns and operates nuclear, hydroelectric, fossil fuel-fired, and solar electricity generation facilities. PG&E Corporation was incorporated in 1905 and is based in San Francisco, California. On January 29, 2019, PG&E Corporation Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Northern District of California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 20:48
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.