NYSE:PEG

Stock Analysis Report

Public Service Enterprise Group

Executive Summary

Public Service Enterprise Group Incorporated, through its subsidiaries, operates as an energy company primarily in the Northeastern and Mid- Atlantic United States.

Snowflake

Fundamentals

Established dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has Public Service Enterprise Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.3%

PEG

-0.6%

US Integrated Utilities

1.0%

US Market


1 Year Return

16.6%

PEG

19.6%

US Integrated Utilities

6.7%

US Market

Return vs Industry: PEG underperformed the US Integrated Utilities industry which returned 19.6% over the past year.

Return vs Market: PEG exceeded the US Market which returned 6.7% over the past year.


Share holder returns

PEGIndustryMarket
7 Day0.3%-0.6%1.0%
30 Day2.5%2.3%-1.8%
90 Day3.0%4.5%-1.8%
1 Year20.3%16.6%23.8%19.6%9.1%6.7%
3 Year66.7%50.0%46.8%32.0%46.1%36.6%
5 Year95.9%63.4%75.7%41.0%66.9%48.6%

Price Volatility Vs. Market

How volatile is Public Service Enterprise Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Public Service Enterprise Group undervalued based on future cash flows and its price relative to the stock market?

21.46x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: PEG ($62.35) is trading above our estimate of fair value ($43.79)

Significantly Undervalued: PEG is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: PEG is good value based on its PE Ratio (21.5x) compared to the Integrated Utilities industry average (21.7x).

PE vs Market: PEG is poor value based on its PE Ratio (21.5x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: PEG is poor value based on its PEG Ratio (4.4x)


Price Based on Value of Assets

PB vs Industry: PEG is good value based on its PB Ratio (2.1x) compared to the US Integrated Utilities industry average (2.2x).


Next Steps

Future Growth

How is Public Service Enterprise Group expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: PEG's forecast earnings growth (4.8% per year) is above the savings rate (2.7%).

Earnings vs Market: PEG's earnings (4.8% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: PEG's earnings are forecast to grow, but not significantly.

Revenue vs Market: PEG's revenue (1.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: PEG's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: PEG's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has Public Service Enterprise Group performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PEG's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: PEG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PEG had negative earnings growth (-32.8%) over the past year, making it difficult to compare to the Integrated Utilities industry average (-11.4%).


Return on Equity

High ROE: PEG's Return on Equity (9.9%) is considered low.


Return on Assets

ROA vs Industry: PEG's Return on Assets is below or equal to the Integrated Utilities industry average last year.


Return on Capital Employed

ROCE Improving: PEG's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Public Service Enterprise Group's financial position?


Financial Position Analysis

Short Term Liabilities: PEG's short term assets ($3.2B) do not cover its short term liabilities ($4.0B)

Long Term Liabilities: PEG's short term assets (3.2B) do not cover its long term liabilities (27.5B)


Debt to Equity History and Analysis

Debt Level: PEG's debt to equity ratio (106.6%) is considered high

Reducing Debt: PEG's debt to equity ratio has increased from 76.2% to 106.6% over the past 5 years.

Debt Coverage: PEG's debt is not well covered by operating cash flow (19.7%).

Interest Coverage: PEG's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: PEG's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Public Service Enterprise Group's current dividend yield, its reliability and sustainability?

3.18%

Expected Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.5%markettop25%3.8%industryaverage2.7%forecastin3Years3.2%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: PEG's dividend (3.02%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: PEG's dividend (3.02%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: PEG's dividends per share have been stable in the past 10 years.

Growing Dividend: PEG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.3%), PEG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PEG's dividends in 3 years are forecast to be covered by earnings (59.4% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Utilities industry.

Management

What is the CEO of Public Service Enterprise Group's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Ralph Izzo (61yo)

12.5yrs

Tenure

US$10,419,291

Compensation

Dr. Ralph Izzo, Ph.D., has been the Chief Executive Officer and President of Public Service Enterprise Group Incorporated since April 1, 2007. Dr. Izzo has been the Chief Executive Officer of Public Servic ...


CEO Compensation Analysis

Compensation vs. Market: Ralph's total compensation ($USD10.42M) is about average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Ralph's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.1yrs

Average Tenure

56yo

Average Age

Experienced Management: PEG's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

65yo

Average Age

Experienced Board: PEG's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: PEG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$130,70903 Sep 19
Derek DiRisio
EntityIndividual
Shares2,175.59
Max PriceUS$60.08
BuyUS$15002 Apr 19
Rose Chernick
EntityIndividual
Shares2.82
Max PriceUS$53.12
SellUS$354,43705 Mar 19
Stuart Black
EntityIndividual
Shares6,000
Max PriceUS$59.07
SellUS$1,271,66905 Feb 19
Ralph Izzo
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares23,415
Max PriceUS$54.31
SellUS$1,391,69903 Dec 18
Ralph LaRossa
EntityIndividual
Role
Unit Board Member
President & COO of PSEG Power
Shares25,046
Max PriceUS$55.57
SellUS$121,93505 Nov 18
Derek DiRisio
EntityIndividual
Shares2,300
Max PriceUS$53.02

Ownership Breakdown


Management Team

  • Ralph Izzo (61yo)

    Chairman

    • Tenure: 12.5yrs
    • Compensation: US$10.42m
  • Ralph LaRossa (56yo)

    President & COO of PSEG Power

    • Tenure: 0yrs
    • Compensation: US$7.51m
  • Scott Jennings

    Senior Vice President of Corporate Planning

    • Tenure: 0.6yrs
  • Rick Thigpen

    Senior Vice President of Corporate Citizenship

    • Tenure: 1.3yrs
  • Tamara Linde (54yo)

    Executive VP & General Counsel

    • Tenure: 5.3yrs
    • Compensation: US$2.45m
  • Dan Cregg (55yo)

    Executive VP & CFO

    • Tenure: 4yrs
    • Compensation: US$2.55m
  • Karen Cleeve

    Vice President of Corporate Communications

    • Tenure: 2.2yrs
  • Dave Daly (57yo)

    Chairman of PSEG Long Island

    • Tenure: 2yrs
    • Compensation: US$1.91m
  • Sheila Rostiac

    Senior VP of Human Resources & Chief Human Resources Officer

    • Tenure: 0.08yrs
  • Carlotta Chan

    Vice President of Investor Relations

    • Tenure: 1.3yrs

Board Members

  • Susan Tomasky (66yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$280.19k
  • Dick Swift (75yo)

    Independent Director

    • Tenure: 24.8yrs
    • Compensation: US$310.04k
  • David Lilley (72yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$258.94k
  • Bill Hickey (74yo)

    Independent Director

    • Tenure: 18yrs
    • Compensation: US$290.04k
  • Shirley Jackson (72yo)

    Lead Director

    • Tenure: 0.5yrs
    • Compensation: US$315.04k
  • Al Zollar (64yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$289.18k
  • Ralph Izzo (61yo)

    Chairman

    • Tenure: 12.5yrs
    • Compensation: US$10.42m
  • Willie Deese (64yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$290.04k
  • Ralph LaRossa (56yo)

    President & COO of PSEG Power

    • Tenure: 0yrs
    • Compensation: US$7.51m
  • Dave Daly (57yo)

    Chairman of PSEG Long Island

    • Tenure: 2yrs
    • Compensation: US$1.91m

Company Information

Public Service Enterprise Group Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Public Service Enterprise Group Incorporated
  • Ticker: PEG
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: US$31.526b
  • Shares outstanding: 505.64m
  • Website: https://www.pseg.com

Number of Employees


Location

  • Public Service Enterprise Group Incorporated
  • 80 Park Plaza
  • Newark
  • New Jersey
  • 7102
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PEGNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
PSEDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0KS2LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968

Biography

Public Service Enterprise Group Incorporated, through its subsidiaries, operates as an energy company primarily in the Northeastern and Mid- Atlantic United States. It operates through two segments, PSE&G  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:19
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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