PEG

Key Facts for PEG Investors – What You Need to Know Today

Public Service Enterprise logged a 1.8% change during today's afternoon session, and is now trading at a price of $74.86 per share.

Public Service Enterprise returned gains of 23.5% last year, with its stock price reaching a high of $75.17 and a low of $53.71. Over the same period, the stock underperformed the S&P 500 index by -1.8%. The company's 50-day average price was $68.38. Public Service Enterprise Group Incorporated, through its subsidiaries, operates in electric and gas utility business in the United States. Based in Newark, NJ, the Large-Cap Utilities company has 12,543 full time employees. Public Service Enterprise has offered a 3.1% dividend yield over the last 12 months.

Exceptional Profitability Overshadowed by Excessive Leverage:

2018 2019 2020 2021 2022 2023
Revenue (M) $9,696 $10,076 $9,603 $9,722 $9,800 $11,237
Operating Margins 24% 19% 24% -9% 14% 33%
Net Margins 15% 17% 20% -7% 11% 23%
Net Income (M) $1,438 $1,693 $1,905 -$648 $1,031 $2,563
Net Interest Expense (M) $476 $569 $600 $571 $628 $748
Depreciation & Amort. (M) $1,158 $108 $151 $138 $55 $3
Diluted Shares (M) 508 507 507 504 501 500
Earnings Per Share $2.83 $3.33 $3.76 -$1.29 $2.06 $5.13
EPS Growth n/a 17.67% 12.91% -134.31% 259.69% 149.03%
Avg. Price $43.51 $51.34 $48.42 $57.22 $63.97 $74.9
P/E Ratio 15.27 15.33 12.81 -44.36 30.9 14.54
Free Cash Flow (M) -$999 $213 $179 -$983 -$1,385 $481
CAPEX (M) $3,912 $3,166 $2,923 $2,719 $2,888 $3,325
EV / EBITDA 12.16 23.25 19.21 -71.84 40.53 18.03
Total Debt (M) $14,462 $15,108 $16,180 $15,919 $18,070 $19,284
Net Debt / EBITDA 4.13 7.29 6.46 -21.03 12.26 5.21
Current Ratio 0.71 0.64 0.66 0.88 0.64 0.67

Public Service Enterprise's Valuation Is in Line With Its Sector Averages:

Public Service Enterprise has a trailing twelve month P/E ratio of 18.9, compared to an average of 17.53 for the Utilities sector. Based on its EPS guidance of $4.02, the company has a forward P/E ratio of 17.0. The 5.1% compound average growth rate of Public Service Enterprise's historical and projected earnings per share yields a PEG ratio of 3.68. This suggests that these shares are overvalued. Furthermore, Public Service Enterprise is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.38 is higher than the sector average of 1.71.

Public Service Enterprise Has an Analyst Consensus of Little Upside Potential:

The 15 analysts following Public Service Enterprise have set target prices ranging from $61.5 to $80.0 per share, for an average of $71.57 with a buy rating. The company is trading 4.6% away from its average target price, indicating that there is an analyst consensus of little upside potential.

Public Service Enterprise has a very low short interest because 1.9% of the company's shares are sold short. Institutions own 75.8% of the company's shares, and the insider ownership rate stands at 0.12%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $4,481,419,450.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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