0.42 | 1.21%
PUBLIC SERVICE ENTRP GRP INC's gross profit margin for the first quarter of its fiscal year 2013 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. PUBLIC SERVICE ENTRP GRP INC has weak liquidity. Currently, the Quick Ratio is 0.55 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.03% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 2786.0 | 2875.0 |
| EBITDA ($mil) | 900.0 | 1039.0 |
| EBIT ($mil) | 610.0 | 783.0 |
| Net Income ($mil) | 320.0 | 493.0 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 420.0 | 931.0 |
| Total Assets ($mil) | 31712.0 | 30002.0 |
| Total Debt ($mil) | 8279.0 | 8007.0 |
| Equity ($mil) | 10946.0 | 10624.0 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 32.3 | 36.14 |
| EBITDA Margin | 32.3 | 36.13 |
| Operating Margin | 21.9 | 27.23 |
| Sales Turnover | 0.31 | 0.36 |
| Return on Assets | 3.47 | 4.89 |
| Return on Equity | 10.06 | 13.53 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 1.07 | 1.27 |
| Debt/Capital | 0.43 | 0.43 |
| Interest Expense | 102.0 | 101.0 |
| Interest Coverage | 5.98 | 7.75 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 505.86 | 505.89 |
| Div / share | 0.36 | 0.36 |
| EPS | 0.63 | 0.97 |
| Book value / share | 21.64 | 21.0 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2876224.0 | 2607185.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 59.32 for the Multi-Utilities industry and a discount compared to the S&P 500 average of 18.80. For additional comparison, its price-to-book ratio of 1.61 indicates a discount versus the S&P 500 average of 2.40 and a discount versus the industry average of 2.12. The current price-to-sales ratio is above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, PUBLIC SERVICE ENTRP GRP INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| PEG 16.05 | Peers 59.32 | PEG 6.84 | Peers 7.08 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. PEG is trading at a significant discount to its peers. |
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. PEG is trading at a valuation on par to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| PEG 14.63 | Peers 17.22 | PEG NM | Peers 1.47 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. PEG is trading at a discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. PEG's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| PEG 1.61 | Peers 2.12 | PEG -23.33 | Peers -49.67 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. PEG is trading at a discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. PEG is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| PEG 1.82 | Peers 1.75 | PEG -10.79 | Peers -0.46 | |||||||||||||||||||||
|
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. PEG is trading at a valuation on par with its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. PEG significantly trails its peers on the basis of sales growth |
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