Pepco Holdings

Dividend Yield: 5.40%

Pepco Holdings (NYSE: POM) shares currently have a dividend yield of 5.40%.

Pepco Holdings, Inc., through its subsidiaries, engages in the transmission, distribution, and supply of electricity. The company also distributes and supplies natural gas. The company has a P/E ratio of 44.11.

The average volume for Pepco Holdings has been 2,074,900 shares per day over the past 30 days. Pepco Holdings has a market cap of $5.0 billion and is part of the utilities industry. Shares are up 3.7% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Pepco Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.3%. Since the same quarter one year prior, revenues slightly increased by 3.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • PEPCO HOLDINGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PEPCO HOLDINGS INC reported lower earnings of $0.34 versus $0.95 in the prior year. This year, the market expects an improvement in earnings ($1.21 versus $0.34).
  • Net operating cash flow has increased to $230.00 million or 32.94% when compared to the same quarter last year. Despite an increase in cash flow, PEPCO HOLDINGS INC's average is still marginally south of the industry average growth rate of 42.69%.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Electric Utilities industry average, but is greater than that of the S&P 500. The net income increased by 34.9% when compared to the same quarter one year prior, rising from $43.00 million to $58.00 million.
  • The gross profit margin for PEPCO HOLDINGS INC is currently lower than what is desirable, coming in at 25.66%. Regardless of POM's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.31% trails the industry average.

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