With the U.N. Climate Change Conference, otherwise known as COP28, starting this week, we are reasserting our view that the market underappreciates utilities' critical role in limiting global warming.
California's utility rate regulation is highly constructive with usage-decoupled revenue, annual rate true-up adjustments, and forward-looking rate setting.
PG&E depends almost entirely on regulators to approve rate hikes to cover its large investment plan. A cut in regulated rates could jeopardize earnings growth.
|
Metric
|
PCG
|
POR
|
EIX
|
|---|---|---|---|
Price/Earnings (Normalized) | 16.83 | 18.17 | 14.47 |
Price/Book Value | 1.81 | 1.26 | 1.88 |
Price/Sales | 1.61 | 1.35 | 1.55 |
Price/Cash Flow | 8.34 | 5.89 | 6.25 |
|
Metric
|
PCG
|
POR
|
EIX
|
|---|---|---|---|
Quick Ratio | 0.67 | 0.65 | 0.41 |
Current Ratio | 0.84 | 1.14 | 0.80 |
Interest Coverage | 0.82 | 2.45 | 1.86 |
|
Metric
|
PCG
|
POR
|
EIX
|
|---|---|---|---|
Return on Assets (Normalized) | 1.82% | 2.10% | 1.64% |
Return on Equity (Normalized) | 9.39% | 7.13% | 9.45% |
Return on Invested Capital (Normalized) | 4.81% | 5.21% | 4.84% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|
NEE
| NextEra Energy Inc | Jbhlds | $120.0 Bil | |
SO
| Southern Co | Nysqz | $77.4 Bil | |
DUK
| Duke Energy Corp | Rbmmtv | $71.1 Bil | |
NGG
| National Grid PLC ADR | Glch | $48.1 Bil | |
AEP
| American Electric Power Co Inc | Wnbqjdt | $41.8 Bil | |
EXC
| Exelon Corp | Vmwplw | $38.3 Bil | |
D
| Dominion Energy Inc | Fhqkvqh | $37.9 Bil | |
XEL
| Xcel Energy Inc | Fgdbzq | $33.6 Bil | |
PEG
| Public Service Enterprise Group Inc | Xvwpt | $31.1 Bil |
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