Portland GE (POR) AI Stock Analysis

• Market Cap: $4.63B
• Dividend Yield: 4.83%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.33
• Revenue Growth: 15.67%
• EPS Growth: 29.07%
• Country: US
• Employees: 2,915
• Sector: Utilities
• Sector Strength: 88
• Industry: Regulated Electric
• EPS (TTM): 3.02
• Shares Outstanding: 109,503,230
• 10 Day Avg. Volume: 1,367,677
• 30 Day Avg. Volume: 1,258,756
• PEG Ratio: 0.48
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.39
• Price to Cash Flow (P/CF): 7.00
• P/FCF Ratio: 5.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $46.22
• Price Target Upside: 11.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

Portland GE's overall score reflects its strong financial performance, supported by robust revenue growth and profitability. The company's valuation is fair, with an attractive dividend yield. Technical indicators are mixed, showing minimal momentum. The recent earnings call provided an optimistic outlook despite some challenges, contributing positively to the score. The score indicates a solid position with growth potential, but careful management of investments and regulatory challenges is crucial.

Positive Factors

Earnings

POR reported FY 2024 EPS of $3.13/share, above the $3.08 estimate, driven by weather and higher system loads from industrial customers.

Financial Strategy

A Holdco formation scenario can unlock value by providing alternative efficient means to finance the historically high capex outlook.

Negative Factors

Earnings Outlook

The rate of return on equity was reduced, which could put pressure on Portland General Electric's earnings outlook.

Regulatory Challenges

The Oregon Public Utilities Commission's final order granted a much lower revenue increase than requested by Portland General Electric, leading to significant public and policymaker attention.

Regulatory Risk

POR received an adverse final order in its rate case, and there is heightened regulatory risk.

Portland GE Business Overview & Revenue Model

Company Description

Portland General Electric Company, an integrated electric utility company, engages in the generation, wholesale purchase, transmission, distribution, and retail sale of electricity in the state of Oregon. It operates six thermal plants, three wind farms, and seven hydroelectric facilities. As of December 31, 2021, the company owned an electric transmission system consisting of 1,274 circuit miles, including 287 circuit miles of 500 kilovolt line, 415 circuit miles of 230 kilovolt line, and 572 miles of 115 kilovolt line. It has 28,206 circuit miles of distribution lines. The company also purchases and sells wholesale natural gas in the United States and Canada. It serves approximately 917 thousand residential, commercial, and industrial customers in 51 cities. The company was founded in 1889 and is headquartered in Portland, Oregon.

How the Company Makes Money

Portland GE Financial Statement Overview

Summary

Portland GE's financial health is marked by strong revenue growth and profitability, supported by efficient operations. The company's balance sheet shows moderate leverage with effective equity utilization. Cash flow performance is commendable, with significant operating cash flow growth, although high capital expenditures impact free cash flow. Overall, the financial position is solid but requires careful management of debt and investment levels to maintain liquidity and growth trajectory.

Income Statement

Portland GE demonstrates robust revenue growth with a 17.67% increase from 2023 to 2024, driven by strong sales performance. The company's gross profit margin remains high, indicating effective cost management. Additionally, the net profit margin has improved to 9.10%, reflecting enhanced profitability. The EBIT and EBITDA margins are also solid, showcasing efficient operations. However, the past year's gross profit margin was exceptionally high, suggesting some volatility in profit retention.

Balance Sheet

The company maintains a strong equity base with a debt-to-equity ratio of 1.25, indicating moderate leverage. However, the equity ratio is low, at approximately 30.96%, suggesting a higher reliance on liabilities. Return on Equity (ROE) is favorable at 8.25%, demonstrating effective use of equity to generate profits. The balance sheet shows a healthy equity position but highlights some potential risks due to high debt levels relative to equity.

Cash Flow

Portland GE shows a strong operating cash flow with a remarkable 85.24% growth from 2023 to 2024, indicating improved cash generation from core activities. Despite negative free cash flow due to substantial capital expenditures, the operating cash flow to net income ratio is strong at 2.49, reflecting efficient conversion of income to cash. The free cash flow to net income ratio is negative, highlighting ongoing investment needs, which could constrain liquidity if not managed carefully.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.44B	2.92B	2.65B	2.40B	2.15B
	Gross Profit
3.44B	1.36B	1.66B	1.57B	1.44B
	EBIT
512.00M	396.00M	397.00M	378.00M	269.00M
	EBITDA
1.06B	904.00M	845.00M	808.00M	718.00M
	Net Income Common Stockholders
313.00M	228.00M	233.00M	244.00M	13.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.00M	5.00M	165.00M	52.00M	257.00M
	Total Assets
12.54B	11.21B	10.46B	9.49B	9.07B
	Total Debt
473.00M	4.44B	3.96B	3.58B	3.34B
	Net Debt
473.00M	4.43B	3.79B	3.53B	3.08B
	Total Liabilities
8.75B	7.89B	7.68B	6.79B	6.46B
	Stockholders Equity
3.79B	3.32B	2.78B	2.71B	2.61B
Cash Flow		Free Cash Flow
-490.00M	-938.00M	-92.00M	-104.00M	-217.00M
	Operating Cash Flow
778.00M	420.00M	674.00M	532.00M	567.00M
	Investing Cash Flow
-1.30B	-1.36B	-758.00M	-656.00M	-787.00M
	Financing Cash Flow
526.00M	778.00M	197.00M	-81.00M	447.00M

Portland GE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POR, the sentiment is Negative. The current price of 41.62 is below the 20-day moving average (MA) of 43.42, below the 50-day MA of 42.92, and below the 200-day MA of 44.34, indicating a bearish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 60.39 is Neutral, neither overbought nor oversold. The STOCH value of 82.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for POR.

Portland GE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TXNM	75 Outperform	$4.71B	19.03	9.89%	3.21%	1.65%	162.78%
POR	74 Outperform	$4.63B	14.07	8.80%	4.83%	15.67%	29.07%
IDA	74 Outperform	$6.20B	20.88	9.27%	3.00%	3.48%	6.67%
OGE	73 Outperform	$8.74B	19.80	9.65%	3.87%	11.63%	5.61%
PNW	70 Neutral	$10.81B	17.30	9.42%	3.92%	9.13%	21.11%
ENIC	68 Neutral	$4.38B	28.71	3.23%	7.43%	-17.27%	-77.67%
Sector *	65 Neutral	$11.78B	15.57	6.20%	4.58%	5.53%	-8.93%

Portland GE Corporate Events

Portland GE Announces 2024 Financial Results and Future Plans

Portland General Electric announced its 2024 financial results with GAAP net income of $313 million, or $3.01 per diluted share, and non-GAAP adjusted net income of $327 million, or $3.14 per diluted share. The company outlined key achievements in 2024, including significant investments in clean energy resources, battery storage, and grid resiliency. For 2025, PGE has initiated an earnings guidance of $3.13 to $3.33 per diluted share and continues to focus on enhancing operational reliability and resilience, with plans for further capital investment and wildfire risk mitigation.