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Portland General Electric Company (POR)
NYSE:POR
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Portland GE
(NYSE:POR)77Outperform
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.
Regulatory Strategy
Wildfire legislation introduction alongside Holdco formation are key elements to hold up shares muting downside risk into the new year.
Negative Factors
Regulatory Environment
The less favorable regulatory environment in Oregon is creating challenges for Portland General Electric, as evidenced by recent rate case decisions.
Portland GE (POR) vs. S&P 500 (SPY)
Market Cap
$4.80B
Dividend Yield4.5%
Average Volume (3M)1.11M
Price to Earnings (P/E)14.6
Beta (1Y)0.41
Revenue Growth15.67%
EPS Growth29.07%
CountryUS
Employees2,915
SectorUtilities
Sector Strength79
IndustryRegulated Utilities
Share Statistics
EPS (TTM)3.02
Shares Outstanding109,503,230
10 Day Avg. Volume1,120,373
30 Day Avg. Volume1,114,528
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)N/A
Price to Sales (P/S)1.40
Price to Cash Flow (P/CF)7.10
P/FCF Ratio5.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$46.70Price Target Upside6.33% Upside
Rating ConsensusHold
Number of Analyst Covering10
Portland GE Business Overview & Revenue Model
Company DescriptionPortland General Electric Co. is a vertically integrated electric utility company, which engages in the generation, purchase, transmission, distribution, and retail of electricity. The firm sells electricity and natural gas in the wholesale market to utilities, brokers, and power marketers. It also serves residential, commercial, and non-residential customers. The company was founded in 1888 and is headquartered in Portland, OR.
How the Company Makes Money
Portland GE Financial Statement Overview
Summary
Portland GE has demonstrated strong revenue growth and profitability with an income statement score of 88, balance sheet score of 75, and cash flow score of 68. There is robust revenue growth, solid profitability, and efficient operations, though high capital expenditures impact free cash flow.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.88
Very Positive
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.75
Positive
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.68
Positive
| 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
Neutral
43.92
Price Trends
42.57
Positive
44.46
Negative
44.61
Negative
Market Momentum
0.61
Negative
55.54
Neutral
31.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POR, the sentiment is Neutral. The current price of 43.92 is above the 20-day moving average (MA) of 43.24, above the 50-day MA of 42.57, and below the 200-day MA of 44.61, indicating a neutral trend. The MACD of 0.61 indicates Negative momentum. The RSI at 55.54 is Neutral, neither overbought nor oversold. The STOCH value of 31.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for POR.
Portland GE Risk Analysis
Portland GE disclosed 24 risk factors in its most recent earnings report. Portland GE reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Portland GE Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $89.47B | 20.27 | 9.10% | 3.61% | 4.46% | 54.09% | |
77 Outperform | $97.23B | 22.20 | 13.61% | 3.25% | 5.83% | 10.23% | |
77 Outperform | $4.80B | 14.61 | 8.80% | 4.50% | 15.67% | 29.07% | |
73 Outperform | $54.70B | 18.37 | 11.37% | 3.53% | 2.76% | 31.53% | |
72 Outperform | $43.10B | 17.48 | 9.34% | 3.59% | 5.98% | 4.99% | |
67 Neutral | $144.01B | 20.75 | 14.24% | 3.02% | 26.91% | -6.43% | |
65 Neutral | $12.05B | 15.92 | 6.71% | 4.32% | 8.04% | 3.76% |
* Utilities Sector Average
Performance Comparison
POR
Portland GE
44.55
4.86
12.24%
AEP
American Electric Power
104.62
23.89
29.59%
DUK
Duke Energy
116.74
25.34
27.72%
EXC
Exelon
43.11
7.58
21.33%
NEE
NextEra Energy
72.83
16.61
29.54%
SO
Southern Co
91.40
24.70
37.03%
Portland GE Earnings Call Summary
Earnings Call Date: Feb 14, 2025 | % Change Since: 4.27% | Next Earnings Date: Apr 25, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment with strong financial performance, clean energy investments, and industrial growth as key highlights. However, challenges such as decreased fourth-quarter earnings, power cost volatility, and residential and commercial load declines tempered the positive aspects. The regulatory challenges with the rate case outcome also added to the concerns.Highlights
Strong Financial Performance in 2024
Portland General Electric reported GAAP net income of $313 million or $3.01 per diluted share for 2024, compared to $228 million or $2.33 per share in 2023, marking a significant year-over-year increase.
Increase in Long-term Customer Growth Expectations
The company increased its long-term customer usage growth expectations from 2% to 3%, driven by semiconductor manufacturing and data center customers.
Significant Investments in Clean Energy
PGE invested over $1.2 billion in capital projects targeting customer growth, grid resiliency, and decarbonization. Clean energy represented 45% of the energy mix in 2024.
Industrial Growth Driven by High-Tech and Digital Customers
Industrial growth increased by 11% year-over-year, led by semiconductor manufacturing and data center customers.
Battery Storage Capacity Expansion
PGE will soon have over 500 megawatts of battery capacity, enhancing renewable integration, system reliability, and energy price stability.
Lowlights
Decreased Fourth Quarter Earnings
Fourth-quarter GAAP net income decreased to $39 million or $0.36 per share from $68 million or $0.67 per share in the fourth quarter of 2023.
Challenges with Power Cost Volatility
Although improved, PGE faced higher power costs at $0.68 per share, driven by unfavorable market conditions in the fourth quarter.
Residential and Commercial Load Declines
Residential load decreased 2.8% year-over-year, and commercial load decreased 2.2% year-over-year due to energy efficiency and distributed energy resources.
Regulatory Challenges with Rate Case Outcome
The outcome of the 2025 rate review was less favorable than expected, impacting financial planning.
Company Guidance
During Portland General Electric's fourth-quarter and full-year 2024 earnings call, the company provided guidance for 2025 with an earnings projection of $3.13 to $3.33 per diluted share. The long-term earnings per share (EPS) and dividend growth were reaffirmed at 5% to 7%, based on a $3.08 per share midpoint from the original 2024 guidance. The company reported a 2024 GAAP net income of $313 million or $3.01 per diluted share and non-GAAP net income of $327 million or $3.14 per share. This reflects a notable increase compared to 2023's GAAP net income of $228 million or $2.33 per share and non-GAAP net income of $233 million or $2.38 per share. Additionally, weather-adjusted energy usage grew by 3% year-over-year, with industrial growth up by 11%, driven by high-tech and digital sectors. Portland General Electric plans to invest significantly, with a five-year capital forecast through 2029 focusing on transmission projects and grid resiliency. The company also highlighted its ongoing efforts to manage operating costs and enhance operational efficiency amid robust customer demand.Portland GE Corporate Events
Business Operations and StrategyFinancial Disclosures
Portland GE Announces 2024 Financial Results and Future Plans
Positive
Feb 14, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.