PG&E loses $US725 million in MCap, steepest heavyweight fall in Conventional electricity sector 12 August 2019

NEWS BITES - NORTH AMERICA

PG&E Corporation (NYSE:PCG), the NYSE's 17th largest Conventional electricity company by market cap, has tumbled $US1.37 (7.6%) from its previous trading session to close at $US16.75. Compared with the S&P 500 Index which fell 35.6 points (1.2%) in the day, the relative price change was -6.3%. The volume was 0.8 times the average daily trading volume of 12.8 million shares. It posted the steepest fall in MCap with the most influence on the Conventional electricity sector. There were 10,812,532 shares worth $US181.1 million traded today.

TODAY'S BUZZ

News DateHeadlinePublisher
Aug 12Liberty Wealth Management LLC Grows Stock Position in PG&E Co. (NYSE:PCG)Dispatch Tribunal
Aug 12PG&E Co. (NYSE:PCG) Shares Bought by Liberty Wealth Management LLCtheenterpriseleader.com

BULLISH TURNING POINT

Williams % R

The stock is oversold according to the Williams % R indicator of -99.4, suggesting the price is close to its 14-day low. The Williams % R was previously -71.3.

Stock Summary

Today's close (USD)16.75
52-Week Range (USD)5.1-49.4
SectorConventional Electricity sector
Shares Outstanding529,210,000
Market Cap$US8.9 billion

Highlights in today's Report:

SECTION 1 TODAY'S BEARISH SIGNALS

SECTION 2 TODAY'S BULLISH SIGNALS

RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF $US16.75):

SECTION 3 THE PAST WEEK

SECTION 4 ONGOING BULLISH PARAMETERS

SECTION 5 ONGOING BEARISH PARAMETERS

SECTION 6 REPORTED BUYING AND SELLING

SECTION 7 SUMMARY FINANCIALS

SECTION 8 CORPORATE PROFILE

SECTION 1 PG&E BEARISH SIGNALS

1.1 Short Selling:

+ In the NYSE Short Selling market of 2207 stocks, short selling as a % of issued shares ranked 494th and within the top quartile of stocks. This means it was higher than market average of 0.5%, a bearish indicator.

+ The current short volume is 1.6 times its own historical average of 0.4%.

1.2 Downtrend:

+ Increasing Put Call Ratio

+ Put Call Contracts

The Put/Call ratio has jumped from 3.469 to 5.355 suggesting a downtrend.

Put ContractsCall ContractsPut/Call ratio
Today52,9969,8965.355
Previous day70,21920,2413.469

+ Put Call Ratio increases 54.4%

Put Call Ratio1 Day1 Week1 MonthInterpretation
Change %54.459.8386.8Downtrend

+ PG&E continues significant downtrend

Price/Moving Average Price and MACD:

+ The Price/MAP of 0.78 for PCG is lower than the Price/MAP for the S&P 500 Index of 1.04.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 18.11 minus the 26-day EMA of 18.7 is negative suggesting a bearish signal. Both the 12-day EMA as well as the 26-day EMA are falling, another bearish signal.

+ The price to 50-day EMAP ratio is 0.9, a bearish indicator. The 50-day EMAP has decreased to $US19.18. A decrease is another bearish indicator.

+ In the past 200 days this ratio has been under 0.78, 102 times suggesting further downside. The stock is trading below both its MAPs and the 50-day MAP of $US19.72 is lower than the 200-day MAP of $US21.38, a bearish indicator. The 200-day MAP has decreased to $US21.38. A decrease is another bearish indicator.

Past Week:

+ PG&E Corporation is placed 2488/2736 in BuySellSignals' ranking of NYSE performers in the past week, a percentile ranking of 10.

+ In the past week, volume was 0.5 times average and the shares were down 6.7%. Monday's close price is at a 6.0% discount to its 5-day Volume Weighted Average Price (VWAP) of $US17.83.

Past Month:

+ The present value of $US1,000 (PV1000) invested one month ago in PG&E is $US783, for a capital loss of $US217.

1.3 Low Price Performance Indicators and rank of PG&E in the NYSE market:

DescriptionPCG ValueRank In Market
Volatility %7.9In Bottom 5%
Price/MAP2000.78In Bottom Quartile
Price/MAP500.85In Bottom Quartile

SECTION 2 PG&E BULLISH SIGNALS

2.1 Undervaluation [compared with sector average]:

Price to Sales

+ Price/Sales of 0.5 [2.5]. We estimate PG&E stock is trading at a current year Price/Sales of 0.5 and a forward year Price/Sales of 0.5.

Price to Book

+ Price to Book of 0.7 [2.0]. We estimate PG&E stock is trading at a current year Price to Book of 0.7 and a forward year Price to Book of 0.8.

MCap/Total Assets

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.1. Compared with the rest of the market the stock is undervalued and ranks in the top 2% of stock by value of Q Ratio.

2.2 Undervaluation Indicator and rank of PG&E in the NYSE market:

DescriptionValueRank In Market
Price to Sales0.5In Top Quartile

2.3 Uptrend:

+ Falling open interest with falling price

+ Open Interest Trend

Same day trend: The price tumbled 7.6% from $US18.12 to $US16.75; Open interest has plummeted 30.5% from 90,460 to 62,892. A fall in price combined with a decline in open interest suggests long position holders are being compelled to liquidate their positions and the market is strengthening. This is a bullish signal awaiting a turning point when long position holders have completed their selling.

DurationOpen Interest change %Price change %Interpretation
1-day-30.5-7.6Market is Strengthening
1-week-10.7-6.7Market is Strengthening

+ Top three traded put options [1 contract is 100 shares]

Exercise PriceExercise DateOption PriceChange %Contracts Traded
$US17.0August 16, 201966.0c46.7215
$US16.50August 16, 201959.0c78.8106
$US17.0January 17, 2020$US3.5016.7100

Relative Strength (6 months):

+ In the NYSE market of 1,879 stocks and 287 units traded today, the stock has a 6-month relative strength of 83 which means it is beating 83% of the market.

2.4 High Price Performance Indicators and rank of PG&E in the NYSE market:

DescriptionPCG ValueRank In Market
Today's Trading Turnover$US181.1 millionIn Top 5%
MCap$US8.9 billionIn Top Quartile

2.5 Oversold/Bullish/Support Signals:

+ At $US16.75 the price is below the lower Bollinger band support of $US17.25, indicating an upside for it to return to the band.

+ The stock is oversold according to the Williams % R indicator of -99.4, suggesting the price is close to its 14-day low of $US16.73.

RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF $US16.75):

SECTION 3 THE PAST WEEK

3.1 Snapshot: PG&E stock was down $US1.20 or 6.7% in the past week. Volume in the week was 0.5 times average trading of 64.1 million shares. It underperformed the S&P 500 index in 3 out of 5 days.

DayPG&EClose price [USD]Price change %Relative change %Comment
FridayDecreases18.12-2.1-1.4Price fall on falling relative strength
ThursdayLifts 2.3%18.511.90.05Top Rise
WednesdayDecreases 1.1%18.16-0.4-0.5Price fall on falling relative strength
TuesdayIncreases18.231.60.3
MondayLoses $US269.9 million in MCap17.95-3.5-0.5Steepest Fall

3.2 Stock Buzz: Past Week

News DateHeadlinePublisher
Aug 09PG&E posts adjusted Q2 earnings beat, $3.9B in wildfire related chargesSeeking Alpha
Aug 08PG&E Corporation : Affirms Timing for Second-Quarter 2019 Earnings ReleaseMarketScreener

3.3 Volatility:

+ PG&E is at a discount of 66.1% to its 12-month high of $US49.42 on November 07, 2018. It is also at a premium of 230.4% to the 12-month low of $US5.07 on January 15, 2019.

SECTION 4 ONGOING BULLISH PARAMETERS

4.1 Growth:

Quarterly Trend in Revenue and Net Profit Margin:

+ Revenue growth and Net Profit margin have shown signs of recovery in recent quarters. [All figures in %]

Qtr-endedRevenue GrowthNet Profit Margin
Mar 19 [Q1]0.83.4
Dec 18 [Q4]-9.2-172.6

4.2 Increased ADVT past five years

Avg. Daily Volume Traded 12 months ended Aug 12, million shares

YearADVT
201912.8
20185.3
20172.3
20162.9
20153.0

In the past five years, Average Daily Volume of Trading (ADVT) has increased 333.1% to 12.8 million shares.

4.3 Increased Average Daily Turnover

Past five years, 12 months ended Aug 12 (USD million)

YearAverage Daily Turnover
2019255.6
2018255.4
2017146.0
2016158.0
2015147.5

In the past five years, average daily share turnover has increased 73.2% to $US255.6 million. This suggests increased liquidity.

4.4 Decrease in Insider Selling

In the past 5 years a total of 124,902 PG&E shares worth $US7.3 million were sold by insiders. Based on a dynamic start date of 5 years ago, insider selling has averaged 24,980 shares per year. In the past year, insiders sold 21,429 shares, a decrease of 52.8% from the previous year.

SECTION 5 ONGOING BEARISH PARAMETERS

5.1 High Debt Indicators:

+ The debt to equity ratio of 170.5% is above a safe benchmark figure of 70%. Moreover, it has deteriorated from 98.2% a year ago.

DescriptionValueRank In Market
Debt to Equity1.7In Bottom Quartile

5.2 Moving Annual Return (Past 5 years)

Based on a dynamic start date of 5 years ago, the real rate of return has averaged -6.6%. The Moving Annual Return has been positive in 3 out of 5 years.

PCGClose (USD)Dividends (USD)Capital Gain / (Loss) %% YieldAnnual Return %
Aug 1216.75-(60.7)-(60.7)
1 Yr ago42.670.53(38.2)0.8(37.4)
2 Yrs ago69.02211.33.214.5
3 Yrs ago62.011.8520.93.624.5
4 Yrs ago51.281.8221.84.326.2

Close 5 years ago $US42.09

5.3 Declining VWAP

Past five years, 12 months ended Aug 12 (USD)

YearHigh PriceVWAPLow Price
201949.4220.155.07
201871.5748.0137.3
201770.3263.5256.72
201663.9354.3145.89
201557.8449.4442.01

In the past five years Volume Weighted Average Price (VWAP) has decreased by 59.2% to $US20.15.

SECTION 6 PG&E REPORTED BUYING AND SELLING

6.1 Institutional Buying and Selling Quarter Ended March 31

Total reported Institutional buying = 177,375,540 shares

Total reported Institutional selling = 115,141,604 shares

Net reported institutional buying = 62,233,936 shares

6.2 Reported Holdings of Institutions as at Mar 31, 2019

Total = 449,432,521 shares

Market Value = $US8 billion

Institutions hold 84.9% of Issued Shares.

SECTION 7 PG&E SUMMARY FINANCIALS

7.1 Financials Summary

Year endedDec 2018Dec 2017Dec 2016
Sales (USD B)16.817.117.7
Pretax (USD B)(10.1)2.21.5
Net (USD B)(6.9)1.61.4
EPS (USD)(13.25)3.21-

+ Net profit slumped from a loss of US$1.6 billion in 2017 to a loss of US$6.9 billion in 2018.

+ Earnings Per Share (EPS) fell from $US3.21 to -$US13.25.

7.2 Quarterly Report: Key Parameters

Quarterly Report Q1 2019: PG&E reports 0.8% sequential rise in Quarterly Revenue

PG&E (NYSE:PCG), announced total revenue of $US4.0b for the quarter-ended 31 March 2019, up 0.8% from the previous quarter and down 1.1% from the year-earlier period.

Quarter-ended31 Mar [Q1/2019]31 Dec [Q4/2018]30 Sep [Q3/2018]
EPS25.0c$US-13.29$US1.09
Revenue$US4.0b$US4.0b$US4.4b
Sequential growth in Revenue %0.78-9.153.47
Net Profit$US136m$US-6.9b$US564m

Compared with the previous corresponding period [PCP; Q1/2018], year-over-year [y.o.y.] EPS was down 70.9%, Revenue was down 1.1% and Net Profit was down 69.4%.

Quarter-ended31 Mar [Q1/2019]31 Mar [Q1/2018]
EPS25.0c86.0c
PCP growth in EPS %-70.93-23.89
Revenue$US4.0b$US4.1b
PCP growth in Revenue %-1.11-5.72
Net Profit$US136m$US445m
PCP growth in Net Profit %-69.44-22.74

7.3 Annual Report: Key Parameters

FY2018 Annual Report: PG&E Revenue down 2.2%

PG&E (NYSE:PCG) reported total revenue for the year-ended 31 December 2018 of $US16.8b, down 2.2% from $US17.1b in the previous year.

Major changes compared with previous year:

Favourable Changes:

- Cost of Goods Sold to Revenues down from 29.5% to 26.8%

- Total current assets to Total Assets up from 9.2% to 11.9%

Unfavourable Changes:

- Total revenue down 2.2% from $US17.1b to $US16.8b

- Total revenue to total assets down from 0.3 to 0.2

- Debt to Equity up 73.5% from 1.0 to 1.7

- Total liabilities to Total assets up 16.9% from 0.7 to 0.8

- Current ratio down 75% from 0.9 to 0.2

- Total non-current assets to Total Assets down from 90.8% to 88.1%

- Fixed Assets to Total Assets down from 79.1% to 76.1%

- Non-current inventory to Total Assets down from 3.6% to 3.3%

- Total Liabilities to Operating Cash Flow of 13.5 compares unfavourably with the Joseph Piotroski benchmark of <4. This ratio has deteriorated by 66.1% from the previous year's ratio of 8.1.

- Net tangible assets per share down 34.2% from $US37.96 to $US24.96

Note:

- Depreciation to Revenues up from 16.7% to 18.1%

Annual Report [Year-on-year comparison: 2018 vs 2017]

Company Name : PG&E Corporation (PCG)
December 3120182017Change
Description$US m$US m(%)
Total Revenue16,75917,135Down 2.2
Depreciation3,0362,854Up 6.4
Current Assets9,1956,281Up 46.4
Shareholders' Funds12,90319,472Down 33.7
Total Liabilities64,09248,540Up 32
Total Assets76,99568,012Up 13.2
Total Debt21,99419,129Up 15
Operating Cash Flow4,7525,977Down 20.5
Net Assets12,90319,472Down 33.7
Net Tangible Assets12,90319,472Down 33.7
AuditorDeloitte & Touche LLP 

Year-on-year comparison of Per Share figures

December 3120182017Change (%)
Description$US $US
Shareholders' Funds2538Down 34.4
Total Liabilities12494.8Up 30.8
Total Assets148.9132.8Up 12.1
Total Debt42.537.4Up 13.9
Net Tangible Assets2538Down 34.2

Year-on-year comparison of Performance Ratios

December 3120182017Change (%)
Total debt to net tangible assets (%)170.598.2Up 73.6
Total Liabilities to Operating Cash Flow13.58.1Up 66.1
Debt/Equity1.71Up 73.5
Total Liabilities/Total Assets0.80.7Up 16.9
Current Ratio0.20.9Down 75
Common Size Ratios by Assets %
Other non-current assets to Total Assets 116.7 121.5 Down 4.0
Total non-current assets to Total Assets 88.1 90.8 Down 2.9
Fixed Assets to Total Assets 76.1 79.1 Down 3.8
Total current assets to Total Assets 11.9 9.2 Up 28.9
Non-current inventory to Total Assets 3.3 3.6 Down 9.2
Common Size Ratios by Revenues %
Cost of Goods Sold to Revenues 26.8 29.5 Down 9.2
Depreciation to Revenues 18.1 16.7 Up 8.7
Tax expenses to Revenues (19.6) 3.0 Down 757.2
Profit before tax to Revenues (60.4) 12.7 Down 576.7

SECTION 8 CORPORATE PROFILE

8.1 Activities

PG&E Corporation is a holding company whose primary purpose is to hold interests in energy-based businesses. The Company conducts its business principally through Pacific Gas and Electric Company (Utility) a public utility operating in northern and central California. The Utility engages in the businesses of electricity and natural gas distribution; electricity generation, procurement, and transmission; and natural gas procurement, transportation, and storage. Its revenues are generated mainly through the sale and delivery of electricity and natural gas. The Utility is regulated primarily by the California Public Utilities Commission (CPUC), and the Federal Energy Regulatory Commission (FERC).

8.2 Issued Capital and MCap

Based on 529,210,000 issued shares the market capitalisation is $US8.9 billion.

8.3 Vanguard Total World Stock ETF 7701:

The stock was one of 7701 global stocks selected by Vanguard Total World Stock ETF (VT) who bought 2,655 shares in the period May 31, 2019 to Jun 30, 2019 worth $US54,747 at an estimated Volume Weighted Average Price (VWAP) of $US20.6204. As at Jun 30, 2019, the Vanguard Total World Stock ETF held 174,529 shares worth $US3,598,858 or 0.02% by value of the ETF's portfolio [Ranked 833 out of 7701 by value and 298 out of 1092 for NYSE].

COMPANY IDENTIFIERS

Contact: +1 415 973-1000

Physical Address: 77 Beale Street, P. O. Box 770000, San Francisco, CA,94177

State/Province/Country: CA [CA], United States

Country of Incorporation: United States

Industry [NAICS]: 221111

Exchange: New York Stock Exchange

ISIN: US69331C1080

N:PCG; PCG.N

PermID: 4296491144

RIC: PCG.N

CIK: 1004980

CUSIP: 69331C108

Pacific Gas & Electric Co, Pg&E Corp

Source: www.BuySellSignals.com