PCGNEUTRAL

Return on Equity (ROE)

8.8%

Higher than 30% of Utilities sector peers

Updated 222h ago

Sector Performance

30th percentile

PCG

8.8%

Sector Median

9.6%

Sector Avg

8.1%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' equity; PCG's current ROE of 8.8% means for every dollar of equity, it earns 8.8 cents in profit.

This is below the sector median of 9.6% for Utilities, placing PCG in the 30th percentile among peers. The trend data is not available: the year-over-year change, quarter-over-quarter change, and direction over the last eight quarters are all listed as N/A. With an ROE notably below median and no trend to assess improvement, the metric suggests PCG's profitability efficiency is relatively weak, posing a risk for investors seeking strong returns on equity. The combination of a below-median level and absent trend creates uncertainty, implying a moderate risk without a clear opportunity. This underperformance supports the overall NEUTRAL verdict, as the weak ROE does not provide a bullish case but is not extreme enough to warrant a bearish view.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about PCG?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does PCG's Return on Equity (ROE) compare to its sector?

PCG's Return on Equity (ROE) of 8.8% compares to a Utilities sector median of 9.6%, placing it in the 30th percentile.

Who are PCG's closest peers by Return on Equity (ROE)?

The closest Utilities peers by Return on Equity (ROE) include: PNW (9.6%), ATO (8.8%), PPL (8.3%), AEE (10.9%), LNT (11.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.