Investment Thesis
Portland General Electric exhibits severe financial deterioration with declining profitability (net income -2.2%, EPS -8.0% YoY), critically low returns on equity (1.1%) and assets (0.3%), and minimal free cash flow ($9M). The company's dangerously low cash position ($8M) relative to $4.7B debt and weak interest coverage (1.8x) create significant financial risk.
Strengths
- Stable operating cash flow of $268M supports debt service obligations
- Regulated utility business model provides operational predictability and steady customer base
- Operating margin of 12.2% is reasonable for regulated utilities
Risks
- Critically low returns on equity (1.1%) and assets (0.3%) indicate severe capital inefficiency
- Minimal free cash flow ($9M) and critically low cash reserves ($8M) relative to $4.7B debt create liquidity vulnerability
- Declining profitability (net income -2.2%, EPS -8.0% YoY) with weak interest coverage (1.8x) and stagnant revenue growth
Key Metrics to Watch
- Free cash flow generation trends and cash position recovery
- Interest coverage ratio and debt refinancing risk
- Net income and EPS stabilization and return on equity improvement
Financial Metrics
Revenue
879.0M
Net Income
45.0M
EPS (Diluted)
$0.38
Free Cash Flow
9.0M
Total Assets
13.2B
Cash
8.0M
Profitability Ratios
Gross Margin
N/A
Operating Margin
12.2%
Net Margin
5.1%
ROE
1.1%
ROA
0.3%
FCF Margin
1.0%
Balance Sheet & Liquidity
Current Ratio
1.09x
Quick Ratio
1.09x
Debt/Equity
1.13x
Debt/Assets
68.8%
Interest Coverage
1.78x
Long-term Debt
4.7B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-06T19:47:01.714151 |
Data as of: 2026-03-31 |
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