PG&E Corp (PCG) Financial Statements

PG&E's financial quality is unfavourable when assessed against the GoodMoat framework. Revenue growth is minimal at 2.6% YoY, indicating a lack of growth trajectory. While the operating margin of 19.0% is stable, the critical free cash flow metric is deeply negative, with an FCF yield of -8.0%. This fails the framework's test for positive, growing FCF with a margin above 10-15%. The balance sheet is a major concern, with a Debt/Equity ratio of 1.88, indicating significant leverage that exceeds the framework's preference for low or zero debt (Debt/EBITDA < 1.0x). The Return on Equity of 8.3% is also below the framework's high-quality threshold of 15-20% for ROIC. The profit margin of 10.8% and GAAP profitability are positive notes, but they are overshadowed by the cash flow and leverage issues. Overall, the company scores poorly on key quality indicators like FCF, balance sheet strength, and ROIC, while growth is essentially stagnant. This profile suggests the business lacks the financial resilience and efficiency typically sought in a high-quality investment. Analysis based on data as of 2024-05-15.