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US Equities · Finance research note

PCG — PG&E Corporation

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Evidence and analysis

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 23.92%
Profit Margins 11.01%
Return on Equity 8.83%
Return on Assets 2.53%
Free Float 2.19B
Dividend Yield 1.17%
Short Int % Utilisation 0.0%

2.2 Growth

Metric Value
Revenue Growth 15.0%
Free Cash Flow -5.57B
EBITDA 9.74 (Ratio)
Enterprise Value 100.46B
EV/Revenue 3.89
EV/EBITDA 9.74

Revenue growth of 15.0% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 24.39%
Risk / Std Dev (Ann.)* 26.21%
1-Year Price Return* 20.03%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $17.84
52-Week Range $14.30 – $19.16
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue $24.93B $24.42B
Net income Reported net income $2.59B $2.48B
Total assets Year-end reported balance $141.61B $133.66B
Shareholders’ equity Year-end reported balance $32.54B $30.15B
Net margin Net income ÷ revenue 10.40% 10.14%
Asset turnover Revenue ÷ total assets 0.1761x 0.1827x
Equity multiplier Total assets ÷ shareholders’ equity 4.3519x 4.4333x
ROE Net margin × asset turnover × equity multiplier 7.97% 8.21%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

FCFF DCF exception: WACC is outside the permitted 5.00%–30.00% model range. This post deliberately does not publish a mechanical enterprise value or implied per-share value on an unsuitable basis.

Available valuation input Value
Last market price $17.88
Market capitalisation $39.37B
Revenue $24.93B
EBIT $5.45B
Reported free cash flow -$3.07B
FCF yield -7.80%
Net debt / EBITDA 6.01x

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks not rated — FCFF DCF suitability or data-integrity condition not met
Lynch-inspired balance-and-growth checks not rated — FCFF DCF suitability or data-integrity condition not met

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:45:14.457010 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Financial institutions and REITs require sector-specific methods rather than a mechanical FCFF DCF. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha -8.18% 4.26%
Adjusted R² 0.10 0.18
Annualised residual volatility 24.87% 23.70%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 0.40 (2.72) 0.70 (4.34)
Size (SMB) 0.11 (0.54) -0.07 (-0.33)
Value (HML) 0.78 (4.56) 0.25 (1.27)
Profitability (RMW) NM 0.28 (1.62)
Investment (CMA) NM 1.14 (3.89)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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