Comparing US utility companies in early 2018: Dominion Energy, NextEra Energy, PG&E, and American Electric Power


A quick numbers review

Among the four, NextEra is the most valuable with a market capitalization of $74 billion.

Dominion Energy, meanwhile, had the highest dividend yield with 4.4% followed by American Electric with 3.6%. PG&E, the oldest of the group, has no dividend yield.

Both Dominion and NextEra also trade far richer than its peers in terms of book value. NextEra had the largest book value with $26.4 billion and Dominion had the smallest at $16.3 billion.

Dominion also carried the highest total debt in the group with $36.7 billion while PG&E had the least at $17.8 billion.

In the past three years, NextEra generated the most free cash flow at $6.3 billion while Dominion generated outflows of nearly $5 billion. PG&E and American Electric, meanwhile, generated -$3.9 billion and +$124 million.

Dominion also took in the most debt in the group in the past three years followed by NextEra and PG&E. In contrast, American Electric has been able to reduce its financing by $320 million.

In rough estimations, PG&E definitely indicated the least premium to valuation. The company nonetheless, has suspended its dividends in December brought by its issues in the recent California wildfires.

“After extensive consideration and in light of the uncertainty associated with the causes and potential liabilities associated with these wildfires as well as state policy uncertainties, the PG&E boards determined that suspending the common and preferred stock dividends is prudent with respect to cash conservation and is in the best long-term interests of the companies, our customers and our shareholders.”

PG&E Chairman Richard Kelly (MarketWatch)


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