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Portland General Electric Company (POR)
NYSE:POR

Portland GE (POR) AI Stock Analysis

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Portland GE

(NYSE:POR)

Rating:77Outperform
Price Target:
$48.00
▲( 14.29% Upside)
Portland GE's overall stock score is driven by strong financial performance, balanced valuation, and strategic growth initiatives highlighted in the earnings call. While technical analysis indicates some bearish sentiment, the company's strong revenue growth and solid dividend yield offer significant strengths. However, the increase in leverage and challenges in managing operating expenses present notable risks.
Positive Factors
Dividend Yield
The $46 target price values shares of POR at a ~20% discount to the broader utility sector, which is seen as conservative but provides an attractive ~13% total return when coupled with an above average 4.9% dividend yield.
Growth Prospects
The company's organic growth prospects and rate base growth tied to required incremental transmission and generation investments have the potential to support some of the best sustained growth in the group.
Policy Support
POR has some of the most favorable economic and state driven policy-related fundamental tailwinds that over time should support above average rate base growth on a sustained basis.
Negative Factors
Equity Financing
In the near-term, the following headwinds are likely too big of a hurdle to overcome: 1) sizable equity financing, 2) a noisy regulatory environment, 3) wildfire tail risk, and 4) the lack of a track record executing against long-term EPS growth.
Regulatory Environment
Portland General Electric faces headwinds from a relatively less constructive regulatory environment driving regulatory lag and elevated wildfire risk.
Wildfire Risk
Shares of Portland General Electric embed a structural discount to reflect wildfire risk compared to the broader utilities sector.

Portland GE (POR) vs. SPDR S&P 500 ETF (SPY)

Portland GE Business Overview & Revenue Model

Company DescriptionPortland General Electric Company, an integrated electric utility company, engages in the generation, wholesale purchase, transmission, distribution, and retail sale of electricity in the state of Oregon. It operates six thermal plants, three wind farms, and seven hydroelectric facilities. As of December 31, 2021, the company owned an electric transmission system consisting of 1,274 circuit miles, including 287 circuit miles of 500 kilovolt line, 415 circuit miles of 230 kilovolt line, and 572 miles of 115 kilovolt line. It has 28,206 circuit miles of distribution lines. The company also purchases and sells wholesale natural gas in the United States and Canada. It serves approximately 917 thousand residential, commercial, and industrial customers in 51 cities. The company was founded in 1889 and is headquartered in Portland, Oregon.
How the Company Makes Money

Portland GE Financial Statement Overview

Summary
Portland GE shows strong revenue growth and operational efficiency, with a robust equity base. However, increased leverage and negative free cash flow due to high capital expenditures pose potential risks.
Income Statement
85
Very Positive
Portland GE shows strong revenue growth, with a notable increase from $2.6 billion in 2022 to $3.5 billion in the TTM period. The gross profit margin remains robust, indicating effective cost management, while net profit margins are stable. EBIT and EBITDA margins reflect consistent operational efficiency. However, the slight decline in net income from 2024 to TTM suggests potential challenges in maintaining profit growth.
Balance Sheet
78
Positive
The balance sheet reveals a stable equity position with stockholders' equity increasing over the years. The debt-to-equity ratio has increased slightly, reflecting higher leverage but remains manageable within the industry norms. The equity ratio indicates a solid asset base supported by equity, although the rise in total debt warrants monitoring for future financial stability.
Cash Flow
72
Positive
Portland GE's cash flow statements highlight strong operating cash flows, though the high capital expenditures result in negative free cash flow. The operating cash flow to net income ratio is favorable, indicating solid cash generation capability. However, the free cash flow to net income ratio is negative, pointing to significant reinvestment and capital spending requirements that may limit liquidity in the short term.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
3.53B3.44B2.92B2.65B2.40B2.15B
Gross Profit
1.57B1.59B1.36B1.66B1.57B1.44B
EBIT
483.00M512.00M396.00M397.00M378.00M269.00M
EBITDA
1.08B1.06B904.00M845.00M808.00M718.00M
Net Income Common Stockholders
304.00M313.00M228.00M233.00M244.00M13.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.00M12.00M5.00M165.00M52.00M257.00M
Total Assets
12.70B12.79B11.21B10.46B9.49B9.07B
Total Debt
5.03B4.83B4.44B3.96B3.58B3.34B
Net Debt
5.02B4.82B4.43B3.79B3.53B3.08B
Total Liabilities
8.85B8.75B7.89B7.68B6.79B6.46B
Stockholders Equity
3.84B3.79B3.32B2.78B2.71B2.61B
Cash FlowFree Cash Flow
-468.00M-490.00M-938.00M-92.00M-104.00M-217.00M
Operating Cash Flow
834.00M778.00M420.00M674.00M532.00M567.00M
Investing Cash Flow
-1.34B-1.30B-1.36B-758.00M-656.00M-787.00M
Financing Cash Flow
-183.00M526.00M778.00M197.00M-81.00M447.00M

Portland GE Technical Analysis

Technical Analysis Sentiment
Negative
Last Price42.00
Price Trends
50DMA
42.78
Negative
100DMA
42.46
Negative
200DMA
44.13
Negative
Market Momentum
MACD
-0.15
Negative
RSI
47.21
Neutral
STOCH
55.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POR, the sentiment is Negative. The current price of 42 is below the 20-day moving average (MA) of 42.10, below the 50-day MA of 42.78, and below the 200-day MA of 44.13, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 47.21 is Neutral, neither overbought nor oversold. The STOCH value of 55.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for POR.

Portland GE Risk Analysis

Portland GE disclosed 25 risk factors in its most recent earnings report. Portland GE reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Concerns about high prices for PGE's customers could negatively impact PGE's financial condition, results of operations, liquidity, and cash flows. Q4, 2024

Portland GE Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
POPOR
77
Outperform
$4.57B14.618.33%4.79%11.83%9.53%
IDIDA
70
Outperform
$6.24B20.489.60%2.94%1.63%13.11%
70
Outperform
$5.26B25.228.37%2.82%10.10%149.78%
OGOGE
70
Neutral
$8.91B18.3510.72%3.84%15.56%21.90%
68
Neutral
$5.06B28.183.67%6.09%-12.73%-74.65%
PNPNW
65
Neutral
$10.84B18.039.08%3.95%10.69%12.37%
63
Neutral
$8.54B10.364.67%4.39%4.05%-12.96%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
POR
Portland GE
42.00
0.52
1.25%
IDA
IdaCorp
115.57
24.78
27.29%
OGE
OGE Energy
44.24
10.25
30.16%
PNW
Pinnacle West Capital
90.75
17.32
23.59%
TXNM
TXNM Energy
56.72
20.86
58.17%
ENIC
Enel Chile SA
3.68
0.85
30.04%

Portland GE Earnings Call Summary

Earnings Call Date:Apr 25, 2025
(Q1-2025)
|
% Change Since: -2.28%|
Next Earnings Date:Jul 25, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong industrial performance and ongoing efforts in wildfire mitigation and capital investments. However, challenges such as decreased net income and increased operating expenses were noted. The sentiment is balanced with both positive growth prospects and ongoing challenges.
Q1-2025 Updates
Positive Updates
Strong Load Growth and Industrial Performance
Portland General Electric reported a 4.6% total load growth and a significant 16.4% growth in industrial load, primarily driven by high-tech and data center customers.
Advancements in Wildfire Mitigation
PGE plans to spend over $120 million on wildfire mitigation in 2025, including capital investments and operational expenses, and is actively engaging with stakeholders to address wildfire risks.
Reaffirmation of Earnings and Load Growth Guidance
The company reaffirmed its 2025 adjusted earnings guidance of $3.13 to $3.33 per diluted share and long-term load growth guidance of 3% through 2029.
Ongoing Capital Investments and Seaside Battery Update
PGE's five-year capital forecast remains consistent, with the Seaside battery project on track to come into service by June, complementing existing battery portfolios.
Negative Updates
Decrease in Net Income
The reported GAAP net income for the first quarter of 2025 was $100 million, down from $109 million in the first quarter of 2024.
Challenges in Wildfire Legislation
Progress on creating a catastrophic wildfire fund has stalled, and discussions with stakeholders are ongoing without definitive resolutions.
Increased Operating Expenses
There was an 18¢ EPS decrease from operating expenses, including 4¢ from O&M, 11¢ from higher depreciation and amortization, and 3¢ from higher interest expenses.
Company Guidance
During the Portland General Electric Company's Q1 2025 earnings call, management provided guidance that reaffirmed their 2025 adjusted earnings guidance of $3.13 to $3.33 per diluted share and a long-term earnings and dividend growth rate of 5% to 7%. They reported a GAAP net income of $100 million or $0.91 per diluted share for the first quarter, compared to $109 million or $1.08 per diluted share in Q1 2024. The company also noted strong load growth, particularly from high-tech and data center customers, with a 4.6% total load growth and a 16.4% increase in industrial load. Portland General Electric plans to spend over $120 million on wildfire mitigation in 2025, while also advancing their regulatory strategy for the Seaside battery project. The company emphasized their commitment to cost management and the pursuit of a holding company structure to increase financial flexibility. They also discussed ongoing negotiations with 2023 RFP bidders, aiming for project completion by 2027, and highlighted the importance of federal policies impacting renewable procurement and financing strategies.

Portland GE Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Portland GE Announces Reorganization into Holding Company
Neutral
May 23, 2025

On May 23, 2025, Portland General Electric Company (PGE) announced its intention to reorganize into a holding company structure, as filed with the Oregon Public Utilities Commission. This reorganization aims to enhance strategic and financial flexibility, support new transmission asset construction, and maintain shareholder value, with PGE becoming a wholly owned subsidiary of the new holding company upon completion.

The most recent analyst rating on (POR) stock is a Buy with a $51.00 price target. To see the full list of analyst forecasts on Portland GE stock, see the POR Stock Forecast page.

DividendsBusiness Operations and StrategyFinancial Disclosures
Portland GE Reports Q1 2025 Earnings and Dividend
Positive
Apr 25, 2025

Portland General Electric reported a net income of $100 million for the first quarter of 2025, driven by strong energy demand from high-tech and data centers, despite a decrease from the previous year’s $109 million. The company completed its first full quarter with new battery storage systems, enhancing its renewable integration and system reliability. PGE reaffirmed its 2025 earnings guidance, highlighting ongoing efforts in wildfire policy engagement and operational streamlining, while also announcing a quarterly dividend of $0.525 per share.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.