Latest news with #PEG
Yahoo
4 days ago
- Business
- Yahoo
A Closer Look At Public Service Enterprise Group Incorporated's (NYSE:PEG) Impressive ROE
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. To keep the lesson grounded in practicality, we'll use ROE to better understand Public Service Enterprise Group Incorporated (NYSE:PEG). Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. How Is ROE Calculated? ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Public Service Enterprise Group is: 11% = US$1.8b ÷ US$16b (Based on the trailing twelve months to March 2025). The 'return' is the profit over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.11 in profit. View our latest analysis for Public Service Enterprise Group Does Public Service Enterprise Group Have A Good Return On Equity? Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As is clear from the image below, Public Service Enterprise Group has a better ROE than the average (8.9%) in the Integrated Utilities industry. That's clearly a positive. Bear in mind, a high ROE doesn't always mean superior financial performance. A higher proportion of debt in a company's capital structure may also result in a high ROE, where the high debt levels could be a huge risk . To know the 2 risks we have identified for Public Service Enterprise Group visit our risks dashboard for free. The Importance Of Debt To Return On Equity Companies usually need to invest money to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. Combining Public Service Enterprise Group's Debt And Its 11% Return On Equity Public Service Enterprise Group does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.43. With a fairly low ROE, and significant use of debt, it's hard to get excited about this business at the moment. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it. Summary Return on equity is one way we can compare its business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have the same ROE, then I would generally prefer the one with less debt. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to check this FREE visualization of analyst forecasts for the company. Of course Public Service Enterprise Group may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
IOL News
03-07-2025
- IOL News
Winter road trips: Adventure beckons, but safety must come first
As winter school holidays begin, many South African families are setting off in search of snowy mountains, charming country towns, and coastal escapes. But while the open road offers adventure, it also comes with increased danger, particularly in winter. South Africa has again been ranked the most dangerous country in the world to drive in, according to driver-education platform Zutobi's 2024 report on the World's Safest and Most Dangerous Roads. Local data supports this: Stats SA attributes many accidents to human error, poor infrastructure, vehicle defects, and environmental conditions. Xolisa Bangazi, Managing Director of PEG, part of JSE-listed KAL Group, warns that motorists often underestimate the risk. 'Winter holidays bring a welcome sense of escape for many families. But too often, drivers fail to appreciate just how quickly conditions on the road can change. What looks like a harmless patch of mist or a picture-perfect snowfall can quickly turn dangerous,' says Bangazi. He points to treacherous conditions such as snow, fog, rain, and black ice, particularly on mountain passes in the Western Cape and high-altitude roads in the Free State and Eastern Cape. Just last month, heavy snowfall and rain caused flooding, road closures, and several accidents in the Eastern Cape. 'Drivers often don't realise how little traction they have until it's too late,' he says. 'And overconfidence in vehicle capabilities, like relying on four-wheel drive, can actually increase the danger if people don't adjust their driving.' PEG's roadside teams regularly assist motorists caught out by poor planning. 'At our forecourts, we regularly assist customers who've neglected the basics, bald tyres, faulty windscreen wipers, even missing spares,' says Bangazi. He offers several practical tips: plan routes in advance, check local conditions, avoid travel during heavy rain or snowfall, use real-time navigation tools, and make regular rest stops. 'Fuel stations today are not just places to fill up, they are vital convenience hubs for rest, refreshment, and safety,' he says. Bangazi adds: 'Know when to turn back. A delayed arrival is always better than a dangerous journey.' 'Whether you're chasing misty mountain mornings or coastal sunsets, a well-planned road trip can help you make the most of South Africa's winter wonders, safely,' he concludes. THE MERCURY
Yahoo
29-06-2025
- Business
- Yahoo
Why many new apartment developments don't pencil out
This story was originally published on Multifamily Dive. To receive daily news and insights, subscribe to our free daily Multifamily Dive newsletter. In past construction downturns, debt was often a problem. Apartment developers had trouble finding lenders for new projects. However, many developers say finding loans isn't an issue as starts have plummeted in the past year. 'The debt markets are still very liquid,' Greg Bonifield, founding partner at Charleston, South Carolina-based apartment developer Woodfield Development, told Multifamily Dive. Bonifield said that traditional banks, life insurance companies and other institutional players are active. 'You have seen numerous funds put together that are actively deploying debt, especially in the bridge loan area,' Bonifield said. But, as the declining construction start numbers have shown, it takes more than the availability of debt to make a development deal work. 'It's been tough to make deals pencil, even for the last couple of years, just because of the increase in costs and interest rates,' said Cameron Gunter, co-CEO of Provo, Utah-based PEG, which owns, manages and develops apartments, hotels and build-to-rent properties. 'This uncertainty on tariffs, especially from China, has caused us even bigger issues.' With heavy supply still hitting some markets and existing properties available to purchase below replacement costs, many equity providers have shifted their focus away from development to acquisitions. 'There is still a lot of uncertainty,' said Chris Finlay, founder and CEO of Vienna, Virginia-based apartment owner, manager and developer Middleburg Communities. 'Many investors and institutional capital sources are still trying to figure out if we have hit the bottom.' Even with debt available, borrowing costs are still a challenge. Construction loans are typically based on the Secured Overnight Financing Rate plus a basis point spread. Since 2022, SOFR has risen significantly, mirroring upward movement in the federal funds rate. 'What everybody is worried about is interest rates and when they are going to lower the interest rates,' said Kimberly Byrum, managing principal of multifamily for Newport Beach, California-based advisory firm Zonda. When combined with uncertainty around tariffs and construction costs, it's easy to see why developers are struggling. 'You can't make [a deal] pencil with what SOFR is and what your interest cost is,' Gunter said. 'If we saw some stabilization or even a slight decline in construction costs from what we've seen over the last few years, that would make sense for us to move forward because we could start penciling a return that makes sense.' Some developers remain hopeful that interest rate relief is on the horizon this year. But just last week Federal Reserve Chair Jerome Powell said the central bank is in no hurry to trim the main interest rate, resisting pressure from President Donald Trump for a reduction of as much as 3 percentage points, according to CFODive. 'We've been holding our breath now for quite some time,' said Rene Bello, founder and CEO of Miami-based real estate investment and development firm BLDG Ventures. 'On the back end, call it Q3 or Q4, we should see some compression on those interest rates, which would free up a ton of capital in the capital market.' Despite some improvement in the debt markets this year, equity continues to be an issue, though it's there for seasoned developers. 'On the equity side, it's very selective,' said Bonifield, whose firm was No. 21 on the National Multifamily Housing Council's most recent Top 25 developers list. 'There absolutely is [limited partner] common equity available for new multifamily development.' But that equity isn't always easy to come by. 'It is generally more available for very established development groups, but it's limited and strategic, and it's both domestic and foreign,' Bonifield said. Equity also has certain preferences. In addition to working with seasonal developers, Bonifield said many investors want an iconic site that is going to open into a healthy rental environment. 'They may be looking to own the deal long term and believe now is a great time to get something out of the ground,' he said. In other cases, Bonifield sees equity chasing what he calls a basis play, looking at the cost per unit. 'There are buckets of money out there that want to deploy into new construction if they can hit a certain basis per unit,' he said. That may mean moving to less dense areas where land is typically cheaper. 'On the basis play, the further you go out, you can build a product at a lower cost, which is what a fair amount of capital is focused on doing,' Bonifield said. Many equity groups are still fearful of investing in new projects when new deliveries are at highs not seen in years, though that should burn off by the time new developments have opened. 'There's still a lot of discussion about supply, although I think that is overdone,' Finlay said. 'But nonetheless, any uncertainty with the institutional guys is just more difficult, and that's what we're seeing today.' Even firms that build and own are changing their strategy in this environment. PEG sees acquisitions as a better play in the face of uncertain construction costs. 'Without having a backlog of development deals we can move forward with, we've shifted to acquisitions,' Gunter said. 'I can buy below replacement cost.' Gunter said it will be difficult for developers to make the numbers work until costs stabilize or rents grow. While some deals may make sense, they're few and far between. 'You've got to have some kind of incentive, whether it's city incentives or some density bonus,' Gunter said. 'But they're going to require some affordability.' Click here to sign up to receive multifamily and apartment news like this article in your inbox every weekday. Recommended Reading Extreme heat disproportionately threatens Black renters, experts say Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Citizen
27-06-2025
- Health
- The Citizen
Help Jaco beat cancer
Jaco Pretorius (48), a handyman, churchgoer and family man from Freeway Park, is urgently in need of the community's assistance. Diagnosed with an aggressive form of skin cancer, squamous cell carcinoma, he is in a race against time to get the life-saving surgery that could restore his health. With limited access to public healthcare and rapidly worsening symptoms, Jaco's only hope now lies in the generosity of others. His family is calling on the community to support Jaco's BackaBuddy campaign to help fund the medical treatment he so desperately needs. A devoted family man's life changed When he is not fixing things, Jaco is actively involved in his church, Woord en Lewe Kerk in Boksburg. He loves spending time with his family, especially his 96-year-old grandfather, whom he regularly takes out for ice cream and walks. But in late 2024, everything changed when what Jaco initially thought was a dental abscess turned out to be something far more serious. Despite repeated treatments, his condition worsened and he sought a second opinion. After queuing at Johannesburg General Hospital from 03:00 in the morning, a specialist diagnosed him with squamous cell carcinoma, a rare and aggressive cancer affecting his jaw. The struggle for surgery Due to a severe backlog at Johannesburg General Hospital, where only one operating theatre handles this type of surgery, Jaco faces a six- to eight-month wait for his operation. Meanwhile, his condition is deteriorating rapidly. He can no longer eat solid food and survives on a liquid diet via a PEG feeding tube. The pain is severe and he requires daily morphine and wound care through Hospice East Rand. Unable to work, Jaco is financially dependent on his family and donations to make ends meet. A ray of hope but more help is needed Thanks to kind donations, Jaco was recently admitted to Cintocare, where he received treatment for an infection and had a PEG feeding tube inserted. He spent five and a half days in hospital, and while this was a critical first step, the most urgent and expensive part—his reconstructive cancer surgery—is still ahead. To proceed, support is needed to help cover the costs outlined in a specialist medical quote facilitated by the Cancer Heroes Foundation. His sister-in-law, Taryn Pretorius, describes this as one of the most exhausting and emotional experiences of her life. 'Watching someone you love suffer while feeling helpless is heart-breaking. Learning how to manage Jaco's feeding tube has been deeply emotional. We are so grateful for every person who has donated or reached out—we couldn't have come this far without you,' she said. If you can assist, visit Also Read: Little girl with big heart fills her piggy bank for Chereez Also Read: Chereez Nel still cancer-free after three years At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Yahoo
25-06-2025
- Business
- Yahoo
Utah-based firm mixes hospitality with multifamily
This story was originally published on Multifamily Dive. To receive daily news and insights, subscribe to our free daily Multifamily Dive newsletter. For the executives at PEG, navigating construction has been especially difficult over the past couple of years. The Provo, Utah-based real estate firm doesn't just develop and operate apartments. It also builds, owns and manages hotels and build-to-rent properties. The firm works with major hotel brands, like Marriott, Hilton and Hyatt. 'In developing those types of products, it's been tough to make deals pencil, even for the last couple of years, just because of the increase in costs and interest rates,' PEG Executive Chairman Cameron Gunter told Multifamily Dive. 'Having this uncertainty on tariffs has caused us even bigger issues.' Right now, PEG has two multifamily projects in development, with one in Tucson, Arizona, slated to open later this year. The firm is trying to mitigate the impact of tariffs by planning ahead. 'We bought a bunch of our cabinets out of China,' Gunter told Multifamily Dive. 'So we took our first shipment as we started to see this issue on tariffs. We haven't installed it, but it's all stored on property.' PEG is also working with its contractors to try to share the cost burden on tariffs. 'I can create contingencies where they have it as part of their [guaranteed maximum price] and we use that contingency to cover any tariffs based on the general contractor piece,' Gunter said. 'If it goes over that, there's a responsibility. If it comes under that, there's a shared savings clause.' Here, Gunter talks with Multifamily Dive about tariffs as well as labor costs, customer service and centralization. This interview has been edited for brevity and clarity. CAMERON GUNTER: We were getting super excited that we were going to start to see costs stabilize and potentially even come down. There has not been a lot built. Now you have a bunch of projects burning off for subcontractors. What we've seen is a lot more subcontractors bidding projects and willing to take a lower rate. Before, they were increasing their margins, and you didn't have as many bidders. On top of that, we're seeing energy costs coming down. So many things — the cost of fuels and energy — impact construction. So those are all positive. Now we see this tariff issue, which then creates additional uncertainty. Contracts are now pricing with a contingency in costs. If we can get some certainty around it, I think it will be easier for us to figure out if we move forward with any development. But as we see that instability and potential rising construction costs, it creates an opportunity on the acquisition side because we can acquire much lower than replacement costs. I think it does kill deals. With that uncertainty, you can't make it pencil, with what Treasury is, with what [the Secured Overnight Financing Rate] is and what your interest cost is. If we saw some stabilization or even a slight decline in construction costs from what we've seen over the last few years, that would make sense for us to move forward because we could start penciling a return that makes sense. But until we see that or we wait a couple of years to see rents start to climb more than what they have, then it's tough to make it work. Now, are there deals that make sense? Yeah, but they're few and far between. You've got to have some kind of incentive, whether it's city incentives or some density bonus. But they're going to require some affordability. As we look at what's happening with the people that are staying in our hotels and the people that are staying in our apartments, it is Gen Z. It's really about the experience and what we can provide in our properties from a service standpoint that gives them experience. With the asset itself, we're providing self spas and providing different amenity spaces in our properties. We have to figure out how AI can help us get our people away from doing the minutia as well as save costs. Where we're going to win and get the returns we need from an operations standpoint is to reduce our costs and provide that better service. A lot of it is centralization — having our data and business intelligence folks be able to figure out how to provide real-time data to our people without having to enter our stuff in. So anytime our apartment manager does not have to enter a bunch of stuff, whether it be leases, whether it be looking at turnover or looking at other markets, it's a win. If we can provide that stuff real time to them, they can make the decisions quicker and they don't have to be in front of a computer. And it's the same in our hotels. They have more staff at a hotel because you're turning over quicker. But we should be treating our guests and our tenants the same. We should be providing that level of service that makes them want to stay in the property and not leave. Click here to sign up to receive multifamily and apartment news like this article in your inbox every weekday. Recommended Reading UDR plans to back off of high occupancy to boost rents Sign in to access your portfolio
