PNY Piedmont Natural Gas Company I...

Exchange

NYSE

Sector

Public Utilities

Industry

Oil/Gas Transmission

Market Cap.

2.574B

Poor Cash Return on Invested Capital over the past 5 years

PNY has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

PNY has only created $3.38 of cash for every $100 invested.

Figures in USD. Fiscal year ends in October

	2007	2008	2009	2010	2011
Free Cash Flow	98.27M	-111.80M	215.26M	161.45M	67.60M
divided by
Invested Capital	2.39B	2.41B	2.51B	2.55B	2.70B
Cash ROIC	4.12%	-4.65%	8.58%	6.34%	2.50%

Satisfactory Return on Equity over the past 5 years

PNY has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

PNY has generated $12.72 of Earnings for every $100 of Shareholders' Equity.

Figures in USD. Fiscal year ends in October

	2007	2008	2009	2010	2011
Net Income	104.39M	110.01M	122.82M	141.95M	113.57M
divided by
Stockholders' Equity	878.37M	887.24M	927.95M	964.94M	996.92M
Return on Equity	11.88%	12.40%	13.24%	14.71%	11.39%

Mediocre Business Performance over the past 10 years

PNY isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

PNY has been unable to consistently create value for shareholders.

Figures in USD. Fiscal year ends in October

	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011
Free Cash Flow	28.81M	-428.50M	12.53M	-8.03M	-100.30M	98.27M	-111.80M	215.26M	161.45M	67.60M