PG&E (PCG) AI Stock Analysis

• Market Cap: $37.87B
• Dividend Yield: 0.41%
• Average Volume (3M): 18.13M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.37
• Revenue Growth: -0.04%
• EPS Growth: 6.80%
• Country: US
• Employees: 28,410
• Sector: Utilities
• Sector Strength: 88
• Industry: Regulated Electric
• EPS (TTM): 1.15
• Shares Outstanding: 2,197,683,600
• 10 Day Avg. Volume: 20,172,424
• 30 Day Avg. Volume: 18,127,512
• PEG Ratio: 2.20
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.03
• Price to Cash Flow (P/CF): 7.00
• P/FCF Ratio: 7.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $20.65
• Price Target Upside: 19.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

PG&E's stock benefits from strong earnings growth and improved profitability, though cash flow management challenges and wildfire risks pose concerns. The stock's valuation is attractive, but technical indicators suggest current bearish momentum. Overall, the stock is moderately favorable, with significant growth potential but notable risks.

Positive Factors

Earnings Growth

PCG's investment outlook includes a strong 9% EPS growth and no requirement for additional equity funding until 2028.

Financial Strength

PCG's balance sheet strengthening with adjusted 2024 FFO/debt of 13.7% supports an investment grade credit rating.

Operational Performance

PCG had a strong year operationally with EPS of $1.36 consistent with consensus estimates.

Negative Factors

Insurance Fund Concerns

The potential depletion of the California wildfire insurance fund due to the Eaton fire is a concern.

Market Uncertainty

Shares of PCG have been materially impacted by the uncertainty surrounding AB 1054 amidst the Southern California wildfires.

Wildfire Liability

Investors fear that if the WFF were to be exhausted, then the liability cap associated with a finding of imprudence could also cease to exist.

PG&E Business Overview & Revenue Model

Company Description

PG&E Corporation, through its subsidiary, Pacific Gas and Electric Company, engages in the sale and delivery of electricity and natural gas to customers in northern and central California, the United States. It generates electricity using nuclear, hydroelectric, fossil fuel-fired, fuel cell, and photovoltaic sources. As of December 31, 2021, the company owns and operates approximately 18,000 circuit miles of interconnected transmission lines; 33 electric transmission substations, approximately 108,000 circuit miles of distribution lines, 67 transmission switching substations, and 753 distribution substations; and natural gas transmission, storage, and distribution system consisting of approximately 43,800 miles of distribution pipelines, approximately 6,200 miles of backbone and local transmission pipelines, and various storage facilities. It serves residential, commercial, industrial, and agricultural customers, as well as natural gas-fired electric generation facilities. The company was incorporated in 1905 and is headquartered in San Francisco, California.

How the Company Makes Money

PG&E generates revenue through the sale of electricity and natural gas to residential, commercial, industrial, and governmental customers. The company's primary revenue streams include charges for electricity and gas usage, which are regulated by the California Public Utilities Commission. PG&E also earns money from infrastructure investments, such as expanding and upgrading its transmission and distribution networks, which are incentivized through regulated rates of return. Additionally, PG&E may engage in various partnerships and programs aimed at promoting energy efficiency and renewable energy adoption, which can further contribute to its income through regulatory incentives or cost recovery mechanisms.

PG&E Financial Statement Overview

Summary

PG&E exhibits strong revenue growth and improved profitability, though there are challenges in cash flow management and declining equity ratios. The leverage level is manageable, yet continuous monitoring is crucial for long-term stability.

Income Statement

PG&E's revenue has shown consistent growth over the past years, indicating a strong upward trend. However, the absence of gross profit, EBIT, and EBITDA data for the latest year makes it challenging to fully assess margin performance. Net profit margin has improved significantly, reflecting increased profitability.

Balance Sheet

The company's debt-to-equity ratio is moderate, suggesting manageable leverage levels. However, the equity ratio shows a declining trend, which may indicate increasing liabilities relative to assets. Return on equity has improved, highlighting better profitability relative to equity.

Cash Flow

Operating cash flow has increased, which is a positive indicator of financial health. However, free cash flow remains negative, reflecting high capital expenditures that may impact financial flexibility. The free cash flow to net income ratio has improved over time, showing better cash flow management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
24.42B	24.43B	21.68B	20.64B	18.47B
	Gross Profit
9.16B	8.31B	7.01B	6.06B	5.89B
	EBIT
4.46B	2.67B	2.63B	2.62B	2.53B
	EBITDA
9.55B	7.19B	7.07B	6.57B	4.20B
	Net Income Common Stockholders
2.51B	2.26B	1.81B	-88.00M	-1.30B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
235.00M	635.00M	734.00M	165.00M	484.00M
	Total Assets
133.66B	125.70B	118.64B	103.18B	97.86B
	Total Debt
8.24B	57.73B	53.54B	41.55B	42.60B
	Net Debt
8.01B	57.10B	52.80B	41.38B	42.12B
	Total Liabilities
103.26B	100.41B	95.57B	77.57B	76.60B
	Stockholders Equity
30.15B	25.04B	22.82B	25.61B	21.00B
Cash Flow		Free Cash Flow
-2.33B	-4.97B	-5.86B	-5.24B	-26.74B
	Operating Cash Flow
8.04B	4.75B	3.72B	2.45B	-19.05B
	Investing Cash Flow
-11.38B	-9.16B	-10.21B	-7.05B	-7.75B
	Financing Cash Flow
3.62B	4.40B	7.13B	4.38B	26.07B

PG&E Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.23
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCG, the sentiment is Positive. The current price of 17.23 is above the 20-day moving average (MA) of 16.94, above the 50-day MA of 16.43, and below the 200-day MA of 18.44, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 56.72 is Neutral, neither overbought nor oversold. The STOCH value of 85.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PCG.

PG&E Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETR	75 Outperform	$35.61B	33.62	7.04%	2.83%	-2.20%	-55.73%
WEC	75 Outperform	$34.59B	22.46	12.64%	3.13%	-3.30%	14.40%
ED	74 Outperform	$40.38B	21.39	8.44%	2.98%	4.23%	-27.02%
XEL	69 Neutral	$40.40B	20.39	10.43%	3.15%	-5.25%	7.11%
PEG	67 Neutral	$41.56B	23.52	11.22%	2.92%	6.13%	-31.01%
PCG	64 Neutral	$37.87B	14.95	9.10%	0.41%	-0.04%	6.80%
Sector *	63 Neutral	$9.19B	11.97	6.86%	4.40%	4.23%	-11.24%