PG&E (PCG) AI Stock Analysis

• Market Cap: $33.67B
• Dividend Yield: 0.55%
• Average Volume (3M): 25.65M
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.36
• Revenue Growth: -1.30%
• EPS Growth: -8.34%
• Country: US
• Employees: 28,410
• Sector: Utilities
• Sector Strength: 63
• Industry: Regulated Electric
• EPS (TTM): 0.31
• Shares Outstanding: 2,197,837,400
• 10 Day Avg. Volume: 22,677,070
• 30 Day Avg. Volume: 25,647,638
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.72
• Enterprise Value/Revenue: 3.74
• Enterprise Value/Gross Profit: 19.91
• Enterprise Value/Ebitda: 9.22
• 1Y Price Target: $20.67
• Price Target Upside: 35.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 65 Neutral
• Price Target: $16.50 ▲(8.34% Upside)

PG&E's overall stock score reflects a balance of solid operational efficiency and positive technical momentum, tempered by challenges in revenue growth and high leverage. The strong earnings guidance and commitment to operational improvements are significant positives, but legislative and wildfire risks remain concerns.

Positive Factors

Data Center Expansion

PCG's data center campaign is ramping up quickly, with significant projects in advanced stages and expected to reduce legacy customer electric bills.

Growth Outlook

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

Shareholder Policies

Utility affordability bills are advancing and could become more shareholder friendly before passing.

Negative Factors

Earnings Performance

PCG reported EPS of $0.33, -3% below consensus of $0.34.

Regulatory Risks

The calendar of events for 2Q'25, including rate case and cost of capital proceeding, represents risk.

Wildfire Insurance Fund

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

PG&E Business Overview & Revenue Model

Company Description

Pacific Gas and Electric Company (PG&E) is a publicly traded utility company based in California, primarily engaged in the transmission and distribution of electricity and natural gas. Serving millions of customers across Northern and Central California, PG&E operates within the energy sector, focusing on providing reliable energy services, including renewable energy solutions, energy efficiency programs, and infrastructure improvements. The company is also involved in various initiatives aimed at enhancing sustainability and reducing carbon emissions.

How the Company Makes Money

PG&E generates revenue primarily through the sale of electricity and natural gas to residential, commercial, and industrial customers. The company operates under a regulated utility model, where its rates are approved by the California Public Utilities Commission (CPUC). This regulatory framework allows PG&E to recover costs associated with infrastructure investments, maintenance, and operational expenses through rate adjustments. Key revenue streams include standard electricity and gas service charges, as well as additional fees for services such as energy efficiency programs and renewable energy initiatives. PG&E also benefits from partnerships with renewable energy developers, which contribute to its growing portfolio of clean energy resources, and various state and federal programs that incentivize energy efficiency and renewable energy adoption.

PG&E Financial Statement Overview

Summary

PG&E demonstrates solid operational efficiency with healthy EBIT and EBITDA margins. However, challenges with revenue growth and high leverage could impact financial stability. Cash flow metrics indicate moderate efficiency, but the decline in free cash flow growth is a concern. The company should focus on improving revenue growth and reducing leverage to enhance financial health.

Income Statement

PG&E's income statement shows a stable gross profit margin at 33.16% TTM, indicating efficient cost management. However, the net profit margin has slightly decreased to 9.96% TTM, reflecting some pressure on profitability. The revenue growth rate is negative at -0.36% TTM, suggesting challenges in revenue expansion. The EBIT and EBITDA margins are healthy at 21.36% and 39.64% TTM, respectively, indicating strong operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.91 TTM, indicating significant leverage, which could pose financial risks. Return on equity is moderate at 7.84% TTM, reflecting decent profitability relative to equity. The equity ratio stands at 22.86% TTM, suggesting a balanced capital structure but with room for improvement in reducing debt levels.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -4.76% TTM, indicating potential cash generation challenges. The operating cash flow to net income ratio is 0.52 TTM, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is strong at 0.83 TTM, reflecting good cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.45B	24.42B	24.43B	21.68B	20.64B	18.47B
Gross Profit	4.59B	4.59B	4.00B	2.68B	2.14B	2.01B
EBITDA	9.92B	9.94B	7.85B	6.73B	6.27B	4.20B
Net Income	2.44B	2.51B	2.26B	1.81B	-88.00M	-1.30B
Balance Sheet
Total Assets	136.38B	133.66B	125.70B	118.64B	103.33B	97.86B
Cash, Cash Equivalents and Short-Term Investments	494.00M	940.00M	635.00M	734.00M	291.00M	484.00M
Total Debt	59.67B	58.34B	57.73B	53.54B	46.17B	42.60B
Total Liabilities	104.95B	103.26B	100.41B	95.57B	82.10B	76.60B
Stockholders Equity	31.19B	30.15B	25.04B	22.82B	20.97B	21.00B
Cash Flow
Free Cash Flow	-2.17B	-2.33B	-4.97B	-5.86B	-5.43B	-26.74B
Operating Cash Flow	8.97B	8.04B	4.75B	3.72B	2.26B	-19.05B
Investing Cash Flow	-12.42B	-11.38B	-9.16B	-10.21B	-6.91B	-7.75B
Financing Cash Flow	2.58B	3.62B	4.40B	7.13B	4.32B	26.07B

PG&E Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.23
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 15.23 is above the 20-day moving average (MA) of 15.17, above the 50-day MA of 14.39, and below the 200-day MA of 16.57, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 55.55 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, 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
AEP	74 Outperform	$58.88B	16.13	13.03%	3.42%	5.84%	36.33%
DUK	73 Outperform	$94.78B	19.93	9.60%	3.47%	4.07%	9.94%
FE	73 Outperform	$25.10B	19.19	10.33%	4.00%	6.44%	49.07%
DTE	71 Outperform	$28.16B	19.52	12.61%	3.14%	14.35%	3.62%
Sector *	66 Neutral	$17.25B	17.87	5.54%	3.65%	6.63%	11.55%
PCG	65 Neutral	$33.67B	14.17	8.48%	0.55%	-1.30%	-8.34%
SO	65 Neutral	$101.53B	23.78	12.89%	3.18%	8.53%	-7.53%

PG&E Corporate Events

PG&E Reports Steady Q2 2025 Financial Results

On July 31, 2025, PG&E Corporation reported its second-quarter financial results, maintaining GAAP earnings of $0.24 per share and non-GAAP core earnings of $0.31 per share, consistent with the same period in 2024. The company updated its 2025 GAAP earnings guidance to $1.26 to $1.32 per share and reaffirmed its non-GAAP core earnings guidance at $1.48 to $1.52 per share. PG&E is making operational progress with safety and infrastructure improvements, including a significant reduction in methane emissions and advancements in wildfire safety measures. The company is on track to meet its financial and operational targets for 2025, with a focus on delivering affordable and resilient energy.

PG&E Raises $1.25 Billion Through Bond Sale

On June 2, 2025, PG&E entered into an Underwriting Agreement for the issuance and sale of First Mortgage Bonds, raising $1.25 billion through the sale completed on June 4, 2025. This financial move is likely to impact the company’s capital structure and could influence its market positioning and stakeholder interests.