PG&E (PCG) AI Stock Analysis

• Market Cap: $30.44B
• Dividend Yield: 0.61%
• Average Volume (3M): 26.48M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.36
• Revenue Growth: 1.91%
• EPS Growth: -4.40%
• Country: US
• Employees: 28,410
• Sector: Utilities
• Sector Strength: 77
• Industry: Regulated Electric
• EPS (TTM): 0.33
• Shares Outstanding: 2,197,685,000
• 10 Day Avg. Volume: 22,338,215
• 30 Day Avg. Volume: 26,483,058
• PEG Ratio: -2.43
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.21
• Enterprise Value/Market Cap: 2.97
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 21.08
• Enterprise Value/Ebitda: 5.54
• 1Y Price Target: $20.61
• Price Target Upside: 46.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 61 Neutral
• Price Target: $13.50 ▼(-4.12%Downside)

PG&E's overall stock score of 61 reflects strong financial performance and positive earnings call highlights, tempered by bearish technical indicators and modest valuation attractiveness. The company's strategic initiatives and financial stability are strong positives, while technical and external risks present challenges.

Positive Factors

Credit Rating

PCG has been on Positive outlooks at all three agencies, currently one notch below investment grade at Moody’s and Fitch.

Data Center Expansion

PCG's data center pipeline increased to 8.7 GWs, showing significant growth from the previous quarter.

Positive Financial Outlook

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

Negative Factors

Cost of Capital

Interest rates are up, and the actual cost of capital is higher.

Legislative Uncertainty

State policy is critical in ensuring the financial health of California's investor-owned utilities, but legislative changes will be a prolonged process with the lengthy California 2025 legislative session ending in September.

Wildfire Fund Concerns

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

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 makes money primarily through the sale and distribution of electricity and natural gas to its customer base, which includes residential, commercial, industrial, and agricultural users. Revenue is generated from customer payments for energy consumption, where rates are regulated by the California Public Utilities Commission (CPUC) to ensure fair pricing. PG&E also earns revenue from infrastructure investments and maintenance, which are incorporated into customer rates. Additionally, the company benefits from various state and federal incentives related to renewable energy and energy efficiency programs, which can enhance its revenue streams. Key factors influencing PG&E's earnings include regulatory decisions, energy market conditions, and the company's ability to manage operational expenses and capital expenditures effectively.

PG&E Financial Statement Overview

Summary

PG&E demonstrates strong financial performance with improved profitability, efficient leverage management, and impressive cash flow generation. While revenue growth remains steady, the company's operational margins and capital structure are solid, with reduced debt levels marking a positive trajectory for future stability.

Income Statement

PG&E shows a solid gross profit margin in the TTM (Trailing-Twelve-Months) at approximately 37.6%, indicating effective cost management. The net profit margin has improved to 9.8% compared to previous years, reflecting enhanced profitability despite past volatility. Revenue growth has been moderate, with a slight increase in TTM compared to the previous year. The EBIT and EBITDA margins are robust at 17.9% and 33.2%, respectively, demonstrating strong operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has decreased significantly to 0.72 in TTM, indicating improved leverage management. However, the return on equity remains moderate at 6.7%, suggesting room for more efficient equity utilization. A strong equity ratio of 36.5% in TTM shows a solid capital structure relative to total assets.

Cash Flow

PG&E has shown a remarkable turnaround in free cash flow, shifting from negative figures to a strong positive in the TTM, with a free cash flow growth rate of 411.7% from the previous year. The operating cash flow to net income ratio is 3.3, suggesting healthy cash generation relative to earnings. The free cash flow to net income ratio is 3.0, indicating that the company is effectively converting earnings into free cash flow.

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
EBITDA	9.94B	7.19B	6.73B	6.27B	4.20B
Net Income	2.51B	2.26B	1.81B	-88.00M	-1.30B
Balance Sheet
Total Assets	133.66B	125.70B	118.64B	103.18B	97.86B
Cash, Cash Equivalents and Short-Term Investments	940.00M	635.00M	734.00M	291.00M	484.00M
Total Debt	58.34B	57.73B	53.54B	46.17B	42.60B
Total Liabilities	103.26B	100.41B	95.57B	82.10B	76.60B
Stockholders Equity	30.15B	25.04B	22.82B	20.97B	21.00B
Cash Flow
Free Cash Flow	-2.33B	-4.97B	-5.86B	-5.43B	-26.74B
Operating Cash Flow	8.04B	4.75B	3.72B	2.26B	-19.05B
Investing Cash Flow	-11.38B	-9.16B	-10.21B	-6.91B	-7.75B
Financing Cash Flow	3.62B	4.40B	7.13B	4.32B	25.93B

PG&E Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.08
• 50DMA: Negative
• 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 Negative. The current price of 14.08 is above the 20-day moving average (MA) of 13.63, below the 50-day MA of 14.85, and below the 200-day MA of 17.30, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 53.13 is Neutral, neither overbought nor oversold. The STOCH value of 88.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PCG.

PG&E Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEC	73 Outperform	$34.96B	21.28	12.96%	3.15%	4.42%	11.98%
PEG	73 Outperform	$43.38B	23.76	11.40%	2.81%	11.24%	1.15%
XEL	71 Outperform	$41.98B	21.37	10.26%	3.07%	-0.44%	2.14%
ETR	68 Neutral	$37.97B	28.59	8.96%	3.36%	-0.84%	-37.59%
Sector *	67 Neutral	$16.87B	17.02	4.48%	3.26%	4.72%	5.95%
ED	61 Neutral	$36.77B	18.93	8.33%	3.29%	8.52%	3.91%
PCG	61 Neutral	$30.44B	12.63	8.55%	0.61%	1.91%	-4.40%

PG&E Corporate Events

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.

The most recent analyst rating on (PCG) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on PG&E stock, see the PCG Stock Forecast page.