PG&E (PCG) AI Stock Analysis

• Market Cap: $35.45B
• Dividend Yield: 0.66%
• Average Volume (3M): 18.34M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.30
• Revenue Growth: -0.27%
• EPS Growth: -7.65%
• Country: US
• Employees: 28,410
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.50
• Shares Outstanding: 2,197,910,400
• 10 Day Avg. Volume: 9,340,066
• 30 Day Avg. Volume: 18,338,925
• PEG Ratio: 2.68
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 1.77
• P/FCF Ratio: -18.51
• Enterprise Value/Market Cap: 2.60
• Enterprise Value/Revenue: 3.72
• Enterprise Value/Gross Profit: 12.97
• Enterprise Value/Ebitda: 9.40
• 1Y Price Target: $21.36
• Price Target Upside: 32.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $17.50 ▲(8.49% Upside)

PG&E's overall score reflects strong financial performance and strategic initiatives, tempered by cash flow challenges and mixed technical indicators. The company's fair valuation and positive earnings call sentiment are offset by potential risks from regulatory decisions and financial obligations.

Positive Factors

Wildfire Risk Mitigation

Successful wildfire risk mitigation reduces operational risks and potential liabilities, enhancing long-term stability and community trust.

Leadership Changes

New leadership aims to enhance operational efficiencies and customer service, potentially improving strategic execution and market positioning.

Undergrounding Milestone

Undergrounding power lines in high-risk areas reduces fire risks, ensuring safer and more reliable energy distribution, supporting long-term operational resilience.

Negative Factors

Cash Flow Challenges

Persistent cash flow issues can hinder investment capacity and financial flexibility, potentially affecting long-term growth and stability.

Data Center Pipeline Attrition

Attrition in the data center pipeline may slow growth in high-demand sectors, impacting future revenue streams and strategic expansion plans.

Pending Regulatory Decisions

Pending regulatory decisions could affect financial outcomes and strategic planning, introducing uncertainty in cost structures and profitability.

PG&E Business Overview & Revenue Model

Company Description

Pacific Gas and Electric Company generates, transmits, distributes, and sells electricity and natural gas to customers in northern and central California, the United States. It generates electricity using nuclear, hydroelectric, fossil fuel-fired, and photovoltaic sources. The company also develops a personal microgrid backup power transfer meter device for customers that fully integrates into its existing electric SmartMeter system. 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. Pacific Gas and Electric Company operates as a subsidiary of PG&E Corporation.

How the Company Makes Money

PG&E generates revenue primarily through the sale of electricity and natural gas to its customers. The company operates under a regulated utility model, allowing it to earn a return on its investments by charging customers rates approved by the California Public Utilities Commission (CPUC). Key revenue streams include residential and commercial utility bills, which encompass charges for energy consumption, transmission, and distribution. Additionally, PG&E earns revenue from ancillary services, such as demand response and energy efficiency programs. The company also engages in partnerships with renewable energy providers, contributing to its revenue through power purchase agreements. Factors influencing its earnings include regulatory decisions, changes in energy demand, and investments in infrastructure and renewable energy sources.

PG&E Financial Statement Overview

Summary

PG&E shows solid revenue growth and operational efficiency, with strong margins and improved leverage. However, cash flow challenges persist, requiring attention to sustain growth.

Income Statement

PG&E's income statement shows a steady revenue growth with a TTM growth rate of 1.26%. The company maintains healthy margins with a gross profit margin of 28.69% and a net profit margin of 10.93% in the TTM period. EBIT and EBITDA margins are strong at 19.98% and 37.93%, respectively, indicating operational efficiency. However, the gross profit margin has decreased from the previous year, suggesting potential cost pressures.

Balance Sheet

The balance sheet reflects a significant reduction in debt, with a TTM debt-to-equity ratio of 0.05, down from 1.94 the previous year, indicating improved financial stability. Return on equity is moderate at 8.73%, showing decent profitability. The equity ratio is not explicitly calculated but appears stable given the equity and asset figures. Overall, the balance sheet shows improved leverage but still requires careful management of equity and assets.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow in the TTM period. Despite a 27.99% growth in free cash flow, the free cash flow to net income ratio remains negative, indicating cash flow issues. The operating cash flow to net income ratio is 0.58, suggesting moderate cash generation from operations. While there is improvement, cash flow management remains a critical area for PG&E.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.76B	24.42B	24.43B	21.68B	20.64B	18.47B
Gross Profit	7.10B	9.16B	4.00B	2.68B	2.14B	2.01B
EBITDA	9.80B	9.94B	7.85B	6.73B	6.27B	4.20B
Net Income	2.71B	2.51B	2.26B	1.81B	-88.00M	-1.30B
Balance Sheet
Total Assets	138.25B	133.66B	125.70B	118.64B	103.33B	97.86B
Cash, Cash Equivalents and Short-Term Investments	772.00M	940.00M	635.00M	734.00M	291.00M	484.00M
Total Debt	59.79B	58.34B	57.73B	53.54B	46.17B	42.60B
Total Liabilities	106.02B	103.26B	100.41B	95.57B	82.10B	76.60B
Stockholders Equity	31.98B	30.15B	25.04B	22.82B	20.97B	21.00B
Cash Flow
Free Cash Flow	-2.77B	-2.33B	-4.97B	-5.86B	-5.43B	-26.82B
Operating Cash Flow	8.69B	8.04B	4.75B	3.72B	2.26B	-19.13B
Investing Cash Flow	-12.41B	-11.38B	-9.16B	-10.21B	-6.91B	-7.75B
Financing Cash Flow	3.26B	3.62B	4.40B	7.13B	4.32B	25.93B

PG&E Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 16.13 is above the 20-day moving average (MA) of 15.65, above the 50-day MA of 15.88, and above the 200-day MA of 15.63, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 74.60 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
DUK	70 Outperform	$90.84B	18.36	9.92%	3.61%	4.80%	14.44%
PCG	69 Neutral	$35.45B	13.75	9.21%	0.66%	-0.27%	-7.65%
AEP	69 Neutral	$60.92B	16.69	12.85%	3.25%	7.66%	37.42%
SO	68 Neutral	$95.65B	21.59	13.06%	3.40%	9.40%	-6.05%
FE	67 Neutral	$25.87B	19.45	10.54%	3.94%	7.64%	48.61%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
DTE	65 Neutral	$26.75B	19.30	11.64%	3.45%	19.42%	-9.68%

PG&E Corporate Events

PG&E Announces Leadership Changes Effective January 2026

On December 11, 2025, PG&E Corporation and Pacific Gas and Electric Company announced leadership changes aiming to enhance operational efficiencies and customer service, effective January 1, 2026. Sumeet Singh will take over as CEO of Pacific Gas and Electric Company, while Carla Peterman will become President of PG&E Corporation. Additionally, amended bylaws were adopted to clarify executive roles within the Utility. These moves are expected to strengthen the company’s organizational framework to benefit stakeholders and improve its market positioning.

The most recent analyst rating on (PCG) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on PG&E stock, see the PCG Stock Forecast page.