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PG&E (PCG)
NYSE:PCG

PG&E (PCG) AI Stock Analysis

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PG&E

(NYSE:PCG)

Rating:66Neutral
Price Target:
$15.50
â–²(10.79%Upside)
PG&E's overall score is driven by strong financial performance and positive earnings call sentiment, offset by technical analysis indicating bearish momentum. Valuation metrics are reasonable, supporting stability, while the lack of notable corporate events does not impact the score.
Positive Factors
Data Center Growth
Data center pipeline increased to 8.7 GWs, showing significant growth from the previous quarter.
Legislative Outcomes
Management expects a constructive legislative outcome on wildfire risk.
Negative Factors
EPS Performance
PCG reported EPS of $0.33, -3% below consensus of $0.34.
Wildfire Insurance Fund
The potential depletion of the California wildfire insurance fund due to the Eaton fire is a concern.

PG&E (PCG) vs. SPDR S&P 500 ETF (SPY)

PG&E Business Overview & Revenue Model

Company DescriptionPG&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 MoneyPG&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 Earnings Call Summary

Earnings Call Date:Apr 24, 2025
(Q1-2025)
|
% Change Since: -20.10%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlights PG&E's significant progress in growth initiatives, safety improvements, and financial stability, as evidenced by reaffirmed guidance and credit rating upgrades. However, challenges remain with lower core earnings, legislative uncertainties regarding wildfire liabilities, and ongoing tariff impacts.
Q1-2025 Updates
Positive Updates
Reaffirmation of 2025 Full-Year Guidance
PG&E reaffirmed its full-year guidance range of $1.48 to $1.52 for 2025, with a midpoint 10% increase from 2024 results.
Data Center Load Growth
The data center project pipeline increased from 5.5 gigawatts to 8.7 gigawatts, indicating strong potential for future growth.
Improved Safety Record
PG&E has gone 814 days without a fatality, the longest period in over 25 years, highlighting improvements in safety culture.
Capital Investment Plan
PG&E's 5-year $63 billion capital plan remains on track, with no single project accounting for more than 2% of the overall plan.
Moody's Upgrade
In March, Moody's upgraded PG&E's utility issuer credit rating to investment grade, acknowledging progress in financial stability.
O&M Cost Reductions
PG&E saved over $500 million in 2023 and another nearly $350 million in 2024 through O&M cost reductions.
Negative Updates
Lower Core Earnings in Q1 2025
Core earnings per share were $0.33, $0.04 lower than the same quarter in 2024, primarily due to lower ROE and equity dilution.
Wildfire Risk and Legislative Uncertainty
Ongoing concerns about wildfire risks and the need for legislative solutions to address funding and liability issues under AB 1054.
Tariff Exposure
Approximately $100 million of PG&E's total spend is impacted by tariffs, particularly in computer hardware and electric equipment.
Company Guidance
In PG&E's First Quarter 2025 earnings call, CEO Patty Poppe highlighted a core earnings per share of $0.33 and reaffirmed the 2025 full-year guidance range of $1.48 to $1.52, representing a 10% increase from 2024. The company maintains a 9% annual EPS growth outlook for 2026-2028. PG&E is committed to a $63 billion capital investment plan through 2028, with affordability as a key focus, noting that customer bills have decreased in 2025 compared to 2024, with further reductions anticipated in 2026. The company also emphasized progress in wildfire risk mitigation and infrastructure improvements, including a data center load growth pipeline that has expanded from 5.5 gigawatts to 8.7 gigawatts. PG&E expects constructive legislative outcomes regarding AB 1054 to enhance long-term affordability and ensure access to low-cost capital. Additionally, CFO Carolyn Burke noted the utility's strong performance with a $0.04 decrease in Q1 earnings compared to the previous year, attributed to the reduction in the authorized return on equity and equity dilution. The company continues to execute its five-year capital plan and aims to achieve investment-grade credit ratings while managing costs through its lean operating system.

PG&E Financial Statement Overview

Summary
PG&E has demonstrated strong financial performance in the TTM period, with improved profitability, efficient leverage management, and impressive cash flow generation. The improvements in free cash flow and reduced debt levels mark a positive trajectory for future financial stability.
Income Statement
75
Positive
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
65
Positive
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue24.54B24.42B24.43B21.68B20.64B18.47B
Gross Profit9.22B9.16B8.31B7.01B6.06B5.89B
EBITDA9.70B9.94B7.19B6.73B6.27B4.20B
Net Income2.41B2.51B2.26B1.81B-88.00M-1.30B
Balance Sheet
Total Assets135.44B133.66B125.70B118.64B103.18B97.86B
Cash, Cash Equivalents and Short-Term Investments2.02B940.00M635.00M734.00M291.00M484.00M
Total Debt59.97B58.34B57.73B53.54B46.17B42.60B
Total Liabilities104.51B103.26B100.41B95.57B82.10B76.60B
Stockholders Equity36.12B30.15B25.04B22.82B20.97B21.00B
Cash Flow
Free Cash Flow7.28B-2.33B-4.97B-5.86B-5.43B-26.74B
Operating Cash Flow7.96B8.04B4.75B3.72B2.26B-19.05B
Investing Cash Flow-12.22B-11.38B-9.16B-10.21B-6.91B-7.75B
Financing Cash Flow4.47B3.62B4.40B7.13B4.32B25.93B

PG&E Technical Analysis

Technical Analysis Sentiment
Negative
Last Price13.99
Price Trends
50DMA
15.98
Negative
100DMA
16.21
Negative
200DMA
17.80
Negative
Market Momentum
MACD
-0.62
Negative
RSI
36.81
Neutral
STOCH
62.79
Neutral
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 13.99 is below the 20-day moving average (MA) of 14.29, below the 50-day MA of 15.98, and below the 200-day MA of 17.80, indicating a bearish trend. The MACD of -0.62 indicates Negative momentum. The RSI at 36.81 is Neutral, neither overbought nor oversold. The STOCH value of 62.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PCG.

PG&E Risk Analysis

PG&E disclosed 32 risk factors in its most recent earnings report. PG&E reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

PG&E Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
WEWEC
74
Outperform
$33.11B20.2512.96%3.44%4.42%11.98%
PEPEG
69
Neutral
$40.53B22.2011.40%3.10%11.24%1.15%
ETETR
68
Neutral
$35.03B26.398.96%2.95%-0.84%-37.59%
67
Neutral
$16.39B16.974.47%3.56%4.77%6.10%
PCPCG
66
Neutral
$30.75B12.878.55%0.71%1.91%-4.40%
XEXEL
66
Neutral
$38.97B19.9210.26%3.37%-0.44%2.14%
EDED
64
Neutral
$36.31B18.608.33%3.40%8.52%3.91%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PCG
PG&E
13.99
-3.15
-18.38%
ED
Consolidated Edison
99.92
13.65
15.82%
ETR
Entergy
81.32
29.94
58.27%
PEG
Public Service Enterprise
81.22
9.36
13.03%
WEC
WEC Energy Group
103.75
28.60
38.06%
XEL
Xcel Energy
67.56
16.60
32.57%

PG&E Corporate Events

Private Placements and Financing
PG&E Raises $1.25 Billion Through Bond Sale
Neutral
Jun 4, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 10, 2025