PG&E (PCG) AI Stock Analysis

• Market Cap: $33.65B
• Dividend Yield: 0.57%
• Average Volume (3M): 24.63M
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.38
• Revenue Growth: -1.30%
• EPS Growth: -8.34%
• Country: US
• Employees: 28,410
• Sector: Utilities
• Sector Strength: 84
• Industry: Regulated Electric
• EPS (TTM): 0.31
• Shares Outstanding: 2,197,837,400
• 10 Day Avg. Volume: 28,077,753
• 30 Day Avg. Volume: 24,627,856
• 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: 11.28
• Enterprise Value/Ebitda: 9.44
• 1Y Price Target: $20.06
• Price Target Upside: 33.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 66 Neutral
• Price Target: $16.00 ▲(6.52% Upside)

PG&E's overall stock score is driven by solid operational efficiency and a cautiously optimistic earnings outlook. However, challenges with revenue growth, high leverage, and legislative uncertainties weigh on the score. Technical indicators suggest positive momentum, but valuation metrics indicate a balanced approach to growth and shareholder returns.

Positive Factors

Data Center Growth

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

Earnings and Financial Performance

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

Investor Confidence

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

Negative Factors

Cost of Capital

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

Legislative Risks

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

Wildfire Insurance 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 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	8.11B	9.16B	8.31B	7.01B	6.06B	5.89B
EBITDA	9.69B	9.94B	7.19B	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	6.93B	-2.33B	-4.97B	-5.86B	-5.43B	-26.74B
Operating Cash Flow	8.38B	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	714.00M	3.62B	4.40B	7.13B	4.32B	25.93B

PG&E Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.02
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 15.02 is above the 20-day moving average (MA) of 14.52, above the 50-day MA of 14.16, and below the 200-day MA of 16.91, indicating a neutral trend. The MACD of 0.33 indicates Negative momentum. The RSI at 59.40 is Neutral, neither overbought nor oversold. The STOCH value of 68.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PCG.

PG&E Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETR	77 Outperform	$40.31B	22.47	11.32%	2.69%	1.38%	-2.90%
WEC	73 Outperform	$34.80B	20.73	13.12%	3.27%	7.88%	20.67%
PEG	72 Outperform	$43.32B	21.92	12.19%	2.88%	13.73%	19.94%
XEL	72 Outperform	$42.81B	20.08	10.65%	3.11%	1.20%	7.99%
Sector *	66 Neutral	$17.90B	18.75	8.12%	3.41%	7.32%	12.01%
PCG	66 Neutral	$33.65B	14.16	8.48%	0.57%	-1.30%	-8.34%
ED	64 Neutral	$37.10B	18.65	8.54%	3.35%	9.03%	7.22%

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.

The most recent analyst rating on (PCG) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on PG&E stock, see the PCG Stock Forecast page.

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.