PG&E (PCG) AI Stock Analysis

• Market Cap: $32.90B
• Dividend Yield: 0.57%
• Average Volume (3M): 24.88M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.39
• Revenue Growth: -1.30%
• EPS Growth: -8.34%
• Country: US
• Employees: 28,410
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.31
• Shares Outstanding: 2,197,837,400
• 10 Day Avg. Volume: 21,745,226
• 30 Day Avg. Volume: 24,875,964
• 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: 2.78
• Enterprise Value/Revenue: 3.74
• Enterprise Value/Gross Profit: 19.91
• Enterprise Value/Ebitda: 9.22
• 1Y Price Target: $20.81
• Price Target Upside: 39.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 64 Neutral
• Price Target: $16.00 ▲(6.88% Upside)

PG&E's overall stock score reflects solid operational efficiency and a reasonable valuation, supported by positive earnings call insights. However, challenges with revenue growth, high leverage, and potential legislative and wildfire risks weigh on the score. The technical analysis suggests mixed market sentiment, indicating caution.

Positive Factors

Operational Efficiency

Strong operational efficiency, as indicated by healthy EBIT and EBITDA margins, suggests PG&E can effectively manage costs and maintain profitability, providing a stable foundation for future growth.

Data Center Growth

The significant expansion in the data center sector reflects PG&E's ability to capture new growth opportunities, potentially leading to increased revenue streams and enhanced market positioning.

Credit Rating Upgrade

The credit rating upgrade by Fitch indicates improved financial stability and risk management, particularly in handling wildfire risks, enhancing PG&E's ability to access capital markets at favorable terms.

Negative Factors

Revenue Growth Challenges

Negative revenue growth suggests difficulties in expanding market share or increasing sales, which could hinder PG&E's ability to generate higher profits and sustain long-term growth.

High Leverage

High leverage indicates significant reliance on debt, which can increase financial risk and limit flexibility in funding future projects or navigating economic downturns.

Wildfire Risk and Liability

Ongoing wildfire risks and associated liabilities pose a significant threat to PG&E's financial health and operational stability, potentially leading to increased costs and regulatory scrutiny.

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 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	-26.82B
Operating Cash Flow	8.97B	8.04B	4.75B	3.72B	2.26B	-19.13B
Investing Cash Flow	-12.42B	-11.38B	-9.16B	-10.21B	-6.91B	-7.75B
Financing Cash Flow	2.61B	3.62B	4.40B	7.13B	4.32B	25.93B

PG&E Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.97
• 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 14.97 is below the 20-day moving average (MA) of 15.04, above the 50-day MA of 14.81, and below the 200-day MA of 16.09, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 50.62 is Neutral, neither overbought nor oversold. The STOCH value of 29.49 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	58.37B	15.99	12.22%	3.41%	5.84%	36.33%
FE	73 Outperform	26.23B	20.05	10.18%	3.83%	6.44%	49.07%
DUK	71 Outperform	95.66B	20.11	9.50%	3.41%	4.07%	9.94%
DTE	70 Neutral	28.92B	20.04	12.31%	3.13%	14.35%	3.62%
SO	66 Neutral	103.99B	24.41	12.59%	3.09%	8.53%	-7.53%
PCG	64 Neutral	$32.90B	13.36	8.48%	0.57%	-1.30%	-8.34%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

PG&E Corporate Events

PG&E Reaffirms 2025 Financial Guidance Amid Challenges

On September 15, 2025, PG&E Corporation reaffirmed its financial guidance, projecting 2025 non-GAAP Core Earnings Per Share (EPS) between $1.48 and $1.52, and at least 9% growth in non-GAAP Core EPS from 2026 to 2028. The company also anticipates a compound annual rate base growth of 10% from 2023 to 2028, with its common equity issuance plan for 2024-2028 already completed. This announcement underscores PG&E’s commitment to financial stability and growth, despite ongoing challenges related to wildfire liabilities and regulatory scrutiny.

The most recent analyst rating on (PCG) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on PG&E stock, see the PCG Stock Forecast page.