PG&E (PCG) AI Stock Analysis

• Market Cap: $39.30B
• Dividend Yield: 0.66%
• Average Volume (3M): 21.70M
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.28
• Revenue Growth: -0.27%
• EPS Growth: -7.65%
• Country: US
• Employees: 28,410
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.36
• Shares Outstanding: 2,197,968,000
• 10 Day Avg. Volume: 20,966,594
• 30 Day Avg. Volume: 21,699,715
• PEG Ratio: 7.58
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 1.42
• P/FCF Ratio: -11.50
• Enterprise Value/Market Cap: 2.58
• Enterprise Value/Revenue: 4.06
• Enterprise Value/Gross Profit: 13.90
• Enterprise Value/Ebitda: 9.88
• 1Y Price Target: $22.00
• Price Target Upside: 19.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 1.64
• Revenue Forecast (FY): $26.66B

• Rating: 57 Neutral
• Price Target: $17.50 ▼(-4.68% Downside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is held back mainly by structurally negative free cash flow and high leverage (with added caution due to recent data inconsistencies). Support comes from constructive guidance and improving operations, plus a technically strong uptrend, while valuation is reasonable but the dividend yield remains low.

Positive Factors

Safety & Reliability Improvements

Substantial, sustained safety and ignition reductions materially lower operational and liability risk, improving regulatory and community relations. Over 2–6 months this durability reduces contingency exposure, supports smoother cost recovery discussions, and helps preserve credit metrics and investor confidence.

Tightened EPS Guidance & Multi-Year Growth

Clear upward guidance and multi-year growth targets indicate improving earnings visibility within a regulated model. This suggests management confidence in rate base returns, load additions and cost controls, supporting predictable cash flow generation and planning discipline that matters for credit and long-term investment decisions.

Recurring O&M Savings & Customer Affordability

Sustained O&M efficiency initiatives that produce measurable savings enhance margin sustainability and free resources for customer bill relief and reinvestment. Persisting savings reduce structural cost pressure, support the company’s 'affordability' targets, and relieve regulatory scrutiny over rates over the medium term.

Negative Factors

High Leverage & Negative Free Cash Flow

Consistent negative free cash flow combined with elevated leverage implies ongoing reliance on external financing to fund capex and obligations. Structurally this limits financial flexibility, increases sensitivity to interest rates and credit-access risk, and constrains the company's ability to self-fund contingencies or accelerate investment.

Wildfire Liability & Regulatory Uncertainty

Pending SB 254 developments and wildfire cost-recovery proceedings represent a structural regulatory risk that can alter cash flow timing and recovery mechanics. Uncertainty can force capital-plan revisions, create contingent funding needs, and keep rating-agency and investor scrutiny elevated until policy outcomes are resolved.

Capital Efficiency Below Peers

A comparatively low capital-to-expense ratio signals the company is investing less productively relative to operating expense levels than peers. Over months this can limit returns on invested capital, slow rate-base growth advantages, and require sustained improvements in project execution or strategic reallocation to close the structural efficiency gap.

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

Earnings have recovered with solidly positive net income and mid-single-digit to ~10% net margins in recent years, but the profile is constrained by elevated leverage and persistently negative free cash flow (2021–2025), implying reliance on external financing. Confidence is reduced by notable data-quality inconsistencies in the most recent annual figures (e.g., revenue and debt anomalies).

Income Statement

Profitability has improved meaningfully versus the 2020–2021 loss years, with net income turning solidly positive in 2022–2024 and net margin holding around ~8%–10% in recent years. Revenue growth has been modest and inconsistent (flat in 2024 after stronger growth in 2023). The latest annual entry shows revenue and operating profit fields at zero with a -100% growth rate, which is a major data-quality red flag and reduces confidence in the most recent trend.

Balance Sheet

Leverage is the key constraint: debt-to-equity has been high (roughly ~2.0–2.35 in 2020–2023 and ~1.94 in 2024), which is elevated even for a regulated utility and leaves less flexibility if costs rise. Offsetting that, equity has grown over time and returns on equity are stable in the high-single-digits in 2022–2024 (after negative returns in 2020–2021). The 2025 annual debt level appears dramatically lower than prior years, which is inconsistent with the rest of the balance sheet history and should be treated cautiously.

Cash Flow

Operating cash flow has strengthened substantially from the very weak 2020 period and is solidly positive in 2021–2025, supporting day-to-day funding needs. However, free cash flow is consistently negative each year shown (2021–2025), indicating capital spending and/or other cash uses are outpacing operating inflows, which often implies ongoing reliance on financing. Cash generation relative to earnings looks mixed: operating cash flow is meaningfully below net income in recent years (coverage ratio below 1), and free cash flow is negative relative to net income across 2021–2025.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	24.93B	24.42B	24.43B	21.68B	20.64B
Gross Profit	4.88B	9.16B	4.00B	2.68B	2.14B
EBITDA	9.87B	9.94B	7.85B	6.73B	6.27B
Net Income	2.70B	2.51B	2.26B	1.81B	-88.00M
Balance Sheet
Total Assets	141.61B	133.66B	125.70B	118.64B	103.33B
Cash, Cash Equivalents and Short-Term Investments	713.00M	940.00M	635.00M	734.00M	291.00M
Total Debt	61.34B	58.34B	57.73B	53.54B	46.17B
Total Liabilities	108.82B	103.26B	100.41B	95.57B	82.10B
Stockholders Equity	32.54B	30.15B	25.04B	22.82B	20.97B
Cash Flow
Free Cash Flow	-3.07B	-2.33B	-4.97B	-5.86B	-5.43B
Operating Cash Flow	8.72B	8.04B	4.75B	3.72B	2.26B
Investing Cash Flow	-12.32B	-11.38B	-9.16B	-10.21B	-6.91B
Financing Cash Flow	3.36B	3.62B	4.40B	7.13B	4.32B

PG&E Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 18.36 is above the 20-day moving average (MA) of 16.42, above the 50-day MA of 15.95, and above the 200-day MA of 15.51, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 76.61 is Negative, neither overbought nor oversold. The STOCH value of 88.50 is Negative, 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	80 Outperform	$68.84B	19.11	12.33%	3.25%	7.66%	37.42%
DUK	71 Outperform	$97.39B	19.81	9.74%	3.61%	4.80%	14.44%
SO	69 Neutral	$100.24B	23.13	12.54%	3.40%	9.40%	-6.05%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
FE	64 Neutral	$28.27B	27.73	8.17%	3.94%	7.64%	48.61%
DTE	62 Neutral	$29.64B	20.23	12.16%	3.45%	19.42%	-9.68%
PCG	57 Neutral	$39.30B	15.18	8.62%	0.66%	-0.27%	-7.65%

PG&E Corporate Events

PG&E Reports Strong 2025 Earnings and Tightens 2026 Guidance

PG&E reported improved 2025 results on February 12, 2026, with GAAP earnings rising to $1.18 per share and non-GAAP core earnings climbing to $1.50 per share, driven by higher customer capital investment and operating and maintenance savings despite a lower allowed return on equity and wildfire-related costs. The company tightened its 2026 non-GAAP core EPS guidance range to $1.64–$1.66, cut non-fuel O&M by 2.5% in 2025, and continued redeploying cumulative four-year O&M savings of more than $700 million, while advancing 2 GW of data-center projects to final engineering and connecting thousands of new customers and EV charging ports.

Operationally, PG&E highlighted a fourth reduction in residential bundled electric rates in two years, leaving rates 11% below January 2024 levels, alongside a third consecutive year without major wildfires caused by its equipment and continued expansion of undergrounding and hardening power lines in high-risk areas. The utility reported over 99% natural gas reliability and a 19% improvement in electric system reliability versus 2024, underscoring management’s push to pair cost controls and capital investment with enhanced safety, grid resilience, and affordability for California customers and investors.

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

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.