Public Service Enterprise (PEG) AI Stock Analysis

• Market Cap: $42.14B
• Dividend Yield: 3.13%
• Average Volume (3M): 2.85M
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.30
• Revenue Growth: 18.29%
• EPS Growth: 2.40%
• Country: US
• Employees: 13,047
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.72
• Shares Outstanding: 498,739,900
• 10 Day Avg. Volume: 2,426,313
• 30 Day Avg. Volume: 2,847,879
• PEG Ratio: 1.01
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 3.29
• P/FCF Ratio: 123.29
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 5.44
• Enterprise Value/Gross Profit: 7.89
• Enterprise Value/Ebitda: 13.98
• 1Y Price Target: $89.95
• Price Target Upside: 6.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 4.38
• Revenue Forecast (FY): $11.95B

• Rating: 72 Outperform
• Price Target: $95.00 ▲(12.43% Upside)
• Action: Upgraded Date: 02/26/26
• Date: Action: Upgraded 02/26/26

The score is driven primarily by a strong earnings-call outlook (raised 2026 guidance, higher long-term growth targets, and a dividend increase) and constructive technical momentum (price above major moving averages with positive MACD). Offsetting factors are a leveraged utility balance sheet and uneven cash-flow conversion, while valuation appears reasonable but not compelling given the ~20.7 P/E and ~2.93% yield.

Positive Factors

Regulated CapEx & Rate‑Base Growth

A multi‑year, largely regulated capital program supporting a 6%–7.5% rate‑base CAGR provides durable, tariff‑backed revenue growth and predictable return opportunities. This sustains long‑term earnings and supports funding of investments through regulated cost recovery mechanisms.

Reliable Carbon‑Free Baseload (Nuclear)

High nuclear output and a 91.2% capacity factor deliver dependable, around‑the‑clock, carbon‑free generation. This stabilizes wholesale and contracted revenues, enhances system reliability, and strengthens the company's strategic position amid long‑term decarbonization trends.

Cash Generation & Liquidity

Sustained operating cash flow (> $3B) and multi‑year liquidity support the capital plan and dividend policy without near‑term equity issuance. Projected mid‑teens FFO/debt through 2030 indicates ongoing coverage of debt and spending needs, providing financing flexibility for regulated investments.

Negative Factors

Elevated Leverage

A debt‑heavy balance sheet is typical for utilities but narrows financial flexibility. With significant long‑duration debt, higher rates or unexpected capital needs could raise interest expense and constrain the ability to accelerate investments, raise dividends, or absorb regulatory delays.

Inconsistent Cash‑Flow Conversion

Mixed cash conversion driven by working‑capital swings and timing effects makes free cash flow less predictable year‑to‑year. For a company executing a large capex plan, inconsistent FCF increases reliance on external financing and elevates execution and refinancing risk over the medium term.

Regulatory & Policy Uncertainty

Ongoing legislative and regulatory reviews can alter cost recovery, resource procurement requirements, or in‑state generation mandates. Such changes can delay approvals, change allowed returns, or shift investment economics, introducing structural execution and revenue risks over the planning horizon.

Public Service Enterprise Business Overview & Revenue Model

Company Description

Public Service Enterprise Group Incorporated, through its subsidiaries, operates as an energy company primarily in the Northeastern and Mid-Atlantic United States. It operates through two segments, PSE&G and PSEG Power. The PSE&G segment transmits electricity; distributes electricity and gas to residential, commercial, and industrial customers, as well as invests in solar generation projects, and energy efficiency and related programs; and offers appliance services and repairs. As of December 31, 2021, it had electric transmission and distribution system of 25,000 circuit miles and 862,000 poles; 56 switching stations with an installed capacity of 39,353 megavolt-amperes (MVA), and 235 substations with an installed capacity of 9,285 MVA; four electric distribution headquarters and five electric sub-headquarters; and 18,000 miles of gas mains, 12 gas distribution headquarters, two sub-headquarters, and one meter shop, as well as 58 natural gas metering and regulating stations. Public Service Enterprise Group Incorporated was incorporated in 1985 and is based in Newark, New Jersey.

How the Company Makes Money

PSEG generates revenue through multiple channels, primarily from the sale of electricity and natural gas to residential, commercial, and industrial customers. The company earns a significant portion of its revenue from utility services, which includes regulated rates for electricity distribution and transmission. Additionally, PSEG benefits from its generation assets, which produce power that can be sold on the wholesale market. The company is also involved in renewable energy projects, allowing it to capitalize on government incentives and credits related to clean energy production. Key partnerships with state and local governments further enhance its revenue through energy efficiency programs and renewable energy incentives, solidifying its position in the evolving energy landscape.

Public Service Enterprise Financial Statement Overview

Summary

Profitability is solid (TTM net margin ~17.8%; EBIT ~27.3%; EBITDA ~39.2%) with a clear recovery since 2021, but the balance sheet is debt-heavy (debt-to-equity ~1.38) and cash-flow quality is uneven despite positive TTM free cash flow (~$2.30B).

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 3.84% and profitability is solid, with net margin at ~17.8% and strong operating profitability (EBIT margin ~27.3%, EBITDA margin ~39.2%). Results have improved meaningfully since the 2021 loss year, but margins are below the 2023 peak (net margin ~22.8%), showing some normalization/pressure versus prior highs.

Balance Sheet

Leverage is elevated but typical for a regulated utility: TTM debt-to-equity is ~1.38 with total debt at ~$24.1B against ~$17.0B of equity. Returns have improved (TTM return on equity ~12.6% vs ~11.0% in 2024), but the balance sheet remains debt-heavy, which can limit flexibility if rates stay higher or capital needs rise.

Cash Flow

Cash generation is mixed. TTM operating cash flow is strong at ~$4.35B and free cash flow is positive at ~$2.30B, a sharp rebound from negative free cash flow in 2024 and 2022. However, cash conversion versus earnings looks weak in the TTM data (free cash flow is very low relative to net income), pointing to working-capital swings or timing effects that make cash flow less consistent year-to-year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.17B	10.29B	11.24B	9.80B	9.72B
Gross Profit	8.40B	3.54B	4.83B	2.60B	3.00B
EBITDA	4.64B	4.04B	5.09B	2.85B	814.00M
Net Income	2.11B	1.77B	2.56B	1.03B	-648.00M
Balance Sheet
Total Assets	57.58B	54.64B	50.74B	48.72B	49.00B
Cash, Cash Equivalents and Short-Term Investments	135.00M	125.00M	54.00M	465.00M	818.00M
Total Debt	24.37B	22.89B	20.41B	20.44B	19.63B
Total Liabilities	40.59B	38.53B	35.26B	34.99B	34.56B
Stockholders Equity	16.98B	16.11B	15.48B	13.73B	14.44B
Cash Flow
Free Cash Flow	325.00M	-1.25B	481.00M	-1.39B	-983.00M
Operating Cash Flow	2.37B	2.13B	3.81B	1.50B	1.74B
Investing Cash Flow	-2.85B	-3.31B	-2.96B	-1.10B	-2.24B
Financing Cash Flow	490.00M	1.23B	-1.26B	-754.00M	799.00M

Public Service Enterprise Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 84.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PEG, the sentiment is Positive. The current price of 84.5 is above the 20-day moving average (MA) of 83.97, above the 50-day MA of 81.48, and above the 200-day MA of 81.41, indicating a bullish trend. The MACD of 1.37 indicates Positive momentum. The RSI at 54.15 is Neutral, neither overbought nor oversold. The STOCH value of 36.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PEG.

Public Service Enterprise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEG	72 Outperform	$42.14B	20.43	12.76%	3.13%	18.29%	2.40%
WEC	69 Neutral	$37.96B	24.32	11.96%	3.38%	11.88%	29.76%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ED	65 Neutral	$40.49B	19.95	8.76%	3.44%	10.35%	7.64%
EXC	65 Neutral	$50.30B	18.09	9.94%	3.68%	6.07%	15.20%
XEL	65 Neutral	$52.28B	24.33	9.36%	3.09%	3.32%	-2.30%
ETR	64 Neutral	$48.30B	27.42	10.93%	2.64%	6.71%	-0.12%

Public Service Enterprise Corporate Events

Public Service Enterprise Reviews 2025 Results, Highlights Key Risks

On February 26, 2026, PSEG held an earnings call to discuss its financial results for the fourth quarter and full year ended December 31, 2025, supported by a detailed investor presentation. Management emphasized the use of non-GAAP measures such as Operating Earnings and Funds From Operations to evaluate performance and capital structure, highlighting that these metrics exclude nuclear decommissioning trust and mark-to-market impacts.

The company outlined a wide range of operational, regulatory, market, and technology risks that could affect future results, including nuclear operations, cybersecurity, supply chain pressures, climate-related challenges, and changes in energy policy and regulation. PSEG signaled that these factors, along with potential variability in capital investment approvals and cost recovery for PSE&G, could materially influence its financial condition, cash flows, and the reliability and affordability of service for customers and other stakeholders.

The most recent analyst rating on (PEG) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Public Service Enterprise stock, see the PEG Stock Forecast page.

Public Service Enterprise Appoints New Independent Board Director

On January 20, 2026, Public Service Enterprise Group’s board of directors elected Geisha J. Williams as a new independent director, with her term to begin on March 1, 2026, and confirmed that she meets independence standards under the New York Stock Exchange and the Securities Exchange Act of 1934. The company indicated that her board committee assignments have not yet been determined, that she will participate in the standard compensation plans for non-management directors, and that there are no special arrangements or related-party transactions associated with her selection, signaling a routine but notable strengthening of board governance that may influence the company’s strategic oversight going forward.

The most recent analyst rating on (PEG) stock is a Buy with a $92.00 price target. To see the full list of analyst forecasts on Public Service Enterprise stock, see the PEG Stock Forecast page.