Public Service Enterprise (PEG) AI Stock Analysis

• Market Cap: $41.22B
• Dividend Yield: 2.98%
• Average Volume (3M): 2.60M
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.34
• Revenue Growth: 13.73%
• EPS Growth: 19.94%
• Country: US
• Employees: 13,047
• Sector: Utilities
• Sector Strength: 74
• Industry: Regulated Electric
• EPS (TTM): 0.77
• Shares Outstanding: 499,079,740
• 10 Day Avg. Volume: 2,448,909
• 30 Day Avg. Volume: 2,598,790
• 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: 1.58
• Enterprise Value/Revenue: 5.87
• Enterprise Value/Gross Profit: 16.60
• Enterprise Value/Ebitda: 14.72
• 1Y Price Target: $93.17
• Price Target Upside: 12.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 67 Neutral
• Price Target: $90.00 ▲(8.96% Upside)

Public Service Enterprise's overall stock score reflects strong earnings growth and strategic investments, which are offset by high leverage and negative cash flow. Technical indicators suggest short-term bearish momentum, but the valuation is reasonable with a solid dividend yield. The company's confident outlook and infrastructure modernization plans are positive, though challenges with customer bills and market adequacy remain.

Positive Factors

Customer Relief Initiatives

PEG's summer relief initiative, including $30 credits to customer bills and waiving reconnection fees, is set to help soften the impact of price increases for customers.

Data Center Opportunities

A potential data center deal with PEG's nuclear plants could bring significant value, as management is actively discussing opportunities and aiming for a deal by the end of the year.

Earnings and Growth Potential

PEG reported an increase in adjusted operating EPS due to favorable weather, new rates, and higher power prices.

Negative Factors

Balance Sheet Concerns

Balance sheet needs to be a focus in the long term, with a forecasted weakening of FFO/Debt ratio, assuming no data center contracts cash flows.

Challenges in Securing Data Center Deals

New Jersey affordability and additionality create a challenging backdrop, making it unlikely for PEG to secure large data center customers in the state.

Investor Concerns and Stock Premium

Despite positive risk/reward skew, PEG shares are trading at approximately a 14% premium to the group.

Public Service Enterprise Business Overview & Revenue Model

Company Description

Public Service Enterprise Group Incorporated (PEG) is a publicly traded energy company headquartered in Newark, New Jersey, primarily operating in the utility sector. The company is engaged in the generation, transmission, and distribution of electricity and natural gas. PEG operates through its subsidiaries, including PSEG Power and PSEG Long Island, providing essential energy services to millions of customers across the northeastern United States. The company focuses on clean energy initiatives and the transition to renewable energy sources, positioning itself as a leader in sustainable energy solutions.

How the Company Makes Money

Public Service Enterprise Group generates revenue through several key streams, primarily from the sale of electricity and natural gas to residential, commercial, and industrial customers. The utility segment earns money by providing reliable energy services and charging customers based on regulated rates approved by state utility commissions. Additionally, PSEG Power contributes to revenue by generating electricity through a diverse portfolio of power plants, including nuclear, solar, and fossil fuel facilities, selling excess power on the wholesale market. The company also engages in energy efficiency programs and demand response services, which can provide additional revenue. Strategic partnerships, such as collaborations with renewable energy developers and investments in clean technology, further enhance its earnings potential by allowing PEG to participate in emerging energy markets.

Public Service Enterprise Financial Statement Overview

Summary

Public Service Enterprise demonstrates strong revenue growth and profitability, with a healthy gross profit margin. However, high leverage and negative free cash flow due to capital investments highlight potential risks. Managing debt levels and capital expenditures will be crucial for sustained financial health.

Income Statement

The company has shown a steady increase in total revenue, with a TTM revenue of $10.75 billion, up from $9.8 billion in 2022. Gross profit margin is healthy at approximately 45.2% TTM, indicating strong cost control. However, there is a notable decrease in EBIT and EBITDA margins compared to 2023, raising concerns about operational efficiency. Net profit margin is solid at 17.0% TTM, showing good bottom-line profitability.

Balance Sheet

The debt-to-equity ratio is high, reflecting significant leverage, which may pose financial risks. Stockholders' equity has been increasing, which is positive. The equity ratio is approximately 137.6%, suggesting a strong financial position relative to total assets. However, the high debt levels could impact future financial flexibility.

Cash Flow

Operating cash flow is robust, but free cash flow remains negative, primarily due to high capital expenditures. The operating cash flow to net income ratio is favorable, indicating quality earnings. However, negative free cash flow to net income ratio signals potential liquidity issues if capital spending is not managed carefully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.13B	10.29B	11.24B	9.80B	9.72B	9.60B
Gross Profit	3.94B	3.54B	4.83B	2.60B	3.00B	3.43B
EBITDA	4.44B	4.04B	5.09B	2.85B	814.00M	4.28B
Net Income	1.98B	1.77B	2.56B	1.03B	-648.00M	1.91B
Balance Sheet
Total Assets	56.02B	54.64B	50.74B	48.72B	49.00B	50.05B
Cash, Cash Equivalents and Short-Term Investments	186.00M	125.00M	54.00M	465.00M	818.00M	543.00M
Total Debt	23.43B	22.89B	20.41B	20.44B	19.63B	17.50B
Total Liabilities	39.35B	38.53B	35.26B	34.99B	34.56B	34.07B
Stockholders Equity	16.67B	16.11B	15.48B	13.73B	14.44B	15.98B
Cash Flow
Free Cash Flow	-644.00M	-1.25B	481.00M	-1.39B	-983.00M	68.00M
Operating Cash Flow	2.52B	2.13B	3.81B	1.50B	1.74B	3.10B
Investing Cash Flow	-3.08B	-3.31B	-2.96B	-1.10B	-2.24B	-2.68B
Financing Cash Flow	635.00M	1.23B	-1.26B	-754.00M	799.00M	-30.00M

Public Service Enterprise Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 82.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PEG, the sentiment is Negative. The current price of 82.6 is below the 20-day moving average (MA) of 86.66, below the 50-day MA of 84.57, and below the 200-day MA of 82.94, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 39.06 is Neutral, neither overbought nor oversold. The STOCH value of 6.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PEG.

Public Service Enterprise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETR	77 Outperform	$39.81B	22.23	11.32%	2.69%	1.38%	-2.90%
WEC	74 Outperform	$34.43B	20.81	13.12%	3.28%	7.88%	20.67%
EXC	73 Outperform	$45.05B	17.07	9.87%	3.56%	4.46%	8.68%
XEL	68 Neutral	$43.92B	20.60	10.65%	3.06%	1.20%	7.99%
PEG	67 Neutral	$41.22B	21.14	12.19%	2.98%	13.73%	19.94%
Sector *	67 Neutral	$17.62B	18.43	5.29%	3.63%	7.33%	12.21%
ED	66 Neutral	$36.66B	18.43	8.54%	3.39%	9.03%	7.22%

Public Service Enterprise Corporate Events

PSEG Reports Strong Q2 2025 Financial Results

On August 5, 2025, PSEG reported its financial results for the second quarter of 2025, highlighting a net income of $1.17 per share and non-GAAP operating earnings of $0.77 per share. The company emphasized operational excellence, noting successful system investments and storm restoration efforts that quickly restored service to 99% of customers after a severe heat storm in June. PSE&G also managed a record summer peak load and received a J.D. Power award for customer satisfaction. These achievements underscore PSEG’s commitment to maintaining high service standards and enhancing its market position.