Public Service Enterprise (PEG) AI Stock Analysis

• Market Cap: $41.11B
• Dividend Yield: 3.13%
• Average Volume (3M): 2.64M
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.33
• Revenue Growth: 18.29%
• EPS Growth: 2.40%
• Country: US
• Employees: 13,047
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 1.13
• Shares Outstanding: 499,153,960
• 10 Day Avg. Volume: 3,430,736
• 30 Day Avg. Volume: 2,635,047
• PEG Ratio: -0.77
• Price to Book (P/B): 2.61
• Price to Sales (P/S): 4.09
• P/FCF Ratio: -33.74
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: 5.49
• Enterprise Value/Gross Profit: 15.43
• Enterprise Value/Ebitda: 14.00
• 1Y Price Target: $88.88
• Price Target Upside: 7.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 4.41
• Revenue Forecast (FY): $11.98B

• Rating: 66 Neutral
• Price Target: $86.00 ▲(4.42% Upside)

The score is driven primarily by solid profitability and stable fundamentals, offset by weak free cash flow generation. Recent earnings call commentary and guidance were supportive and improve confidence in the outlook, while technical signals are neutral-to-soft and valuation is reasonable with a supportive dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trajectory and strong market demand, supporting long-term business stability and expansion.

Capital Investment

Significant capital investments in infrastructure modernization enhance operational efficiency and future growth potential.

Nuclear Operations

Strong nuclear operations provide a stable, carbon-free energy source, aligning with sustainability trends and regulatory incentives.

Negative Factors

Cash Flow Concerns

Negative free cash flow growth suggests liquidity issues, potentially limiting financial flexibility and investment capacity.

Supply-Demand Imbalance

Supply-demand imbalance in New Jersey could impact energy reliability and affordability, posing long-term operational challenges.

Affordability Challenges

Affordability issues in key markets may limit customer growth and pressure regulatory frameworks, affecting revenue stability.

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 with healthy gross (35.56%) and net (17.77%) margins and positive TTM revenue growth (5.25%). Balance sheet leverage is moderate (debt-to-equity 1.37) and ROE is decent (12.59%), but cash flow is the main drag: operating cash flow to net income is only 0.59 and free cash flow metrics are weak (FCF growth negative; FCF/net income 0.02).

Income Statement

Public Service Enterprise shows a strong revenue growth rate of 5.25% in the TTM, indicating a positive trajectory. The gross profit margin of 35.56% and net profit margin of 17.77% are healthy, reflecting good profitability. EBIT and EBITDA margins are also robust at 27.27% and 39.17%, respectively. However, the company experienced a decline in revenue in 2024, which could be a concern if it persists.

Balance Sheet

The company's debt-to-equity ratio of 1.37 in the TTM suggests moderate leverage, which is typical for the industry but could pose risks if interest rates rise. The return on equity of 12.59% indicates efficient use of equity to generate profits. The equity ratio of 29.89% shows a balanced capital structure, though slightly lower than ideal for minimizing risk.

Cash Flow

The operating cash flow to net income ratio of 0.59 in the TTM indicates moderate cash generation efficiency. However, the free cash flow growth rate is negative, and the free cash flow to net income ratio is low at 0.02, suggesting potential liquidity issues. The company needs to improve its free cash flow generation to enhance financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.72B	10.29B	11.24B	9.80B	9.72B	9.60B
Gross Profit	4.17B	3.54B	4.83B	2.60B	3.00B	3.43B
EBITDA	4.59B	4.04B	5.09B	2.85B	814.00M	4.28B
Net Income	2.08B	1.77B	2.56B	1.03B	-648.00M	1.91B
Balance Sheet
Total Assets	56.91B	54.64B	50.74B	48.72B	49.00B	50.05B
Cash, Cash Equivalents and Short-Term Investments	339.00M	125.00M	54.00M	465.00M	818.00M	543.00M
Total Debt	23.51B	22.89B	20.41B	20.44B	19.63B	17.50B
Total Liabilities	39.90B	38.53B	35.26B	34.99B	34.56B	34.07B
Stockholders Equity	17.01B	16.11B	15.48B	13.73B	14.44B	15.98B
Cash Flow
Free Cash Flow	73.00M	-1.25B	481.00M	-1.39B	-983.00M	68.00M
Operating Cash Flow	2.94B	2.13B	3.81B	1.50B	1.74B	3.10B
Investing Cash Flow	-3.00B	-3.31B	-2.96B	-1.10B	-2.24B	-2.68B
Financing Cash Flow	113.00M	1.23B	-1.26B	-754.00M	799.00M	-30.00M

Public Service Enterprise Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 82.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 82.36 is above the 20-day moving average (MA) of 79.49, above the 50-day MA of 79.99, and above the 200-day MA of 80.87, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 65.07 is Neutral, neither overbought nor oversold. The STOCH value of 91.92 is Negative, 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
WEC	69 Neutral	$36.00B	20.92	13.19%	3.38%	11.88%	29.76%
EXC	67 Neutral	$45.24B	16.03	10.31%	3.68%	6.07%	15.20%
PEG	66 Neutral	$41.11B	19.79	12.58%	3.13%	18.29%	2.40%
ETR	66 Neutral	$42.82B	23.66	11.33%	2.64%	6.71%	-0.12%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ED	62 Neutral	$38.49B	18.63	8.84%	3.44%	10.35%	7.64%
XEL	61 Neutral	$44.99B	23.20	9.45%	3.09%	3.32%	-2.30%

Public Service Enterprise Corporate Events

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.

PSEG Reports Strong Q3 2025 Financial Results

On November 3, 2025, PSEG reported its financial results for the third quarter and year-to-date 2025, highlighting a net income of $1.24 per share in Q3 and $3.59 per share year-to-date. The company also achieved a 26% increase in non-GAAP operating earnings for the quarter. Operationally, PSE&G demonstrated resilience by restoring services quickly after a severe storm in July and completed significant upgrades at the Hope Creek facility. The company invested approximately $1 billion in Q3 as part of its regulated capital spending plan, underscoring its commitment to infrastructure development.

The most recent analyst rating on (PEG) stock is a Hold with a $89.00 price target. To see the full list of analyst forecasts on Public Service Enterprise stock, see the PEG Stock Forecast page.