Public Service Enterprise (PEG) AI Stock Analysis

• Market Cap: $39.28B
• Dividend Yield: 3.19%
• Average Volume (3M): 2.69M
• Price to Earnings (P/E): 18.9
• 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): 1.13
• Shares Outstanding: 499,153,960
• 10 Day Avg. Volume: 2,711,599
• 30 Day Avg. Volume: 2,685,596
• 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: 1.65
• Enterprise Value/Revenue: 5.55
• Enterprise Value/Gross Profit: 15.59
• Enterprise Value/Ebitda: 14.16
• 1Y Price Target: $91.50
• Price Target Upside: 15.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 4.04
• Revenue Forecast (FY): $11.53B

• Rating: 66 Neutral
• Price Target: $86.00 ▲(9.01% Upside)

Public Service Enterprise Group's overall score reflects strong earnings performance and strategic investments, balanced by technical weaknesses and cash flow concerns. The company's valuation is reasonable, but external challenges such as supply-demand imbalance and affordability issues in New Jersey warrant caution.

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 (PSEG) is an energy company based in the United States, primarily engaged in the generation, transmission, and distribution of electricity and natural gas. Operating through its subsidiaries, PSEG Power and PSEG Long Island, the company serves millions of customers across New Jersey and New York. Its core products and services include electric utility services, natural gas distribution, renewable energy solutions, and energy efficiency programs, focusing on delivering reliable and sustainable energy solutions to support the communities it serves.

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

Public Service Enterprise demonstrates strong revenue growth and profitability, but faces challenges with high leverage and negative free cash flow. The company needs to manage its debt levels and improve cash flow generation to enhance financial stability. Overall, the financial health is stable but requires careful monitoring of cash flow and debt management.

Income Statement

Public Service Enterprise has shown a consistent revenue growth trend, with a notable 5.25% increase in the TTM period. The company maintains healthy profitability margins, with a gross profit margin of 35.35% and a net profit margin of 17.78% in the TTM. However, there is a slight decline in EBIT and EBITDA margins compared to previous years, indicating potential cost pressures.

Balance Sheet

The company has a relatively high debt-to-equity ratio of 1.41, indicating significant leverage. However, the return on equity remains solid at 12.14%, reflecting efficient use of equity capital. The equity ratio is low, suggesting a higher reliance on debt financing, which could pose risks if interest rates rise.

Cash Flow

Operating cash flow is positive, but the free cash flow is negative, indicating potential liquidity challenges. The free cash flow to net income ratio is negative, suggesting that the company is not generating sufficient cash to cover its net income. The operating cash flow to net income ratio is moderate at 0.55, reflecting some cash generation efficiency.

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: Negative
• Last Price: 78.89
• 50DMA: Negative
• 100DMA: Negative
• 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 78.89 is below the 20-day moving average (MA) of 80.43, below the 50-day MA of 81.22, and below the 200-day MA of 80.75, indicating a bearish trend. The MACD of -0.77 indicates Positive momentum. The RSI at 40.56 is Neutral, neither overbought nor oversold. The STOCH value of 19.65 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
EXC	67 Neutral	$43.73B	15.49	10.31%	3.67%	6.07%	15.20%
WEC	67 Neutral	$33.72B	19.59	13.19%	3.38%	11.88%	29.76%
PEG	66 Neutral	$39.28B	18.91	12.58%	3.19%	18.29%	2.40%
ETR	66 Neutral	$41.68B	23.03	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	$34.44B	16.67	8.84%	3.49%	10.35%	7.64%
XEL	60 Neutral	$44.18B	22.78	9.45%	3.00%	3.32%	-2.30%

Public Service Enterprise Corporate Events

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.