Public Service Enterprise (PEG) AI Stock Analysis

• Market Cap: $40.42B
• Dividend Yield: 3.11%
• Average Volume (3M): 3.20M
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.40
• Revenue Growth: 11.24%
• EPS Growth: 1.15%
• Country: US
• Employees: 13,047
• Sector: Utilities
• Sector Strength: 83
• Industry: Regulated Electric
• EPS (TTM): 1.43
• Shares Outstanding: 498,997,920
• 10 Day Avg. Volume: 2,975,662
• 30 Day Avg. Volume: 3,200,556
• PEG Ratio: -0.11
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -22.03
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 10.38
• Enterprise Value/Ebitda: 3.05
• 1Y Price Target: $88.45
• Price Target Upside: 9.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 69 Neutral
• Price Target: $87.00 ▲(7.41%Upside)

Public Service Enterprise Group's overall stock score reflects a balance of strengths in financial performance and earnings growth, tempered by high leverage and operational challenges. The company's valuation is reasonable, and technical indicators suggest neutral momentum. The earnings call highlights positive strategic initiatives, but risks such as increased residential bills and contract uncertainties need to be monitored.

Positive Factors

Earnings

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

Growth Potential

Public Service Enterprise Group is prepared for growth with upside potential.

Regulatory Environment

PEG is expected to maintain or exceed its growth through opportunities in the regulated and generation side of the business.

Negative Factors

Customer Rates

Concerns from a 17% bill increase have brought consumer bills to the forefront in New Jersey.

Investor Focus

A decision on the LIPA grid management contract process was delayed, which may affect investor focus.

Investor Sentiment

Shares remain relatively neutral as the stock is pricing in more data center value than peers during a critical election year with rising utility rates.

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 primarily through its regulated utility operations and power generation activities. The regulated utility segment, Public Service Electric and Gas Company (PSE&G), earns money by delivering electricity and gas to customers in New Jersey, where rates are set by regulatory bodies to ensure a stable return on investment. Revenue from this segment is driven by the number of customers, energy consumption, and approved rate increases. PSEG Power, the company's power generation subsidiary, contributes to revenue by selling electricity generated from its diverse portfolio of power plants to wholesale markets and through long-term contracts. Additionally, PSEG benefits from its investments in renewable energy and energy efficiency projects, which are supported by state and federal incentives. Key partnerships, regulatory frameworks, and market conditions play a significant role in shaping the company's financial performance.

Public Service Enterprise Financial Statement Overview

Summary

Public Service Enterprise Group 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. Growing equity is positive, but managing debt levels and capital expenditures is 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
10.75B	10.29B	11.24B	9.80B	9.72B	9.60B
	Gross Profit
4.86B	3.54B	4.83B	2.60B	3.00B	3.43B
	EBIT
2.46B	2.35B	3.69B	1.38B	-856.00M	2.27B
	EBITDA
4.13B	4.09B	5.09B	2.85B	814.00M	4.28B
	Net Income Common Stockholders
1.83B	1.77B	2.56B	1.03B	-648.00M	1.91B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
894.00M	125.00M	54.00M	465.00M	818.00M	543.00M
	Total Assets
55.58B	54.64B	50.74B	48.72B	49.00B	50.05B
	Total Debt
23.55B	22.89B	20.41B	20.44B	19.63B	17.50B
	Net Debt
22.65B	22.76B	20.35B	19.97B	18.81B	16.95B
	Total Liabilities
0.00	38.53B	35.26B	34.99B	34.56B	34.07B
	Stockholders Equity
16.37B	16.11B	15.48B	13.73B	14.44B	15.98B
Cash Flow		Free Cash Flow
-690.00M	-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
-3.12B	-3.31B	-2.96B	-1.10B	-2.24B	-2.68B
	Financing Cash Flow
324.00M	1.23B	-1.26B	-754.00M	799.00M	-30.00M

Public Service Enterprise Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 81.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 81 is above the 20-day moving average (MA) of 79.43, above the 50-day MA of 79.57, and below the 200-day MA of 82.93, indicating a neutral trend. The MACD of 0.43 indicates Negative momentum. The RSI at 56.01 is Neutral, neither overbought nor oversold. The STOCH value of 52.08 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
EXC	73 Outperform	$43.66B	16.05	10.10%	3.70%	6.71%	16.09%
PEG	69 Neutral	$40.42B	22.14	11.40%	3.11%	11.24%	1.15%
ETR	68 Neutral	$35.35B	26.63	8.96%	2.92%	-0.84%	-37.59%
XEL	68 Neutral	$39.00B	19.94	10.26%	3.37%	-0.44%	2.14%
ED	66 Neutral	$37.46B	19.19	8.33%	3.27%	8.52%	3.91%
PCG	66 Neutral	$29.98B	12.54	8.55%	0.73%	1.91%	-4.40%
Sector *	64 Neutral	$8.58B	10.36	4.24%	4.64%	4.07%	-13.04%

Public Service Enterprise Corporate Events

PSEG Reports Strong Q1 2025 Financial Results

On April 30, 2025, PSEG reported its financial results for the first quarter of 2025, highlighting a net income of $1.18 per share and non-GAAP operating earnings of $1.43 per share. The company increased its dividend by 5% and maintained high reliability in its services despite challenging winter conditions. PSEG’s nuclear operations achieved a 99.9% capacity factor, and the company invested $0.8 billion in the first quarter, aligning with its full-year capital spending plan of $3.8 billion.