Public Service Enterprise (PEG) AI Stock Analysis

• Market Cap: $41.17B
• Dividend Yield: 3.02%
• Average Volume (3M): 2.69M
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.29
• 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: 2,734,235
• 30 Day Avg. Volume: 2,690,444
• 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: 1.58
• Enterprise Value/Revenue: 5.55
• Enterprise Value/Gross Profit: 15.59
• Enterprise Value/Ebitda: 14.16
• 1Y Price Target: $92.50
• Price Target Upside: 12.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 4.04
• Revenue Forecast (FY): $11.44B

• Rating: 68 Neutral
• Price Target: $89.00 ▲(8.06% Upside)

Public Service Enterprise Group's overall stock score is driven by stable financial performance with strong revenue growth and profitability, despite high leverage and negative free cash flow. The technical analysis indicates bearish momentum, while the valuation is moderate with a decent dividend yield. The earnings call highlights strong operational performance and strategic investments, although challenges in New Jersey's energy market remain a concern.

Positive Factors

Revenue Growth

Exceeding revenue expectations highlights strong demand and effective business strategies, supporting long-term growth potential.

Capital Investment

Significant capital investment in infrastructure modernization enhances service reliability and positions PEG for future growth.

Sustainable Energy Initiatives

Focus on carbon-free energy supports environmental goals and aligns with regulatory trends, strengthening competitive advantage.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting future investment and operational strategies.

Negative Free Cash Flow

Negative free cash flow indicates challenges in cash generation post-capital expenditures, affecting financial stability and growth.

Supply-Demand Imbalance

Supply-demand imbalance could impact reliability and affordability, posing challenges to maintaining service quality and customer satisfaction.

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

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, 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: Neutral
• Last Price: 82.36
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• 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 Neutral. The current price of 82.36 is above the 20-day moving average (MA) of 82.26, above the 50-day MA of 82.27, and above the 200-day MA of 81.48, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 68.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PEG.

Public Service Enterprise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXC	72 Outperform	$47.08B	16.68	10.31%	3.45%	6.07%	15.20%
WEC	70 Outperform	$36.40B	21.15	13.19%	3.20%	11.88%	29.76%
XEL	70 Neutral	$48.10B	24.80	9.45%	2.79%	3.32%	-2.30%
ETR	70 Neutral	$42.67B	23.58	11.33%	2.58%	6.71%	-0.12%
PEG	68 Neutral	$41.17B	19.82	12.58%	3.02%	18.29%	2.40%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ED	65 Neutral	$37.48B	18.14	8.84%	3.30%	10.35%	7.64%

Public Service Enterprise Corporate Events

PSEG Reports Strong Q3 2025 Financial Results

Public Service Enterprise Group (PSEG) is a leading infrastructure company based in Newark, New Jersey, primarily operating in the energy sector. It serves as the largest transmission and distribution utility in New Jersey, providing electric and natural gas services to millions of customers, and owns a significant fleet of nuclear power generating units.

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.

PSEG Earnings Call: Strong Results Amid Challenges

Public Service Enterprise Group (PSEG) recently held its second-quarter earnings call, revealing a cautiously optimistic outlook. The company reported strong financial results and strategic execution in its regulated investment program and nuclear fleet operations. While customer support initiatives and favorable capacity auction results were highlighted, challenges such as higher customer bills, resource adequacy issues, and policy uncertainties were also acknowledged.

PSEG Reports Strong Q2 2025 Earnings and Maintains Guidance

Public Service Enterprise Group (PSEG) is a leading infrastructure company in New Jersey, primarily operating in the transmission and distribution of electricity and natural gas, and owning a fleet of nuclear power generating units. The company is recognized for its commitment to providing reliable and carbon-free energy solutions.

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.

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.