Public Service Enterprise (PEG) AI Stock Analysis

• Market Cap: $39.40B
• Dividend Yield: 3.14%
• Average Volume (3M): 2.96M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.40
• Revenue Growth: 11.24%
• EPS Growth: 1.15%
• Country: US
• Employees: 13,047
• Sector: Utilities
• Sector Strength: 80
• Industry: Regulated Electric
• EPS (TTM): 1.43
• Shares Outstanding: 498,997,920
• 10 Day Avg. Volume: 3,124,208
• 30 Day Avg. Volume: 2,963,349
• PEG Ratio: 6.94
• Price to Book (P/B): 2.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -57.09
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 12.76
• Enterprise Value/Ebitda: 3.74
• 1Y Price Target: $89.05
• Price Target Upside: 12.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 65 Neutral
• Price Target: ―

Public Service Enterprise Group exhibits a balanced financial performance with strong revenue growth and profitability. However, high leverage and negative free cash flow pose financial risks. The technical analysis indicates a bearish trend, while valuation metrics suggest a slightly premium price with a compensating dividend yield. The earnings call and corporate events highlight solid performance and strategic initiatives, but also reveal challenges such as increased electric bills and contract uncertainties. Overall, the stock presents a moderate investment opportunity with potential growth tempered by financial and operational challenges.

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.

Policy Support

PEG received significant interest for large load inquiries in NJ, supported by policy makers, which is beneficial for data center co-location.

Negative Factors

Consumer Costs

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

Investor Concerns

The Board had concerns about Quanta’s ability to operate as an end-to-end service provider.

Valuation

PEG shares are trading at a premium to the group, influencing the current stock rating.

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 (PEG) generates revenue through its two main subsidiaries: PSE&G and PSEG Power. PSE&G, as a regulated utility, earns money by providing electricity and gas distribution services to residential, commercial, and industrial customers, with rates set by regulatory bodies ensuring a stable income based on infrastructure investments and operational costs. PSEG Power earns revenue by selling electricity generated from its power plants in the wholesale energy market. This includes income from its nuclear, natural gas, and solar facilities. The company's earnings are also influenced by regulatory support for clean energy initiatives and energy market conditions. Key partnerships with state and federal agencies also play a role in securing favorable operational conditions and incentives for clean energy projects.

Public Service Enterprise Financial Statement Overview

Summary

Public Service Enterprise demonstrates strong revenue growth and profitability, with good cost control reflected in a healthy gross profit margin. However, the company's high leverage and negative free cash flow due to capital investments highlight potential risks. While the company is financially stable with growing equity, 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
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: Negative
• Last Price: 78.96
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 78.96 is below the 20-day moving average (MA) of 79.09, below the 50-day MA of 80.70, and below the 200-day MA of 83.45, indicating a bearish trend. The MACD of -0.68 indicates Negative momentum. The RSI at 47.67 is Neutral, neither overbought nor oversold. The STOCH value of 53.24 is Neutral, 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	70 Outperform	$35.68B	26.87	8.96%	2.87%	-0.84%	-37.59%
EXC	69 Neutral	$43.83B	16.11	10.10%	3.55%	6.71%	16.09%
PCG	68 Neutral	$37.40B	15.65	8.55%	0.41%	1.91%	-4.40%
XEL	68 Neutral	$39.92B	20.40	10.26%	3.20%	-0.44%	2.14%
PEG	65 Neutral	$39.40B	21.59	11.40%	3.14%	11.24%	1.15%
Sector *	63 Neutral	$8.54B	10.36	4.67%	4.39%	4.05%	-12.96%
ED	61 Neutral	$37.26B	19.09	8.33%	3.23%	8.52%	3.91%

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.

PSEG Reports Strong 2024 Earnings and Reliability Awards

On February 25, 2025, PSEG conducted an earnings call to discuss its financial results for the fourth quarter and full year of 2024. The company reported a net income of $0.57 per share for Q4 and $3.54 per share for the full year. Non-GAAP operating earnings were $0.84 per share for Q4 and $3.68 per share for the full year, marking the 20th consecutive year PSEG met or exceeded its non-GAAP operating earnings guidance. PSEG received the 2024 PA Consulting ReliabilityOne® Award for outstanding service reliability in the Mid-Atlantic region for the 23rd consecutive year and was recognized by J.D. Power for customer satisfaction in residential electric and gas service. The company’s nuclear capacity factor was approximately 90% for 2024, and it successfully executed around $3.6 billion in investments.