Public Service Enterprise (PEG) AI Stock Analysis

• Market Cap: $44.40B
• Dividend Yield: 2.79%
• Average Volume (3M): 2.35M
• Price to Earnings (P/E): 24.3
• Beta (1Y): 0.37
• Revenue Growth: 16.10%
• EPS Growth: 19.94%
• Country: US
• Employees: 13,047
• Sector: Utilities
• Sector Strength: 86
• Industry: Regulated Electric
• EPS (TTM): 0.77
• Shares Outstanding: 498,997,920
• 10 Day Avg. Volume: 2,431,673
• 30 Day Avg. Volume: 2,346,039
• 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: 1.44
• Enterprise Value/Revenue: 5.73
• Enterprise Value/Gross Profit: 10.72
• Enterprise Value/Ebitda: 21.12
• 1Y Price Target: $93.71
• Price Target Upside: 6.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: $101.00 ▲(14.55% Upside)

Public Service Enterprise Group shows strong technical momentum and a positive earnings outlook, which are significant strengths. However, high leverage and valuation concerns present risks. The company's strategic investments and customer support initiatives are positive, but managing debt and operational challenges will be crucial for future performance.

Positive Factors

Earnings Performance

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.

Potential Deals

A potential data center deal with PEG's nuclear plants could bring significant value, as management is actively discussing opportunities and aiming for a deal.

Negative Factors

Consumer Affordability Concerns

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

Investor Skepticism

There is skepticism about PEG Power securing an above-market data center deal for its New Jersey nuclear portfolio.

Regulatory Challenges

New Jersey affordability and additionality create a challenging backdrop, making it unlikely for PEG to secure large data center customers in the state.

Public Service Enterprise Business Overview & Revenue Model

Company Description

Public Service Enterprise Group Incorporated (PSEG) is a publicly traded diversified energy company headquartered in Newark, New Jersey. It operates primarily in the regulated utility sector through its subsidiary, Public Service Electric and Gas Company (PSE&G), which provides electric and gas services to residential, commercial, and industrial customers in New Jersey. PSEG also engages in power generation through its subsidiary, PSEG Power, which operates a diversified fleet of power plants, including nuclear, coal, and natural gas-fired facilities. The company's core services include electric transmission and distribution, gas distribution, and power generation.

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 shows strong revenue growth and profitability with a healthy gross profit margin. However, the high debt levels and negative free cash flow due to capital investments highlight potential financial risks. Managing debt 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	11.13B	10.29B	11.24B	9.80B	9.72B	9.60B
Gross Profit	5.95B	3.54B	4.83B	2.60B	3.00B	3.43B
EBITDA	3.02B	4.04B	5.09B	2.85B	814.00M	4.28B
Net Income	1.98B	1.77B	2.56B	1.03B	-648.00M	1.91B
Balance Sheet
Total Assets	0.00	54.64B	50.74B	48.72B	49.00B	50.05B
Cash, Cash Equivalents and Short-Term Investments	0.00	125.00M	54.00M	465.00M	818.00M	543.00M
Total Debt	23.29B	22.89B	20.41B	20.44B	19.63B	17.50B
Total Liabilities	0.00	38.53B	35.26B	34.99B	34.56B	34.07B
Stockholders Equity	16.67B	16.11B	15.48B	13.73B	14.44B	15.98B
Cash Flow
Free Cash Flow	771.00M	-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	-3.08B	-3.31B	-2.96B	-1.10B	-2.24B	-2.68B
Financing Cash Flow	635.00M	1.23B	-1.26B	-754.00M	799.00M	-30.00M

Public Service Enterprise Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 88.17
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 88.17 is above the 20-day moving average (MA) of 85.66, above the 50-day MA of 82.94, and above the 200-day MA of 83.04, indicating a bullish trend. The MACD of 1.95 indicates Negative momentum. The RSI at 61.58 is Neutral, neither overbought nor oversold. The STOCH value of 70.85 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
ETR	77 Outperform	$40.36B	22.50	11.32%	2.64%	1.38%	-2.90%
EXC	76 Outperform	$45.14B	16.97	9.87%	3.49%	4.46%	8.68%
PEG	74 Outperform	$44.40B	24.32	12.19%	2.79%	16.10%	19.94%
XEL	72 Outperform	$0.00	20.59	10.65%	3.04%	1.20%	7.99%
ED	69 Neutral	$37.54B	19.45	8.33%	3.22%	8.52%	3.91%
PCG	68 Neutral	$33.34B	14.03	8.48%	0.60%	-1.30%	-8.34%
Sector *	67 Neutral	$17.65B	17.89	6.84%	3.50%	6.29%	4.33%

Public Service Enterprise Corporate Events

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.