Public Service Enterprise (PEG) AI Stock Analysis

• Market Cap: $39.25B
• Dividend Yield: 3.04%
• Average Volume (3M): 3.05M
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.43
• Revenue Growth: 6.13%
• EPS Growth: -31.01%
• Country: US
• Employees: 13,047
• Sector: Utilities
• Sector Strength: 92
• Industry: Regulated Electric
• EPS (TTM): 3.54
• Shares Outstanding: 498,997,920
• 10 Day Avg. Volume: 2,756,445
• 30 Day Avg. Volume: 3,046,630
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 18.36
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $89.32
• Price Target Upside: 13.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

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 is expected to report earnings per share results slightly above consensus.

Financial Performance

PEG reported strong FY'24 results, aligning with consensus estimates and indicating a robust financial performance.

Infrastructure Investment

Year-over-year results are expected to increase by around 11% due to new rates and continued infrastructure investment.

Negative Factors

Balance Sheet Concerns

Balance sheet needs to be a focus in the long term, with a forecasted weakening of FFO/Debt ratio, assuming no data center contracts cash flows.

Customer Rates Pressure

There are concerns about increasing pressure on customer rates due to higher PJM capacity prices.

Valuation Concerns

Despite positive risk/reward skew, PEG shares are trading at approximately a 14% premium to the group.

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 shows a mixed financial performance. Revenue growth is inconsistent, with notable declines impacting profitability. While gross profit margins have improved, the net profit margin has decreased, indicating cost pressures. The balance sheet shows increased leverage, posing a risk to financial stability. Cash flow from operations has weakened, highlighting challenges in maintaining liquidity.

Income Statement

The company's revenue has shown moderate growth with a 5.1% increase from 2022 to 2023 but a decline of 8.4% from 2023 to 2024. Gross profit margin improved from 48.4% in 2023 to 67.4% in 2024, indicating better cost management. However, net income decreased significantly by 30.9% from 2023 to 2024, affecting the net profit margin, which dropped from 22.8% to 17.2%. This indicates pressure on profitability despite gross margin improvements.

Balance Sheet

The debt-to-equity ratio increased from 1.32 in 2023 to 1.41 in 2024, suggesting higher leverage and potential risk in financial stability. The equity ratio slightly decreased, illustrating a marginal decline in equity financing. Return on equity decreased from 16.6% in 2023 to 11% in 2024, indicating less efficient use of equity capital.

Cash Flow

Operating cash flow decreased by 54.7% from 2023 to 2024, negatively impacting cash flow stability. Free cash flow turned negative in 2024, indicating concerns about cash generation capacity. The operating cash flow to net income ratio dropped from 1.48 in 2023 to 0.97 in 2024, which could affect the company's ability to sustain operations and fund future growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.29B	11.24B	9.80B	9.72B	9.60B
	Gross Profit
3.54B	4.83B	2.60B	3.00B	3.43B
	EBIT
2.35B	3.69B	1.38B	-856.00M	2.27B
	EBITDA
4.09B	5.09B	2.85B	814.00M	4.28B
	Net Income Common Stockholders
1.77B	2.56B	1.03B	-648.00M	1.91B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
125.00M	54.00M	465.00M	818.00M	543.00M
	Total Assets
54.64B	50.74B	48.72B	49.00B	50.05B
	Total Debt
22.89B	20.41B	20.44B	19.63B	17.50B
	Net Debt
22.76B	20.35B	19.97B	18.81B	16.95B
	Total Liabilities
38.53B	35.26B	34.99B	34.56B	34.07B
	Stockholders Equity
16.11B	15.48B	13.73B	14.44B	15.98B
Cash Flow		Free Cash Flow
-1.25B	481.00M	-1.39B	-983.00M	68.00M
	Operating Cash Flow
2.13B	3.81B	1.50B	1.74B	3.10B
	Investing Cash Flow
-3.31B	-2.96B	-1.10B	-2.24B	-2.68B
	Financing Cash Flow
1.23B	-1.26B	-754.00M	799.00M	-30.00M

Public Service Enterprise Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 78.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 78.66 is below the 20-day moving average (MA) of 81.04, below the 50-day MA of 81.32, and below the 200-day MA of 83.13, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 40.07 is Neutral, neither overbought nor oversold. The STOCH value of 29.51 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
ED	74 Outperform	$40.54B	21.48	8.44%	2.96%	4.23%	-27.02%
EXC	73 Outperform	$47.35B	19.12	9.34%	3.28%	5.98%	4.99%
XEL	69 Neutral	$40.78B	20.84	10.26%	3.13%	-0.44%	2.14%
ETR	68 Neutral	$36.01B	26.98	8.94%	2.80%	-0.24%	-37.59%
PCG	68 Neutral	$36.31B	15.19	8.55%	0.42%	1.91%	-4.40%
PEG	65 Neutral	$39.25B	22.20	11.22%	3.04%	6.13%	-31.01%
Sector *	63 Neutral	$8.48B	11.92	6.36%	4.35%	3.15%	-10.41%

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.

Spark’s Take on PEG Stock

According to Spark, TipRanks’ AI Analyst, PEG is a Neutral.

Public Service Enterprise exhibits a stable yet challenged financial position with mixed performance indicators. The company shows potential growth through strategic investments and an acceptable valuation, but financial stability and cash flow issues remain concerns. Overall, the stock presents a moderate investment opportunity given the current market and operational conditions.

To see Spark’s full report on PEG stock, click here.

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.