Public Service Enterprise Group Inc
Exchange: NYSESector: UtilitiesIndustry: Utilities - Regulated Electric
Public Service Enterprise Group (PSEG) is a predominantly regulated infrastructure company focused on a clean energy future. Guided by its Powering Progress vision, PSEG aims to power a future where people use less energy, and it's cleaner, safer and delivered more reliably than ever. With a continued focus on sustainability, PSEG has appeared on the Dow Jones Sustainability North America Index for 17 consecutive years. PSEG is included on the 2023-2024 list of U.S. News' Best Companies to Work For. PSEG's businesses include Public Service Electric and Gas Co. (PSE&G), PSEG Power and PSEG Long Island ( https://corporate.pseg.com ). View additional multimedia and more ESG storytelling from PSEG on 3blmedia.com. Contact Info: Spokesperson: PSEG Website: https://www.3blmedia.com/profiles/public-service-enterprise-group-pseg Email: [email protected] SOURCE: PSEG
Did you know?
Pays a 3.08% dividend yield.
Current Price
$81.82
+0.73%GoodMoat Value
$63.10
22.9% overvaluedProfile
Valuation (TTM)
Market Cap$40.84B
P/E19.35
EV$64.06B
P/B2.40
Shares Out499.15M
P/Sales3.36
Revenue$12.17B
EV/EBITDA14.03
Public Service Enterprise Group Inc (PEG) Stock Analysis
GoodMoat Analysis
Public Service Enterprise Group (PEG) is a regulated electric utility with a moderate competitive moat but currently trades at a premium to its estimated fair value. Its regulated status provides stability, but its valuation and financial metrics do not meet the high-quality thresholds for a value investor seeking a margin of safety. Further investigation is not favourable based on the GoodMoat framework.
Read full analysis
Public Service Enterprise Group Inc (PEG) is a regulated electric utility serving customers in New Jersey. Its primary competitive advantages, or moat, stem from its regulated status, which creates high barriers to entry through regulatory licenses (Section 1, Criterion 5) and a scale advantage in critical infrastructure (Criterion 8). Applying the GoodMoat Moat Identification framework, it likely meets these two criteria, resulting in a low Moat Score of approximately 2/14, which fails the initial gate requiring a score of 5+ to proceed to valuation analysis. The company's financial quality is mixed. While it shows a solid ROE of 12.4% and an operating margin of 24.5%, its Free Cash Flow yield is minimal at 0.1%, and it carries a Debt/Equity ratio of 1.43, indicating a leveraged balance sheet. These metrics do not align with the 'High Quality' profile defined in the framework, which emphasizes high FCF conversion, strong ROIC, and a net cash position. The valuation assessment is clear: at $81.07, the stock trades well above the GoodMoat Target of $63.10. This represents a negative margin of safety, placing it in the 'Unfavourable' band per Section 4. Following the Decision Framework (Section 6), PEG fails the initial Moat & Quality Gate due to its low Moat Score. Even if it passed, the severe overvaluation and lack of a margin of safety would render the opportunity unfavourable for a value investor seeking a durable business at an attractive price. Analysis based on data as of 2024-05-15.
Market Cap$40.84B
Current Price$81.82
P/E Ratio19.35
Forward P/E—
PEG Ratio2.24
EPS$4.22
Book Value$34.02
P/B Ratio2.40
PEG Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -32.8% FCF growth (CAGR)
Cash vs Debt
Net Debt: 24.2B
Revenue
10.1B
FY19
9.6B
FY20
9.7B
FY21
9.8B
FY22
11.2B
FY23
10.3B
FY24
12.2B
FY25
Net Income
1.7B
FY19
1.9B
FY20
—
FY21
1.0B
FY22
2.6B
FY23
1.8B
FY24
2.1B
FY25
PEG 52-Week Range
$74.72
$88.02
50-Day MA: $82.32200-Day MA: $81.31
Did you know?
Price sits at 53% of its 52-week range.
Public Service Enterprise Group Inc (PEG) Financial Summary
Public Service Enterprise Group Inc (PEG) is a Utilities company in the Utilities - Regulated Electric industry, listed on NYSE. The stock currently trades at $81.82 with a market capitalization of $40.84B.
Key valuation metrics include a P/E ratio of 19.35, price-to-book ratio of 2.40, and EPS of $4.22. The company reports a profit margin of 17.3% and return on equity of 12.4%.
PEG Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $40.84B |
| P/E Ratio | 19.35 |
| EPS | $4.22 |
| P/B Ratio | 2.40 |
| P/S Ratio | 3.36 |
| EV/EBITDA | 14.03 |
| Dividend Yield | 3.08% |
| Profit Margin | 17.3% |
| Return on Equity | 12.4% |
| Debt/Equity | 1.43 |
PEG Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $10.08B | $1.69B |
| FY20 | $9.60B | $1.91B |
| FY21 | $9.72B | $-648.00M |
| FY22 | $9.80B | $1.03B |
| FY23 | $11.24B | $2.56B |
| FY24 | $10.29B | $1.77B |
| FY25 | $12.17B | $2.11B |
Public Service Enterprise Group Inc (PEG) Valuation
Based on GoodMoat's DCF model, Public Service Enterprise Group Inc has a fair value estimate of $63.10. At the current price of $81.82, the stock appears 29.7% overvalued relative to our intrinsic value estimate.
PEG Quality Indicators
Public Service Enterprise Group Inc maintains a profit margin of 17.3% and an operating margin of 24.5%. Return on equity stands at 12.4%. The current ratio is 0.80. Debt-to-equity ratio is 1.43.
About Public Service Enterprise Group Inc
Public Service Enterprise Group (PSEG) is a predominantly regulated infrastructure company focused on a clean energy future. Guided by its Powering Progress vision, PSEG aims to power a future where people use less energy, and it's cleaner, safer and delivered more reliably than ever. With a continued focus on sustainability, PSEG has appeared on the Dow Jones Sustainability North America Index for 17 consecutive years. PSEG is included on the 2023-2024 list of U.S. News' Best Companies to Work For. PSEG's businesses include Public Service Electric and Gas Co. (PSE&G), PSEG Power and PSEG Long Island ( https://corporate.pseg.com ). View additional multimedia and more ESG storytelling from PSEG on 3blmedia.com. Contact Info: Spokesperson: PSEG Website: https://www.3blmedia.com/profiles/public-service-enterprise-group-pseg Email: [email protected] SOURCE: PSEG
PEG Free Cash Flow
Public Service Enterprise Group Inc generated $26.00M in trailing twelve-month free cash flow, representing an FCF yield of 0.06%. This low FCF yield may reflect heavy reinvestment or growth spending.
PEG Shares Outstanding
Public Service Enterprise Group Inc has 0.50 billion shares outstanding at a share price of $81.82, giving it a market capitalization of $40.84B.
PEG Recent Insider Trades
Recent insider transactions at Public Service Enterprise Group Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Hanemann Kim C (President and COO - PSE&G) | SELL | 8.78 | $737.64 |
| LaRossa Ralph A (Chair, President and CEO) | SELL | 2,083 | $174255.66 |
| Thigpen Richard T (SVP Corporate Citizenship) | SELL | 4,700 | $390100.00 |