Public Service Enterprise Group Incorporated (PEG) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Public Service Enterprise Group Incorporated (PEG) Utility Operations & Dividend Profile

Public Service Enterprise Group (PEG) is a diversified energy company focused on regulated electric and gas distribution through its PSE&G segment. With a significant presence in the Northeastern and Mid-Atlantic United States, PEG invests in infrastructure and energy efficiency programs, positioning it within a stable, regulated market.

What Is the Investment Thesis for PEG?

Public Service Enterprise Group presents a stable investment opportunity within the regulated utilities sector. The company's PSE&G segment provides consistent revenue through its regulated electricity and gas distribution services. With a dividend yield of 3.23% and a beta of 0.60, PEG offers a relatively low-risk profile. Growth catalysts include ongoing investments in infrastructure modernization and energy efficiency programs, which are supported by regulatory frameworks. However, investors should be aware of potential risks, including regulatory changes and fluctuations in energy prices, which could impact profitability. The company's P/E ratio of 17.94 reflects a reasonable valuation compared to its peers.

Based on FMP financials and quantitative analysis

PEG Key Highlights

Market capitalization of $36.1B, indicating a significant presence in the utilities sector.

• P/E ratio of 17.94, suggesting a reasonable valuation relative to earnings.
• Profit margin of 17.7%, reflecting efficient operations and cost management.
• Gross margin of 79.6%, indicating strong pricing power and efficient cost of goods sold.
• Dividend yield of 3.23%, offering an attractive income stream for investors.

Who Are PEG's Competitors?

PEG is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are PEG's Key Strengths?

Stable revenue streams from regulated utility operations.

• Strong market position in the Northeastern and Mid-Atlantic United States.
• Commitment to infrastructure modernization and energy efficiency.
• Experienced management team and skilled workforce.

What Are PEG's Weaknesses?

Exposure to regulatory risks and changes in government policies.

• Dependence on aging infrastructure that requires ongoing maintenance and upgrades.
• Vulnerability to fluctuations in energy prices and demand.
• Negative Free Cash Flow of $-0.11B

What Could Drive PEG Stock Higher?

Investments in energy efficiency programs driving increased adoption and customer participation.

• Infrastructure modernization projects enhancing grid reliability and reducing energy losses.
• Regulatory approvals for new renewable energy projects.
• Expansion of electric vehicle charging infrastructure to support EV adoption.

What Are the Key Risks for PEG?

Financial-distress signal — its Altman Z-Score of 1.23 sits in the distress zone (elevated bankruptcy risk).

• Insider selling — insiders were net sellers of roughly $1.5M recently.
• Changes in regulatory policies impacting revenue and profitability.
• Fluctuations in energy prices affecting customer demand and financial performance.
• Cybersecurity threats targeting critical infrastructure.
• Climate change impacts on energy demand and infrastructure resilience.

What Are the Growth Opportunities for PEG?

• Infrastructure Modernization: Public Service Enterprise Group has ongoing opportunities to modernize its existing infrastructure, including upgrading transmission lines and distribution networks. These upgrades enhance reliability, reduce energy losses, and improve overall efficiency. Investments in smart grid technologies can further optimize energy delivery and enable better demand response. The market for grid modernization is substantial, with billions of dollars being invested annually to improve the resilience and performance of energy infrastructure. Timeline: Ongoing.
• Energy Efficiency Programs: PSEG's investments in energy efficiency programs represent a significant growth opportunity. These programs help customers reduce their energy consumption through rebates, incentives, and educational initiatives. As energy efficiency becomes increasingly important for meeting environmental goals and reducing energy costs, the demand for these programs is expected to grow. The market for energy efficiency products and services is estimated to be worth billions of dollars annually. Timeline: Ongoing.
• Renewable Energy Investments: Public Service Enterprise Group is expanding its investments in renewable energy sources, such as solar and wind power. These investments align with the growing demand for clean energy and help the company reduce its carbon footprint. Government policies and incentives, such as tax credits and renewable energy mandates, support the growth of the renewable energy sector. Timeline: Ongoing.
• Electric Vehicle Infrastructure: The increasing adoption of electric vehicles (EVs) presents a growth opportunity for Public Service Enterprise Group. The company can invest in EV charging infrastructure to support the growing number of EVs on the road. This includes installing charging stations at residential, commercial, and public locations. The market for EV charging infrastructure is expected to grow rapidly as EV adoption increases. Timeline: Ongoing.
• Expansion of Gas Distribution Network: Public Service Enterprise Group can expand its gas distribution network to serve new residential, commercial, and industrial customers. This expansion can involve extending gas pipelines to underserved areas and connecting new customers to the existing network. The demand for natural gas remains strong, particularly for heating and industrial processes. The market for gas distribution infrastructure is expected to grow as the population and economy expand. Timeline: Ongoing.

What Threats Does PEG Face?

• Increasing competition from other energy providers.
• Potential for disruptive technologies to alter the energy landscape.
• Cybersecurity threats to critical infrastructure.
• Climate change impacts on energy demand and infrastructure resilience.

What Are PEG's Competitive Advantages?

• Regulated utility status provides a natural monopoly in its service territory.
• Extensive infrastructure network creates a barrier to entry for potential competitors.
• Long-standing relationships with customers and regulators enhance its competitive position.

What Does PEG Do?

Public Service Enterprise Group Incorporated (PSEG) was incorporated in 1985 and is headquartered in Newark, New Jersey. The company operates as a diversified energy provider, primarily serving the Northeastern and Mid-Atlantic regions of the United States. PSEG's operations are divided into two main segments: PSE&G and PSEG Power. The PSE&G segment focuses on the transmission and distribution of electricity and gas to residential, commercial, and industrial customers. This segment also invests in solar generation projects, energy efficiency initiatives, and appliance services. As of December 31, 2021, PSE&G maintained an extensive infrastructure network, including 25,000 circuit miles of electric transmission and distribution lines, 862,000 poles, and numerous switching and substations. The gas distribution system comprised 18,000 miles of mains and multiple regulating stations. The PSEG Power segment, while previously a significant part of the business, has undergone strategic changes in recent years with a focus on decarbonization and renewable energy investments. PSEG's commitment to infrastructure upgrades and energy efficiency programs underscores its role as a key player in the regional energy market.

What Products and Services Does PEG Offer?

• Transmits electricity across its service territory.
• Distributes electricity to residential, commercial, and industrial customers.
• Distributes natural gas to residential, commercial, and industrial customers.
• Invests in solar generation projects.
• Offers energy efficiency programs to reduce customer energy consumption.
• Provides appliance services and repairs.

How Does PEG Make Money?

• Generates revenue through regulated electricity and gas distribution services.
• Earns returns on investments in infrastructure and energy efficiency programs.
• Benefits from regulated pricing mechanisms that provide stable revenue streams.

What Industry Does PEG Operate In?

Public Service Enterprise Group operates within the regulated utilities sector, which is characterized by stable demand and regulated pricing. The industry is undergoing a transition towards cleaner energy sources, driven by environmental regulations and technological advancements. Companies like PEG are investing in renewable energy projects and upgrading their infrastructure to support this transition. The competitive landscape includes other major players such as Dominion Energy, Inc. (D), Entergy Corporation (ETR), and Exelon Corporation (EXC), all vying for market share in the energy sector. The industry is also influenced by government policies and incentives aimed at promoting energy efficiency and renewable energy adoption.

Who Are PEG's Key Customers?

• Residential customers who rely on electricity and gas for their daily needs.
• Commercial customers, including businesses and organizations, that require electricity and gas for their operations.
• Industrial customers who use electricity and gas for manufacturing and production processes.

Over the past six months, Public Service Enterprise Group Incorporated insiders filed 18 SEC Form 4 transactions — 8 sales and 10 purchases. On net that is roughly 1K shares disposed (about $1.5M), a signal worth weighing alongside the fundamentals.

Public Service Enterprise Group Incorporated has beaten Wall Street's EPS estimate in 7 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 5.4% above estimates on average.

Public Service Enterprise Group Incorporated's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.23 places it in the distress zone, a signal of elevated financial risk.

Return on equity for Public Service Enterprise Group Incorporated stands at 13.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 3.9%, showing how much profit it generates from its asset base. PEG trades at a trailing price-to-earnings ratio of 17.94, roughly in line with the Utilities sector average of ~16.60x. Its free cash flow yield is -0.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.18 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 5.5%, the inverse of the P/E and a quick read on earnings relative to price.

Public Service Enterprise Group Incorporated (PEG) Valuation Context

Valued at $36.1B, PEG is classified as a large-cap stock. Analyst price targets span from $78.00 to $91.00, with a consensus of $83.50. At the current price of $72.48, that implies approximately 15% upside potential. Relative to its peer group, PEG's quantitative score of 71/100 is above the peer average of 52/100.

PEG Revenue & Earnings Trend

In Q2 FY2026, PEG generated $2.55B in top-line revenue, marking a sequential decrease of 33.6%. The company recorded net income of $334.0M, with diluted EPS of $0.67. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Utilities. Across the four most recent quarters, PEG averaged $1.01 in diluted EPS.

Company Profile

Public Service Enterprise Group Incorporated operates in the Regulated Electric industry within the Utilities sector. It is headquartered in Newark, US. The company is led by CEO Ralph A. LaRossa. PEG has traded publicly since 1980.

PEG Financials

Next earnings report: Nov 2, 2026

PEG Latest News

PEG Analyst Consensus

PEG MoonshotScore

Related Investment Themes

Common Questions About PEG (Utilities)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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