Pacific Gas & Electric Co. (PCG)
Pacific Gas and Electric Company (PG&E) is a regulated utility providing electricity and natural gas to northern and central California. With a history dating back to 1905, PG&E focuses on delivering energy through diverse sources and innovative technologies.
Company Overview
Pacific Gas and Electric Co. (PCG) is a key player in California's energy sector, delivering electricity and natural gas with a focus on sustainable energy solutions and grid modernization, offering a stable investment opportunity with a 0.76% dividend yield and a P/E ratio of 13.32.
Investment Thesis
Investing in Pacific Gas and Electric (PCG) presents a compelling opportunity due to its essential service provision and strategic position in California's energy market. With a market capitalization of $36.05 billion and a stable beta of 0.37, PCG offers a relatively low-risk investment profile. The company's 10.9% profit margin and 28.7% gross margin demonstrate financial health. Key value drivers include ongoing investments in grid modernization and renewable energy infrastructure, aligning with California's ambitious climate goals. Upcoming catalysts include the potential for regulatory support and incentives for renewable energy projects, enhancing PCG's long-term growth prospects. Furthermore, the dividend yield of 0.76% provides a steady income stream for investors.
Key Highlights
- Market capitalization of $36.05B indicates a strong market presence and investor confidence.
- P/E ratio of 13.32 suggests the company is reasonably valued compared to its earnings.
- Profit margin of 10.9% demonstrates efficient operations and profitability.
- Gross margin of 28.7% reflects the company's ability to manage production costs effectively.
- Dividend yield of 0.76% provides a steady income stream for investors.
Competitors
Strengths
- Large and established customer base in a growing market.
- Diversified energy generation portfolio, including renewable sources.
- Extensive infrastructure network for electricity and natural gas distribution.
- Strong regulatory relationships with the California Public Utilities Commission (CPUC).
Weaknesses
- Exposure to wildfires and associated liabilities.
- High debt levels due to past bankruptcy and infrastructure investments.
- Dependence on regulatory approvals for rate increases and project development.
- Aging infrastructure requiring significant capital expenditures.
Catalysts
- Ongoing: Regulatory approvals for rate increases to fund infrastructure investments.
- Upcoming: Completion of key grid modernization projects to enhance reliability.
- Ongoing: Expansion of renewable energy portfolio to meet California's clean energy goals.
- Upcoming: Potential government incentives and subsidies for renewable energy projects.
Risks
- Ongoing: Wildfire risk and associated liabilities.
- Potential: Changes in regulatory policies and environmental regulations.
- Ongoing: High debt levels and financing costs.
- Potential: Economic downturns affecting energy demand and customer affordability.
Growth Opportunities
- Expansion of Renewable Energy Portfolio: PG&E has the opportunity to significantly expand its renewable energy portfolio, capitalizing on California's mandate for 100% clean energy by 2045. Investments in solar, wind, and hydroelectric power generation can drive revenue growth and enhance the company's sustainability profile. The market for renewable energy in California is projected to reach $40 billion by 2030, presenting a substantial growth avenue for PG&E.
- Grid Modernization Initiatives: PG&E can modernize its existing grid infrastructure by implementing smart grid technologies, enhancing grid resilience, and reducing outage frequency. The California Public Utilities Commission (CPUC) is expected to approve billions of dollars in grid modernization projects over the next decade, providing PG&E with opportunities to secure funding and improve operational efficiency. This will also support the integration of distributed energy resources, such as rooftop solar and electric vehicle charging stations.
- Development of Microgrid Solutions: PG&E is developing personal microgrid backup power transfer meter devices that integrate into its SmartMeter system. The increasing demand for reliable backup power solutions, driven by concerns about grid reliability and climate-related events, creates a significant market opportunity for PG&E to deploy microgrid technologies. The microgrid market is projected to grow to $30 billion globally by 2028, offering substantial revenue potential.
- Electrification of Transportation: PG&E can capitalize on the growing trend of electric vehicle (EV) adoption by investing in EV charging infrastructure and promoting electrification programs. California has set ambitious goals for EV adoption, aiming to have 5 million EVs on the road by 2030. PG&E can play a crucial role in supporting this transition by expanding its charging network and offering incentives to EV owners, driving electricity demand and revenue growth.
- Energy Efficiency Programs: PG&E can expand its energy efficiency programs, helping customers reduce their energy consumption and lower their utility bills. By offering rebates, incentives, and educational resources, PG&E can encourage customers to adopt energy-efficient appliances, lighting, and building practices. These programs not only benefit customers but also reduce overall energy demand, lowering PG&E's operating costs and enhancing its sustainability efforts. The market for energy efficiency products and services in California is estimated at $10 billion annually.
Opportunities
- Expansion of renewable energy generation capacity.
- Investments in grid modernization and smart grid technologies.
- Growth in electric vehicle adoption and charging infrastructure.
- Development of microgrid solutions for enhanced grid resilience.
Threats
- Increasing frequency and severity of wildfires.
- Changes in regulatory policies and environmental regulations.
- Competition from alternative energy providers and distributed generation.
- Economic downturns affecting energy demand and customer affordability.
Competitive Advantages
- Regulated Monopoly: Operates as a regulated utility, providing essential services in a defined geographic area, creating a barrier to entry for new competitors.
- Extensive Infrastructure: Possesses a vast network of transmission lines, distribution systems, and natural gas pipelines, representing a significant capital investment and operational advantage.
- Established Customer Base: Serves millions of customers in northern and central California, creating a stable and recurring revenue stream.
About
Pacific Gas and Electric Company (PG&E), incorporated in 1905 and headquartered in San Francisco, California, is one of the largest combined natural gas and electric energy companies in the United States. As a subsidiary of PG&E Corporation, the company provides energy services to approximately 16 million people throughout a 70,000-square-mile service area in northern and central California. PG&E's operations encompass the generation, transmission, and distribution of electricity and natural gas. The company generates electricity from a diverse portfolio of sources, including nuclear, hydroelectric, fossil fuel-fired, and photovoltaic facilities, reflecting a commitment to both traditional and renewable energy resources. PG&E is also actively involved in developing innovative technologies, such as a personal microgrid backup power transfer meter device, designed to integrate seamlessly with its existing electric SmartMeter system, enhancing grid resilience and customer energy management capabilities. PG&E serves a broad range of customers, including residential, commercial, industrial, and agricultural sectors, as well as natural gas-fired electric generation facilities. The company's extensive infrastructure and strategic investments in grid modernization position it as a critical component of California's energy landscape, ensuring reliable and sustainable energy delivery to its vast customer base.
What They Do
- Generates electricity using nuclear, hydroelectric, fossil fuel-fired, and photovoltaic sources.
- Transmits and distributes electricity to customers in northern and central California.
- Sells electricity to residential, commercial, industrial, and agricultural customers.
- Distributes and sells natural gas to customers.
- Develops personal microgrid backup power transfer meter devices.
- Integrates new technologies into its existing electric SmartMeter system.
Business Model
- Generates revenue through the sale of electricity and natural gas to residential, commercial, and industrial customers.
- Operates under a regulated utility model, with rates and tariffs approved by the California Public Utilities Commission (CPUC).
- Invests in infrastructure and technology to maintain and upgrade its energy delivery systems.
Industry Context
Pacific Gas and Electric (PG&E) operates within the regulated electric utility industry, a sector characterized by stable demand and significant infrastructure investments. The industry is undergoing a transformation driven by the increasing adoption of renewable energy sources and the need for grid modernization to enhance reliability and resilience. PG&E competes with other major utility companies like Edison International (ED) and Sempra Energy, all navigating evolving regulatory landscapes and striving to meet California's ambitious climate goals. The market is influenced by factors such as government policies, technological advancements, and consumer preferences for cleaner energy solutions.
Key Customers
- Residential customers in northern and central California.
- Commercial businesses, including retail stores, restaurants, and office buildings.
- Industrial facilities, such as manufacturing plants and factories.
- Agricultural operations, including farms and ranches.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q4 2024 | $6.63B | $674M | $0.00 |
| Q1 2025 | $5.98B | $634M | $0.28 |
| Q2 2025 | $5.90B | $549M | $0.24 |
| Q3 2025 | $6.25B | $850M | $0.36 |
Source: Company filings
Chart & Info
Price Chart
Pacific Gas & Electric Co. (PCG) stock price: $18.16 (+0.00, +0.00%)
Why Bull
- •Insider buying has increased recently, indicating confidence from leadership in the company's future.
- •Community sentiment has shifted positively, with discussions highlighting improvements in operational efficiency.
- •Recent regulatory developments suggest a more favorable environment for the utility sector, enhancing PCG's growth potential.
- •Analysts have noted a strong commitment to sustainability initiatives, which resonates well with socially-conscious investors.
Why Bear
- •Concerns about wildfire liabilities continue to loom, creating uncertainty around long-term financial stability.
- •Recent community chatter reflects skepticism regarding the company's ability to manage operational risks effectively.
- •The competitive landscape in the energy sector is intensifying, with new entrants potentially impacting market share.
- •Public sentiment is mixed, with some investors wary of the company's past performance and ongoing legal challenges.
Latest News
-
Daniel Loeb's Third Point Loads Up On Chipotle, Constellation, Alibaba While Slashing TSM, Amazon in Q4 Shake-Up
benzinga · Feb 18, 2026
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Daniel Loeb's Third Point Loads Up On Chipotle, Constellation, Alibaba While Slashing TSM, Amazon in Q4 Shake-Up
Benzinga · Feb 18, 2026
-
Is PG&E Corporation (PCG) Michael Platt’s Top Pick?
Insider Monkey · Feb 15, 2026
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Earnings Scheduled For February 12, 2026
benzinga · Feb 12, 2026
Technical Analysis
Rationale
AI-generated technical analysis for PCG including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for PCG.
Make a Prediction
Set your price target for Pacific Gas & Electric Co. (PCG), choose a timeframe, and track your prediction accuracy.
Current price: $18.16
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for PCG.
Price Targets
Median: $23.00 (+22.7% from current price)
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 4/100
Revenue grew only 2.1% YoY, suggesting the company is in a slower growth phase.
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Gross Margin 6/100
Gross margin of 29.2% is acceptable but leaves limited room for R&D and marketing investment.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 3/100
Net insider selling of -$1.46M may indicate reduced confidence or routine diversification by executives.
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Short Interest 10/100
Daily turnover of 1.06% indicates healthy liquidity with smooth entry/exit for investors.
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Price Momentum 6/100
Mixed technical signals (above sma50, above sma200); price trend is inconclusive and may consolidate.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates PCG's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
Daniel Loeb's Third Point Loads Up On Chipotle, Constellation, Alibaba While Slashing TSM, Amazon in Q4 Shake-Up
Daniel Loeb's Third Point Loads Up On Chipotle, Constellation, Alibaba While Slashing TSM, Amazon in Q4 Shake-Up
Is PG&E Corporation (PCG) Michael Platt’s Top Pick?
Earnings Scheduled For February 12, 2026
Frequently Asked Questions
What does Pacific Gas & Electric Co. do?
Pacific Gas and Electric Company (PG&E) is a regulated utility that generates, transmits, and distributes electricity and natural gas to approximately 16 million customers in northern and central California. The company operates a diverse portfolio of energy sources, including nuclear, hydroelectric, fossil fuel-fired, and photovoltaic facilities. PG&E is committed to providing safe, reliable, and affordable energy services while investing in grid modernization and renewable energy technologies to meet California's ambitious climate goals. The company also develops innovative solutions like personal microgrids to enhance grid resilience and customer energy management.
Is PCG stock a good buy?
PCG stock presents a mixed investment profile. The company's essential service provision and strategic position in California's energy market offer stability. With a P/E ratio of 13.32 and a dividend yield of 0.76%, PCG provides value. However, investors should consider the risks associated with wildfire liabilities and regulatory uncertainties. Growth potential lies in renewable energy expansion and grid modernization. A balanced approach, considering both the opportunities and risks, is crucial when evaluating PCG as a potential investment.
What are the main risks for PCG?
PCG faces several key risks, primarily related to wildfire liabilities, regulatory uncertainties, and high debt levels. The increasing frequency and severity of wildfires in California pose a significant threat to PG&E's financial stability, potentially leading to substantial legal and financial repercussions. Changes in regulatory policies and environmental regulations could impact the company's operations and profitability. Additionally, PG&E's high debt levels increase its vulnerability to economic downturns and rising interest rates, potentially affecting its ability to invest in infrastructure and growth initiatives.
Is PCG a good stock to buy?
Whether PCG is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the PCG MoonshotScore?
The MoonshotScore for PCG is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is PCG data updated?
PCG stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to PCG is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for PCG?
Growth catalysts for Pacific Gas & Electric Co. (PCG) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes Pacific Gas & Electric Co.'s specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are PCG's main competitors?
Pacific Gas & Electric Co. (PCG) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether PCG has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about PCG?
Wall Street analyst coverage for PCG includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is PCG's market cap?
Market capitalization (market cap) for PCG is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows PCG's current market cap alongside enterprise value and other valuation metrics.
How has PCG stock performed recently?
PCG's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing PCG's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in PCG?
Key risk categories for PCG include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures PCG's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling PCG?
Insider trading activity for PCG tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
Is PCG a good stock for beginners?
Pacific Gas & Electric Co. (PCG) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is PCG for first-time investors?
Every stock carries risk, including Pacific Gas & Electric Co. (PCG). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like PCG.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Stock data pending update. Financial data is based on the most recent available information.