📊 PEG Key Takeaways
Is Public Service Enterprise Group Inc. (PEG) a Good Investment?
PEG demonstrates solid profitability with strong operating margins (24.5%) and growing net income (+19.1% YoY), but faces concerning liquidity constraints with a current ratio of 0.80x and minimal free cash flow generation (0.2% FCF margin). The high leverage ratio of 1.33x and capital intensity (capex equal to operating cash flow) limit financial flexibility despite stable revenue and strong interest coverage.
PUBLIC SERVICE ENTERPRISE GROUP shows solid regulated-utility profitability, with a 24.5% operating margin, 17.3% net margin, and nearly 19% growth in net income and EPS. However, growth quality is mixed because revenue was essentially flat, free cash flow was near breakeven after heavy capital spending, and leverage and liquidity remain somewhat tight. The fundamentals support stability, but not enough balance-sheet and cash-flow strength to justify a more aggressive rating.
Why Buy Public Service Enterprise Group Inc. Stock? PEG Key Strengths
- Strong net income growth of 19.1% YoY with diluted EPS growth of 19.2%
- Healthy operating margin of 24.5% and net margin of 17.3% indicating profitable operations
- Solid interest coverage ratio of 3.0x providing adequate debt service capacity
- Substantial operating cash flow of $3.3B supporting infrastructure investments
- Strong profitability for a utility, including 24.5% operating margin and 17.3% net margin
- Net income and diluted EPS both grew about 19% year over year despite limited top-line growth
- ROE of 12.4% and consistent operating cash flow of $3.30B indicate a productive regulated asset base
PEG Stock Risks: Public Service Enterprise Group Inc. Investment Risks
- Weak liquidity position with current ratio of 0.80x and quick ratio of 0.74x below 1.0x threshold
- Negligible free cash flow of $26M (0.2% margin) despite $3.3B operating cash flow due to capital intensity
- High leverage with debt-to-equity ratio of 1.33x limiting financial flexibility for growth or downturns
- Flat revenue growth of only 0.4% YoY indicating mature, slow-growth business characteristics
- Low cash position of $132M relative to $22.5B long-term debt
- Free cash flow is only $26M because capital expenditures are absorbing nearly all operating cash flow
- Leverage is meaningful, with $22.55B of long-term debt, 1.33x debt/equity, and only 3.0x interest coverage
- Liquidity is tight, with a 0.80x current ratio, 0.74x quick ratio, and low cash balances
Key Metrics to Watch
- Free cash flow generation and margin trend
- Current ratio and short-term liquidity improvement
- Debt-to-equity ratio and refinancing requirements
- Revenue growth acceleration beyond 0.4% YoY
- Operating cash flow sustainability and capital expenditure levels
- Free cash flow generation relative to capital expenditures
- Interest coverage and debt-funded capital spending trends
Public Service Enterprise Group Inc. (PEG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.2% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
PEG Profit Margin, ROE & Profitability Analysis
PEG vs Utilities Sector: How Public Service Enterprise Group Inc. Compares
How Public Service Enterprise Group Inc. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Public Service Enterprise Group Inc. Stock Overvalued? PEG Valuation Analysis 2026
Based on fundamental analysis, Public Service Enterprise Group Inc. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Public Service Enterprise Group Inc. Balance Sheet: PEG Debt, Cash & Liquidity
PEG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Public Service Enterprise Group Inc.'s revenue has grown significantly by 18% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.13 reflects profitable operations.
PEG Revenue Growth, EPS Growth & YoY Performance
PEG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.5B | $520.0M | $1.04 |
| Q2 2025 | $2.2B | $434.0M | $0.87 |
| Q1 2025 | $2.7B | $532.0M | $1.06 |
| Q3 2024 | $2.4B | $139.0M | $0.27 |
| Q2 2024 | $2.0B | $434.0M | $0.87 |
| Q1 2024 | $2.7B | $532.0M | $1.06 |
| Q3 2023 | $2.4B | $114.0M | $0.22 |
| Q2 2023 | $2.0B | $129.0M | $0.26 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Public Service Enterprise Group Inc. Dividends, Buybacks & Capital Allocation
PEG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Public Service Enterprise Group Inc. (CIK: 0000788784)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PEG
What is the AI rating for PEG?
Public Service Enterprise Group Inc. (PEG) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are PEG's key strengths?
Claude: Strong net income growth of 19.1% YoY with diluted EPS growth of 19.2%. Healthy operating margin of 24.5% and net margin of 17.3% indicating profitable operations. ChatGPT: Strong profitability for a utility, including 24.5% operating margin and 17.3% net margin. Net income and diluted EPS both grew about 19% year over year despite limited top-line growth.
What are the risks of investing in PEG?
Claude: Weak liquidity position with current ratio of 0.80x and quick ratio of 0.74x below 1.0x threshold. Negligible free cash flow of $26M (0.2% margin) despite $3.3B operating cash flow due to capital intensity. ChatGPT: Free cash flow is only $26M because capital expenditures are absorbing nearly all operating cash flow. Leverage is meaningful, with $22.55B of long-term debt, 1.33x debt/equity, and only 3.0x interest coverage.
What is PEG's revenue and growth?
Public Service Enterprise Group Inc. reported revenue of $12.2B.
Does PEG pay dividends?
Public Service Enterprise Group Inc. pays dividends, with $1,258.0M distributed to shareholders in the trailing twelve months.
Where can I find PEG SEC filings?
Official SEC filings for Public Service Enterprise Group Inc. (CIK: 0000788784) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PEG's EPS?
Public Service Enterprise Group Inc. has a diluted EPS of $4.22.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is PEG a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Public Service Enterprise Group Inc. has a HOLD rating with 71% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is PEG stock overvalued or undervalued?
Valuation metrics for PEG: ROE of 12.4% (sector avg: 10%), net margin of 17.3% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy PEG stock in 2026?
Our dual AI analysis gives Public Service Enterprise Group Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is PEG's free cash flow?
Public Service Enterprise Group Inc.'s operating cash flow is $3.3B, with capital expenditures of $3.3B. FCF margin is 0.2%.
How does PEG compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 17.3% (avg: 12%), ROE 12.4% (avg: 10%), current ratio 0.80 (avg: 0.8).