Public Service Enterprise Group Incorporated (PEG) AI Stock Analysis

NYSE: PEGAI research summary: business, growth, valuation, analysts, bull and bear case.

PEG AI stock analysis summary

AI Research

Public Service Enterprise Group Incorporated (NYSE: PEG) is a regulated utility providing electric transmission, distribution, and natural gas services across the Northeastern and Mid-Atlantic regions. For FY2025, revenue increased 18.3% to $12.17B with net income of $2.11B, supported by a 5-year revenue CAGR of 4.8%. However, recent performance has softened, with latest quarter revenue dropping 8.9% year-over-year and total debt standing at $24.68B as of June 30, 2026.

Market cap
$35.63B
Revenue (TTM)
$12.54B
P/E
17.8x
fwd 15.0x
1Y return
-12.3%
S&P 500 16.8%
Avg. target
$83.14
16.3% vs last close

Bull case

  • Annual revenue reached $12.17B in FY2025, marking an 18.3% increase alongside an expanded gross margin of 69.0%.
  • The stock offers an attractive forward dividend yield of 3.75% supported by 47 consecutive years of payments and a manageable 62.0% payout ratio.
  • The mean analyst price target of $83.14 sits 16.3% above the October 16, 2026 closing price of $71.49.

Bear case

  • Recent results decelerated in the quarter ended June 30, 2026, as revenue dropped 8.9% and earnings contracted 42.7% year-over-year.
  • The balance sheet carries $24.68B in total debt against just $192.0M in cash, contributing to a debt-to-equity ratio of 1.42.
  • Trailing price performance has lagged broader markets, falling 12.3% over the past year compared to a 16.8% gain for the S&P 500.

What PSEG does

Public Service Enterprise Group Incorporated operates as an energy provider primarily through two segments: PSE&G and PSEG Power. The PSE&G segment manages electric transmission and distribution, supplying energy to residential, commercial, and industrial customers. It also invests in solar generation programs, energy efficiency initiatives, and appliance repair services. As of December 31, 2021, its electric network spanned 25,000 circuit miles, 862,000 poles, 56 switching stations, and 235 substations. Its natural gas system included 18,000 miles of gas mains and 58 metering and regulating stations. The company was founded in 1985 and is headquartered in Newark, New Jersey.

Growth and profitability

Over five fiscal years, annual revenue rose from $9.72B in FY2021 to $12.17B in FY2025, reflecting a 5-year revenue CAGR of 4.8%. Net income moved from a loss of -$648.0M in FY2021 to a profit of $2.11B in FY2025, while gross margin expanded from 30.8% to 69.0%. In FY2025, operating margin was 24.5% and net margin was 17.3%, generating diluted EPS of $4.05. Over the trailing twelve months, revenue reached $12.54B with an operating margin of 18.9% and EPS of $4.02. For the latest quarter ended June 30, 2026, quarterly revenue fell 8.9% and quarterly earnings dropped 42.7% year-over-year.

PEG income statement →

Balance sheet and cash flow

As of June 30, 2026, the company held $192.0M in cash and short-term investments against total debt of $24.68B, leaving net debt at $24.49B. Shareholders' equity was $17.33B against total assets of $58.81B, resulting in a debt-to-equity ratio of 1.42 and a current ratio of 0.88. Operating cash flow stood at $2.37B in FY2025, leading to free cash flow of $325.0M after capital expenditures of $2.04B. During FY2025, the company distributed $1.26B in dividends, while share count fell 1.6% over five years.

PEG balance sheet →

Valuation and performance

At a last close of $71.49, the company holds a market capitalization of $35.63B and an enterprise value of $58.94B. The stock trades at a trailing P/E of 17.8x and a forward P/E of 15.0x, compared to medians of 21.0x and 16.0x for its S&P 500 Utilities peers. Its EV/EBITDA of 12.3x is close to the peer median of 12.2x, while its price-to-sales multiple of 2.8x sits near the peer median of 2.9x. Over the past year, PEG shares declined 12.3%, trailing the S&P 500's return of 16.8%.

PEG key metrics →

PEG dividend

The company pays a forward annual dividend of $2.68 per share, representing a dividend yield of 3.75% based on its last close of $71.49. Dividends are paid quarterly with a payout ratio of 62.0%. The company has paid consecutive dividends for 47 years and achieved a 5.2% annualized dividend growth rate over the past five years. Its most recent ex-dividend date was September 9, 2026.

PEG dividend history →

What analysts expect

Wall Street coverage includes 7 Strong Buy, 2 Buy, and 13 Hold ratings, with no Sell or Strong Sell ratings. The mean price target is $83.14, which is 16.3% above the last close of $71.49. For the current fiscal year ending December 31, 2026, analysts estimate EPS of $4.38 on revenue of $12.84B. For the following fiscal year, 20 analysts project EPS of $4.66 and revenue of $13.14B. The company beat EPS estimates in each of the last 4 quarters, and its next earnings date is November 2, 2026.

PEG forecast and price target →

Key risks and what to watch

  • A current ratio of 0.88 and net debt of $24.49B leave short-term liquidity tight relative to upcoming obligations.
  • Significant capital expenditures of $2.04B in FY2025 constrain free cash flow, which stood at $325.0M.
  • Trailing twelve-month operating margin of 18.9% trails the S&P 500 Utilities peer median of 23.4%.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this PEG AI stock analysis

This page is an AI-written research summary of Public Service Enterprise Group Incorporated (PEG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: PEG income statement, PEG balance sheet, PEG key metrics, PEG analyst forecast, PEG chart. See the PEG stock overview for the latest quote and news.

PEG AI stock analysis FAQ

What dividend does Public Service Enterprise Group pay?

PEG pays a forward annual dividend of $2.68 per share, which equals a 3.75% dividend yield at its last close of $71.49. It pays dividends quarterly with a payout ratio of 62.0%.

What are analysts forecasting for PEG's earnings?

Analysts project full-year EPS of $4.38 on revenue of $12.84B for FY2026, followed by EPS of $4.66 on revenue of $13.14B for FY2027.

How much debt does the company have?

As of June 30, 2026, the company held total debt of $24.68B and cash of $192.0M, resulting in net debt of $24.49B and a debt-to-equity ratio of 1.42.

When is the next earnings release date for PEG?

The company's next earnings report is scheduled for November 2, 2026.

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