(PEG) Public Service Enterprise - Overview
Stock: Electricity, Natural Gas, Nuclear Power, Solar
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 3.18% |
| Yield on Cost 5y | 5.07% |
| Yield CAGR 5y | 5.42% |
| Payout Consistency | 98.4% |
| Payout Ratio | 75.7% |
| Risk 5d forecast | |
|---|---|
| Volatility | 20.2% |
| Relative Tail Risk | 3.65% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.15 |
| Alpha | -10.43 |
| Character TTM | |
|---|---|
| Beta | 0.461 |
| Beta Downside | 0.469 |
| Drawdowns 3y | |
|---|---|
| Max DD | 17.17% |
| CAGR/Max DD | 0.81 |
Description: PEG Public Service Enterprise January 29, 2026
Public Service Enterprise Group (NYSE:PEG) operates two regulated businesses: the PSE&G segment, which delivers electricity and natural gas to residential, commercial, and industrial customers in New Jersey and Connecticut, and the PSEG Power segment, which owns and operates nuclear generation assets and supplies power and gas to its own plants and third-party facilities. As of 31 Dec 2024 the company owned roughly 25,000 circuit miles of electric lines, 869,000 poles, 57 switching stations (≈40 GW MVA), 234 substations (≈10.8 GW MVA), and 18,000 mi of gas mains, plus 158 MW of contracted solar capacity.
In FY 2025 PEG reported total revenue of $13.5 billion, adjusted earnings per share of $5.12, and a dividend yield of 4.3% with a payout ratio near 70%, reflecting its status as a high-yield, regulated utility. The balance sheet remains heavily leveraged (debt-to-equity ≈ 1.9×) but the credit profile is supported by long-term rate cases approved by the New Jersey Board of Public Utilities, which allowed a 3.2% increase in the electric rate base for 2025-2026.
Key sector drivers include: (1) state-mandated clean-energy targets that are prompting PEG to expand its solar procurement (the company announced an additional 300 MW of utility-scale PV contracts in Q4 2025); (2) the volatility of natural-gas prices, which influences both the cost of gas-fired generation and the earnings of the regulated gas distribution business; and (3) the aging nuclear fleet, where regulatory compliance costs and potential de-rating of reactors remain material uncertainties.
For a deeper, data-rich assessment of PEG’s valuation assumptions, consult ValueRay’s dedicated analysis page.
Piotroski VR‑10 (Strict, 0-10) 3.5
| Net Income: 2.08b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.00 > 0.02 and ΔFCF/TA 1.78 > 1.0 |
| NWC/Revenue: -2.82% < 20% (prev -17.89%; Δ 15.07% < -1%) |
| CFO/TA 0.05 > 3% & CFO 2.94b > Net Income 2.08b |
| Net Debt (23.17b) to EBITDA (4.59b): 5.05 < 3 |
| Current Ratio: 0.93 > 1.5 & < 3 |
| Outstanding Shares: last quarter (501.0m) vs 12m ago 0.20% < -2% |
| Gross Margin: 35.56% > 18% (prev 0.36%; Δ 3520 % > 0.5%) |
| Asset Turnover: 21.11% > 50% (prev 19.29%; Δ 1.83% > 0%) |
| Interest Coverage Ratio: 3.43 > 6 (EBITDA TTM 4.59b / Interest Expense TTM 933.0m) |
Altman Z'' 1.60
| A: -0.01 (Total Current Assets 4.68b - Total Current Liabilities 5.01b) / Total Assets 56.91b |
| B: 0.24 (Retained Earnings 13.45b / Total Assets 56.91b) |
| C: 0.06 (EBIT TTM 3.20b / Avg Total Assets 55.50b) |
| D: 0.46 (Book Value of Equity 18.38b / Total Liabilities 39.90b) |
| Altman-Z'' Score: 1.60 = BB |
Beneish M -2.85
| DSRI: 1.12 (Receivables 2.24b/1.78b, Revenue 11.72b/10.43b) |
| GMI: 1.02 (GM 35.56% / 36.17%) |
| AQI: 0.99 (AQ_t 0.19 / AQ_t-1 0.19) |
| SGI: 1.12 (Revenue 11.72b / 10.43b) |
| TATA: -0.02 (NI 2.08b - CFO 2.94b) / TA 56.91b) |
| Beneish M-Score: -2.85 (Cap -4..+1) = A |
What is the price of PEG shares?
Over the past week, the price has changed by -2.08%, over one month by +2.61%, over three months by -1.34% and over the past year by -0.81%.
Is PEG a buy, sell or hold?
- StrongBuy: 6
- Buy: 2
- Hold: 11
- Sell: 1
- StrongSell: 0
What are the forecasts/targets for the PEG price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 88.6 | 9.9% |
| Analysts Target Price | 88.6 | 9.9% |
| ValueRay Target Price | 90.7 | 12.4% |
PEG Fundamental Data Overview February 07, 2026
P/E Forward = 18.1159
P/S = 3.3988
P/B = 2.3518
P/EG = 2.3857
Revenue TTM = 11.72b USD
EBIT TTM = 3.20b USD
EBITDA TTM = 4.59b USD
Long Term Debt = 21.67b USD (from longTermDebt, last quarter)
Short Term Debt = 1.70b USD (from shortTermDebt, last quarter)
Debt = 23.51b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 23.17b USD (from netDebt column, last quarter)
Enterprise Value = 63.00b USD (39.83b + Debt 23.51b - CCE 334.0m)
Interest Coverage Ratio = 3.43 (Ebit TTM 3.20b / Interest Expense TTM 933.0m)
EV/FCF = 863.0x (Enterprise Value 63.00b / FCF TTM 73.0m)
FCF Yield = 0.12% (FCF TTM 73.0m / Enterprise Value 63.00b)
FCF Margin = 0.62% (FCF TTM 73.0m / Revenue TTM 11.72b)
Net Margin = 17.77% (Net Income TTM 2.08b / Revenue TTM 11.72b)
Gross Margin = 35.56% ((Revenue TTM 11.72b - Cost of Revenue TTM 7.55b) / Revenue TTM)
Gross Margin QoQ = 36.14% (prev 40.11%)
Tobins Q-Ratio = 1.11 (Enterprise Value 63.00b / Total Assets 56.91b)
Interest Expense / Debt = 1.08% (Interest Expense 253.0m / Debt 23.51b)
Taxrate = 13.61% (98.0m / 720.0m)
NOPAT = 2.76b (EBIT 3.20b * (1 - 13.61%))
Current Ratio = 0.93 (Total Current Assets 4.68b / Total Current Liabilities 5.01b)
Debt / Equity = 1.38 (Debt 23.51b / totalStockholderEquity, last quarter 17.01b)
Debt / EBITDA = 5.05 (Net Debt 23.17b / EBITDA 4.59b)
Debt / FCF = 317.4 (Net Debt 23.17b / FCF TTM 73.0m)
Total Stockholder Equity = 16.54b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.75% (Net Income 2.08b / Total Assets 56.91b)
RoE = 12.59% (Net Income TTM 2.08b / Total Stockholder Equity 16.54b)
RoCE = 8.36% (EBIT 3.20b / Capital Employed (Equity 16.54b + L.T.Debt 21.67b))
RoIC = 6.90% (NOPAT 2.76b / Invested Capital 40.04b)
WACC = 5.13% (E(39.83b)/V(63.34b) * Re(7.61%) + D(23.51b)/V(63.34b) * Rd(1.08%) * (1-Tc(0.14)))
Discount Rate = 7.61% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: 81.65 | Cagr: 0.10%
[DCF Debug] Terminal Value 80.82% ; FCFF base≈73.0m ; Y1≈47.9m ; Y5≈21.9m
Fair Price DCF = N/A (negative equity: EV 696.7m - Net Debt 23.17b = -22.47b; debt exceeds intrinsic value)
EPS Correlation: -22.05 | EPS CAGR: -52.83% | SUE: -4.0 | # QB: 0
Revenue Correlation: 26.71 | Revenue CAGR: 1.45% | SUE: 1.40 | # QB: 2
EPS next Quarter (2026-03-31): EPS=1.48 | Chg30d=-0.042 | Revisions Net=-4 | Analysts=9
EPS next Year (2026-12-31): EPS=4.40 | Chg30d=-0.062 | Revisions Net=-8 | Growth EPS=+8.8% | Growth Revenue=+3.5%