PEG Stock Overview
Public Service Enterprise Group Incorporated, through its subsidiaries, operates as an energy company primarily in the Northeastern and Mid-Atlantic United States.
Public Service Enterprise Group Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$58.47|
|52 Week High||US$75.61|
|52 Week Low||US$56.05|
|1 Month Change||-8.66%|
|3 Month Change||-6.90%|
|1 Year Change||-4.07%|
|3 Year Change||-5.04%|
|5 Year Change||20.83%|
|Change since IPO||293.08%|
Recent News & Updates
Public Service Enterprise Group Incorporated's (NYSE:PEG) Intrinsic Value Is Potentially 36% Above Its Share Price
Does the October share price for Public Service Enterprise Group Incorporated ( NYSE:PEG ) reflect what it's really...
Public Service Enterprise Group Is Still Worth A Look
Summary In this article, I'm going to update my thesis on Public Service Enterprise Group, a business I reviewed some months back. Since my last article, the company has seen a massive share price decline, well ahead of the S&P 500. My thesis is updated - and based on current share price levels, I'm switching my target to a "BUY". Dear readers/Followers, I last reviewed the Public Service Enterprise Group (PEG), or PSEG, a few months and slapped it with a "HOLD" due to significant overvaluation (as I saw it). A combination of recent macro pressures and headwinds has caused the company's valuation to drop far more quickly and steeply than I would have expected. What we have, therefore, is a thesis change. Seeking Alpha PEG article (Seeking Alpha) Let's look at what exactly is happening here. Updating on Public Service Enterprise Group We're in a market where a 20% drop is no longer a strange thing, as odd as that may sound compared to where things were only a few months or a year back. It may seem odd that a company like PSEG is suffering like this. After all, the company is new Jersey's largest distribution utility for Electric and gas. What could possibly go wrong with this sort of transmission business, or such an appliance service provider founded over 30 years back? As with all utilities, PSEG is a play on stable cash flows from conservative asset bases, decided on by regulators with rate cases and increases. The company has both electric and gas assets with millions of customers, most of which are Residential for Electricity, and commercial for gas, though the business also serves industrial customers. All in all, any downturn should be viewed in the context of the company's massive upward historical trajectory. There is a lot to like here about PSEG. PSEG IR (PSEG IR) The company essentially has three operating subsidiaries - PSE&G, PSEG Long Island, and PSEG Power. The company's subsidiaries serve customers in New York City and New Jersey. The company is heavy with zero-carbon infrastructure and investments and is over 90% regulated with a very predictable sales mix and operations - like many utilities. Fundamentally, there is nothing wrong with this company, and PSEG has shown its ability to deliver ongoing EPS growth of 5-7% in the current environment. We'll be discounting growth slightly as we move forward, but even impairing the EPS growth around 20-30% to account for a combination of cost increases and macro, we're still left with a very stable company that's been paying dividends for nearly 115 years. The PSEG of the future is, thanks to heavy renewable and appealing investments in new technologies, a highly predictable company with, again, a predictable set of cash flows due to its highly regulated nature in transmission, distribution, gas distribution, and clean energy investments. Recent results have mostly cemented this reputation and expectation, despite what the share price development would have you believe. 2Q22 is the latest quarter we have for PSEG, and this quarter came in with decent results, with the company generating a net income of $0.26 on a per-share basis. It's flat, with the rate base growth offset by a settlement - but non-GAAP operating earnings growth reflects solid generation from the company's nuclear assets, and PSEG has repurchased half a billion dollars' worth of shares up until May 2022. May seems like a long time ago as the market is constantly heaving at this time, but we should be looking forward anyway. And the company is continuing to invest its capital responsibly. During 1H22, PSEG went for $1.4B of its $2.9B in planned infrastructure investments in line with the state's green energy goals. The 2021-2025 capital program is on track, with $15-$17B in investments, producing that multi-year EPS growth rate of 5-7% from the midpoint of 2022 to 2025 - and that company number is with the current macro considered. I'll impair it anyway, but I want to clearly state that the company believes that it can do better. I stated in my earlier article that I want Public Service Enterprise Group in my portfolio. I just don't like the price I had to pay during the last article. The company has reaffirmed 2022E, which calls for a slight reduction in non-GAAP EPS overall - but from here on out, the company is calling for that aforementioned EPS growth to come into place. PSEG IR (PSEG IR) Headwinds on a 1H22 basis come from gross margins from generation, headwinds in Gas, power costs and D&A, activities in the parent company, and some slight tax impacts. These are offset in turn by positive transmission earnings, Gas and electricity margins, distribution, and lower share count. There is still a lot to like about PSEG. Its assets, its customer base, its capital spending program, its dividend growth rate, its credit - all of these things are what I would consider attractive qualities of PSEG. The current investment programs are expected to generate about 6-8% annual base rate growth over the next 3 years, much of this coming from what the company categorizes as "Clean Energy". This is especially important for PSEG, because New Jersey due to its geographical location and specifics, is one of the perhaps most impacted areas in the US (excepting the West coast) in terms of extreme weather, including massive floods and weather events. This challenges the existing assets and infrastructure and requires companies to adapt. This is why we as investors need to keep an extra-careful eye on the company's investment plans to make sure these come in according to forecasts. We want substation refits and upgrades, switching station upgrades (in order to handle more demand loads while providing reliability), electronics upgrades, and hardening and elevation (flood protection, modernizing, better capacitors). All of these things are, by the way, being done in many other nations worldwide as well, because many nations have a very outdated electrical infrastructure. Overall though, I believe it's fair to say that PSEG is an appealing, premium utility with good fundamentals, a great asset and customer base, and good circumstances to deliver base rate growth over the next few years. The company is on track with its hardening and modernizing pushes, and from a capital perspective, there is nothing worrying about PSEG - at least not fundamentally. Valuation would imply to us that the market, on the other hand, is worried about quite a few things. Company Valuation As I mentioned, company's quality isn't enough for me to invest. I want valuation as well. This is where the good news comes in. We now have a valuation that's good enough to become interested in the company. PEG is for the first time in a few months, trading at a valuation below 17.5x P/E. For this BBB+, renewable-heavy utility that fully deserves its premium and yields over 3.7% here, that's quite decent. Now, EPS growth is a spotty thing to forecast here. Why? Because the company needs to invest heavily while handling difficult macro and interest, and also handle weather effects. This comes at a risk, but not a big enough one to keep me away entirely. Current forecast calculations on a 17-18x P/E gives us a potential double-digit RoR if the company merely holds to its premium - which I believe it most certainly will do.
Does Public Service Enterprise Group (NYSE:PEG) Have A Healthy Balance Sheet?
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
|PEG||US Integrated Utilities||US Market|
Return vs Industry: PEG underperformed the US Integrated Utilities industry which returned 8.8% over the past year.
Return vs Market: PEG exceeded the US Market which returned -18.2% over the past year.
|PEG Average Weekly Movement||3.9%|
|Integrated Utilities Industry Average Movement||3.3%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: PEG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: PEG's weekly volatility (4%) has been stable over the past year.
About the Company
Public Service Enterprise Group Incorporated, through its subsidiaries, operates as an energy company primarily in the Northeastern and Mid-Atlantic United States. It operates through two segments, PSE&G and PSEG Power. The PSE&G segment transmits electricity; distributes electricity and gas to residential, commercial, and industrial customers, as well as invests in solar generation projects, and energy efficiency and related programs; and offers appliance services and repairs.
Public Service Enterprise Group Fundamentals Summary
|PEG fundamental statistics|
Is PEG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|PEG income statement (TTM)|
|Cost of Revenue||US$7.07b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
Oct 31, 2022
|Earnings per share (EPS)||-1.98|
|Net Profit Margin||-10.59%|
How did PEG perform over the long term?See historical performance and comparison
3.7%Current Dividend Yield
Is PEG undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 3/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for PEG?
Other financial metrics that can be useful for relative valuation.
|What is PEG's n/a Ratio?|
Price to Sales Ratio vs Peers
How does PEG's PS Ratio compare to its peers?
|PEG PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
WEC WEC Energy Group
ED Consolidated Edison
DTE DTE Energy
PEG Public Service Enterprise Group
Price-To-Sales vs Peers: PEG is expensive based on its Price-To-Sales Ratio (3.1x) compared to the peer average (2.4x).
Price to Earnings Ratio vs Industry
How does PEG's PE Ratio compare vs other companies in the North American Integrated Utilities Industry?
Price-To-Sales vs Industry: PEG is expensive based on its Price-To-Sales Ratio (3.1x) compared to the Global Integrated Utilities industry average (1.4x)
Price to Sales Ratio vs Fair Ratio
What is PEG's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PS Ratio||3.1x|
|Fair PS Ratio||2x|
Price-To-Sales vs Fair Ratio: PEG is expensive based on its Price-To-Sales Ratio (3.1x) compared to the estimated Fair Price-To-Sales Ratio (2x).
Share Price vs Fair Value
What is the Fair Price of PEG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: PEG ($58.47) is trading below our estimate of fair value ($78.63)
Significantly Below Fair Value: PEG is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Public Service Enterprise Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PEG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).
Earnings vs Market: PEG is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: PEG is expected to become profitable in the next 3 years.
Revenue vs Market: PEG's revenue (4.9% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: PEG's revenue (4.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PEG's Return on Equity is forecast to be low in 3 years time (13.3%).
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How has Public Service Enterprise Group performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PEG is currently unprofitable.
Growing Profit Margin: PEG is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: PEG is unprofitable, and losses have increased over the past 5 years at a rate of 24.3% per year.
Accelerating Growth: Unable to compare PEG's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: PEG is unprofitable, making it difficult to compare its past year earnings growth to the Integrated Utilities industry (-1.3%).
Return on Equity
High ROE: PEG has a negative Return on Equity (-7.37%), as it is currently unprofitable.
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How is Public Service Enterprise Group's financial position?
Financial Health Score1/6
Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: PEG's short term assets ($6.2B) do not cover its short term liabilities ($7.9B).
Long Term Liabilities: PEG's short term assets ($6.2B) do not cover its long term liabilities ($28.2B).
Debt to Equity History and Analysis
Debt Level: PEG's net debt to equity ratio (139.8%) is considered high.
Reducing Debt: PEG's debt to equity ratio has increased from 96.9% to 156.3% over the past 5 years.
Debt Coverage: PEG's debt is not well covered by operating cash flow (5%).
Interest Coverage: PEG's interest payments on its debt are well covered by EBIT (3.1x coverage).
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What is Public Service Enterprise Group current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Public Service Enterprise Group Dividend Yield vs Market|
|Company (Public Service Enterprise Group)||3.7%|
|Market Bottom 25% (US)||1.6%|
|Market Top 25% (US)||4.5%|
|Industry Average (Integrated Utilities)||3.2%|
|Analyst forecast in 3 Years (Public Service Enterprise Group)||4.0%|
Notable Dividend: PEG's dividend (3.69%) is higher than the bottom 25% of dividend payers in the US market (1.6%).
High Dividend: PEG's dividend (3.69%) is low compared to the top 25% of dividend payers in the US market (4.53%).
Stability and Growth of Payments
Stable Dividend: PEG's dividends per share have been stable in the past 10 years.
Growing Dividend: PEG's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: PEG is paying a dividend but the company is unprofitable.
Cash Payout to Shareholders
Cash Flow Coverage: PEG is paying a dividend but the company has no free cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ralph LaRossa (59 yo)
Mr. Ralph A. LaRossa served as Chief Operating Officer of Public Service Enterprise Group Incorporated since January 01, 2020 until September 01, 2022 and serves as its Chief Executive Officer and Presiden...
CEO Compensation Analysis
|Ralph LaRossa's Compensation vs Public Service Enterprise Group Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$5m||US$811k|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$5m||US$787k|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$4m||US$738k|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$8m||US$720k|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$3m||US$705k|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$3m||US$684k|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||n/a||n/a|
|Dec 31 2015||US$3m||US$664k|
Compensation vs Market: Ralph's total compensation ($USD4.57M) is below average for companies of similar size in the US market ($USD13.00M).
Compensation vs Earnings: Ralph's compensation has been consistent with company performance over the past year.
Experienced Management: PEG's management team is considered experienced (3.2 years average tenure).
Experienced Board: PEG's board of directors are considered experienced (4.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||210,706||0.04%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Public Service Enterprise Group Incorporated's employee growth, exchange listings and data sources
- Name: Public Service Enterprise Group Incorporated
- Ticker: PEG
- Exchange: NYSE
- Founded: 1985
- Industry: Multi-Utilities
- Sector: Utilities
- Implied Market Cap: US$29.168b
- Shares outstanding: 498.86m
- Website: https://www.pseg.com
Number of Employees
- Public Service Enterprise Group Incorporated
- 80 Park Plaza
- New Jersey
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|PEG||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 1968|
|PSE||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1968|
|PSE||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||Jan 1968|
|0KS2||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 1968|
|PEG||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Jan 1968|
|P1EG34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 1 REPR 1 SHS UNSPON||BR||BRL||Jan 2020|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/05 00:00|
|End of Day Share Price||2022/10/05 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.