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PEG

Public Service Enterprise Group NYSE:PEG Stock Report

Last Price

US$58.47

Market Cap

US$29.2b

7D

-2.4%

1Y

-4.1%

Updated

05 Oct, 2022

Data

Company Financials +
PEG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health1/6
Dividends3/6

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

Summary of all time highs, changes and price drops for Public Service Enterprise Group
Historical stock prices
Current Share PriceUS$58.47
52 Week HighUS$75.61
52 Week LowUS$56.05
Beta0.57
1 Month Change-8.66%
3 Month Change-6.90%
1 Year Change-4.07%
3 Year Change-5.04%
5 Year Change20.83%
Change since IPO293.08%

Recent News & Updates

Oct 04
Public Service Enterprise Group Incorporated's (NYSE:PEG) Intrinsic Value Is Potentially 36% Above Its Share Price

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...

Sep 29

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.

Sep 13
Does Public Service Enterprise Group (NYSE:PEG) Have A Healthy Balance Sheet?

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...

Shareholder Returns

PEGUS Integrated UtilitiesUS Market
7D-2.4%-0.6%4.4%
1Y-4.1%8.8%-18.2%

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.

Price Volatility

Is PEG's price volatile compared to industry and market?
PEG volatility
PEG Average Weekly Movement3.9%
Integrated Utilities Industry Average Movement3.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

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

FoundedEmployeesCEOWebsite
198512,684Ralph LaRossahttps://www.pseg.com

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

How do Public Service Enterprise Group's earnings and revenue compare to its market cap?
PEG fundamental statistics
Market CapUS$29.17b
Earnings (TTM)-US$990.00m
Revenue (TTM)US$9.35b

3.1x

P/S Ratio

-29.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PEG income statement (TTM)
RevenueUS$9.35b
Cost of RevenueUS$7.07b
Gross ProfitUS$2.28b
Other ExpensesUS$3.27b
Earnings-US$990.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 31, 2022

Earnings per share (EPS)-1.98
Gross Margin24.36%
Net Profit Margin-10.59%
Debt/Equity Ratio156.3%

How did PEG perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

-106%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is PEG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

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

  • Analyst Forecast

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.

PEG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.1x
Enterprise Value/EBITDA17.1x
PEG Ration/a

Price to Sales Ratio vs Peers

How does PEG's PS Ratio compare to its peers?

PEG PS Ratio vs Peers
The above table shows the PS ratio for PEG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2.4x
WEC WEC Energy Group
3.2x2.9%US$28.6b
ED Consolidated Edison
2.1x3.0%US$30.6b
AEE Ameren
3.2x4.0%US$21.0b
DTE DTE Energy
1.3x3.4%US$22.5b
PEG Public Service Enterprise Group
3.1x4.9%US$29.2b

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.

PEG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.1x
Fair PS Ratio2x

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.


Discover undervalued companies

Future Growth

How is Public Service Enterprise Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


18.3%

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%).


Discover growth companies

Past Performance

How has Public Service Enterprise Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-24.3%

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.


Discover strong past performing companies

Financial Health

How is Public Service Enterprise Group's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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).


Balance Sheet


Discover healthy companies

Dividend

What is Public Service Enterprise Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.69%

Current Dividend Yield

Dividend Yield vs Market

Public Service Enterprise Group Dividend Yield vs Market
How does Public Service Enterprise Group dividend yield compare to the market?
SegmentDividend Yield
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.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Ralph LaRossa (59 yo)

0.083yr

Tenure

US$4,573,145

Compensation

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
How has Ralph LaRossa's remuneration changed compared to Public Service Enterprise Group's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

-US$990m

Mar 31 2022n/an/a

-US$1b

Dec 31 2021US$5mUS$811k

-US$648m

Sep 30 2021n/an/a

-US$662m

Jun 30 2021n/an/a

US$1b

Mar 31 2021n/an/a

US$2b

Dec 31 2020US$5mUS$787k

US$2b

Sep 30 2020n/an/a

US$2b

Jun 30 2020n/an/a

US$2b

Mar 31 2020n/an/a

US$1b

Dec 31 2019US$4mUS$738k

US$2b

Sep 30 2019n/an/a

US$1b

Jun 30 2019n/an/a

US$1b

Mar 31 2019n/an/a

US$2b

Dec 31 2018US$8mUS$720k

US$1b

Sep 30 2018n/an/a

US$2b

Jun 30 2018n/an/a

US$2b

Mar 31 2018n/an/a

US$2b

Dec 31 2017US$3mUS$705k

US$2b

Sep 30 2017n/an/a

US$520m

Jun 30 2017n/an/a

US$452m

Mar 31 2017n/an/a

US$530m

Dec 31 2016US$3mUS$684k

US$887m

Sep 30 2016n/an/a

US$1b

Jun 30 2016n/an/a

US$1b

Mar 31 2016n/an/a

US$2b

Dec 31 2015US$3mUS$664k

US$2b

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.


Leadership Team

Experienced Management: PEG's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: PEG's board of directors are considered experienced (4.2 years average tenure).


Ownership

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.


Ownership Breakdown

What is the ownership structure of PEG?
Owner TypeNumber of SharesOwnership Percentage
State or Government210,7060.04%
Individual Insiders915,9450.2%
General Public139,954,79628.1%
Institutions357,778,69471.7%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 50.61% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10.39%
BlackRock, Inc.
51,850,476$3.0b9.74%0.07%
8.78%
The Vanguard Group, Inc.
43,798,489$2.6b0.33%0.06%
7.06%
Capital Research and Management Company
35,210,641$2.1b4.58%0.14%
6.26%
State Street Global Advisors, Inc.
31,226,010$1.8b1.9%0.1%
1.93%
Geode Capital Management, LLC
9,630,117$563.1m1.14%0.07%
1.4%
Legal & General Investment Management Limited
6,965,031$407.2m24.35%0.12%
1.3%
J.P. Morgan Asset Management, Inc.
6,487,618$379.3m0.18%0.07%
1.24%
BNY Mellon Asset Management
6,162,787$360.3m77.03%0.08%
1.22%
Northern Trust Global Investments
6,071,379$355.0m0.65%0.07%
0.98%
ClearBridge Investments Limited
4,904,606$286.8m15.53%6.22%
0.97%
FMR LLC
4,849,183$283.5m-3.13%0.03%
0.89%
Columbia Management Investment Advisers, LLC
4,428,441$258.9m-1.13%0.08%
0.86%
Invesco Ltd.
4,311,478$252.1m145.83%0.09%
0.84%
Massachusetts Financial Services Company
4,196,465$245.4m1.86%0.06%
0.81%
Nordea Investment Management AB
4,035,662$236.0m-37.75%0.21%
0.74%
California Public Employees' Retirement System
3,687,436$215.6m-2.7%0.2%
0.73%
Pictet Asset Management Limited
3,629,720$212.2m-1.58%0.19%
0.61%
Invesco Capital Management LLC
3,045,952$178.1m5.09%0.14%
0.58%
UBS Asset Management
2,910,599$170.2m-2%0.03%
0.53%
Citadel Advisors LLC
2,665,046$155.8m230.36%0.23%
0.52%
Charles Schwab Investment Management, Inc.
2,616,917$153.0m-1.15%0.04%
0.52%
Millennium Management LLC
2,609,577$152.6m17.5%0.2%
0.5%
Morgan Stanley, Investment Banking and Brokerage Investments
2,484,389$145.3m14.31%0.03%
0.48%
Duff & Phelps Investment Management Co.
2,400,439$140.4m-4.2%1.57%
0.46%
Franklin Resources, Inc.
2,276,457$133.1m15.27%0.06%

Company Information

Public Service Enterprise Group Incorporated's employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Public Service Enterprise Group Incorporated
  • 80 Park Plaza
  • Newark
  • New Jersey
  • 7102
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PEGNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
PSEDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
PSEXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
0KS2LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
PEGWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
P1EG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 SHS UNSPONBRBRLJan 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.