Public Service Enterprise Group (NYSE:PEG) - Share price, News & Analysis

Q: What is the Fair Price of PEG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

PEG ($66.59) is trading above our estimate of [[fair value]] ($62.27)

PEG fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	3/6
Past Performance	0/6
Financial Health	1/6
Dividends	3/6

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.

Rewards

Earnings are forecast to grow 20.93% per year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 3.24% is not well covered by earnings or forecast to be in the next 3 years

Public Service Enterprise Group Competitors

WEC Energy Group

NYSE:WEC

US$33.2b

Consolidated Edison

NYSE:ED

US$35.1b

Ameren

NYSE:AEE

US$24.3b

DTE Energy

NYSE:DTE

US$25.6b

Price History & Performance

Summary of all time highs, changes and price drops for Public Service Enterprise Group
Historical stock prices
Current Share Price	US$66.59
52 Week High	US$75.61
52 Week Low	US$58.19
Beta	0.57
1 Month Change	6.58%
3 Month Change	-2.49%
1 Year Change	4.82%
3 Year Change	16.19%
5 Year Change	42.77%
Change since IPO	347.66%

Recent News & Updates

Aug 02

Public Service Non-GAAP EPS of $0.64 in-line, revenue of $2.08B beats by $300M, re-affirms FY earning guidance

Public Service press release (NYSE:PEG): Q2 Non-GAAP EPS of $0.64 in-line. Revenue of $2.08B (+11.2% Y/Y) beats by $300M. Re-Affirms 2022 Non-GAAP Operating Earnings Guidance of $3.35 - $3.55 per Share vs consensus of $3.48

Shareholder Returns

	PEG	US Integrated Utilities	US Market
7D	1.9%	0.5%	1.2%
1Y	4.8%	12.3%	-11.6%

Return vs Industry: PEG underperformed the US Integrated Utilities industry which returned 12.7% over the past year.

Return vs Market: PEG exceeded the US Market which returned -13.5% over the past year.

Price Volatility

Is PEG's price volatile compared to industry and market?
PEG volatility
PEG Average Weekly Movement	3.4%
Integrated Utilities Industry Average Movement	3.4%
Market Average Movement	7.9%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.2%

Stable Share Price: PEG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: PEG's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1985	12,684	Ralph Izzo	https://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 Cap	US$33.22b
Earnings (TTM)	-US$990.00m
Revenue (TTM)	US$9.35b

3.6x

P/S Ratio

-33.6x

P/E Ratio

Is PEG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

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

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-1.98
Gross Margin	24.36%
Net Profit Margin	-10.59%
Debt/Equity Ratio	156.3%

How did PEG perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

-106%

Payout Ratio

Does PEG pay a reliable dividends?

See PEG dividend history and benchmarks

When do you need to buy PEG by to receive an upcoming dividend?
Public Service Enterprise Group dividend dates
Ex Dividend Date	Sep 08 2022
Dividend Pay Date	Sep 30 2022
Days until Ex dividend	27 days
Days until Dividend pay date	49 days

Does PEG pay a reliable dividends?

See PEG dividend history and benchmarks

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

0/6

Valuation Score 0/6

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.

The above table shows the n/a ratio for PEG. This is calculated by dividing PEG's market cap by their current preferred multiple.
What is PEG's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$33.22b

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/Revenue	5.6x
Enterprise Value/EBITDA	18.5x
PEG Ratio	n/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.
Company	PS	Estimated Growth	Market Cap
Peer Average	2.8x
WEC WEC Energy Group	3.7x	2.9%	US$33.2b
ED Consolidated Edison	2.4x	4.3%	US$35.1b
AEE Ameren	3.6x	4.1%	US$24.3b
DTE DTE Energy	1.4x	4.3%	US$25.6b
PEG Public Service Enterprise Group	3.6x	4.5%	US$33.2b

Price-To-Sales vs Peers: PEG is expensive based on its Price-To-Sales Ratio (3.6x) compared to the peer average (2.8x).

Price to Earnings Ratio vs Industry

How does PEG's PE Ratio compare vs other companies in the Global Integrated Utilities Industry?

Price-To-Sales vs Industry: PEG is expensive based on its Price-To-Sales Ratio (3.6x) compared to the US Integrated Utilities industry average (2.3x)

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 Ratio	3.6x
Fair PS Ratio	2x

Price-To-Sales vs Fair Ratio: PEG is expensive based on its Price-To-Sales Ratio (3.6x) 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 ($66.59) is trading above our estimate of fair value ($62.27)

Significantly Below Fair Value: PEG is trading above our estimate of fair value.

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 less than 20% higher than the current share price.

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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

20.9%

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 (4.5% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: PEG's revenue (4.5% 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 (13.2%).

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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

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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

3.24%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: PEG's dividend (3.24%) is higher than the bottom 25% of dividend payers in the US market (1.51%).

High Dividend: PEG's dividend (3.24%) is low compared to the top 25% of dividend payers in the US market (4.09%).

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?

3.8yrs

Average management tenure

CEO

Ralph Izzo (64 yo)

15.83yrs

Tenure

US$14,208,674

Compensation

Dr. Ralph Izzo, Ph D., has been the Chief Executive Officer of Public Service Enterprise Group Incorporated since April 1, 2007 and is its President since October 1, 2006. Dr. Izzo has been the Chief Execu...

CEO Compensation Analysis

Compensation vs Market: Ralph's total compensation ($USD14.21M) is about average for companies of similar size in the US market ($USD13.03M).

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 (3.8 years average tenure).

Board Members

Experienced Board: PEG's board of directors are considered experienced (4.5 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

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

Data	Last Updated (UTC time)
Company Analysis	2022/08/10 00:00
End of Day Share Price	2022/08/10 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31