PUBLIC SERVICE ENTERPRISE GROUP INC (PEG) Stock Analysis
PUBLIC SERVICE ENTERPRISE GROUP INC (PEG) Stock Analysis
Analysis from 10-Q filed 2025-11-03. Data as of Q4 2025.
Overall Grade: F (Concerning)
PUBLIC SERVICE ENTERPRISE GROUP INC faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 11.3% | Near cost of capital |
| FCF Margin | 0.2% | Cash flow pressure |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore PUBLIC SERVICE ENTERPRISE GROUP INC: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: PUBLIC SERVICE ENTERPRISE GROUP INC earns 11.3% ROIC, Top 25% in Utilities
PUBLIC SERVICE ENTERPRISE GROUP INC's trailing-twelve-month ROIC of 11.3% ranks Top 25% in Utilities companies (sector median: 5.8%), driven by NOPAT margin of 21.8% combined with asset turnover of 0.2x. Source: 10-Q filed 2025-11-03. Gross margin of 65.8% with operating margin at 24.5% reflects strong pricing power.
| Metric | PEG | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 11.3% | Adequate | Above sector median of 5.8% |
| Gross Margin | 65.8% | Excellent | Strong pricing power |
| Operating Margin | 24.5% | Excellent | Efficient operations |
Cash Flow: PUBLIC SERVICE ENTERPRISE GROUP INC generates $26.0M FCF at 0.2% margin, positive NaN/8 quarters
PUBLIC SERVICE ENTERPRISE GROUP INC generated $26.0M in free cash flow (TTM), a 0.2% FCF margin, a margin that ranks Top 50% in Utilities. Operating cash flow exceeds net income by 1.6x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-03.
| Metric | PEG | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 0.2% | Warning | Thin cash margins |
| Free Cash Flow (TTM) | $26.0M | Good | Positive cash generation |
| OCF/Net Income | 1.6x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet Analysis for PUBLIC SERVICE ENTERPRISE GROUP INC
Total debt of $24.1B offset by $156.0M in cash. Source: 10-Q filed 2025-11-03.
| Metric | PEG | Rating | Context |
|---|---|---|---|
| Net Cash Position | $-23.9B | Warning | Net debt position |
Valuation: PUBLIC SERVICE ENTERPRISE GROUP INC trades at 19.0x earnings
PUBLIC SERVICE ENTERPRISE GROUP INC trades at a P/E of 19.0x. Free cash flow yield of 0.1% reflects market expectations for growth.
| Metric | PEG | Rating | Context |
|---|---|---|---|
| P/E Ratio | 19.0x | Adequate | Reasonable valuation |
| EV/Sales | 5.2x | Adequate | Growth premium priced in |
| FCF Yield | 0.1% | Warning | Lower cash yield |
| Dividend Yield | 3.1% | Adequate | Meaningful income |
Capital Allocation: PUBLIC SERVICE ENTERPRISE GROUP INC returns 3.1% shareholder yield
PUBLIC SERVICE ENTERPRISE GROUP INC's total shareholder yield is 3.1% (dividends 3.1% + buybacks). Source: 10-Q filed 2025-11-03.
| Metric | PEG | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 3.1% | Good | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $1.3B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 11.3% | Top 25% | 2.0x above |
| Free Cash Flow Margin | 0.2% | Top 50% | - |
| Gross Margin | 65.8% | Top 50% | 1.0x above |
| Operating Margin | 24.5% | Top 50% | 1.2x above |
| P/E Ratio | 19.0x | N/A | - |
Financial Scorecard
| Metric | PEG | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 11.3% | Adequate | Top 25% of sector (median: 5.8%) |
| Free Cash Flow Margin | 0.2% | Warning | Top 50% of sector (median: 0.0%) |
| Gross Margin | 65.8% | Excellent | Top 50% of sector (median: 63.3%) |
| P/E Ratio (Price-to-Earnings) | 19.0x | Adequate | Fair value |
| Free Cash Flow Yield | 0.1% | Red flag | Growth-focused valuation |
Frequently Asked Questions
Q: What is PUBLIC SERVICE ENTERPRISE GROUP INC's Return on Invested Capital (ROIC)?
PUBLIC SERVICE ENTERPRISE GROUP INC (PEG) has a trailing twelve-month Return on Invested Capital (ROIC) of 11.3%. This compares above the sector median of 5.8%. An ROIC near 8-12% is approximately the cost of capital for most companies.
Q: What is PUBLIC SERVICE ENTERPRISE GROUP INC's Free Cash Flow Margin?
PUBLIC SERVICE ENTERPRISE GROUP INC (PEG) has a free cash flow margin of 0.2%, generating $26.0 million in free cash flow over the trailing twelve months. A thin FCF margin may indicate heavy reinvestment or operational challenges.
Q: Is PUBLIC SERVICE ENTERPRISE GROUP INC stock overvalued or undervalued?
PUBLIC SERVICE ENTERPRISE GROUP INC (PEG) trades at a P/E ratio of 19.0x, which is above the sector median of N/A. The EV/Sales multiple is 5.2x. Free cash flow yield is 0.1%, reflecting growth expectations priced into the stock.
Q: Does PUBLIC SERVICE ENTERPRISE GROUP INC pay a dividend?
PUBLIC SERVICE ENTERPRISE GROUP INC (PEG) currently pays a dividend yield of 3.1%. Including share buybacks, the total shareholder yield is 3.1%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: What is PUBLIC SERVICE ENTERPRISE GROUP INC's revenue and earnings growth?
PUBLIC SERVICE ENTERPRISE GROUP INC (PEG) grew revenue by 18.3% year-over-year. Earnings per share increased by 19.2% compared to the prior year. Solid growth above 10% suggests healthy business momentum.
Q: How does PUBLIC SERVICE ENTERPRISE GROUP INC compare to competitors in Utilities?
Compared to other companies in Utilities, PUBLIC SERVICE ENTERPRISE GROUP INC (PEG) shows: ROIC of 11.3% is above the sector median of 5.8% (Top 12%). FCF margin of 0.2% exceeds the sector median of 0.0% (Top 50% of sector). Gross margin at 65.8% is 2.5 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Utilities companies with available SEC filings.
Q: What warning signs should I watch for with PUBLIC SERVICE ENTERPRISE GROUP INC?
Investors in PUBLIC SERVICE ENTERPRISE GROUP INC (PEG) should monitor these potential warning signs: 1) FCF margin is thin at 0.2%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-03. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.