Public Service Enterprise Group Inc (PEG) stock analysis

P/E below its 5-year median

Public Service Enterprise's P/E of 18.5 is below its own 5-year median of 20.3.

P/E below the industry

Public Service Enterprise's P/E of 18.5 is below the Combination Electric and Gas, and Other Utility median of 19.2.

EV/EBITDA below its 5-year median

Public Service Enterprise's EV/EBITDA of 21.1 is below its 5-year median of 21.8.

P/S above the industry

Public Service Enterprise's price-to-sales of 2.95 is above the Combination Electric and Gas, and Other Utility median of 2.43 (book value is negative, so we use sales).

Trading above fair value

The share price of $74.29 is above our fair value estimate of $68.17.

Margin of safety under 20%

The price is 9.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 7.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 27.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 1.6% over the last twelve months, against a 5-year average of 2.1% a year.

Growing faster than the industry

Revenue grew 12.7% over the last twelve months; the Combination Electric and Gas, and Other Utility median is 5.2%.

Guidance lowered

Public Service Enterprise lowered its 2026-2030 regulated capital spending plan outlook on May 5, 2026.

Gross margin slipping

Gross margin was 64.0% over the last twelve months, against 67.0% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings grew over 5 years

Net income grew 2.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 16.0% over the last twelve months, against a 5-year average of 12.2%.

Net margin above the industry

Public Service Enterprise's net margin of 16.0% is above the Combination Electric and Gas, and Other Utility median of 12.7%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 14.6% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 2.7 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.88 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.23; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Public Service Enterprise paid dividends worth 3.6% of the share price over the last twelve months.

Yield below Treasuries

The 3.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Public Service Enterprise yields 3.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 64.5% of net income.

Not covered by free cash flow

Dividends take 470% of free cash flow.