Investment Thesis
PEG demonstrates solid profitability with strong operating margins (24.5%) and growing net income (+19.1% YoY), but faces concerning liquidity constraints with a current ratio of 0.80x and minimal free cash flow generation (0.2% FCF margin). The high leverage ratio of 1.33x and capital intensity (capex equal to operating cash flow) limit financial flexibility despite stable revenue and strong interest coverage.
PEG Strengths
- Strong net income growth of 19.1% YoY with diluted EPS growth of 19.2%
- Healthy operating margin of 24.5% and net margin of 17.3% indicating profitable operations
- Solid interest coverage ratio of 3.0x providing adequate debt service capacity
- Substantial operating cash flow of $3.3B supporting infrastructure investments
PEG Risks
- Weak liquidity position with current ratio of 0.80x and quick ratio of 0.74x below 1.0x threshold
- Negligible free cash flow of $26M (0.2% margin) despite $3.3B operating cash flow due to capital intensity
- High leverage with debt-to-equity ratio of 1.33x limiting financial flexibility for growth or downturns
- Flat revenue growth of only 0.4% YoY indicating mature, slow-growth business characteristics
- Low cash position of $132M relative to $22.5B long-term debt
Key Metrics to Watch
- Free cash flow generation and margin trend
- Current ratio and short-term liquidity improvement
- Debt-to-equity ratio and refinancing requirements
- Revenue growth acceleration beyond 0.4% YoY
- Operating cash flow sustainability and capital expenditure levels
PEG Financial Metrics
PEG Profitability Ratios
PEG Balance Sheet & Liquidity
PEG 5-Year Financial Trend
5-Year Trend Summary: PUBLIC SERVICE ENTERPRISE GROUP INC's revenue has grown significantly by 18% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.13 reflects profitable operations.
PEG Growth Metrics (YoY)
PEG Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.5B | $520.0M | $1.04 |
| Q2 2025 | $2.2B | $434.0M | $0.87 |
| Q1 2025 | $2.7B | $532.0M | $1.06 |
| Q3 2024 | $2.4B | $139.0M | $0.27 |
| Q2 2024 | $2.0B | $434.0M | $0.87 |
| Q1 2024 | $2.7B | $532.0M | $1.06 |
| Q3 2023 | $2.4B | $114.0M | $0.22 |
| Q2 2023 | $2.0B | $129.0M | $0.26 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
PEG Capital Allocation
PEG SEC Filings
Access official SEC EDGAR filings for PUBLIC SERVICE ENTERPRISE GROUP INC (CIK: 0000788784)