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PG&E (PCG)
NYSE:PCG
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PG&E
(NYSE:PCG)
64Neutral
Positive Factors
Financial Performance
PCG's investment outlook includes a strong 9% EPS growth and no requirement for additional equity funding until 2028.
Mitigation Efforts
The company's strong wildfire mitigation record over the last 3 years is a positive aspect.
Operational Performance
PCG had a strong year operationally with EPS of $1.36 consistent with consensus estimates.
Negative Factors
Insurance and Liability Concerns
The potential depletion of the California wildfire insurance fund due to the Eaton fire is a concern.
Legislative Challenges
State policy is critical in ensuring the financial health of California's investor-owned utilities, but legislative changes will be a prolonged process with the lengthy California 2025 legislative session ending in September.
Market Perception
Shares of PCG have been materially impacted by the uncertainty surrounding AB 1054 amidst the Southern California wildfires.
PG&E (PCG) vs. S&P 500 (SPY)
Market Cap
$37.84B
Dividend Yield0.43%
Average Volume (3M)18.49M
Price to Earnings (P/E)15.0
Beta (1Y)0.36
Revenue Growth-0.04%
EPS Growth6.80%
CountryUS
Employees28,410
SectorUtilities
Sector Strength92
IndustryRegulated Electric
Share Statistics
EPS (TTM)1.15
Shares Outstanding2,193,577,000
10 Day Avg. Volume18,043,701
30 Day Avg. Volume18,493,899
Financial Highlights & Ratios
PEG Ratio2.20
Price to Book (P/B)N/A
Price to Sales (P/S)2.03
Price to Cash Flow (P/CF)7.00
P/FCF Ratio7.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.14Price Target Upside28.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
PG&E Business Overview & Revenue Model
Company DescriptionPacific Gas and Electric Company (PG&E), a subsidiary of PG&E Corporation, is a major natural gas and electric utility provider headquartered in San Francisco, California. The company primarily operates in the utilities sector, providing electricity and natural gas to millions of customers across Northern and Central California. PG&E's core services include the transmission and distribution of electricity and natural gas, as well as infrastructure maintenance and development to ensure reliable energy supply.
How the Company Makes MoneyPG&E generates revenue through the sale of electricity and natural gas to residential, commercial, industrial, and governmental customers. The company's primary revenue streams include charges for electricity and gas usage, which are regulated by the California Public Utilities Commission. PG&E also earns money from infrastructure investments, such as expanding and upgrading its transmission and distribution networks, which are incentivized through regulated rates of return. Additionally, PG&E may engage in various partnerships and programs aimed at promoting energy efficiency and renewable energy adoption, which can further contribute to its income through regulatory incentives or cost recovery mechanisms.
PG&E Financial Statement Overview
Summary
PG&E exhibits strong revenue growth and improved profitability, though there are challenges in cash flow management and declining equity ratios. The leverage level is manageable, yet continuous monitoring is crucial for long-term stability.Income Statement
PG&E's revenue has shown consistent growth over the past years, indicating a strong upward trend. However, the absence of gross profit, EBIT, and EBITDA data for the latest year makes it challenging to fully assess margin performance. Net profit margin has improved significantly, reflecting increased profitability.65
Positive
Balance Sheet
The company's debt-to-equity ratio is moderate, suggesting manageable leverage levels. However, the equity ratio shows a declining trend, which may indicate increasing liabilities relative to assets. Return on equity has improved, highlighting better profitability relative to equity.70
Positive
Cash Flow
Operating cash flow has increased, which is a positive indicator of financial health. However, free cash flow remains negative, reflecting high capital expenditures that may impact financial flexibility. The free cash flow to net income ratio has improved over time, showing better cash flow management.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 24.42B | 24.43B | 21.68B | 20.64B | 18.47B | Gross Profit |
| 9.16B | 8.31B | 7.01B | 6.06B | 5.89B | EBIT |
| 4.46B | 2.67B | 2.63B | 2.62B | 2.53B | EBITDA |
| 9.55B | 7.19B | 7.07B | 6.57B | 4.20B | Net Income Common Stockholders |
| 2.51B | 2.26B | 1.81B | -88.00M | -1.30B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 235.00M | 635.00M | 734.00M | 165.00M | 484.00M | Total Assets |
| 133.66B | 125.70B | 118.64B | 103.18B | 97.86B | Total Debt |
| 8.24B | 57.73B | 53.54B | 41.55B | 42.60B | Net Debt |
| 8.01B | 57.10B | 52.80B | 41.38B | 42.12B | Total Liabilities |
| 103.26B | 100.41B | 95.57B | 77.57B | 76.60B | Stockholders Equity |
| 30.15B | 25.04B | 22.82B | 25.61B | 21.00B |
| Cash Flow | Free Cash Flow | |||
| -2.33B | -4.97B | -5.86B | -5.24B | -26.74B | Operating Cash Flow |
| 8.04B | 4.75B | 3.72B | 2.45B | -19.05B | Investing Cash Flow |
| -11.38B | -9.16B | -10.21B | -7.05B | -7.75B | Financing Cash Flow |
| 3.62B | 4.40B | 7.13B | 4.38B | 26.07B |
PG&E Technical Analysis
Negative
16.44
Price Trends
16.25
Positive
17.99
Negative
18.47
Negative
Market Momentum
0.25
Negative
61.07
Neutral
57.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCG, the sentiment is Negative. The current price of 16.44 is below the 20-day moving average (MA) of 16.89, above the 50-day MA of 16.25, and below the 200-day MA of 18.47, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 61.07 is Neutral, neither overbought nor oversold. The STOCH value of 57.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PCG.
PG&E Risk Analysis
PG&E disclosed 32 risk factors in its most recent earnings report. PG&E reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PG&E Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $36.83B | 34.78 | 7.04% | 2.95% | -2.20% | -55.73% | |
75 Outperform | $34.28B | 22.49 | 12.64% | 3.25% | -3.30% | 14.40% | |
74 Outperform | $40.60B | 21.51 | 8.44% | 3.06% | 4.23% | -27.02% | |
69 Neutral | $39.01B | 19.74 | 10.43% | 3.26% | -5.25% | 7.11% | |
67 Neutral | $40.66B | 23.01 | 11.22% | 3.13% | 6.13% | -31.01% | |
65 Neutral | $11.67B | 15.52 | 6.23% | 4.52% | 5.50% | -9.06% | |
64 Neutral | $37.84B | 14.96 | 9.10% | 0.43% | -0.04% | 6.80% |
* Utilities Sector Average
Performance Comparison
PCG
PG&E
16.44
-0.31
-1.85%
ED
Consolidated Edison
109.32
21.77
24.87%
ETR
Entergy
79.03
28.01
54.90%
PEG
Public Service Enterprise
77.73
12.95
19.99%
WEC
WEC Energy Group
104.36
25.94
33.08%
XEL
Xcel Energy
67.89
15.69
30.06%
PG&E Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: 2.69% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The call reflected a strong financial performance for 2024 with significant earnings growth and a solid capital investment plan. However, there are ongoing concerns about wildfire risks and the adequacy of the current funding and legislative frameworks to address these risks. The company remains optimistic about future growth and regulatory support, but uncertainties remain.Highlights
Strong Earnings Growth
Core earnings per share for the fourth quarter were $0.31, bringing the year to $1.36, an 11% growth over 2023.
2025 Guidance Update
2025 guidance range midpoint increased by 10% from 2024 results, with EPS growth guidance for 2026 through 2028 remaining at least 9% each year.
Capital Investment Plan
Equity needs to fund the $63 billion capital investment plan through 2028 are fully met.
O&M Cost Reduction
Achieved a 4% reduction in non-fuel O&M costs for 2024, continuing a trend of savings.
Beneficial Load Growth
5.5 gigawatts of new potential data center load applications moving through the pipeline, projected to come online by 2030.
Lowlights
Wildfire Risk Concerns
Concerns about the adequacy of the existing $21 billion wildfire fund and need for further state reforms.
Challenges in Southern California
Recent fires in Southern California highlighted potential stress on the AB 1054 wildfire funding framework.
Regulatory and Legislative Uncertainty
Uncertainty regarding legislative action to address wildfire funding and risk mitigation improvements.
Company Guidance
During the PG&E Corporation fourth quarter 2024 earnings call, several key metrics and guidance updates were provided by the leadership team. Core earnings per share for Q4 2024 were reported at $0.31, contributing to a full-year EPS of $1.36, which marks an 11% increase over 2023. Looking ahead, PG&E revised its 2025 EPS guidance range to $1.48 to $1.52, reflecting a 10% increase from the actual 2024 results. The company reaffirmed its commitment to an EPS growth guidance of at least 9% annually from 2026 through 2028. PG&E also discussed its $63 billion capital investment plan through 2028, noting that equity needs to support this plan are fully addressed following a December issuance. Additionally, the 2025 annual dividend rate is projected to increase to $0.10 from $0.04 in 2024, with an aim to reach a 20% dividend payout ratio of core EPS by 2028. The company highlighted a 4% reduction in non-fuel O&M costs for 2024 and reiterated its strategy to stabilize customer bills, stating that combined residential gas and electric bills for January 2025 are expected to remain flat compared to January 2024.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.