# Public Service Enterprise Group (PEG.US)

Canonical: https://gigainvestors.com/s/PEG

Analysis as of: 2026-10-16T07:31:06.951Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $70.21 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 1

- Operating margin variation: 0.55×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.16×

- FY2018: 0.24×

- FY2019: 0.19×

- FY2020: 0.24×

- FY2021: -0.09×

- FY2022: 0.14×

- FY2023: 0.33×

- FY2024: 0.23×

- FY2025: 0.24×

- LTM to Jun 2026: 0.23×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 5.5%

- ROIC, second-lowest year: 4.1%

- Typical minus recent gross margin: -7.3 pp

- Typical gross margin (annual median): 35.7%

- Recent gross margin (lower of latest and 3-year median): 43.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 32.0%

- ROIC including acquisitions, ten-year median: 0.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 4.5%

- FY2017: 5.3%

- FY2018: 6.0%

- FY2019: 5.4%

- FY2020: 5.7%

- FY2021: -2.0%

- FY2022: 4.1%

- FY2023: 8.6%

- FY2024: 5.9%

- FY2025: 6.4%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.37×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.5B

- Net income, five-year total: $6.8B

- Return on incremental invested capital: 3.7%

- Working capital / revenue, annual change: 1.2 pp

- Working capital / revenue, change between three-year averages: 6.8 pp

- Working capital / revenue, final three-year average: 18.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 2.52×

- FY2022: -0.28×

- FY2023: 1.00×

- FY2024: -0.13×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 5.3% vs 6.4%

- Per-share earnings: 3.10 to 4.21 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.1%

- Ordinary dilution, 5-year annual growth: -0.2%

- Market cap gain: $18B

- Cumulative retained earnings: $4.3B

- Diluted shares, 10-year annual growth: -0.1%

- Diluted shares, 5-year annual growth: -0.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 3.9%

- Per-share value change: $1.11

- Per-share value, starting three-year median: $3.10

- Per-share value, ending three-year median: $4.21

- Average buyback yield: 1.6%

- Buyback history: 1 years

- Debt-funded buybacks: Yes

- Acquisition spending: $54M

- Cumulative net income, 10 years: $14B

- ROIC, first three-year median: 5.3%

- ROIC, last three-year median: 6.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.75

- FY2017: $3.10

- FY2018: $2.84

- FY2019: $3.34

- FY2020: $3.76

- FY2021: -$1.29

- FY2022: $2.06

- FY2023: $5.13

- FY2024: $3.54

- FY2025: $4.21

### accounting: pass

- Sloan accruals: -0.4%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.12×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.1%

- FY2017: -3.9%

- FY2018: -3.3%

- FY2019: -3.5%

- FY2020: -2.4%

- FY2021: -4.9%

- FY2022: -1.0%

- FY2023: -2.4%

- FY2024: -0.7%

- FY2025: -0.4%

## Holders

- [Thomas Graham Kahn](https://gigainvestors.com/KB): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Harry Burn](https://gigainvestors.com/SSHFX): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 26% since Nov 2024 · sales +3.1%

Story as of 2026-10-16T09:59:22.859Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales +3.1%; source https://www.sec.gov/Archives/edgar/data/788784/000119312526077446/peg-20251231.htm; observed 2026-02-26.

- FY2017: $9.1B 

- FY2018: $9.7B 

- FY2019: $10B 

- FY2020: $9.6B 

- FY2021: $9.7B 

- FY2022: $9.8B 

- FY2023: $11B 

- FY2024: $10B 

- FY2025: $12B 

- FY2026: $13B 

### Gross margin · FY2025

gross margin 69%; source https://www.sec.gov/Archives/edgar/data/788784/000119312526077446/peg-20251231.htm; observed 2026-02-26.

- FY2016: 33.7% 

- FY2017: 37.6% 

- FY2018: 35.6% 

- FY2019: 35.7% 

- FY2020: 35.7% 

- FY2021: 30.8% 

- FY2022: 26.6% 

- FY2023: 43.0% 

- FY2024: 34.4% 

- FY2025: 69.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities regulated electric; annual sales are USD 12.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/788784/000119312526077446/peg-20251231.htm (filed 2026-02-26); FY2025: revenue 12168000000; grossProfit 8396000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 34.4% to 69% during 2023–25; it earns 5.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 43%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 34.4%.

- Source: https://www.sec.gov/Archives/edgar/data/788784/000119312526077446/peg-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 69%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2016,0.04461909390211027],[2017,0.05267620171040991],[2018,0.06005712882664907],[2019,0.053658711244435525],[2020,0.05706020985268257],[2021,-0.02033865680170832],[2022,0.04097558080883008],[2023,0.08555782054266947],[2024,0.058766527802296034],[2025,0.06428746952625479]]; median 0.055359460548559045. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 27.7% of cash earnings on expansion; earns 3.7% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2018: growth capex 1834962776.4833736; upkeep 2223037223.5166264; owner earnings 559962776.4833736. Growth capex / owner earnings = 3.2769370635797204.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 1247157389.5473142; upkeep 2016842610.4526858; owner earnings 1102157389.5473142. Growth capex / owner earnings = 1.1315601577189947.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2020: growth capex 0; upkeep 3034000000; owner earnings 340000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 2001000000; upkeep 1324000000; owner earnings 2563000000. Growth capex / owner earnings = 0.7807257120561841.

- Source: https://www.sec.gov/Archives/edgar/data/788784/000119312526077446/peg-20251231.htm (filed 2026-02-26); FY2025: growth capex 584000000; upkeep 1459000000; owner earnings 2111000000. Growth capex / owner earnings = 0.2766461392704879.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Incremental return on capital 0.036907355664359015, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,830000000],[2017,870000000],[2018,910000000],[2019,950000000],[2020,991000000],[2021,1031000000],[2022,1079000000],[2023,1137000000],[2024,1196000000],[2025,1258000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PEG.US SharesStats.PercentInsiders = 0.128 percentage points; cache date 2026-10-16.

### What could break it

"Significant resource adequacy challenges present affordability and reliability concerns" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/788784/000119312526077446/peg-20251231.htm (filed 2026-02-26); Significant resource adequacy challenges present affordability and reliability concerns

### What the price says

The price is 2.9 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Closing price 70.21 USD; reporting-to-trading FX 1; FY2025 annual sales per share 24.2874251497006; price multiple 2.8907963510848123. FY2025 cash earnings/share 4.213572854291417. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $42.08 per share

- 2016-11: $41.31 per share

- 2016-12: $43.88 per share

- 2017-01: $44.25 per share

- 2017-02: $45.98 per share

- 2017-03: $44.35 per share

- 2017-04: $44.05 per share

- 2017-05: $44.91 per share

- 2017-06: $43.01 per share

- 2017-07: $44.97 per share

- 2017-08: $46.84 per share

- 2017-09: $46.25 per share

- 2017-10: $49.20 per share

- 2017-11: $53.06 per share

- 2017-12: $51.50 per share

- 2018-01: $51.87 per share

- 2018-02: $48.43 per share

- 2018-03: $50.24 per share

- 2018-04: $52.15 per share

- 2018-05: $52.98 per share

- 2018-06: $54.14 per share

- 2018-07: $51.56 per share

- 2018-08: $52.35 per share

- 2018-09: $52.79 per share

- 2018-10: $53.43 per share

- 2018-11: $55.90 per share

- 2018-12: $52.05 per share

- 2019-01: $54.55 per share

- 2019-02: $58.81 per share

- 2019-03: $59.41 per share

- 2019-04: $59.65 per share

- 2019-05: $58.76 per share

- 2019-06: $58.82 per share

- 2019-07: $57.15 per share

- 2019-08: $60.47 per share

- 2019-09: $62.08 per share

- 2019-10: $63.31 per share

- 2019-11: $59.31 per share

- 2019-12: $59.05 per share

- 2020-01: $59.20 per share

- 2020-02: $51.31 per share

- 2020-03: $44.91 per share

- 2020-04: $50.71 per share

- 2020-05: $51.04 per share

- 2020-06: $49.16 per share

- 2020-07: $55.94 per share

- 2020-08: $52.24 per share

- 2020-09: $54.91 per share

- 2020-10: $58.15 per share

- 2020-11: $58.28 per share

- 2020-12: $58.30 per share

- 2021-01: $56.43 per share

- 2021-02: $53.83 per share

- 2021-03: $60.21 per share

- 2021-04: $63.16 per share

- 2021-05: $62.12 per share

- 2021-06: $59.74 per share

- 2021-07: $62.23 per share

- 2021-08: $63.94 per share

- 2021-09: $60.90 per share

- 2021-10: $63.80 per share

- 2021-11: $62.49 per share

- 2021-12: $66.73 per share

- 2022-01: $66.53 per share

- 2022-02: $64.83 per share

- 2022-03: $70.00 per share

- 2022-04: $69.66 per share

- 2022-05: $68.54 per share

- 2022-06: $63.28 per share

- 2022-07: $65.67 per share

- 2022-08: $64.36 per share

- 2022-09: $56.23 per share

- 2022-10: $56.07 per share

- 2022-11: $60.55 per share

- 2022-12: $61.27 per share

- 2023-01: $61.93 per share

- 2023-02: $60.43 per share

- 2023-03: $62.45 per share

- 2023-04: $63.20 per share

- 2023-05: $59.75 per share

- 2023-06: $62.61 per share

- 2023-07: $63.12 per share

- 2023-08: $61.08 per share

- 2023-09: $56.91 per share

- 2023-10: $61.65 per share

- 2023-11: $62.43 per share

- 2023-12: $61.15 per share

- 2024-01: $57.99 per share

- 2024-02: $62.40 per share

- 2024-03: $66.78 per share

- 2024-04: $69.08 per share

- 2024-05: $75.76 per share

- 2024-06: $73.70 per share

- 2024-07: $79.77 per share

- 2024-08: $80.75 per share

- 2024-09: $89.21 per share

- 2024-10: $89.41 per share

- 2024-11: $94.30 per share

- 2024-12: $84.49 per share

- 2025-01: $83.54 per share

- 2025-02: $81.15 per share

- 2025-03: $82.30 per share

- 2025-04: $79.93 per share

- 2025-05: $81.03 per share

- 2025-06: $84.18 per share

- 2025-07: $89.79 per share

- 2025-08: $82.33 per share

- 2025-09: $83.46 per share

- 2025-10: $80.56 per share

- 2025-11: $83.52 per share

- 2025-12: $80.30 per share

- 2026-01: $82.36 per share

- 2026-02: $86.07 per share

- 2026-03: $80.95 per share

- 2026-04: $81.66 per share

- 2026-05: $78.65 per share

- 2026-06: $81.16 per share

- 2026-07: $76.68 per share

- 2026-08: $73.33 per share

- 2026-09: $67.34 per share

- 2026-10: $70.47 per share

## Annual estimated value (USD per share)

- FY2020: low $8.02 per share, central $9.03 per share, high $10.38 per share

- FY2021: low $8.70 per share, central $9.73 per share, high $11.10 per share

- FY2022: low $8.11 per share, central $9.15 per share, high $10.54 per share

- FY2023: low $9.03 per share, central $10.68 per share, high $12.43 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:36:51.547Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/788784/000119312526077446/peg-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.