Public Service Enterprise Group Incorporated (PEG) Stock Analysis & Winston Score

Public Service Enterprise Group, known as PSEG, is a utility company that delivers electricity and natural gas to homes and businesses in New Jersey. Its main subsidiary, PSE&G, is New Jersey's largest electric and gas utility, serving roughly 2.3 million electric customers and 1.9 million gas customers. PSEG also owns and operates a fleet of nuclear power plants, which generate a large share of the electricity it sells.

PSEG earns most of its revenue through regulated utility rates, meaning state regulators set the prices it can charge customers, which creates steady and predictable income. The company operates almost entirely in the northeastern United States, with its core business concentrated in New Jersey. Its regulated status acts as a built-in competitive shield, since utilities typically hold exclusive service territories, but that same regulation limits how fast earnings can grow. The key growth driver is ongoing investment in grid upgrades and clean energy infrastructure, though rising interest rates and capital costs remain a meaningful financial risk.

Winston Score History

Politician Trades

13 trades / 12mo

7 Congressional buys and 6 sells on PEG in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-8.9% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-42.7% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

0.3%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$3.8B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Public Service Enterprise Group Incorporated's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

−0.6% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 504.0M (2021) → 501.0M (2025)

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

64.5%

Premium pricing power — 64.5% gross margin

Operating Margin

18.1%

Healthy — 18.1% operating margin

ROCE

1.1%

Weak — 1.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+12.7%

Fast-growing sales (+12.7% YoY)

EPS YoY

+2.0%

Flat earnings

Single-digit earnings growth — steady but not exciting.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

179%

Turns 179% of profit into real cash

FCF Margin

5.9%

Thin free cash flow (5.9%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

1.42

Elevated debt (1.42)

Interest Cover

2.92x

Tight — interest eats into profit (2.9x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

18.8x

Fair value — P/E 18.8

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

+3.0

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (18.8 → 15.8)

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Dividends

Dividend Yield

3.27%

Moderate income — 3.27% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth

+5.7%

Dividend growing modestly (5.7% YoY)

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