PG&E CorporationPCG
NYSE • Utilities
$17.68
P/E
14.56
PEG
0.81
FCF Yield
1.7%
Rev Growth YoY
+2.6% YoY
Gross Margin
39.6%
Health Score
5/10
D/E Ratio
1.87
Confidence
MEDIUM
Business Snapshot
PG&E Corporation is a large-cap regulated electric and gas utility serving roughly 16 million customers across Northern and Central California. Operating within a highly regulated framework, the company generates revenue primarily through electricity transmission and distribution, and natural gas delivery. With a market capitalisation of $40.83B, PG&E sits firmly in the large-cap tier.
Financial Health
Score: 5/10 PG&E's net margin of 10.4% is serviceable for a regulated utility, and free cash flow of $706.08M confirms the business is generating real cash. However, a debt/equity ratio of 1.87x signals meaningful leverage, and a current ratio of 0.97x — below the 1.0x threshold — suggests the company has limited near-term liquidity cushion to cover short-term obligations...
Risk Assessment
- **EARNINGS QUALITY:** Only 1 of the last 4 quarters beat analyst estimates, suggesting the company is consistently falling short of expectations. - **EARNINGS DECLINE:** Earnings growth of -3.3% YoY, despite positive revenue growth of 2.6%, points to margin compression or rising costs eating into profitability. - **LEVERAGE:** Debt/equity of 1.87x is elevated and, combined with a current ratio of 0.97x, leaves limited financial flexibility in a rising-rate or adverse regulatory environment. - **TECHNICAL WEAKNESS:** MACD is bearish and the current price of $17.68 is marginally below the 50-day moving average of $17.69, suggesting near-term downward price pressure. - **DCF DISCONNECT:** The Python DCF estimate of $5.08 implies the stock may be pricing in optimistic assumptions not supported by the current 2.6% growth rate at a 9.0% WACC....