Return on Equity (ROE)
Higher than 90% of Utilities sector peers
Updated 390h ago
Sector Performance
90th percentilePEG
13.4%
Sector Median
9.6%
Sector Avg
8.1%
Deep Analysis
Public Service Enterprise Group's Return on Equity (ROE) of 13.4% means that for every dollar of shareholders' equity, the company generated 13.4 cents in profit over the past year — a measure of how efficiently it uses investor capital.
This sits well above the sector median of 9.9%, placing PEG in the 91st percentile among utility peers, indicating stronger profitability relative to its industry. Trend data is not available: the year-over-year change, quarter-over-quarter change, and the last eight quarters of values are all reported as N/A, so no directional movement can be assessed. Without a trend, the high current level alone suggests that the company is currently managing capital effectively, but absent information on consistency, the sustainability of this performance is uncertain. The combination of a strong ROE with no trend data neither confirms nor contradicts the NEUTRAL verdict — the metric is a positive point, but the lack of trend prevents it from shifting the overall view. Therefore, this metric supports the NEUTRAL stance by showing above-average current profitability without enough evidence to upgrade or downgrade the stock.
Frequently Asked Questions
What does the Return on Equity (ROE) tell investors about PEG?
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
How is the Return on Equity (ROE) calculated?
Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.
How does PEG's Return on Equity (ROE) compare to its sector?
PEG's Return on Equity (ROE) of 13.4% compares to a Utilities sector median of 9.6%, placing it in the 90th percentile.
Who are PEG's closest peers by Return on Equity (ROE)?
The closest Utilities peers by Return on Equity (ROE) include: PNW (9.6%), PCG (8.8%), ATO (8.8%), PPL (8.3%), AEE (10.9%).
The Formula
Net Income / Shareholders' Equity
Why It Matters
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
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13.4%
Sector Median
9.6%
Sector Avg
8.1%
How PEG's Return on Equity (ROE) compares to sector peers.
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