PEGPublic Service Enterprise Group

$72.27-8.8% 1Y

$72.27

$66.5652 weeks$85.51

Is the business good?

Mixed

The checks split: earnings fully cash-backed (1.4×), but margins compressing.

1 good, 1 to watch, 1 neutral, 1 without data

Profits arrive as cash1.40×derived · Jun 30, 2026

Operating profit is fully backed by cash. Conversion is improving vs a year ago.

Margin direction, 3 years−6.2 pts

Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.

Where ROE comes from4% ROA

Margin-driven, fat margins on slower asset turns. ROE 12% = margin × turnover × leverage.

Unless marked, from derived.

Against the whole market›

Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.

FCF conversionbehind 88% of the market

Leverage (Debt/EBITDA)behind 84% of the market

Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.

Public Service Enterprise Group earns 5.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.

5.5%

Return on invested capital · cost of capital 9.0% · 3.5 points below what the capital costs: growth destroys value

Operating margin: 23%
Operating margin · Utilities - Regulated Electric median 22% · 12 months to Q2 2026
Cash conversion: 1.40×
Cash conversion · 0.99× a year ago · operating cash flow covers the operating profit after tax
Share count, year on year: −0.20%
Share count, year on year · flat: no meaningful dilution

Details›

Gross margin12 months to Q2 2026: 64%
Operating margin12 months to Q2 2026: 23%
Net margin12 months to Q2 2026: 16%
Free cash flow margin: 2.2%
Revenue, trailing twelve months: $12.5B
Free cash flow, trailing twelve months: $276M
Net income, trailing twelve months: $2.01B
Return on invested capitaloperating profit after tax ÷ debt + equity − cash: 5.5%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.

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