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1. Company Snapshot

1.a. Company Description

PG&E Corporation, through its subsidiary, Pacific Gas and Electric Company, engages in the sale and delivery of electricity and natural gas to customers in northern and central California, the United States.It generates electricity using nuclear, hydroelectric, fossil fuel-fired, fuel cell, and photovoltaic sources.As of December 31, 2021, the company owns and operates approximately 18,000 circuit miles of interconnected transmission lines; 33 electric transmission substations, approximately 108,000 circuit miles of distribution lines, 67 transmission switching substations, and 753 distribution substations; and natural gas transmission, storage, and distribution system consisting of approximately 43,800 miles of distribution pipelines, approximately 6,200 miles of backbone and local transmission pipelines, and various storage facilities.


It serves residential, commercial, industrial, and agricultural customers, as well as natural gas-fired electric generation facilities.The company was incorporated in 1905 and is headquartered in San Francisco, California.

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1.b. Last Insights on PCG

PG&E Corporation's recent performance has been driven by several positive factors. The company's plan to invest $73 billion in transmission upgrades by 2030 to meet surging data-center energy demand is a significant growth driver. Additionally, the successful completion of the Calistoga Resiliency Center, a hybrid battery and hydrogen energy storage microgrid, showcases PG&E's commitment to innovative solutions. The company's declaration of a $0.025 per share dividend for the third quarter of 2025 also underscores its financial stability. Furthermore, PG&E's upcoming earnings release and conference call, scheduled for October 23, 2025, are expected to provide insights into the company's progress.

1.c. Company Highlights

2. PG&E's Q3 2025 Earnings: A Strong Beat with Growth Momentum

PG&E Corporation reported a strong third-quarter 2025 earnings, with core earnings per share (EPS) of $0.50, beating analyst estimates of $0.4241. The company's EPS for the first nine months of 2025 stood at $1.14. Revenue growth is expected to continue, with analysts estimating a 4.3% increase for next year. The company's financial performance was robust, with the narrowing of its full-year guidance range to $1.49 to $1.51, representing a 10% increase over 2024. As Carolyn Burke, EVP and CFO, emphasized, the company's plan is built not to require new common equity through 2030, highlighting its financial stability.

Publication Date: Nov -04

📋 Highlights
  • 2025 Earnings Growth:: Core EPS reached $1.14 for the first nine months, with full-year guidance narrowed to $1.49–$1.51 ($1.50 midpoint), reflecting a 10% increase over 2024.
  • 2026 EPS Guidance:: Projected range of $1.62–$1.66, a 9% increase from the 2025 midpoint of $1.50, showcasing sustained growth momentum.
  • Long-Term Capital Plan:: $73 billion investment through 2030 targets 9% annual rate base and EPS growth, supporting infrastructure and wildfire mitigation.
  • Wildfire Mitigation Progress:: Year-to-date ignitions down 35% from 2024; 1,000 miles of power lines undergrounded and 4,000 transmission structures cleared.
  • Wildfire Fund Efficiency:: New funding methods reduced PG&E’s payments by 25%, enhancing financial stability while maintaining safety investments.

Operational Highlights and Wildfire Mitigation Efforts

PG&E's operational efforts are yielding positive results, particularly in wildfire mitigation. The company's physical layers of protection are delivering results, with total year-to-date CPUC reportable ignitions down over 35% from 2024 levels. The company has made significant progress in undergrounding power lines, having constructed and energized 1,000 miles of power lines underground in high fire-risk areas. Additionally, PG&E has cleared vegetation in a 50-foot radius at the base of nearly 4,000 transmission structures. The governor's executive order emphasizes a "whole of government" approach to wildfire mitigation, aligning with PG&E's efforts.

Data Center Growth and Credit Ratings

PG&E's data center pipeline remains robust, at over 9.5 gigawatts, indicating strong growth prospects. The company expects to invest in capital to deploy transmission and distribution systems to support new large load customers. On the credit ratings front, PG&E has had positive interactions with Moody's and S&P, and Fitch's recent upgrade is a positive step. The company's focus on executing on its operations and maintenance (O&M) targets is evident, with 3 consecutive years of meeting or exceeding its 2% target.

Valuation and Growth Prospects

With a P/E Ratio of 12.92 and an ROE of 8.73%, PG&E's valuation appears reasonable. The company's growth prospects are promising, with a 9% average annual rate base growth supported by its $73 billion 5-year capital plan through 2030. The introduction of 2026 EPS guidance range of $1.62 to $1.66, representing a 9% increase from the 2025 midpoint, further underscores PG&E's growth momentum. The payout ratio is expected to grow to 20% by 2028 and be maintained through 2030, indicating a commitment to returning value to shareholders.

3. NewsRoom

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5 Value Stocks With Exciting EV-to-EBITDA Ratios to Scoop Up

Dec -04

Source: zacks.com

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4 Value Stocks to Buy After the Thanksgiving Market Surge

Nov -28

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PCG vs. NEE: Which Stock Is the Better Value Option?

Nov -27

Source: zacks.com

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Here's Why PCG Stock Deserves a Spot in Your Portfolio Right Now

Nov -26

Source: zacks.com

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Californians Express Overwhelming Support for Undergrounding Powerlines to Reduce Wildfire Risk

Nov -19

Source: prnewswire.com

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Celebrate the Season Sustainably and Make Energy Efficiency a Holiday Tradition

Nov -18

Source: prnewswire.com

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PG&E Encourages Customers to "Slow Down, Verify, Stop the Scam" on Utility Scam Awareness Day

Nov -18

Source: prnewswire.com

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Daniel Loeb's Strategic Moves: A Closer Look at Norfolk Southern Corp's 5.52% Portfolio Impact

Nov -14

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Utilities - Combined

Expected Growth: 3.0%

The utilities sector, specifically PG&E Corporation, is driven by steady demand for electricity and gas, regulatory support, and investments in infrastructure. A growth rate of 3.0% reflects stable cash flows, low-risk profile, and potential for long-term contracts, making it an attractive sector for investors seeking predictable returns.

7. Detailed Products

Electricity

PG&E Corporation generates and distributes electricity to residential, commercial, and industrial customers in California.

Natural Gas

PG&E Corporation also distributes natural gas to residential, commercial, and industrial customers in California.

Renewable Energy

PG&E Corporation offers renewable energy products, including solar and wind power, to customers who want to reduce their carbon footprint.

Energy Efficiency Programs

PG&E Corporation offers various energy efficiency programs, including rebates and incentives for customers to upgrade to energy-efficient appliances and lighting.

Smart Meters

PG&E Corporation offers smart meters to customers, which provide real-time energy usage data and enable customers to make informed decisions about their energy consumption.

Electric Vehicle Charging

PG&E Corporation offers electric vehicle (EV) charging services, including EV charging stations and special EV rates for customers who charge their vehicles at home.

8. PG&E Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

PG&E Corporation operates in the utility industry, specifically in the generation, transmission, and distribution of electricity and natural gas. While there are alternative energy sources such as solar and wind power, the threat of substitutes is moderate due to the existing infrastructure and customer loyalty.

Bargaining Power Of Customers

PG&E Corporation has a large customer base, and individual customers have limited bargaining power due to the essential nature of the services provided. The company also has a regulated pricing structure, which limits the ability of customers to negotiate prices.

Bargaining Power Of Suppliers

PG&E Corporation relies on various suppliers for equipment, fuel, and other materials. While the company has a significant market share and can negotiate prices, the suppliers also have some bargaining power due to the concentrated nature of the industry.

Threat Of New Entrants

The utility industry is heavily regulated, and new entrants face significant barriers to entry, including high capital requirements, regulatory hurdles, and established brand loyalty. This limits the threat of new entrants.

Intensity Of Rivalry

The utility industry is highly competitive, with several major players operating in the same market. PG&E Corporation competes with other utility companies, such as Edison International and Sempra Energy, for market share and customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 65.93%
Debt Cost 4.81%
Equity Weight 34.07%
Equity Cost 7.53%
WACC 5.74%
Leverage 193.52%

11. Quality Control: PG&E Corporation passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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DTE Energy

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Value: 4.7

Growth: 3.7

Quality: 6.9

Yield: 6.0

Momentum: 7.5

Volatility: 10.0

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Exelon

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Value: 5.9

Growth: 3.8

Quality: 4.4

Yield: 7.0

Momentum: 7.5

Volatility: 10.0

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Xcel Energy

A-Score: 6.4/10

Value: 5.0

Growth: 4.6

Quality: 3.9

Yield: 6.0

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Volatility: 10.0

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Dominion Energy

A-Score: 6.3/10

Value: 5.5

Growth: 3.6

Quality: 4.6

Yield: 8.0

Momentum: 6.5

Volatility: 9.7

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NextEra Energy

A-Score: 5.3/10

Value: 2.4

Growth: 6.0

Quality: 5.4

Yield: 6.0

Momentum: 4.0

Volatility: 8.0

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Pacific Gas and Electric

A-Score: 4.7/10

Value: 7.8

Growth: 4.0

Quality: 6.1

Yield: 1.0

Momentum: 1.5

Volatility: 8.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.16$

Current Price

15.16$

Potential

-0.00%

Expected Cash-Flows