PG&E Corporation (PCG) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: PG&E Corporation

Updated on October 23, 2026 · accounts published on October 22, 2026

A regulated utility with record margins, held back by heavy debt and thin interest coverage

PG&E trades at a P/E of 9.8× over the last 12 months, 53 % below its sector median of 20.7× and 37 % under its own 10-year median of 15.5×.

• Is PG&E expensive or cheap? PG&E has traded at a lower P/E than today only 8 % of the time over the last decade.
• How is the business doing? Operating margin reached 20 % over the last 12 months, above the 14 % average of fiscal 2014-2025.
• How strong is the balance sheet? Net debt equals $28.97 per share in fiscal 2025, or 220 % of the current share price.
• Is the dividend sustainable with this debt? Interest coverage was 1.6× in fiscal 2025, well short of the 3.0× a healthy utility usually shows.
• What to expect from the next earnings? Analysts expect EPS of $0.40 on February 11, 2027; the 2026 EPS consensus holds steady at $1.65.

Is PG&E expensive or cheap?

Over the last 12 months PG&E trades at a P/E of 9.8×. That is 37 % below its 10-year median of 15.5× and 53 % below the 20.7× median of 83 sector peers. Over the decade the weekly multiple ranged from 2.2× to 36.2×, so today's figure sits near the bottom of that band. A P/B of 0.8× and an EV/EBITDA of 9.1× point the same way. The stock is down 16 % over the last 12 months and trades 31 % below its 52-week high of $19.11. The discount reflects worry about the balance sheet more than about current profits.

How is the business doing?

Over the last 12 months revenue grew 2.1 % and EPS grew 2.6 %, the slow pace you expect from a regulated utility. Margins are the better news. The operating margin stands at 20 % over the last 12 months, against a 14 % average across fiscal 2014-2025, and fiscal 2025's 19.6 % was the highest of those 12 years. The net margin is 12 %. Returns lag behind. ROIC is 3.8 %, 0.2 points below the 4.0 % median of 136 sector companies, and it has not topped 10 % in any of the last 10 fiscal years. ROE of 9.2 % sits inside the 8 % to 12 % regulated range.

How strong is the balance sheet?

Debt is the central issue. At the end of fiscal 2025 PG&E's net debt came to $28.97 per share ($29.30 of debt minus $0.32 of cash), which is 223 % of the current stock price. Debt to equity is 1.89 over the last 12 months, and a current ratio of 1.03 covers short-term obligations with little room to spare. A Piotroski score of 4 out of 9 points to a middling financial trend. For a utility, leverage of this size decides how much of the operating profit actually reaches shareholders once lenders are paid.

Is the dividend sustainable with this debt?

Utilities behave like bonds with extra risk, so investors judge them by debt, interest costs and payout consistency more than by growth. PG&E passes on payout: in fiscal 2025 it paid out 12 % of earnings, far below the 80 % ceiling. The other tests are weaker. Net debt to EBITDA of 5.8× in fiscal 2025 sits just above the 5.5× threshold, interest coverage of 1.6× falls short of the 3.0× benchmark, and over 2014-2025 the dividend shrank at a 34 % annual rate, against healthy growth of at least 4 % a year. The 1.5 % yield over the last 12 months is affordable. The debt is what limits room to raise it.

What to expect from the next earnings?

On October 22, 2026 PG&E reported EPS of $0.41, a hair below the $0.41 expected (−0.8 %). It has beaten EPS estimates in only 3 of the last 8 quarters. The 2026 EPS consensus has not moved in the last 30 days, staying at $1.65 across 10 analysts, and revenue estimates are just as steady. Of the 30 analysts covering the company, 12 recommend buying, 17 holding and 1 selling. The next report, due February 11, 2027, is expected to show EPS of $0.40. A flat quarter like that would keep attention on the balance sheet.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.