Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin20.6%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin12.5%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
D
Years to Pay Off Debt68.5 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$24.1B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$65M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book2.08x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
F
Free Cash Flow-$127M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income224.2%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$1.6B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Public Service Enterprise Group Incorporated
Public Service Enterprise Group Incorporated, through its subsidiaries, operates in electric and gas utility, and nuclear generation businesses in the United States. It operates through PSE&G and PSEG Power segments. The PSE&G segment transmits electricity; distributes electricity and natural gas to residential, commercial, and industrial customers; and appliance services and repairs to customers through its service territory, as well as invests in solar generation projects, and energy efficiency and related programs. The PSEG Power segment engages in nuclear generation businesses; and supplies power and natural gas to nuclear power plants. As of December 31, 2025, it had electric transmission and distribution system of 25,000 circuit miles and 871,000 poles; 58 switching stations with an installed capacity of 40,000 megavolt-amperes (MVA), and 238 substations with an installed capacity of 10,890 MVA; four electric distribution headquarters and five electric sub-headquarters; 18,000 miles of gas mains, 12 gas distribution headquarters, two sub-headquarters, and two meter shop, as well as 54 natural gas metering and regulating stations; and 158 MegaWatts defined conditions of installed PV solar capacity. The company was founded in 1903 and is based in Newark, New Jersey.
Public Service Enterprise Group Incorporated, through its subsidiaries, operates in electric and gas utility, and nuclear generation businesses in the United States. It operates through PSE&G and PSEG Power segments. The PSE&G segment transmits electricity; distributes electricity and natural gas to residential, commercial, and industrial customers; and appliance services and repairs to customers through its service territory, as well as invests in solar generation projects, and energy efficiency and related programs. The PSEG Power segment engages in nuclear generation businesses; and supplies power and natural gas to nuclear power plants. As of December 31, 2025, it had electric transmission and distribution system of 25,000 circuit miles and 871,000 poles; 58 switching stations with an installed capacity of 40,000 megavolt-amperes (MVA), and 238 substations with an installed capacity of 10,890 MVA; four electric distribution headquarters and five electric sub-headquarters; 18,000 miles of gas mains, 12 gas distribution headquarters, two sub-headquarters, and two meter shop, as well as 54 natural gas metering and regulating stations; and 158 MegaWatts defined conditions of installed PV solar capacity. The company was founded in 1903 and is based in Newark, New Jersey.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering Public Service Enterprise Group Incorporated at $72.61.
The business passes only 2 of 6 of Graham's defensive criteria — well below his required standard.
At $72.61, the stock trades at a 198% premium to its Graham Number of $24.40. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
Q3 2026
Q4 2025
Gross Profit %
31.4%▲
28.4%
Operating Margin %
20.6%▲
17.5%
Net Income %
12.5%▲
10.8%
Diluted EPS
0.76▲
0.63
Balance Sheet Highlights
Metric
Q3 2026
Q4 2025
Total Assets
$60.3B
$57.6B
Total Debt
$25.8B▲
$24.2B
Working Capital
$65M▲
-$1.1B
Years to Pay Debt
68.52
76.83
Cash Flow Highlights
Metric
Q3 2026
Q4 2025
Free Cash Flow
-$127M▲
-$408M
Owner Earnings
$1.6B
$1.8B
CapEx % of Net Income
224.2%
358.4%
Income Statement
2026
2025
Tax Effect Of Unusual Items
-104
-2,301
Tax Rate For Calcs
0
0
Normalized EBITDA
1,056,000
905,000
Total Unusual Items
-13,000
-9,000
Total Unusual Items Excluding Goodwill
-13,000
-9,000
Net Income From Continuing Operation Net Minority Interest
376,000
315,000
Reconciled Depreciation
384,000
366,000
Reconciled Cost Of Revenue
2,014,000
2,038,000
EBITDA
1,043,000
896,000
EBIT
659,000
530,000
Net Interest Income
-252,000
-192,000
Interest Expense
280,000
219,000
Interest Income
28,000
27,000
Normalized Income
388,896
321,699
Net Income From Continuing And Discontinued Operation
376,000
315,000
Total Expenses
2,398,000
2,404,000
Total Operating Income As Reported
622,000
511,000
Diluted Average Shares
499,000
501,000
Basic Average Shares
498,000
499,000
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
376,000
315,000
Net Income Common Stockholders
376,000
315,000
Net Income
376,000
315,000
Net Income Including Noncontrolling Interests
376,000
315,000
Net Income Continuous Operations
376,000
315,000
Tax Provision
3,000
-4,000
Pretax Income
379,000
311,000
Other Income Expense
9,000
-8,000
Other Non Operating Income Expenses
22,000
1,000
Special Income Charges
15,000
Other Special Charges
-15,000
Gain On Sale Of Security
-28,000
24,000
Net Non Operating Interest Income Expense
-252,000
-192,000
Interest Expense Non Operating
280,000
219,000
Interest Income Non Operating
28,000
27,000
Operating Income
622,000
511,000
Operating Expense
325,000
318,000
Depreciation Amortization Depletion Income Statement
325,000
318,000
Depreciation And Amortization In Income Statement
325,000
318,000
Gross Profit
947,000
829,000
Cost Of Revenue
2,073,000
2,086,000
Total Revenue
3,020,000
2,915,000
Operating Revenue
3,020,000
2,915,000
Balance Sheet
2026
2025
Treasury Shares Number
36,000
Ordinary Shares Number
498,420
498,154
Share Issued
498,420
534,154
Net Debt
24,797,000
23,942,000
Total Debt
25,765,000
24,202,000
Tangible Book Value
17,362,000
16,982,000
Invested Capital
42,996,000
41,056,000
Working Capital
65,000
-1,144,000
Net Tangible Assets
17,362,000
16,982,000
Capital Lease Obligations
131,000
128,000
Common Stock Equity
17,362,000
16,982,000
Total Capitalization
41,496,000
38,652,000
Total Equity Gross Minority Interest
17,362,000
16,982,000
Stockholders Equity
17,362,000
16,982,000
Gains Losses Not Affecting Retained Earnings
-110,000
-91,000
Other Equity Adjustments
-110,000
-91,000
Treasury Stock
1,468,000
1,435,000
Retained Earnings
13,895,000
13,446,000
Capital Stock
5,045,000
5,062,000
Common Stock
5,045,000
5,062,000
Total Liabilities Net Minority Interest
42,955,000
40,594,000
Total Non Current Liabilities Net Minority Interest
37,866,000
34,854,000
Other Non Current Liabilities
315,000
262,000
Derivative Product Liabilities
68,000
21,000
Employee Benefits
1,005,000
1,048,000
Non Current Pension And Other Postretirement Benefit Plans
1,005,000
1,048,000
Tradeand Other Payables Non Current
328,000
141,000
Non Current Deferred Liabilities
8,329,000
7,930,000
Non Current Deferred Taxes Liabilities
8,329,000
7,930,000
Long Term Debt And Capital Lease Obligation
24,265,000
21,798,000
Long Term Capital Lease Obligation
131,000
128,000
Long Term Debt
24,134,000
21,670,000
Long Term Provisions
1,642,000
1,606,000
Current Liabilities
5,089,000
5,740,000
Other Current Liabilities
1,763,000
1,487,000
Current Debt And Capital Lease Obligation
1,500,000
2,404,000
Current Debt
1,500,000
2,404,000
Other Current Borrowings
425,000
875,000
Commercial Paper
1,075,000
1,529,000
Payables And Accrued Expenses
1,826,000
1,849,000
Current Accrued Expenses
281,000
265,000
Interest Payable
281,000
265,000
Payables
1,545,000
1,584,000
Total Tax Payable
27,000
95,000
Accounts Payable
1,518,000
1,489,000
Total Assets
60,317,000
57,576,000
Total Non Current Assets
55,163,000
52,980,000
Other Non Current Assets
542,000
372,000
Non Current Accounts Receivable
534,000
520,000
Financial Assets
0
6,000
Investments And Advances
3,519,000
3,449,000
Other Investments
3,519,000
3,449,000
Net PPE
43,730,000
42,202,000
Accumulated Depreciation
-12,561,000
-11,856,000
Gross PPE
56,291,000
54,058,000
Construction In Progress
1,489,000
Other Properties
56,291,000
1,435,000
Current Assets
5,154,000
4,596,000
Other Current Assets
404,000
548,000
Hedging Assets Current
7,000
11,000
Prepaid Assets
260,000
75,000
Inventory
1,191,000
1,155,000
Receivables
2,455,000
2,675,000
Taxes Receivable
270,000
406,000
Accounts Receivable
1,925,000
1,888,000
Allowance For Doubtful Accounts Receivable
-236,000
-248,000
Gross Accounts Receivable
2,161,000
2,136,000
Cash Cash Equivalents And Short Term Investments
837,000
132,000
Cash And Cash Equivalents
837,000
132,000
Cash Flow
2026
2025
Free Cash Flow
-127,000
-408,000
Repayment Of Debt
-300,000
600,000
Issuance Of Debt
1,400,000
100,000
Capital Expenditure
-843,000
-1,129,000
Interest Paid Supplemental Data
279,000
241,000
Income Tax Paid Supplemental Data
-5,000
End Cash Position
861,000
156,000
Beginning Cash Position
216,000
360,000
Changes In Cash
645,000
-204,000
Financing Cash Flow
760,000
323,000
Cash Flow From Continuing Financing Activities
760,000
323,000
Net Other Financing Charges
-6,000
-62,000
Cash Dividends Paid
-334,000
-315,000
Common Stock Dividend Paid
-334,000
-315,000
Net Issuance Payments Of Debt
1,100,000
700,000
Net Short Term Debt Issuance
125,000
700,000
Short Term Debt Payments
125,000
600,000
Short Term Debt Issuance
0
Net Long Term Debt Issuance
975,000
0
Long Term Debt Payments
-425,000
0
Long Term Debt Issuance
1,400,000
0
Investing Cash Flow
-831,000
-1,248,000
Cash Flow From Continuing Investing Activities
-831,000
-1,248,000
Net Other Investing Changes
12,000
-119,000
Net PPE Purchase And Sale
-843,000
-1,129,000
Purchase Of PPE
-843,000
-1,129,000
Operating Cash Flow
716,000
721,000
Cash Flow From Continuing Operating Activities
716,000
721,000
Change In Working Capital
-250,000
39,000
Change In Other Working Capital
-332,000
-57,000
Change In Other Current Liabilities
79,000
Change In Payables And Accrued Expense
-26,000
-11,000
Change In Payable
-26,000
-11,000
Change In Tax Payable
-26,000
-11,000
Change In Income Tax Payable
-26,000
-11,000
Change In Prepaid Assets
165,000
109,000
Change In Receivables
-136,000
-4,000
Other Non Cash Items
-139,000
-104,000
Deferred Tax
78,000
37,000
Deferred Income Tax
78,000
37,000
Depreciation Amortization Depletion
384,000
366,000
Depreciation And Amortization
384,000
366,000
Depreciation
384,000
366,000
Operating Gains Losses
267,000
68,000
Pension And Employee Benefit Expense
6,000
19,000
Gain Loss On Investment Securities
261,000
49,000
Net Income From Continuing Operations
376,000
315,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $3.2B▼ $3.0B-6.4%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 36.1%▼ 31.4%-4.8pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 19.3%▼ 20.6%+1.3pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 19.3%▼ 12.5%-6.8pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$3.0B/qtr (≈$12.1B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.01x current ratio
vs ≥ 2.0x
❌ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
-$127M
vs Positive
Operating Cash Flow
$716M
Latest quarter · Buffett's cash reality check
ROIC
0.9%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
2.1x
Net Assets: $17.4B
⚠️Net margin compressed 6.8pp vs same quarter last year. Common causes: one-time charges (restructuring, write-downs, legal settlements), tax rate changes, or rising interest expense. Check the income statement notes before drawing conclusions about operating health.
Peers & Industry
No auto-detected peers for Utilities - Regulated Electric. You can manually compare PEG against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.13%
Low — management has little skin in the game
Return on Equity (ROE)
2.2%
Weak — poor returns on equity
Return on Assets (ROA)
0.6%
Poor — assets are not generating adequate returns
Debt Trend YoY
+4.4% YoY
Debt is roughly stable
Leadership Team
Ralph LaRossa
Chair, President & CEO
Age 62
Pay: $4,132,581
1.099% of net income
Daniel Cregg
Executive VP & CFO
Age 61
Pay: $1,938,003
0.515% of net income
Kim Hanemann
President & COO of Public Service Electric & Gas
Age 61
Pay: $1,877,585
0.499% of net income
Carlotta Chan
Vice President of Investor Relations
Karen Cleeve
Vice President of Corporate Communications
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
10.79%
53,801,998
Vanguard Capital Management LLC
6.53%
32,546,782
Vanguard Portfolio Management LLC
6.10%
30,386,398
State Street Corporation
5.91%
29,481,434
Bank of America Corporation
2.98%
14,876,783
Geode Capital Management, LLC
2.65%
13,217,077
Capital Research Global Investors
2.15%
10,718,961
Morgan Stanley
1.54%
7,653,655
Risk Analysis
Beta (Market Risk)
0.49
Low volatility — more stable than the market
Short Interest
2.0% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
1.48x
Moderate leverage
Current Ratio
1.01x
Adequate liquidity
52-Week Price Range
Low: $66.15Current: $72.61High: $87.63
Currently at 30% of 52-week range
Public Service Enterprise Group Incorporated (PEG) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $24.40. Margin of safety: 0%. Gross profit margin: 31.4%. Operating margin: 20.6%. Net margin: 12.5%. Market cap: $36.2B. Sector: Utilities. Industry: Utilities - Regulated Electric. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.