Pacific Gas & Electric ranks as an industry growth leader for regulated utilities with rising earnings and 23% analyst upside at a forward P/E of 9.2x, though negative free cash flow of 196% relative to net income and heavy California geographic concentration temper the quality case.
Thesis pillars
- Fcf Deficit Quality Concern→Stable
- Utility Growth Leader Valuation↓Deteriorating
- Earnings Growth Beat Cadence↑Improving
- +1 more pillar — see the Why tab for full reasoning
Pacific Gas & Electric Co. (PCG) Stock Analysis
Breakout setup
Utilities · Utilities - Regulated Electric
Hold if already holding. Not a fresh buy at $17.78, but acceptable to hold if already in. Reasons: Concentration risk — Geographic: Northern and Central California; Leverage penalty (D/E 1.9): -1.0.
Pacific Gas and Electric Company serves Northern and Central California as a regulated electric and natural gas utility, owned by PG&E Corporation. Revenue is earned under cost-of-service ratemaking with rates set by the CPUC and FERC; the utility recorded $13.4 billion in... Read more
Hold if already holding. Not a fresh buy at $17.78, but acceptable to hold if already in. Reasons: Concentration risk — Geographic: Northern and Central California; Leverage penalty (D/E 1.9): -1.0. Chart setup: Golden cross, above all MAs, RSI 61, MACD bullish. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 6.3/10, moderate confidence.
Passes 8/8 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 84d clear, semi cycle peak clear, materials cycle peak clear). Suitability: moderate.
About Pacific Gas & Electric Co.
About Pacific Gas & Electric Co.
PG&E Corporation's primary operating subsidiary, Pacific Gas and Electric Company, recorded $13.4 billion in capital expenditures in 2025, with forecasted capex of $15.4 billion in 2028, $16.3 billion in 2029, and $16.0 billion in 2030. The utility serves Northern and Central California under the jurisdiction of the CPUC, FERC, and NRC, has contracted for more than 4.9 GW of battery energy storage capacity, and has helped connect over 820,000 electric vehicles within its service area.
Pacific Gas and Electric earns revenue through the sale and delivery of electricity and natural gas under cost-of-service ratemaking, where the CPUC and FERC set authorized rates and returns on capital in periodic ratemaking proceedings. The utility operates two nuclear generating units, an extensive hydroelectric system, and contracted renewable resources alongside transmission and distribution infrastructure across its service territory. Recovery of capex depends on regulatory authorization of future rate base additions: $2.85 billion of fire risk mitigation capital expenditures are excluded from the equity rate base under SB 254. The company targets limiting average annual customer rate increases to 3%, relying on expected load growth from data centers, electric vehicles, and building electrification to spread fixed costs, and targets a dividend payout ratio of approximately 20% of core earnings by 2028.
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Wildfire liability is a distinct structural risk with specific financial consequences. Accrued losses for the 2019 Kincade fire and 2021 Dixie fire stand at $1.325 billion and $2.15 billion respectively, against available insurance coverage of only $430 million and $521 million; recovery of the excess requires CPUC determinations of prudent cost management. The disallowance cap under AB 1054 and SB 254 is unavailable if the Wildfire Fund administrator finds the utility acted with 'conscious or willful disregard for the rights and safety of others,' or if the utility lacks a valid OEIS safety certification at the time of ignition. The CPUC's Enhanced Oversight and Enforcement Process could escalate to revocation of the utility's Certificate of Public Convenience and Necessity based on specific triggering events.
See also: Utilities · Utilities - Regulated Electric
From Pacific Gas & Electric Co.'s most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-07-31Recent Developments — Pacific Gas & Electric Co.
Latest news
- NEWS PACIFIC GAS & ELECTRIC CO 5% 1ST CUM RED'A'PFD USD25 To Go Ex-Dividend On April 30th, 2026 With 0.3125 USD Dividend Per — Moomoo neutral
- NEWS PCG Stock Grinds Higher As Wall Street Ups Targets - timothysykes.com — timothysykes.com positive
- NEWS Pacific (PCG^G) Stock: Chart Behavior Analysis Earnings Report - Expert Stock Picks - Xã Vĩnh Công — Xã Vĩnh Công neutral
- NEWS Is Pacific (PCG^B) stock forming a bearish structure Earnings Report - Hot Momentum Watchlist - Cổng thông tin điện tử t — Cổng thông tin điện tử tỉnh Lào Cai negative
- NEWS Pacific Gas & Electric (NYSE:PCG) Upgraded at Truist Financial - MarketBeat — MarketBeat positive
Generated 2026-07-31T04:23:33Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHGeographicNorthern and Central California10-K Item 1: 'Pacific Gas and Electric Company, a public utility operating in Northern and Central California'
- MEDIUMregulatoryCPUC10-K Item 1: 'The Utility is regulated primarily at the state level by the CPUC'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 floor-breaker
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $17.78, but acceptable to hold if already in. Reasons: Concentration risk — Geographic: Northern and Central California; Leverage penalty (D/E 1.9): -1.0. Chart setup: Golden cross, above all MAs, RSI 61, MACD bullish. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Target $20.62 (+16.0%), stop $16.86 (−5.5%), A.R:R 2.5:1. Score 6.3/10, moderate confidence.
Take-profit target: $20.62 (+15.9% upside). Target $20.62 (+16.0%), stop $16.86 (−5.5%), A.R:R 2.5:1. Stop-loss: $16.86.
Concentration risk — Geographic: Northern and Central California; Leverage penalty (D/E 1.9): -1.0; Value-trap signals (2/5): High leverage (D/E 1.9), Negative free cash flow.
Pacific Gas & Electric Co. trades at a P/E of 12.8 (forward 9.8). TrendMatrix value score: 7.8/10. Verdict: Hold.
22 analysts cover PCG with a consensus score of 4.0/5. Average price target: $23.
What does Pacific Gas & Electric Co. do?Pacific Gas and Electric Company serves Northern and Central California as a regulated electric and natural gas...
Pacific Gas and Electric Company serves Northern and Central California as a regulated electric and natural gas utility, owned by PG&E Corporation. Revenue is earned under cost-of-service ratemaking with rates set by the CPUC and FERC; the utility recorded $13.4 billion in capital expenditures in 2025.