Pacific Gas & Electric PCG
Pacific Gas & Electric is a regulated utility that generates and distributes electricity and natural gas in northern and central California. PG&E shows fragile financial health with net debt of 6.10x EBITDA and negative free cash flow conversion, which weighs on its quality. Its valuation appears attractive (P/E 8.93, P/B 0.85), but regulatory and wildfire risk in California remains a structural drag.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Pacific Gas & Electric is a regulated utility that generates and distributes electricity and natural gas in northern and central California. PG&E shows fragile financial health with net debt of 6.10x EBITDA and negative free cash flow conversion, which weighs on its quality. Its valuation appears attractive (P/E 8.93, P/B 0.85), but regulatory and wildfire risk in California remains a structural drag.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.6 |
| Quality / Moat | 3.1 |
| Valuation | 6.1 |
| Growth | 6.0 |
| Dividend | 4.5 |
| Momentum | 6.1 |
| Risk & Context | 7.6 |
OVERALL SCORE: 5.6/10
Context and risks
PG&E operates in California, where regulatory and wildfire liability risk is structural and high. The recent UBS downgrade due to the fading reform catalyst underscores the persistent exposure to this risk.
News considered in the analysis
- PG&E downgraded by UBS as wildfire reform catalyst fades — Downgrade de UBS: el catalizador de la reforma de incendios forestales se desvanece, lo que reduce el atractivo de la acción.
- How Low Can PG&E Stock Go When The Risk Is Its Own? — Artículo de Trefis que cuestiona el riesgo intrínseco de la empresa, reflejando preocupaciones sobre su perfil de riesgo.
- Sector Update: Energy Stocks Rise Late Afternoon — Actualización general del sector sin información específica sobre PG&E.
- Edison International’s Dividend Looks Attractive. The $40 Billion Question Is What Comes Next — Noticia sobre un competidor (Edison International), no afecta directamente a PG&E.
- Microsoft upgraded, HubSpot initiated: Wall Street's top analyst calls — Listado de llamadas de analistas sin relevancia para PG&E.
Verdict: Hold, given regulatory and balance sheet risk, despite the seemingly low valuation.
Main risk: The main risk is exposure to wildfire liabilities in California and high leverage (ND/EBITDA 6.10), which could worsen in a higher rate environment.
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