pg&e stock forecast 2025
PG&E
Morningstar Rating: 2 stars
One-Week Return: 1.42%
Regulated electric company PG&E has climbed 4.80% over the past three months and 13.85% over the past year. The stock is trading at a 13% premium to its fair value estimate of $18 per share, with an Uncertainty Rating of Medium. PG&E is a mid-value company with no economic moat.
PG&E has faced over $30 billion in legal claims for its role in past California wildfires, prompting the utility to file for Chapter 11 bankruptcy in 2019 — dubbed by Harvard researchers as “the first climate change bankruptcy.”
pg&e stock price
PG&E Corporation (NYSE:PCG)
PG&E Corporation (NYSE:PCG) shares dived by 10.81 percent on Friday to finish the week at $17.17 each as investor sentiment was dampened by the ongoing wildfire in Los Angeles that has already destroyed thousands of structures and claimed the lives of 10 people.
Does PG&E Have A Good ROE?
Arguably the easiest way to assess company’s ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. You can see in the graphic below that PG&E has an ROE that is fairly close to the average for the Electric Utilities industry (9.4%).
That’s neither particularly good, nor bad. While at least the ROE is not lower than the industry, its still worth checking what role the company’s debt plays as high debt levels relative to equity may also make the ROE appear high. If true, then it is more an indication of risk than the potential.
is pg&e a good stock to buy
PG&E Corporation (NYSE:PCG) is an energy company with businesses in renewable energy, solar, electric vehicles, natural gas vehicles, and battery storage, among others. It has service areas in various portions of California.
PG&E Corporation (NYSE:PCG) is actively expanding its capital investment plan to meet the growing demand for energy infrastructure in California. The company recently added $1 billion to its five-year capital plan, bringing the total to $63 billion through 2028. This additional investment is a direct response to the increasing customer demand for electrification, from housing developments to electric vehicle (EV) charging stations, data centers, and commercial projects. The capital is designed to enhance the reliability and resilience of the company’s infrastructure while ensuring that these investments are affordable for customers and accretive to the company’s earnings.
Additionally, PG&E Corporation (NYSE:PCG) is exploring innovative solutions to leverage new load in ways that benefit the grid. One notable example is the partnership with the Open School District and Zoom to deploy the nation’s largest bidirectional electric school bus fleet. This fleet is equipped with vehicle-to-grid technology, allowing the buses to return energy to the grid when not in use.