PG&E
Through the investors’ lenses
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 1/3
| Measure | PCG | Checked against | |
|---|---|---|---|
| Owner earnings | — | positive | — |
| Return on equity | 8.3% | median 11.7% | ✗ |
| Debt to equity | 1.79x | median 0.79x | ✗ |
| Operating margin | 19.0% | median 15.0% | ✓ |
Passes 1 of 3. To be clear: Warren Buffett has never said anything about PG&E. These are the company’s own figures put through the tests he described. What he looks at, and why →
Terry Smith 2/4
| Measure | PCG | Checked against | |
|---|---|---|---|
| Return on capital employed | 5.2% | median 10.1% | ✗ |
| Cash conversion | 3.22x | median 1.78x | ✓ |
| Operating margin | 19.0% | median 15.0% | ✓ |
| Debt to equity | 1.79x | median 0.79x | ✗ |
Passes 2 of 4. To be clear: Terry Smith has never said anything about PG&E. These are the company’s own figures put through the tests he described. What he looks at, and why →
Charlie Munger 1/3
| Measure | PCG | Checked against | |
|---|---|---|---|
| Return on capital employed | 5.2% | median 10.1% | ✗ |
| Return on equity | 8.3% | median 11.7% | ✗ |
| Operating margin | 19.0% | median 15.0% | ✓ |
Passes 1 of 3. To be clear: Charlie Munger has never said anything about PG&E. These are the company’s own figures put through the tests he described. What he looks at, and why →
Chuck Akre 1/4
| Measure | PCG | Checked against | |
|---|---|---|---|
| Return on equity | 8.3% | median 11.7% | ✗ |
| Debt to equity | 1.79x | median 0.79x | ✗ |
| Cash conversion | 3.22x | median 1.78x | ✓ |
| Return on equity, sustained | 0 of 10 | 8 of 10 above median | ✗ |
Passes 1 of 4. To be clear: Chuck Akre has never said anything about PG&E. These are the company’s own figures put through the tests he described. What he looks at, and why →
Philip Fisher 3/4
| Measure | PCG | Checked against | |
|---|---|---|---|
| Operating margin | 19.0% | median 15.0% | ✓ |
| Net margin | 10.8% | median 10.2% | ✓ |
| Return on capital employed | 5.2% | median 10.1% | ✗ |
| Operating margin, held or improving | 19.0% | 10-yr median 9.5% | ✓ |
Passes 3 of 4. To be clear: Philip Fisher has never said anything about PG&E. These are the company’s own figures put through the tests he described. What he looks at, and why →
Walter Schloss 0/2
| Measure | PCG | Checked against | |
|---|---|---|---|
| Current ratio | 0.97x | median 1.25x | ✗ |
| Debt to equity | 1.79x | median 0.79x | ✗ |
Passes 0 of 2. To be clear: Walter Schloss has never said anything about PG&E. These are the company’s own figures put through the tests he described. What he looks at, and why →
Benjamin Graham 0/2
| Measure | PCG | Checked against | |
|---|---|---|---|
| Current ratio | 0.97x | 2.00x published | ✗ |
| Long-term debt to working capital | — | 1.00x published | — |
| Positive earnings, ten years running | 4 yrs | 10 published | ✗ |
Passes 0 of 2. To be clear: Benjamin Graham has never said anything about PG&E. These are the company’s own figures put through the tests he described. What he looks at, and why →
Joel Greenblatt 0/1
| Measure | PCG | Checked against | |
|---|---|---|---|
| Return on capital employed | 5.2% | median 10.1% | ✗ |
Passes 0 of 1. To be clear: Joel Greenblatt has never said anything about PG&E. These are the company’s own figures put through the tests he described. What he looks at, and why →
Peter Lynch 1/2
| Measure | PCG | Checked against | |
|---|---|---|---|
| Debt to equity | 1.79x | median 0.79x | ✗ |
| Net margin | 10.8% | median 10.2% | ✓ |
Passes 1 of 2. To be clear: Peter Lynch has never said anything about PG&E. These are the company’s own figures put through the tests he described. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| GAAP earnings | 10.7% | whyThe dividend is set against the allowed return on the rate base. |
| Operating cash flow | 3.2% | whyBefore the capital programme the regulator expects. |
| Free cash flow | negative | whyOCF fell $3,071m short of capex — normal for a utility funding its rate base. |
Spread between highest and lowest: 7.5 percentage points. Same filings, different denominators.
Coverage rating 77 / 100 — Adequate. ? Peer standing 47/50Direction 30/30Stability 0/20
GAAP earnings payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2025-12-31 | 10.7% |
| 2024-12-31 | 3.5% |
| 2023-12-31 | 0.9% |
| 2017-12-31 | 62.0% |
| 2016-12-31 | 66.1% |
| 2015-12-31 | 98.2% |
Coverage worsened sharply this year, 3.5% to 10.7%, after no clear trend before it. One year is not a trend, but it is worth knowing which direction the last one moved.
95% of the 57 utilities here pay out more — comfortable for the sector.
The arithmetic
- GAAP earnings — dividends declared per share $0.126 ÷ diluted EPS $1.18
- Operating cash flow — dividends paid $277m ÷ operating cash flow $8,716m
- Free cash flow — dividends paid $277m ÷ (operating cash flow $8,716m − capex $11,787m)
Where the figures came from
- 10-K filed 2026-02-12 · accession 0001004980-26-000009
All public at sec.gov — you should not have to take our word for it.
Caveats on this company
- DPS derived from dividends paid ($0.13); no per-share tag filed
Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.
What the GAAP earnings payout ratio measures, and where every company here sits on it.
Also on: rated adequate · when it files.
When this changes
Every figure above is recomputed whenever PG&E files. The monthly letter carries what filed, what moved, and one finding computed across every company here.