10Y annualized return is
positive but below market average
at 1.7% per year
ES has met or exceeded earnings expectations in
few
recent quarters (4/10)
Reasonable Price-to-Earnings Ratio
Attractive Price-to-Book Ratio
Strong Gross Profit Margin
Decent Operating Profit Margin
Manageable Debt-to-Equity Ratio
💪 Strong Financial Performance
🔒 Customer-Centric Focus
📈 Strategic Growth Initiatives
🌍 Commitment to Clean Energy
🔧 Infrastructure Modernization
High EV/EBITDA Ratio
Negative Price-to-Free Cash Flow Ratio
Low Net Profit Margin
Low Return on Equity
Low Current and Quick Ratios
Negative Free Cash Flow
⚠️ Regulatory Challenges
💸 Potential Dilution from Equity Issuance
Eversource Energy demonstrates a strong business model with solid financial performance and a customer-centric focus. The company is well-positioned for future growth through strategic investments in infrastructure and clean energy. However, it faces regulatory challenges and potential dilution from equity issuance that could impact its short-term growth prospects.
Analysis Date: February 12, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Eversource Energy is a company that provides essential services like electricity, natural gas, and water to homes and businesses in Connecticut, Massachusetts, and New Hampshire. They make sure that your lights stay on and that you have gas for heating and cooking. Eversource also operates solar power facilities to help provide clean energy. In simple terms, they help keep your home running smoothly by delivering the energy and water you need every day.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Consumer
Competitive Advantages
Key Business Risks
Latest News
HOPKINTON, NH — Dozens of firefighters battled building and brush fires in Hopkinton on Monday afternoon. Just past 3 p.m., Capital Region Fire Dispat...
Dividend stock investing has proved to be a superior investing strategy.
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$85.27
Current Market Price: $59.91
IV/P Ratio: 1.42x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
30.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for ES
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (26.34)
P/B ratio ≤ 1.5 (1.42)
Current ratio ≥ 2.0 (0.76x)
Long-term debt < Net current assets (-15.82x)
Margin of safety (30.0%)
ES does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
A gross profit margin of 43.82% indicates effective cost management and pricing strategies.
An operating profit margin of 20.24% shows that the company is maintaining a good level of profitability from its core operations.
The net profit margin of 6.82% is relatively low, indicating that a smaller proportion of revenues is being converted into profit.
A return on equity of 5.46% is quite low, suggesting that the company is not generating strong returns for its shareholders.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
5.46%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-25)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
43.82%
Higher values indicate better efficiency in production
TTM (as of 2025-04-25)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
6.82%
Higher values indicate better overall profitability
TTM (as of 2025-04-25)
A debt-to-equity ratio of 1.94 indicates that the company uses a reasonable amount of debt to finance its growth.
Current and quick ratios of 0.76 and 0.67 suggest potential liquidity issues, indicating that the company may struggle to meet short-term obligations.
With a free cash flow per share of -6.49, the company is currently not generating cash after capital expenditures, which is a warning sign for financial stability.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
1.92x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.76x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Eversource Energy reported a 5.3% year-over-year increase in earnings per share, reflecting effective management and strong operational performance. The company also emphasized its commitment to maintaining a solid balance sheet and improving its financial metrics, like the FFO to debt ratio.
Eversource has prioritized customer trust and satisfaction, implementing various initiatives to enhance customer service and improve reliability. The company has also received recognition for its commitment to environmental, social, and corporate governance, which strengthens its brand and customer relationships.
Eversource is actively investing in infrastructure development, including a $24.2 billion five-year capital investment plan focused on electric and natural gas services. This plan aims to modernize aging infrastructure, improve reliability, and support clean energy goals.
The company faces ongoing regulatory scrutiny, particularly in Connecticut, which could impact its ability to execute its strategic plans effectively. The uncertainty surrounding regulatory decisions poses a risk to future operational stability.
Eversource is positioning itself as a leader in the energy transition, with ongoing investments in renewable energy projects and infrastructure that meet state energy goals. The company is actively pursuing opportunities in clean energy initiatives, including offshore wind and geothermal projects.
The company is focusing on replacing aging infrastructure to enhance resiliency, which is critical for supporting future energy demands. The new projects, including a groundbreaking underground substation, demonstrate commitment to innovation in energy delivery.
To support its capital plans, Eversource will need to issue equity, which may dilute existing shareholders' value. This could affect earnings growth in the short term and create uncertainty regarding future profitability.