EVERSOURCE ENERGY (ES) Stock Fundamental Analysis
NYSE:ES - New York Stock Exchange, Inc. - US30040W1080 - Common Stock - Currency: USD
We assign a fundamental rating of 2 out of 10 to ES. ES was compared to 47 industry peers in the Electric Utilities industry. ES may be in some trouble as it scores bad on both profitability and health. ES does not seem to be growing, but still is valued expensively. ES also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ES had positive earnings in the past year.
ES had a positive operating cash flow in the past year.
Of the past 5 years ES 4 years were profitable.
Each year in the past 5 years ES had a positive operating cash flow.
1.2 Ratios
ES has a worse Return On Assets (1.40%) than 91.49% of its industry peers.
With a Return On Equity value of 5.42%, ES is not doing good in the industry: 91.49% of the companies in the same industry are doing better.
ES has a Return On Invested Capital of 3.33%. This is in the lower half of the industry: ES underperforms 78.72% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ES is significantly below the industry average of 38.54%.
The 3 year average ROIC (3.08%) for ES is below the current ROIC(3.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 5.42% | ||
| ROIC | 3.33% |
ROA(3y)1.07%
ROA(5y)1.67%
ROE(3y)3.75%
ROE(5y)5.6%
ROIC(3y)3.08%
ROIC(5y)3.08%
1.3 Margins
Looking at the Profit Margin, with a value of 6.63%, ES is doing worse than 82.98% of the companies in the same industry.
ES's Profit Margin has declined in the last couple of years.
The Operating Margin of ES (21.96%) is comparable to the rest of the industry.
ES's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.96% | ||
| PM (TTM) | 6.63% | ||
| GM | N/A |
OM growth 3Y2.94%
OM growth 5Y1.2%
PM growth 3Y-17.8%
PM growth 5Y-8.56%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
ES has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ES has been increased compared to 1 year ago.
ES has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ES has a worse debt to assets ratio.
2.2 Solvency
ES has an Altman-Z score of 0.75. This is a bad value and indicates that ES is not financially healthy and even has some risk of bankruptcy.
ES's Altman-Z score of 0.75 is in line compared to the rest of the industry. ES outperforms 40.43% of its industry peers.
A Debt/Equity ratio of 1.81 is on the high side and indicates that ES has dependencies on debt financing.
The Debt to Equity ratio of ES (1.81) is worse than 72.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.61
WACC5.48%
2.3 Liquidity
A Current Ratio of 0.75 indicates that ES may have some problems paying its short term obligations.
The Current ratio of ES (0.75) is worse than 72.34% of its industry peers.
A Quick Ratio of 0.66 indicates that ES may have some problems paying its short term obligations.
ES has a Quick ratio of 0.66. This is comparable to the rest of the industry: ES outperforms 46.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The earnings per share for ES have decreased by -4.77% in the last year.
Measured over the past 5 years, ES shows a small growth in Earnings Per Share. The EPS has been growing by 5.83% on average per year.
The Revenue has grown by 10.86% in the past year. This is quite good.
ES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.91% yearly.
EPS 1Y (TTM)-4.77%
EPS 3Y6.42%
EPS 5Y5.83%
EPS Q2Q%0.67%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y6.18%
Revenue growth 5Y6.91%
Sales Q2Q%23.58%
3.2 Future
The Earnings Per Share is expected to grow by 6.25% on average over the next years.
The Revenue is expected to grow by 5.28% on average over the next years.
EPS Next Y6.93%
EPS Next 2Y6.4%
EPS Next 3Y6.24%
EPS Next 5Y6.25%
Revenue Next Year6.13%
Revenue Next 2Y4.3%
Revenue Next 3Y3.96%
Revenue Next 5Y5.28%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.32, the valuation of ES can be described as correct.
Based on the Price/Earnings ratio, ES is valued a bit cheaper than the industry average as 61.70% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ES to the average of the S&P500 Index (27.41), we can say ES is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.67 indicates a correct valuation of ES.
Based on the Price/Forward Earnings ratio, ES is valued a bit cheaper than the industry average as 63.83% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, ES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 12.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ES indicates a slightly more expensive valuation: ES is more expensive than 61.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ES does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.07
PEG (5Y)2.46
EPS Next 2Y6.4%
EPS Next 3Y6.24%
5. Dividend
5.1 Amount
ES has a Yearly Dividend Yield of 4.55%, which is a nice return.
ES's Dividend Yield is rather good when compared to the industry average which is at 3.64. ES pays more dividend than 80.85% of the companies in the same industry.
ES's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
5.2 History
On average, the dividend of ES grows each year by 6.33%, which is quite nice.
ES has paid a dividend for at least 10 years, which is a reliable track record.
ES has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.33%
Div Incr Years25
Div Non Decr Years25
5.3 Sustainability
ES pays out 123.06% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ES is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP123.06%
EPS Next 2Y6.4%
EPS Next 3Y6.24%
65.71
-0.4 (-0.61%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.32%
Inst Owner Change0.02%
Ins Owners0.16%
Ins Owner Change5.23%
Market Cap24.14B
Analysts73.33
Price Target70.89 (7.88%)
Short Float %1.7%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
Yearly Dividend2.82
Dividend Growth(5Y)6.33%
DP123.06%
Div Incr Years25
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.53%
Min EPS beat(2)-3.65%
Max EPS beat(2)-1.4%
EPS beat(4)1
Avg EPS beat(4)-1.85%
Min EPS beat(4)-3.65%
Max EPS beat(4)1.25%
EPS beat(8)3
Avg EPS beat(8)3.79%
EPS beat(12)4
Avg EPS beat(12)1.87%
EPS beat(16)5
Avg EPS beat(16)0.84%
Revenue beat(2)1
Avg Revenue beat(2)0.32%
Min Revenue beat(2)-8%
Max Revenue beat(2)8.64%
Revenue beat(4)1
Avg Revenue beat(4)-4.4%
Min Revenue beat(4)-15.27%
Max Revenue beat(4)8.64%
Revenue beat(8)1
Avg Revenue beat(8)-10.32%
Revenue beat(12)5
Avg Revenue beat(12)0.93%
Revenue beat(16)8
Avg Revenue beat(16)2.53%
PT rev (1m)-0.1%
PT rev (3m)-0.29%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.89%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)2.45%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 12.67 | ||
| P/S | 1.9 | ||
| P/FCF | N/A | ||
| P/OCF | 8.3 | ||
| P/B | 1.56 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 12.2 |
EPS(TTM)4.59
EY6.99%
EPS(NY)5.18
Fwd EY7.89%
FCF(TTM)-3.89
FCFYN/A
OCF(TTM)7.92
OCFY12.05%
SpS34.53
BVpS42.18
TBVpS32.46
PEG (NY)2.07
PEG (5Y)2.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 5.42% | ||
| ROCE | 5.19% | ||
| ROIC | 3.33% | ||
| ROICexc | 3.33% | ||
| ROICexgc | 3.56% | ||
| OM | 21.96% | ||
| PM (TTM) | 6.63% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)1.07%
ROA(5y)1.67%
ROE(3y)3.75%
ROE(5y)5.6%
ROIC(3y)3.08%
ROIC(5y)3.08%
ROICexc(3y)3.09%
ROICexc(5y)3.09%
ROICexgc(3y)3.37%
ROICexgc(5y)3.4%
ROCE(3y)4.85%
ROCE(5y)4.85%
ROICexcg growth 3Y0.26%
ROICexcg growth 5Y-0.38%
ROICexc growth 3Y1.6%
ROICexc growth 5Y0.73%
OM growth 3Y2.94%
OM growth 5Y1.2%
PM growth 3Y-17.8%
PM growth 5Y-8.56%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.58 | ||
| Cap/Depr | 294.5% | ||
| Cap/Sales | 34.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.3% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.75 |
F-Score6
WACC5.48%
ROIC/WACC0.61
Cap/Depr(3y)310.96%
Cap/Depr(5y)304.13%
Cap/Sales(3y)34.08%
Cap/Sales(5y)33.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.77%
EPS 3Y6.42%
EPS 5Y5.83%
EPS Q2Q%0.67%
EPS Next Y6.93%
EPS Next 2Y6.4%
EPS Next 3Y6.24%
EPS Next 5Y6.25%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y6.18%
Revenue growth 5Y6.91%
Sales Q2Q%23.58%
Revenue Next Year6.13%
Revenue Next 2Y4.3%
Revenue Next 3Y3.96%
Revenue Next 5Y5.28%
EBIT growth 1Y11.82%
EBIT growth 3Y9.3%
EBIT growth 5Y8.19%
EBIT Next Year78.17%
EBIT Next 3Y27.15%
EBIT Next 5Y18.12%
FCF growth 1Y8.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y38.62%
OCF growth 3Y3.24%
OCF growth 5Y1.45%