EVERSOURCE ENERGY (ES) Stock Fundamental Analysis
USA - NYSE:ES - US30040W1080 - Common Stock
72.35 USD
-0.04 (-0.06%)
72.35 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to ES. ES was compared to 47 industry peers in the Electric Utilities industry. ES has a bad profitability rating. Also its financial health evaluation is rather negative. ES is quite expensive at the moment. It does show a decent growth rate. Finally 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.
ES had positive earnings in 4 of the past 5 years.
In the past 5 years ES always reported a positive cash flow from operatings.
1.2 Ratios
ES's Return On Assets of 1.41% is on the low side compared to the rest of the industry. ES is outperformed by 91.49% of its industry peers.
ES's Return On Equity of 5.42% is on the low side compared to the rest of the industry. ES is outperformed by 89.36% of its industry peers.
With a Return On Invested Capital value of 3.39%, ES is not doing good in the industry: 72.34% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for ES is in line with the industry average of 4.95%.
The last Return On Invested Capital (3.39%) for ES is above the 3 year average (3.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.41% | ||
| ROE | 5.42% | ||
| ROIC | 3.39% |
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
ES has a worse Profit Margin (6.60%) than 82.98% of its industry peers.
In the last couple of years the Profit Margin of ES has declined.
ES has a Operating Margin of 21.91%. This is comparable to the rest of the industry: ES outperforms 59.57% of its industry peers.
ES's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.91% | ||
| PM (TTM) | 6.6% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ES is destroying value.
Compared to 1 year ago, ES has more shares outstanding
The number of shares outstanding for ES has been increased compared to 5 years ago.
The debt/assets ratio for ES is higher compared to a year ago.
2.2 Solvency
ES has an Altman-Z score of 0.78. This is a bad value and indicates that ES is not financially healthy and even has some risk of bankruptcy.
ES has a Altman-Z score of 0.78. This is comparable to the rest of the industry: ES outperforms 42.55% of its industry peers.
A Debt/Equity ratio of 1.76 is on the high side and indicates that ES has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.76, ES is doing worse than 74.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.78 |
ROIC/WACC0.62
WACC5.47%
2.3 Liquidity
A Current Ratio of 0.71 indicates that ES may have some problems paying its short term obligations.
The Current ratio of ES (0.71) is worse than 68.09% of its industry peers.
ES has a Quick Ratio of 0.71. This is a bad value and indicates that ES is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ES (0.63) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The earnings per share for ES have decreased by -3.56% in the last year.
ES shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.83% yearly.
The Revenue has grown by 14.48% 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)-3.56%
EPS 3Y6.42%
EPS 5Y5.83%
EPS Q2Q%1.05%
Revenue 1Y (TTM)14.48%
Revenue growth 3Y6.18%
Revenue growth 5Y6.91%
Sales Q2Q%12.02%
3.2 Future
ES is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.21% yearly.
Based on estimates for the next years, ES will show a small growth in Revenue. The Revenue will grow by 5.53% on average per year.
EPS Next Y6.61%
EPS Next 2Y6.4%
EPS Next 3Y6.28%
EPS Next 5Y6.21%
Revenue Next Year2.81%
Revenue Next 2Y3.52%
Revenue Next 3Y3.51%
Revenue Next 5Y5.53%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
ES is valuated correctly with a Price/Earnings ratio of 15.73.
Compared to the rest of the industry, the Price/Earnings ratio of ES is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.02, ES is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.95, which indicates a correct valuation of ES.
Based on the Price/Forward 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/Forward Earnings ratio of ES to the average of the S&P500 Index (22.57), we can say ES is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.73 | ||
| Fwd PE | 13.95 |
4.2 Price Multiples
ES's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.64 |
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)2.38
PEG (5Y)2.7
EPS Next 2Y6.4%
EPS Next 3Y6.28%
5. Dividend
5.1 Amount
ES has a Yearly Dividend Yield of 4.16%, which is a nice return.
Compared to an average industry Dividend Yield of 3.40, ES pays a bit more dividend than its industry peers.
ES's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
5.2 History
The dividend of ES is nicely growing with an annual growth rate of 6.33%!
ES has been paying a dividend for at least 10 years, so it has a reliable track record.
ES has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.33%
Div Incr Years25
Div Non Decr Years25
5.3 Sustainability
123.42% of the earnings are spent on dividend by ES. This is not a sustainable payout ratio.
ES's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP123.42%
EPS Next 2Y6.4%
EPS Next 3Y6.28%
72.35
-0.04 (-0.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.03%
Inst Owner Change0.01%
Ins Owners0.16%
Ins Owner Change-0.16%
Market Cap26.85B
Analysts73.6
Price Target72.61 (0.36%)
Short Float %1.5%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
Yearly Dividend2.82
Dividend Growth(5Y)6.33%
DP123.42%
Div Incr Years25
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.02%
Min EPS beat(2)-3.65%
Max EPS beat(2)-2.38%
EPS beat(4)1
Avg EPS beat(4)-1.55%
Min EPS beat(4)-3.65%
Max EPS beat(4)1.25%
EPS beat(8)2
Avg EPS beat(8)2.64%
EPS beat(12)4
Avg EPS beat(12)1.7%
EPS beat(16)5
Avg EPS beat(16)0.93%
Revenue beat(2)1
Avg Revenue beat(2)1.59%
Min Revenue beat(2)-5.46%
Max Revenue beat(2)8.64%
Revenue beat(4)1
Avg Revenue beat(4)-1.95%
Min Revenue beat(4)-8%
Max Revenue beat(4)8.64%
Revenue beat(8)1
Avg Revenue beat(8)-9.36%
Revenue beat(12)4
Avg Revenue beat(12)-0.17%
Revenue beat(16)8
Avg Revenue beat(16)2.19%
PT rev (1m)1.74%
PT rev (3m)2.42%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-1.71%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-4.01%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-3.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.73 | ||
| Fwd PE | 13.95 | ||
| P/S | 2.07 | ||
| P/FCF | N/A | ||
| P/OCF | 8.15 | ||
| P/B | 1.7 | ||
| P/tB | 2.19 | ||
| EV/EBITDA | 12.64 |
EPS(TTM)4.6
EY6.36%
EPS(NY)5.18
Fwd EY7.17%
FCF(TTM)-2.73
FCFYN/A
OCF(TTM)8.88
OCFY12.27%
SpS35.01
BVpS42.63
TBVpS33.01
PEG (NY)2.38
PEG (5Y)2.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.41% | ||
| ROE | 5.42% | ||
| ROCE | 5.26% | ||
| ROIC | 3.39% | ||
| ROICexc | 3.41% | ||
| ROICexgc | 3.65% | ||
| OM | 21.91% | ||
| PM (TTM) | 6.6% | ||
| 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-Score7
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.39 | ||
| Cap/Depr | 286.47% | ||
| Cap/Sales | 33.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.78 |
F-Score7
WACC5.47%
ROIC/WACC0.62
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)-3.56%
EPS 3Y6.42%
EPS 5Y5.83%
EPS Q2Q%1.05%
EPS Next Y6.61%
EPS Next 2Y6.4%
EPS Next 3Y6.28%
EPS Next 5Y6.21%
Revenue 1Y (TTM)14.48%
Revenue growth 3Y6.18%
Revenue growth 5Y6.91%
Sales Q2Q%12.02%
Revenue Next Year2.81%
Revenue Next 2Y3.52%
Revenue Next 3Y3.51%
Revenue Next 5Y5.53%
EBIT growth 1Y12.37%
EBIT growth 3Y9.3%
EBIT growth 5Y8.19%
EBIT Next Year83.01%
EBIT Next 3Y27.55%
EBIT Next 5Y18.14%
FCF growth 1Y41.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y49.34%
OCF growth 3Y3.24%
OCF growth 5Y1.45%