EVERSOURCE ENERGY (ES)
US30040W1080 - Common Stock
We assign a fundamental rating of 3 out of 10 to ES. ES was compared to 45 industry peers in the Electric Utilities industry. While ES is still in line with the averages on profitability rating, there are concerns on its financial health. ES is valued expensive and it does not seem to be growing. 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.
Of the past 5 years ES 4 years were profitable.
ES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.80%, ES is doing worse than 80.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of -3.09%, ES is doing worse than 80.00% of the companies in the same industry.
ES's Return On Invested Capital of 3.54% is in line compared to the rest of the industry. ES outperforms 55.56% of its industry peers.
ES had an Average Return On Invested Capital over the past 3 years of 3.48%. This is in line with the industry average of 4.42%.
The last Return On Invested Capital (3.54%) for ES is above the 3 year average (3.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.8% | ||
| ROE | -3.09% | ||
| ROIC | 3.54% |
ROA(3y)1.45%
ROA(5y)1.84%
ROE(3y)4.73%
ROE(5y)5.95%
ROIC(3y)3.48%
ROIC(5y)3.52%
1.3 Margins
With a decent Operating Margin value of 20.12%, ES is doing good in the industry, outperforming 62.22% of the companies in the same industry.
In the last couple of years the Operating Margin of ES has remained more or less at the same level.
ES does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.12% | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3Y-3.39%
OM growth 5Y-0.23%
PM growth 3YN/A
PM growth 5YN/A
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.
Compared to 1 year ago, ES has more shares outstanding
Compared to 5 years ago, ES has more shares outstanding
ES has a worse debt/assets ratio than last year.
2.2 Solvency
ES has an Altman-Z score of 0.72. This is a bad value and indicates that ES is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.72, ES is in line with its industry, outperforming 53.33% of the companies in the same industry.
A Debt/Equity ratio of 1.81 is on the high side and indicates that ES has dependencies on debt financing.
With a Debt to Equity ratio value of 1.81, ES is not doing good in the industry: 62.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.83
WACC4.27%
2.3 Liquidity
A Current Ratio of 0.67 indicates that ES may have some problems paying its short term obligations.
ES has a Current ratio of 0.67. This is in the lower half of the industry: ES underperforms 73.33% of its industry peers.
ES has a Quick Ratio of 0.67. This is a bad value and indicates that ES is not financially healthy enough and could expect problems in meeting its short term obligations.
ES's Quick ratio of 0.59 is in line compared to the rest of the industry. ES outperforms 42.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
ES shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.89%, which is quite good.
ES shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.71% yearly.
ES shows a decrease in Revenue. In the last year, the revenue decreased by -2.54%.
ES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.04% yearly.
EPS 1Y (TTM)15.89%
EPS 3Y9.1%
EPS 5Y7.71%
EPS growth Q2Q47.83%
Revenue 1Y (TTM)-2.54%
Revenue growth 3Y10.18%
Revenue growth 5Y7.04%
Revenue growth Q2Q-11.21%
3.2 Future
ES is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.14% yearly.
The Revenue is expected to grow by 4.08% on average over the next years.
EPS Next Y-1.32%
EPS Next 2Y2.09%
EPS Next 3Y3.38%
EPS Next 5Y4.14%
Revenue Next Year2.68%
Revenue Next 2Y2.85%
Revenue Next 3Y2.91%
Revenue Next 5Y4.08%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ES is valuated correctly with a Price/Earnings ratio of 12.77.
Based on the Price/Earnings ratio, ES is valued a bit cheaper than 75.56% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.20. ES is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.94, which indicates a correct valuation of ES.
Based on the Price/Forward Earnings ratio, ES is valued a bit cheaper than 71.11% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.63. ES is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 12.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ES is valued a bit more expensive than the industry average as 68.89% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.45 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.66
EPS Next 2Y2.09%
EPS Next 3Y3.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.85%, ES is a good candidate for dividend investing.
ES's Dividend Yield is rather good when compared to the industry average which is at 5.35. ES pays more dividend than 84.44% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, ES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
5.2 History
The dividend of ES has a limited annual growth rate of 5.39%.
ES has paid a dividend for at least 10 years, which is 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)5.39%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
The earnings of ES are negative and hence is the payout ratio. ES will probably not be able to sustain this dividend level.
The dividend of ES is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-209.53%
EPS Next 2Y2.09%
EPS Next 3Y3.38%
EVERSOURCE ENERGY
NYSE:ES (4/25/2024, 7:04:00 PM)
After market: 60.52 0 (0%)60.52
-0.32 (-0.53%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 12.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.8% | ||
| ROE | -3.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.12% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)15.89%
EPS 3Y9.1%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.54%
Revenue growth 3Y10.18%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y