EVERSOURCE ENERGY (ES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ES - US30040W1080 - Common Stock
67.18 USD
+0.48 (+0.72%)
67.18 USD
0 (0%)
Overall ES gets a fundamental rating of 3 out of 10. We evaluated ES against 47 industry peers in the Electric Utilities industry. ES has a bad profitability rating. Also its financial health evaluation is rather negative. ES is valued expensive and it does not seem to be growing. ES also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ES was profitable.
In the past year ES had a positive cash flow from operations.
ES had positive earnings in 4 of the past 5 years.
ES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ES's Return On Assets of 2.18% is on the low side compared to the rest of the industry. ES is outperformed by 82.98% of its industry peers.
ES's Return On Equity of 8.30% is on the low side compared to the rest of the industry. ES is outperformed by 68.09% of its industry peers.
With a Return On Invested Capital value of 3.41%, ES is not doing good in the industry: 70.21% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for ES is in line with the industry average of 4.92%.
The 3 year average ROIC (3.08%) for ES is below the current ROIC(3.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 8.3% | ||
| ROIC | 3.41% |
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 10.22%, ES is doing worse than 72.34% of the companies in the same industry.
In the last couple of years the Profit Margin of ES has declined.
ES has a Operating Margin (22.23%) which 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 | 22.23% | ||
| PM (TTM) | 10.22% | ||
| 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.
ES has more shares outstanding than it did 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
Based on the Altman-Z score of 0.76, we must say that ES is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ES (0.76) is worse than 63.83% of its industry peers.
ES has a Debt/Equity ratio of 1.77. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.77, ES is doing worse than 76.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.64
WACC5.36%
2.3 Liquidity
A Current Ratio of 0.71 indicates that ES may have some problems paying its short term obligations.
ES's Current ratio of 0.71 is on the low side compared to the rest of the industry. ES is outperformed by 72.34% of its industry peers.
A Quick Ratio of 0.64 indicates that ES may have some problems paying its short term obligations.
ES has a Quick ratio of 0.64. This is comparable to the rest of the industry: ES outperforms 44.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
ES shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.74%.
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.
Looking at the last year, ES shows a quite strong growth in Revenue. The Revenue has grown by 13.16% in the last year.
ES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.91% yearly.
EPS 1Y (TTM)-9.74%
EPS 3Y6.42%
EPS 5Y5.83%
EPS Q2Q%-13.27%
Revenue 1Y (TTM)13.16%
Revenue growth 3Y6.18%
Revenue growth 5Y6.91%
Sales Q2Q%5.14%
3.2 Future
Based on estimates for the next years, ES will show a small growth in Earnings Per Share. The EPS will grow by 5.54% on average per year.
ES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.24% yearly.
EPS Next Y6.41%
EPS Next 2Y6.27%
EPS Next 3Y6.13%
EPS Next 5Y5.54%
Revenue Next Year2.6%
Revenue Next 2Y3.38%
Revenue Next 3Y3.56%
Revenue Next 5Y5.24%
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 stable.
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
The Price/Earnings ratio is 15.10, which indicates a correct valuation of ES.
Compared to the rest of the industry, the Price/Earnings ratio of ES indicates a somewhat cheap valuation: ES is cheaper than 63.83% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. ES is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.99 indicates a correct valuation of ES.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ES indicates a somewhat cheap valuation: ES is cheaper than 70.21% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.59. ES is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 12.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ES is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.91 |
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)2.36
PEG (5Y)2.59
EPS Next 2Y6.27%
EPS Next 3Y6.13%
5. Dividend
5.1 Amount
ES has a Yearly Dividend Yield of 4.74%, which is a nice return.
Compared to an average industry Dividend Yield of 3.39, ES pays a better dividend. On top of this ES pays more dividend than 89.36% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
5.2 History
The dividend of ES is nicely growing with an annual growth rate of 6.33%!
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)6.33%
Div Incr Years25
Div Non Decr Years25
5.3 Sustainability
80.40% 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.
DP80.4%
EPS Next 2Y6.27%
EPS Next 3Y6.13%
67.18
+0.48 (+0.72%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.03%
Inst Owner Change1.18%
Ins Owners0.16%
Ins Owner Change-0.97%
Market Cap25.21B
Revenue(TTM)13.15B
Net Income(TTM)1.34B
Analysts73.33
Price Target77.13 (14.81%)
Short Float %1.47%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
Yearly Dividend2.82
Dividend Growth(5Y)6.33%
DP80.4%
Div Incr Years25
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.13%
Min EPS beat(2)-15.87%
Max EPS beat(2)-2.38%
EPS beat(4)0
Avg EPS beat(4)-5.83%
Min EPS beat(4)-15.87%
Max EPS beat(4)-1.4%
EPS beat(8)2
Avg EPS beat(8)1.16%
EPS beat(12)4
Avg EPS beat(12)0.74%
EPS beat(16)5
Avg EPS beat(16)0.3%
Revenue beat(2)0
Avg Revenue beat(2)-3.35%
Min Revenue beat(2)-5.46%
Max Revenue beat(2)-1.24%
Revenue beat(4)1
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-8%
Max Revenue beat(4)8.64%
Revenue beat(8)1
Avg Revenue beat(8)-7.3%
Revenue beat(12)3
Avg Revenue beat(12)-1.75%
Revenue beat(16)7
Avg Revenue beat(16)2.09%
PT rev (1m)6.22%
PT rev (3m)7.41%
EPS NQ rev (1m)-2.63%
EPS NQ rev (3m)-0.34%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-0.49%
Revenue NQ rev (1m)-6.04%
Revenue NQ rev (3m)-8.39%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-3.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 12.99 | ||
| P/S | 1.92 | ||
| P/FCF | N/A | ||
| P/OCF | 6.56 | ||
| P/B | 1.56 | ||
| P/tB | 2 | ||
| EV/EBITDA | 11.91 |
EPS(TTM)4.45
EY6.62%
EPS(NY)5.17
Fwd EY7.7%
FCF(TTM)-1.4
FCFYN/A
OCF(TTM)10.23
OCFY15.23%
SpS35.05
BVpS43.13
TBVpS33.62
PEG (NY)2.36
PEG (5Y)2.59
Graham Number65.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 8.3% | ||
| ROCE | 5.32% | ||
| ROIC | 3.41% | ||
| ROICexc | 3.43% | ||
| ROICexgc | 3.66% | ||
| OM | 22.23% | ||
| PM (TTM) | 10.22% | ||
| 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%
ROICexgc growth 3Y0.26%
ROICexgc 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 | 1.77 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.43 | ||
| Cap/Depr | 284.6% | ||
| Cap/Sales | 33.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.16% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.76 |
F-Score7
WACC5.36%
ROIC/WACC0.64
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)-9.74%
EPS 3Y6.42%
EPS 5Y5.83%
EPS Q2Q%-13.27%
EPS Next Y6.41%
EPS Next 2Y6.27%
EPS Next 3Y6.13%
EPS Next 5Y5.54%
Revenue 1Y (TTM)13.16%
Revenue growth 3Y6.18%
Revenue growth 5Y6.91%
Sales Q2Q%5.14%
Revenue Next Year2.6%
Revenue Next 2Y3.38%
Revenue Next 3Y3.56%
Revenue Next 5Y5.24%
EBIT growth 1Y11.77%
EBIT growth 3Y9.3%
EBIT growth 5Y8.19%
EBIT Next Year83.01%
EBIT Next 3Y27.55%
EBIT Next 5Y18.12%
FCF growth 1Y77.52%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y104.06%
OCF growth 3Y3.24%
OCF growth 5Y1.45%
EVERSOURCE ENERGY / ES FAQ
What is the fundamental rating for ES stock?
ChartMill assigns a fundamental rating of 3 / 10 to ES.
Can you provide the valuation status for EVERSOURCE ENERGY?
ChartMill assigns a valuation rating of 3 / 10 to EVERSOURCE ENERGY (ES). This can be considered as Overvalued.
Can you provide the profitability details for EVERSOURCE ENERGY?
EVERSOURCE ENERGY (ES) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for ES stock?
The Price/Earnings (PE) ratio for EVERSOURCE ENERGY (ES) is 15.1 and the Price/Book (PB) ratio is 1.56.
Can you provide the dividend sustainability for ES stock?
The dividend rating of EVERSOURCE ENERGY (ES) is 8 / 10 and the dividend payout ratio is 80.4%.