EVERSOURCE ENERGY (ES) Stock Fundamental Analysis
USA - NYSE:ES - US30040W1080 - Common Stock
73.81 USD
+0.01 (+0.01%)
73.9 USD
+0.09 (+0.12%)
Overall ES gets a fundamental rating of 3 out of 10. We evaluated ES against 47 industry peers in the Electric Utilities industry. Both the profitability and financial health of ES have multiple concerns. ES is valied quite expensively at the moment, while 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.
In the past year ES had a positive cash flow from operations.
Of the past 5 years ES 4 years were profitable.
In the past 5 years ES always reported a positive cash flow from operatings.
1.2 Ratios
ES has a worse Return On Assets (1.41%) than 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.
ES's Return On Invested Capital of 3.39% is on the low side compared to the rest of the industry. ES is outperformed by 72.34% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ES is in line with the industry average of 4.91%.
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 Profit Margin of 6.60%. This is amonst the worse of the industry: ES underperforms 82.98% of its industry peers.
In the last couple of years the Profit Margin of ES has declined.
ES's Operating Margin of 21.91% is in line compared to the rest of the industry. ES outperforms 57.45% 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
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
The debt/assets ratio for ES is higher compared to a year ago.
2.2 Solvency
ES has an Altman-Z score of 0.79. This is a bad value and indicates that ES is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.79, ES perfoms like the industry average, outperforming 42.55% of the companies in the same industry.
ES has a Debt/Equity ratio of 1.76. This is a high value indicating a heavy dependency on external 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 | 0.79 |
ROIC/WACC0.61
WACC5.53%
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.
A Quick Ratio of 0.63 indicates that ES may have some problems paying 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.
The Earnings Per Share has been growing slightly by 5.83% on average over the past years.
Looking at the last year, ES shows a quite strong growth in Revenue. The Revenue has grown by 14.48% 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)-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.
ES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.53% yearly.
EPS Next Y6.8%
EPS Next 2Y6.17%
EPS Next 3Y6.07%
EPS Next 5Y6.21%
Revenue Next Year2.77%
Revenue Next 2Y3.5%
Revenue Next 3Y3.56%
Revenue Next 5Y5.53%
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.
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
The Price/Earnings ratio is 16.05, which indicates a correct valuation of ES.
ES's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ES to the average of the S&P500 Index (26.11), we can say ES is valued slightly cheaper.
ES is valuated correctly with a Price/Forward Earnings ratio of 14.30.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, ES is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 14.3 |
4.2 Price Multiples
ES's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ES is more expensive than 61.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.77 |
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)2.75
EPS Next 2Y6.17%
EPS Next 3Y6.07%
5. Dividend
5.1 Amount
ES has a Yearly Dividend Yield of 4.08%, which is a nice return.
Compared to an average industry Dividend Yield of 3.21, ES pays a better dividend. On top of this ES pays more dividend than 80.85% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, ES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
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 123.42% 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.
DP123.42%
EPS Next 2Y6.17%
EPS Next 3Y6.07%
73.81
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.03%
Inst Owner Change0.22%
Ins Owners0.16%
Ins Owner Change-0.16%
Market Cap27.39B
Revenue(TTM)12.99B
Net Income(TTM)857.98M
Analysts73.6
Price Target76.04 (3.02%)
Short Float %1.35%
Short Ratio1.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
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)6.55%
PT rev (3m)6.98%
EPS NQ rev (1m)-1.14%
EPS NQ rev (3m)-3.92%
EPS NY rev (1m)0.18%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)-3.43%
Revenue NQ rev (3m)-7.65%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-3.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 14.3 | ||
| P/S | 2.11 | ||
| P/FCF | N/A | ||
| P/OCF | 8.31 | ||
| P/B | 1.73 | ||
| P/tB | 2.24 | ||
| EV/EBITDA | 12.77 |
EPS(TTM)4.6
EY6.23%
EPS(NY)5.16
Fwd EY6.99%
FCF(TTM)-2.73
FCFYN/A
OCF(TTM)8.88
OCFY12.03%
SpS35.01
BVpS42.63
TBVpS33.01
PEG (NY)2.36
PEG (5Y)2.75
Graham Number66.43
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%
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 | 1.76 | ||
| 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 | 0.79 |
F-Score7
WACC5.53%
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)-3.56%
EPS 3Y6.42%
EPS 5Y5.83%
EPS Q2Q%1.05%
EPS Next Y6.8%
EPS Next 2Y6.17%
EPS Next 3Y6.07%
EPS Next 5Y6.21%
Revenue 1Y (TTM)14.48%
Revenue growth 3Y6.18%
Revenue growth 5Y6.91%
Sales Q2Q%12.02%
Revenue Next Year2.77%
Revenue Next 2Y3.5%
Revenue Next 3Y3.56%
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%
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 2 / 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 16.05 and the Price/Book (PB) ratio is 1.73.
Can you provide the dividend sustainability for ES stock?
The dividend rating of EVERSOURCE ENERGY (ES) is 7 / 10 and the dividend payout ratio is 123.42%.