EVERSOURCE ENERGY (ES) Stock Fundamental Analysis
NYSE:ES - New York Stock Exchange, Inc. - US30040W1080 - Common Stock - Currency: USD
ES gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. ES has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
In the past year ES had a positive cash flow from operations.
ES had positive earnings in 4 of the past 5 years.
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.
ES has a worse Return On Equity (5.42%) than 91.49% of its industry peers.
With a Return On Invested Capital value of 3.33%, ES is not doing good in the industry: 78.72% of the companies in the same industry are doing better.
ES had an Average Return On Invested Capital over the past 3 years of 3.08%. This is significantly below the industry average of 38.54%.
The last Return On Invested Capital (3.33%) for ES is above the 3 year average (3.08%), which is a sign of increasing profitability.
| 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
ES's Profit Margin of 6.63% is on the low side compared to the rest of the industry. ES is outperformed by 82.98% of its industry peers.
ES's Profit Margin has declined in the last couple of years.
ES has a Operating Margin (21.96%) which is in line with its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ES is destroying value.
ES has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ES has been increased compared to 5 years ago.
ES has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.75, we must say that ES is in the distress zone and 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
WACC5.41%
2.3 Liquidity
A Current Ratio of 0.75 indicates that ES may have some problems paying its short term obligations.
ES has a worse Current ratio (0.75) than 72.34% of its industry peers.
ES has a Quick Ratio of 0.75. 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 0.66 is in line compared 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 -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 decreased by -0.05% in the past 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)-0.05%
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 6.25% yearly.
ES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.28% yearly.
EPS Next Y6.93%
EPS Next 2Y6.4%
EPS Next 3Y6.24%
EPS Next 5Y6.25%
Revenue Next Year6.69%
Revenue Next 2Y4.79%
Revenue Next 3Y4.27%
Revenue Next 5Y5.28%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ES is valuated correctly with a Price/Earnings ratio of 14.45.
ES's Price/Earnings ratio is a bit cheaper when compared to the industry. ES is cheaper than 63.83% of the companies in the same industry.
ES's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.82.
ES is valuated correctly with a Price/Forward Earnings ratio of 12.82.
Based on the Price/Forward Earnings ratio, ES is valued a bit cheaper than 63.83% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.21. ES is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.45 | ||
| Fwd PE | 12.82 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ES.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.19 |
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)2.09
PEG (5Y)2.48
EPS Next 2Y6.4%
EPS Next 3Y6.24%
5. Dividend
5.1 Amount
ES has a Yearly Dividend Yield of 4.59%, which is a nice return.
Compared to an average industry Dividend Yield of 3.66, 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
On average, the dividend of ES grows each year by 6.33%, which is quite nice.
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
ES pays out 123.06% of its income as dividend. This is not a sustainable payout ratio.
ES's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP123.06%
EPS Next 2Y6.4%
EPS Next 3Y6.24%
66.46
+0.91 (+1.39%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.32%
Inst Owner Change0.29%
Ins Owners0.16%
Ins Owner Change-5.69%
Market Cap24.42B
Analysts73.33
Price Target71.08 (6.95%)
Short Float %1.51%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
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)0.26%
PT rev (3m)0.84%
EPS NQ rev (1m)-2%
EPS NQ rev (3m)-2.88%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.45 | ||
| Fwd PE | 12.82 | ||
| P/S | 1.92 | ||
| P/FCF | N/A | ||
| P/OCF | 8.39 | ||
| P/B | 1.58 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 12.19 |
EPS(TTM)4.6
EY6.92%
EPS(NY)5.18
Fwd EY7.8%
FCF(TTM)-3.89
FCFYN/A
OCF(TTM)7.92
OCFY11.91%
SpS34.53
BVpS42.18
TBVpS32.46
PEG (NY)2.09
PEG (5Y)2.48
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
WACC5.41%
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 Y6.93%
EPS Next 2Y6.4%
EPS Next 3Y6.24%
EPS Next 5Y6.25%
Revenue 1Y (TTM)-0.05%
Revenue growth 3Y6.18%
Revenue growth 5Y6.91%
Sales Q2Q%12.02%
Revenue Next Year6.69%
Revenue Next 2Y4.79%
Revenue Next 3Y4.27%
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%