EVERSOURCE ENERGY (ES) Stock Fundamental Analysis
NYSE:ES - New York Stock Exchange, Inc. - US30040W1080 - Common Stock - Currency: USD
Taking everything into account, ES scores 2 out of 10 in our fundamental rating. ES was compared to 47 industry peers in the Electric Utilities industry. ES may be in some trouble as it scores bad on both profitability and health. ES has a expensive valuation and it also scores bad on growth. 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.
Each year in the past 5 years ES had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.40%, ES is doing worse than 91.49% of the companies in the same industry.
ES's Return On Equity of 5.42% is on the low side compared to the rest of the industry. ES is outperformed by 91.49% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.33%, ES is doing worse than 78.72% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ES 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 has a worse Profit Margin (6.63%) than 82.98% of its industry peers.
ES's Profit Margin has declined in the last couple of years.
The Operating Margin of ES (21.96%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ES has remained more or less at the same level.
| 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
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
ES has more shares outstanding than it did 5 years ago.
ES has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.74, we must say that ES is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.74, ES is not doing good in the industry: 61.70% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.81 is on the high side and indicates that ES has dependencies on debt financing.
ES's Debt to Equity ratio of 1.81 is on the low side compared to the rest of the industry. ES is outperformed by 72.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.74 |
ROIC/WACC0.45
WACC7.41%
2.3 Liquidity
ES has a Current 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.
Looking at the Current ratio, with a value of 0.75, ES is doing worse than 72.34% of the companies in the same industry.
A Quick Ratio of 0.66 indicates that ES may have some problems paying its short term obligations.
ES has a Quick ratio (0.66) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
ES shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.77%.
The Earnings Per Share has been growing slightly by 5.83% on average over the past years.
ES shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.86%.
The Revenue has been growing slightly by 6.91% on average over the past years.
EPS 1Y (TTM)-4.77%
EPS 3Y6.42%
EPS 5Y5.83%
EPS Q2Q%0.67%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y6.18%
Revenue growth 5Y6.91%
Sales Q2Q%23.58%
3.2 Future
The Earnings Per Share is expected to grow by 6.07% on average over the next years.
Based on estimates for the next years, ES will show a small growth in Revenue. The Revenue will grow by 5.28% on average per year.
EPS Next Y6.92%
EPS Next 2Y6.36%
EPS Next 3Y6.25%
EPS Next 5Y6.07%
Revenue Next Year6.13%
Revenue Next 2Y4.3%
Revenue Next 3Y3.96%
Revenue Next 5Y5.28%
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.
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 13.62, which indicates a correct valuation of ES.
65.96% of the companies in the same industry are more expensive than ES, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ES to the average of the S&P500 Index (26.35), we can say ES is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.07 indicates a correct valuation of ES.
65.96% of the companies in the same industry are more expensive than ES, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ES to the average of the S&P500 Index (22.19), we can say ES is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.62 | ||
| Fwd PE | 12.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ES indicates a slightly more expensive valuation: ES is more expensive than 61.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.93 |
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)1.97
PEG (5Y)2.34
EPS Next 2Y6.36%
EPS Next 3Y6.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.82%, ES is a good candidate for dividend investing.
ES's Dividend Yield is rather good when compared to the industry average which is at 3.69. ES pays more dividend than 85.11% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, ES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
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 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 123.06% 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 2Y6.36%
EPS Next 3Y6.25%
62.52
+0.12 (+0.19%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.32%
Inst Owner Change0.78%
Ins Owners0.16%
Ins Owner Change5.23%
Market Cap22.97B
Analysts74.29
Price Target70.89 (13.39%)
Short Float %1.66%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
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)0.1%
PT rev (3m)-0.38%
EPS NQ rev (1m)-0.75%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.62 | ||
| Fwd PE | 12.07 | ||
| P/S | 1.81 | ||
| P/FCF | N/A | ||
| P/OCF | 7.9 | ||
| P/B | 1.48 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 11.93 |
EPS(TTM)4.59
EY7.34%
EPS(NY)5.18
Fwd EY8.29%
FCF(TTM)-3.89
FCFYN/A
OCF(TTM)7.92
OCFY12.67%
SpS34.53
BVpS42.18
TBVpS32.46
PEG (NY)1.97
PEG (5Y)2.34
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 | 0.74 |
F-Score6
WACC7.41%
ROIC/WACC0.45
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)-4.77%
EPS 3Y6.42%
EPS 5Y5.83%
EPS Q2Q%0.67%
EPS Next Y6.92%
EPS Next 2Y6.36%
EPS Next 3Y6.25%
EPS Next 5Y6.07%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y6.18%
Revenue growth 5Y6.91%
Sales Q2Q%23.58%
Revenue Next Year6.13%
Revenue Next 2Y4.3%
Revenue Next 3Y3.96%
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 5Y17.97%
FCF growth 1Y8.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y38.62%
OCF growth 3Y3.24%
OCF growth 5Y1.45%