EVERSOURCE ENERGY (ES) Stock Fundamental Analysis
NYSE:ES - New York Stock Exchange, Inc. - US30040W1080 - Common Stock - Currency: USD
Taking everything into account, ES scores 3 out of 10 in our fundamental rating. ES was compared to 46 industry peers in the Electric Utilities industry. Both the profitability and financial health of ES have multiple concerns. 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.
ES had a positive operating cash flow in the past year.
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 Return On Assets of 1.40%. This is in the lower half of the industry: ES underperforms 76.09% of its industry peers.
The Return On Equity of ES (5.42%) is worse than 76.09% of its industry peers.
ES has a Return On Invested Capital of 3.33%. This is in the lower half of the industry: ES underperforms 63.04% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ES is significantly below the industry average of 45.26%.
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
The Profit Margin of ES (6.63%) is worse than 67.39% of its industry peers.
ES's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 21.96%, ES is in the better half of the industry, outperforming 60.87% 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.
| 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.
The number of shares outstanding for ES has been increased compared to 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 0.75, we must say that ES is in the distress zone and has some risk of bankruptcy.
ES has a Altman-Z score of 0.75. This is comparable to the rest of the industry: ES outperforms 52.17% 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.
ES has a Debt to Equity ratio of 1.81. This is comparable to the rest of the industry: ES outperforms 43.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.61
WACC5.49%
2.3 Liquidity
A Current Ratio of 0.75 indicates that ES may have some problems paying its short term obligations.
With a Current ratio value of 0.75, ES perfoms like the industry average, outperforming 41.30% of the companies in the same industry.
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.
The Quick ratio of ES (0.66) 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
The earnings per share for ES have decreased by -4.77% in the last year.
The Earnings Per Share has been growing slightly by 5.83% on average over the past years.
The Revenue has grown by 10.86% in the past year. This is quite good.
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
Based on estimates for the next years, ES will show a small growth in Earnings Per Share. The EPS will grow by 6.02% on average per year.
Based on estimates for the next years, ES will show a small growth in Revenue. The Revenue will grow by 4.83% on average per year.
EPS Next Y6.96%
EPS Next 2Y6.39%
EPS Next 3Y6.24%
EPS Next 5Y6.02%
Revenue Next Year5.47%
Revenue Next 2Y4.08%
Revenue Next 3Y3.58%
Revenue Next 5Y4.83%
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.
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
A Price/Earnings ratio of 14.28 indicates a correct valuation of ES.
ES's Price/Earnings ratio is a bit cheaper when compared to the industry. ES is cheaper than 76.09% of the companies in the same industry.
ES is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.64 indicates a correct valuation of ES.
78.26% of the companies in the same industry are more expensive than ES, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, ES is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.28 | ||
| Fwd PE | 12.64 |
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 | 12.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.05
PEG (5Y)2.45
EPS Next 2Y6.39%
EPS Next 3Y6.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.83%, ES is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.45, ES pays a better dividend. On top of this ES pays more dividend than 89.13% of the companies listed in the same industry.
ES's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.33%
Div Incr Years24
Div Non Decr Years24
5.3 Sustainability
ES pays out 123.06% 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.
DP123.06%
EPS Next 2Y6.39%
EPS Next 3Y6.24%
65.55
+2.02 (+3.18%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.05%
Inst Owner Change0.69%
Ins Owners0.18%
Ins Owner Change5.39%
Market Cap24.06B
Analysts74.29
Price Target70.82 (8.04%)
Short Float %1.81%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
Yearly Dividend2.82
Dividend Growth(5Y)6.33%
DP123.06%
Div Incr Years24
Div Non Decr Years24
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)-0.38%
PT rev (3m)-1.32%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)4.32%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)10.9%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.28 | ||
| Fwd PE | 12.64 | ||
| P/S | 1.9 | ||
| P/FCF | N/A | ||
| P/OCF | 8.27 | ||
| P/B | 1.55 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 12.18 |
EPS(TTM)4.59
EY7%
EPS(NY)5.18
Fwd EY7.91%
FCF(TTM)-3.89
FCFYN/A
OCF(TTM)7.92
OCFY12.09%
SpS34.56
BVpS42.22
TBVpS32.49
PEG (NY)2.05
PEG (5Y)2.45
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
WACC5.49%
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)-4.77%
EPS 3Y6.42%
EPS 5Y5.83%
EPS Q2Q%0.67%
EPS Next Y6.96%
EPS Next 2Y6.39%
EPS Next 3Y6.24%
EPS Next 5Y6.02%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y6.18%
Revenue growth 5Y6.91%
Sales Q2Q%23.58%
Revenue Next Year5.47%
Revenue Next 2Y4.08%
Revenue Next 3Y3.58%
Revenue Next 5Y4.83%
EBIT growth 1Y11.82%
EBIT growth 3Y9.3%
EBIT growth 5Y8.19%
EBIT Next Year72.86%
EBIT Next 3Y25.98%
EBIT Next 5Y17.95%
FCF growth 1Y8.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y38.62%
OCF growth 3Y3.24%
OCF growth 5Y1.45%