EVERSOURCE ENERGY (ES) Stock Fundamental Analysis
NYSE:ES - US30040W1080 - Common Stock
63.39 USD
-3.14 (-4.72%)
We assign a fundamental rating of 2 out of 10 to ES. ES was compared to 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. Finally 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.
Of the past 5 years ES 4 years were profitable.
ES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.41%, 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 89.36% of its industry peers.
The Return On Invested Capital of ES (3.39%) is worse than 74.47% 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 5.03%.
The 3 year average ROIC (3.08%) for ES is below the current ROIC(3.39%), indicating increased profibility in the last year.
| 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's Profit Margin of 6.60% is on the low side compared to the rest of the industry. ES is outperformed by 80.85% of its industry peers.
In the last couple of years the Profit Margin of ES has declined.
ES has a Operating Margin (21.91%) which 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 | 21.91% | ||
| 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.
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.
The debt/assets ratio for ES is higher compared to a year ago.
2.2 Solvency
ES has an Altman-Z score of 0.75. This is a bad value and indicates that ES is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.75, ES is doing worse than 61.70% of the companies in the same industry.
A Debt/Equity ratio of 1.76 is on the high side and indicates that ES has dependencies on debt financing.
ES has a Debt to Equity ratio of 1.76. This is in the lower half of the industry: ES underperforms 74.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.62
WACC5.44%
2.3 Liquidity
A Current Ratio of 0.71 indicates that ES may have some problems paying its short term obligations.
With a Current ratio value of 0.71, ES is not doing good in the industry: 68.09% of the companies in the same industry are doing better.
A Quick Ratio of 0.63 indicates that ES may have some problems paying its short term obligations.
ES has a Quick ratio of 0.63. This is comparable to the rest of the industry: ES outperforms 48.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
ES shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.56%.
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.
The Revenue has grown by 14.48% 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)-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
Based on estimates for the next years, ES will show a small growth in Earnings Per Share. The EPS will grow by 6.18% on average per year.
Based on estimates for the next years, ES will show a small growth in Revenue. The Revenue will grow by 5.39% on average per year.
EPS Next Y6.68%
EPS Next 2Y6.38%
EPS Next 3Y6.26%
EPS Next 5Y6.18%
Revenue Next Year3.94%
Revenue Next 2Y3.77%
Revenue Next 3Y3.73%
Revenue Next 5Y5.39%
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
A Price/Earnings ratio of 13.78 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 61.70% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, ES is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.23, ES is valued correctly.
65.96% of the companies in the same industry are more expensive than ES, based on the Price/Forward Earnings ratio.
ES's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.78 | ||
| Fwd PE | 12.23 |
4.2 Price Multiples
ES's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.15 |
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)2.06
PEG (5Y)2.36
EPS Next 2Y6.38%
EPS Next 3Y6.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.60%, ES is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.53, ES pays a better dividend. On top of this ES pays more dividend than 80.85% 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
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 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.
ES's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP123.42%
EPS Next 2Y6.38%
EPS Next 3Y6.26%
NYSE:ES (8/25/2025, 9:33:09 AM)
63.39
-3.14 (-4.72%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.72%
Inst Owner Change2.45%
Ins Owners0.16%
Ins Owner Change-1.51%
Market Cap23.53B
Analysts73.33
Price Target71.36 (12.57%)
Short Float %1.48%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
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)0.41%
PT rev (3m)0.76%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)2.85%
EPS NY rev (1m)-0.24%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)-3.43%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)-2.06%
Revenue NY rev (3m)-1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.78 | ||
| Fwd PE | 12.23 | ||
| P/S | 1.81 | ||
| P/FCF | N/A | ||
| P/OCF | 7.14 | ||
| P/B | 1.49 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 12.15 |
EPS(TTM)4.6
EY7.26%
EPS(NY)5.18
Fwd EY8.18%
FCF(TTM)-2.73
FCFYN/A
OCF(TTM)8.88
OCFY14.01%
SpS35.01
BVpS42.63
TBVpS33.01
PEG (NY)2.06
PEG (5Y)2.36
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%
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-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 | 0.75 |
F-Score7
WACC5.44%
ROIC/WACC0.62
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 Y6.68%
EPS Next 2Y6.38%
EPS Next 3Y6.26%
EPS Next 5Y6.18%
Revenue 1Y (TTM)14.48%
Revenue growth 3Y6.18%
Revenue growth 5Y6.91%
Sales Q2Q%12.02%
Revenue Next Year3.94%
Revenue Next 2Y3.77%
Revenue Next 3Y3.73%
Revenue Next 5Y5.39%
EBIT growth 1Y12.37%
EBIT growth 3Y9.3%
EBIT growth 5Y8.19%
EBIT Next Year80.07%
EBIT Next 3Y26.96%
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%