EVERSOURCE ENERGY (ES)
US30040W1080 - Common Stock
ES gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. ES has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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
In the past year ES was profitable.
ES had a positive operating cash flow in the past year.
ES had positive earnings in 4 of the past 5 years.
ES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ES has a worse Return On Assets (-0.94%) than 95.56% of its industry peers.
ES has a worse Return On Equity (-3.61%) than 95.56% of its industry peers.
ES has a Return On Invested Capital of 3.68%. This is comparable to the rest of the industry: ES outperforms 51.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ES is in line with the industry average of 4.67%.
The 3 year average ROIC (3.48%) for ES is below the current ROIC(3.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.94% | ||
| ROE | -3.61% | ||
| ROIC | 3.68% |
ROA(3y)1.45%
ROA(5y)1.84%
ROE(3y)4.73%
ROE(5y)5.95%
ROIC(3y)3.48%
ROIC(5y)3.52%
1.3 Margins
Looking at the Operating Margin, with a value of 22.51%, ES is in the better half of the industry, outperforming 71.11% of the companies in the same industry.
ES's Operating Margin has been stable in the last couple of years.
The Profit Margin and Gross Margin are not available for ES so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.51% | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3Y-3.39%
OM growth 5Y-0.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ES is destroying value.
ES has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ES has more shares outstanding
ES has a worse debt/assets ratio than last year.
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.
ES's Altman-Z score of 0.75 is on the low side compared to the rest of the industry. ES is outperformed by 62.22% of its industry peers.
ES has a Debt/Equity ratio of 1.78. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.78, ES is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.66
WACC5.58%
2.3 Liquidity
A Current Ratio of 0.86 indicates that ES may have some problems paying its short term obligations.
With a Current ratio value of 0.86, ES is not doing good in the industry: 68.89% of the companies in the same industry are doing better.
ES has a Quick Ratio of 0.86. 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 0.76 is in line compared to the rest of the industry. ES outperforms 46.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
ES shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.65%, which is quite good.
The Earnings Per Share has been growing slightly by 7.71% on average over the past years.
The Revenue has decreased by -5.12% in the past year.
Measured over the past years, ES shows a small growth in Revenue. The Revenue has been growing by 7.04% on average per year.
EPS 1Y (TTM)14.65%
EPS 3Y9.1%
EPS 5Y7.71%
EPS Q2Q%16.49%
Revenue 1Y (TTM)-5.12%
Revenue growth 3Y10.18%
Revenue growth 5Y7.04%
Sales Q2Q%9.73%
3.2 Future
ES is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.51% yearly.
The Revenue is expected to grow by 2.95% on average over the next years.
EPS Next Y-0.93%
EPS Next 2Y2.01%
EPS Next 3Y3.33%
EPS Next 5Y4.51%
Revenue Next Year-0.71%
Revenue Next 2Y1.93%
Revenue Next 3Y2.27%
Revenue Next 5Y2.95%
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 decreasing.
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
ES is valuated correctly with a Price/Earnings ratio of 12.73.
Based on the Price/Earnings ratio, ES is valued a bit cheaper than 68.89% of the companies in the same industry.
ES's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.96.
ES is valuated correctly with a Price/Forward Earnings ratio of 12.72.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ES indicates a somewhat cheap valuation: ES is cheaper than 73.33% of the companies listed in the same industry.
ES is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.73 | ||
| Fwd PE | 12.72 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than ES, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.61 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.65
EPS Next 2Y2.01%
EPS Next 3Y3.33%
5. Dividend
5.1 Amount
ES has a Yearly Dividend Yield of 4.65%, which is a nice return.
Compared to an average industry Dividend Yield of 3.44, ES pays a better dividend. On top of this ES pays more dividend than 93.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, ES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.65% |
5.2 History
The dividend of ES has a limited annual growth rate of 5.39%.
ES has paid a dividend for at least 10 years, which is 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)5.39%
Div Incr Years24
Div Non Decr Years24
5.3 Sustainability
ES has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of ES is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-178.91%
EPS Next 2Y2.01%
EPS Next 3Y3.33%
EVERSOURCE ENERGY
NYSE:ES (11/21/2024, 8:25:05 PM)
After market: 62.75 0 (0%)62.75
+1.14 (+1.85%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap22.99B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.65% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.73 | ||
| Fwd PE | 12.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.94% | ||
| ROE | -3.61% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.51% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.65%
EPS 3Y9.1%
EPS 5Y
EPS Q2Q%
EPS Next Y-0.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.12%
Revenue growth 3Y10.18%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y