EVERSOURCE ENERGY (ES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ES - US30040W1080 - Common Stock
68.11 USD
+0.61 (+0.9%)
67.79 USD
-0.32 (-0.47%)
ES gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 48 industry peers in the Electric Utilities industry. ES has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
In the past 5 years ES always reported a positive cash flow from operatings.
1.2 Ratios
ES has a worse Return On Assets (2.18%) than 83.33% of its industry peers.
ES has a Return On Equity of 8.30%. This is in the lower half of the industry: ES underperforms 68.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.41%, ES is doing worse than 70.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ES is in line with the industry average of 4.97%.
The last Return On Invested Capital (3.41%) for ES is above the 3 year average (3.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 8.3% | ||
| ROIC | 3.41% |
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 10.22% is on the low side compared to the rest of the industry. ES is outperformed by 72.92% of its industry peers.
In the last couple of years the Profit Margin of ES has declined.
ES has a Operating Margin (22.23%) which is in line with its industry peers.
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 | 22.23% | ||
| PM (TTM) | 10.22% | ||
| 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.
The number of shares outstanding for ES has been increased compared to 1 year ago.
The number of shares outstanding for ES has been increased compared to 5 years ago.
Compared to 1 year ago, ES has a worse debt to assets ratio.
2.2 Solvency
ES has an Altman-Z score of 0.77. This is a bad value and indicates that ES is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.77, ES perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
A Debt/Equity ratio of 1.77 is on the high side and indicates that ES has dependencies on debt financing.
The Debt to Equity ratio of ES (1.77) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.62
WACC5.46%
2.3 Liquidity
ES has a Current Ratio of 0.71. 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 has a Current ratio of 0.71. This is in the lower half of the industry: ES underperforms 75.00% of its industry peers.
ES has a Quick Ratio of 0.71. 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 (0.64) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The earnings per share for ES have decreased by -9.74% 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 13.16% 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)-9.74%
EPS 3Y6.42%
EPS 5Y5.83%
EPS Q2Q%-13.27%
Revenue 1Y (TTM)13.16%
Revenue growth 3Y6.18%
Revenue growth 5Y6.91%
Sales Q2Q%5.14%
3.2 Future
The Earnings Per Share is expected to grow by 5.54% 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 5.24% on average per year.
EPS Next Y5.94%
EPS Next 2Y6.15%
EPS Next 3Y6.09%
EPS Next 5Y5.54%
Revenue Next Year2.48%
Revenue Next 2Y3.29%
Revenue Next 3Y3.46%
Revenue Next 5Y5.24%
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 15.31.
Based on the Price/Earnings ratio, ES is valued a bit cheaper than the industry average as 64.58% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.56, ES is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.20, which indicates a correct valuation of ES.
ES's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ES is cheaper than 66.67% of the companies in the same industry.
ES's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 13.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ES is valued a bit more expensive than 60.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.03 |
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)2.58
PEG (5Y)2.63
EPS Next 2Y6.15%
EPS Next 3Y6.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.46%, ES is a good candidate for dividend investing.
ES's Dividend Yield is rather good when compared to the industry average which is at 3.09. ES pays more dividend than 87.50% of the companies in the same industry.
ES's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
5.2 History
On average, the dividend of ES grows each year by 6.33%, which is quite nice.
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)6.33%
Div Incr Years25
Div Non Decr Years25
5.3 Sustainability
80.40% of the earnings are spent on dividend by ES. 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.
DP80.4%
EPS Next 2Y6.15%
EPS Next 3Y6.09%
68.11
+0.61 (+0.9%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.43%
Inst Owner Change1.35%
Ins Owners0.15%
Ins Owner Change-0.97%
Market Cap25.55B
Revenue(TTM)13.15B
Net Income(TTM)1.34B
Analysts73.33
Price Target74.13 (8.84%)
Short Float %1.29%
Short Ratio1.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
Yearly Dividend2.82
Dividend Growth(5Y)6.33%
DP80.4%
Div Incr Years25
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.13%
Min EPS beat(2)-15.87%
Max EPS beat(2)-2.38%
EPS beat(4)0
Avg EPS beat(4)-5.83%
Min EPS beat(4)-15.87%
Max EPS beat(4)-1.4%
EPS beat(8)2
Avg EPS beat(8)1.16%
EPS beat(12)4
Avg EPS beat(12)0.74%
EPS beat(16)5
Avg EPS beat(16)0.3%
Revenue beat(2)0
Avg Revenue beat(2)-3.35%
Min Revenue beat(2)-5.46%
Max Revenue beat(2)-1.24%
Revenue beat(4)1
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-8%
Max Revenue beat(4)8.64%
Revenue beat(8)1
Avg Revenue beat(8)-7.3%
Revenue beat(12)3
Avg Revenue beat(12)-1.75%
Revenue beat(16)7
Avg Revenue beat(16)2.09%
PT rev (1m)-2.51%
PT rev (3m)3.87%
EPS NQ rev (1m)-3.58%
EPS NQ rev (3m)-2.36%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-0.69%
Revenue NQ rev (1m)-5.7%
Revenue NQ rev (3m)-8.28%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 13.2 | ||
| P/S | 1.94 | ||
| P/FCF | N/A | ||
| P/OCF | 6.66 | ||
| P/B | 1.58 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 12.03 |
EPS(TTM)4.45
EY6.53%
EPS(NY)5.16
Fwd EY7.58%
FCF(TTM)-1.4
FCFYN/A
OCF(TTM)10.23
OCFY15.03%
SpS35.05
BVpS43.13
TBVpS33.62
PEG (NY)2.58
PEG (5Y)2.63
Graham Number65.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 8.3% | ||
| ROCE | 5.32% | ||
| ROIC | 3.41% | ||
| ROICexc | 3.43% | ||
| ROICexgc | 3.66% | ||
| OM | 22.23% | ||
| PM (TTM) | 10.22% | ||
| 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%
ROICexgc growth 3Y0.26%
ROICexgc 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 | 1.77 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.43 | ||
| Cap/Depr | 284.6% | ||
| Cap/Sales | 33.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.16% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.77 |
F-Score7
WACC5.46%
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)-9.74%
EPS 3Y6.42%
EPS 5Y5.83%
EPS Q2Q%-13.27%
EPS Next Y5.94%
EPS Next 2Y6.15%
EPS Next 3Y6.09%
EPS Next 5Y5.54%
Revenue 1Y (TTM)13.16%
Revenue growth 3Y6.18%
Revenue growth 5Y6.91%
Sales Q2Q%5.14%
Revenue Next Year2.48%
Revenue Next 2Y3.29%
Revenue Next 3Y3.46%
Revenue Next 5Y5.24%
EBIT growth 1Y11.77%
EBIT growth 3Y9.3%
EBIT growth 5Y8.19%
EBIT Next Year78.9%
EBIT Next 3Y26.91%
EBIT Next 5Y18.12%
FCF growth 1Y77.52%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y104.06%
OCF growth 3Y3.24%
OCF growth 5Y1.45%
EVERSOURCE ENERGY / ES FAQ
What is the fundamental rating for ES stock?
ChartMill assigns a fundamental rating of 3 / 10 to ES.
Can you provide the valuation status for EVERSOURCE ENERGY?
ChartMill assigns a valuation rating of 3 / 10 to EVERSOURCE ENERGY (ES). This can be considered as Overvalued.
Can you provide the profitability details for EVERSOURCE ENERGY?
EVERSOURCE ENERGY (ES) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for ES stock?
The Price/Earnings (PE) ratio for EVERSOURCE ENERGY (ES) is 15.31 and the Price/Book (PB) ratio is 1.58.
Can you provide the dividend sustainability for ES stock?
The dividend rating of EVERSOURCE ENERGY (ES) is 8 / 10 and the dividend payout ratio is 80.4%.