EVERSOURCE ENERGY (ES) Stock Fundamental Analysis
NYSE:ES - New York Stock Exchange, Inc. - US30040W1080 - Common Stock - Currency: USD
Overall ES gets a fundamental rating of 2 out of 10. We evaluated ES against 46 industry peers in the Electric Utilities industry. Both the profitability and financial health of ES have multiple concerns. ES does not seem to be growing, but still is valued expensively. 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.
Each year in the past 5 years ES had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.36%, ES is not doing good in the industry: 89.19% of the companies in the same industry are doing better.
The Return On Equity of ES (5.34%) is worse than 89.19% of its industry peers.
With a Return On Invested Capital value of 3.24%, ES is not doing good in the industry: 81.08% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for ES is in line with the industry average of 4.62%.
The last Return On Invested Capital (3.24%) for ES is above the 3 year average (3.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.36% | ||
| ROE | 5.34% | ||
| ROIC | 3.24% |
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 Profit Margin of 6.82%. This is in the lower half of the industry: ES underperforms 78.38% of its industry peers.
ES's Profit Margin has declined in the last couple of years.
ES has a Operating Margin of 22.74%. This is in the better half of the industry: ES outperforms 64.86% of its industry peers.
ES's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.74% | ||
| PM (TTM) | 6.82% | ||
| 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.
The debt/assets ratio for ES is higher compared to a year ago.
2.2 Solvency
ES has an Altman-Z score of 0.72. 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 0.72, ES is doing worse than 62.16% of the companies in the same industry.
A Debt/Equity ratio of 1.85 is on the high side and indicates that ES has dependencies on debt financing.
ES has a Debt to Equity ratio of 1.85. This is in the lower half of the industry: ES underperforms 72.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.6
WACC5.41%
2.3 Liquidity
ES has a Current Ratio of 0.76. 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 Current ratio of ES (0.76) is worse than 70.27% of its industry peers.
A Quick Ratio of 0.67 indicates that ES may have some problems paying its short term obligations.
ES's Quick ratio of 0.67 is in line compared to the rest of the industry. ES outperforms 45.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The earnings per share for ES have decreased by -3.38% in the last year.
The Earnings Per Share has been growing slightly by 5.83% on average over the past years.
Looking at the last year, ES shows a decrease in Revenue. The Revenue has decreased by -0.05% in the last year.
Measured over the past years, ES shows a small growth in Revenue. The Revenue has been growing by 6.91% on average per year.
EPS 1Y (TTM)-3.38%
EPS 3Y6.42%
EPS 5Y5.83%
EPS Q2Q%-25.74%
Revenue 1Y (TTM)-0.05%
Revenue growth 3Y6.18%
Revenue growth 5Y6.91%
Sales Q2Q%10.29%
3.2 Future
ES is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.53% yearly.
Based on estimates for the next years, ES will show a small growth in Revenue. The Revenue will grow by 5.12% on average per year.
EPS Next Y6.81%
EPS Next 2Y6.32%
EPS Next 3Y6.17%
EPS Next 5Y5.53%
Revenue Next Year5.74%
Revenue Next 2Y4.06%
Revenue Next 3Y4.05%
Revenue Next 5Y5.12%
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
The Price/Earnings ratio is 13.84, which 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 67.57% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. ES is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 12.95, which indicates a correct valuation of ES.
Based on the Price/Forward Earnings ratio, ES is valued a bit cheaper than 78.38% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. ES is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.84 | ||
| Fwd PE | 12.95 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ES.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.16 |
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)2.03
PEG (5Y)2.37
EPS Next 2Y6.32%
EPS Next 3Y6.17%
5. Dividend
5.1 Amount
ES has a Yearly Dividend Yield of 4.80%, which is a nice return.
ES's Dividend Yield is rather good when compared to the industry average which is at 3.53. ES pays more dividend than 94.59% of the companies in the same industry.
ES's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
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 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 Years24
Div Non Decr Years24
5.3 Sustainability
ES pays out 124.32% 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.
DP124.32%
EPS Next 2Y6.32%
EPS Next 3Y6.17%
63.37
-0.01 (-0.02%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.38%
Inst Owner Change1.57%
Ins Owners0.14%
Ins Owner Change10.15%
Market Cap23.22B
Analysts75.71
Price Target70.76 (11.66%)
Short Float %1.32%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
Yearly Dividend2.82
Dividend Growth(5Y)6.33%
DP124.32%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.08%
Min EPS beat(2)-1.4%
Max EPS beat(2)1.25%
EPS beat(4)1
Avg EPS beat(4)-1.25%
Min EPS beat(4)-3.61%
Max EPS beat(4)1.25%
EPS beat(8)4
Avg EPS beat(8)4.47%
EPS beat(12)5
Avg EPS beat(12)2.63%
EPS beat(16)5
Avg EPS beat(16)0.81%
Revenue beat(2)0
Avg Revenue beat(2)-5.49%
Min Revenue beat(2)-8%
Max Revenue beat(2)-2.97%
Revenue beat(4)0
Avg Revenue beat(4)-10.28%
Min Revenue beat(4)-15.27%
Max Revenue beat(4)-2.97%
Revenue beat(8)1
Avg Revenue beat(8)-9.62%
Revenue beat(12)5
Avg Revenue beat(12)1.53%
Revenue beat(16)8
Avg Revenue beat(16)2.39%
PT rev (1m)-1.64%
PT rev (3m)-5.77%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)-2.61%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)1.38%
Revenue NQ rev (3m)-2.21%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.84 | ||
| Fwd PE | 12.95 | ||
| P/S | 1.95 | ||
| P/FCF | N/A | ||
| P/OCF | 10.75 | ||
| P/B | 1.53 | ||
| P/tB | 2 | ||
| EV/EBITDA | 12.16 |
EPS(TTM)4.58
EY7.23%
EPS(NY)4.89
Fwd EY7.72%
FCF(TTM)-6.33
FCFYN/A
OCF(TTM)5.89
OCFY9.3%
SpS32.48
BVpS41.47
TBVpS31.72
PEG (NY)2.03
PEG (5Y)2.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.36% | ||
| ROE | 5.34% | ||
| ROCE | 5.12% | ||
| ROIC | 3.24% | ||
| ROICexc | 3.25% | ||
| ROICexgc | 3.47% | ||
| OM | 22.74% | ||
| PM (TTM) | 6.82% | ||
| 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 Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.8 | ||
| Cap/Depr | 312.56% | ||
| Cap/Sales | 37.65% | ||
| Interest Coverage | 2.67 | ||
| Cash Conversion | 52.18% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 0.72 |
F-Score6
WACC5.41%
ROIC/WACC0.6
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)-3.38%
EPS 3Y6.42%
EPS 5Y5.83%
EPS Q2Q%-25.74%
EPS Next Y6.81%
EPS Next 2Y6.32%
EPS Next 3Y6.17%
EPS Next 5Y5.53%
Revenue 1Y (TTM)-0.05%
Revenue growth 3Y6.18%
Revenue growth 5Y6.91%
Sales Q2Q%10.29%
Revenue Next Year5.74%
Revenue Next 2Y4.06%
Revenue Next 3Y4.05%
Revenue Next 5Y5.12%
EBIT growth 1Y12.97%
EBIT growth 3Y9.3%
EBIT growth 5Y8.19%
EBIT Next Year69.52%
EBIT Next 3Y26.08%
EBIT Next 5Y17.66%
FCF growth 1Y13.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y31.2%
OCF growth 3Y3.24%
OCF growth 5Y1.45%