EVERSOURCE ENERGY (ES)
US30040W1080 - Common Stock
We assign a fundamental rating of 3 out of 10 to ES. ES was compared to 47 industry peers in the Electric Utilities industry. While ES is still in line with the averages on profitability rating, there are concerns on its financial health. ES has a valuation in line with the averages, but 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.
Each year in the past 5 years ES had a positive operating cash flow.
1.2 Ratios
ES has a Return On Assets of -0.94%. This is amonst the worse of the industry: ES underperforms 93.33% of its industry peers.
The Return On Equity of ES (-3.61%) is worse than 93.33% 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.
Measured over the past 3 years, the Average Return On Invested Capital for ES is in line with the industry average of 4.67%.
The last Return On Invested Capital (3.68%) for ES is above the 3 year average (3.48%), which is a sign of increasing profitability.
| 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
ES has a better Operating Margin (22.51%) than 71.11% of its industry peers.
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.
ES has more shares outstanding than it did 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.
ES has a Altman-Z score of 0.72. This is in the lower half of the industry: ES underperforms 66.67% of its industry peers.
A Debt/Equity ratio of 1.78 is on the high side and indicates that ES has dependencies on debt financing.
ES has a Debt to Equity ratio of 1.78. This is in the lower half of the industry: ES underperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.67
WACC5.49%
2.3 Liquidity
ES has a Current 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 has a Current ratio of 0.86. This is in the lower half of the industry: ES underperforms 68.89% of its industry peers.
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 has a Quick ratio of 0.76. This is comparable 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
The Earnings Per Share has grown by an nice 14.65% over the past year.
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.
The Revenue has been growing slightly by 7.04% on average over the past years.
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 3.23% yearly.
The Revenue is expected to grow by 3.62% on average over the next years.
EPS Next Y-1.01%
EPS Next 2Y1.83%
EPS Next 3Y3.17%
EPS Next 5Y3.23%
Revenue Next Year-2.66%
Revenue Next 2Y1.44%
Revenue Next 3Y1.86%
Revenue Next 5Y3.62%
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.
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 11.55 indicates a reasonable valuation of ES.
62.22% of the companies in the same industry are more expensive than ES, based on the Price/Earnings ratio.
ES's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
ES is valuated reasonably with a Price/Forward Earnings ratio of 11.59.
Based on the Price/Forward Earnings ratio, ES is valued a bit cheaper than 73.33% of the companies in the same industry.
ES's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 11.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ES indicates a slightly more expensive valuation: ES is more expensive than 62.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.08 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.5
EPS Next 2Y1.83%
EPS Next 3Y3.17%
5. Dividend
5.1 Amount
ES has a Yearly Dividend Yield of 5.12%, which is a nice return.
Compared to an average industry Dividend Yield of 3.68, ES pays a better dividend. On top of this ES pays more dividend than 95.56% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
5.2 History
The dividend of ES has a limited annual growth rate of 5.39%.
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)5.39%
Div Incr Years24
Div Non Decr Years24
5.3 Sustainability
The earnings of ES are negative and hence is the payout ratio. ES will probably not be able to sustain this dividend level.
ES's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-178.91%
EPS Next 2Y1.83%
EPS Next 3Y3.17%
EVERSOURCE ENERGY
NYSE:ES (12/20/2024, 8:07:28 PM)
After market: 56.4001 -0.55 (-0.97%)56.95
+1.05 (+1.88%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.38%
Inst Owner Change2.57%
Ins Owners0.14%
Ins Owner Change-0.33%
Market Cap20.87B
Analysts77.14
Price Target74.85 (31.43%)
Short Float %1.17%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
Dividend Growth(5Y)5.39%
DP-178.91%
Div Incr Years24
Div Non Decr Years24
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.18%
Min EPS beat(2)-3.61%
Max EPS beat(2)1.25%
EPS beat(4)2
Avg EPS beat(4)8.15%
Min EPS beat(4)-3.61%
Max EPS beat(4)36.2%
EPS beat(8)4
Avg EPS beat(8)4.03%
EPS beat(12)5
Avg EPS beat(12)2.34%
EPS beat(16)5
Avg EPS beat(16)0.7%
Revenue beat(2)0
Avg Revenue beat(2)-9.12%
Min Revenue beat(2)-15.27%
Max Revenue beat(2)-2.97%
Revenue beat(4)0
Avg Revenue beat(4)-13.08%
Min Revenue beat(4)-19.19%
Max Revenue beat(4)-2.97%
Revenue beat(8)2
Avg Revenue beat(8)-1.86%
Revenue beat(12)6
Avg Revenue beat(12)3.29%
Revenue beat(16)9
Avg Revenue beat(16)3.08%
PT rev (1m)-1.73%
PT rev (3m)1.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.44%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)-1.97%
Revenue NY rev (3m)-1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 11.59 | ||
| P/S | 1.8 | ||
| P/FCF | N/A | ||
| P/OCF | 10.46 | ||
| P/B | 1.37 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 12.08 |
EPS(TTM)4.93
EY8.66%
EPS(NY)4.92
Fwd EY8.63%
FCF(TTM)-6.85
FCFYN/A
OCF(TTM)5.44
OCFY9.56%
SpS31.71
BVpS41.48
TBVpS29.13
PEG (NY)N/A
PEG (5Y)1.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.94% | ||
| ROE | -3.61% | ||
| ROCE | 4.94% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.69% | ||
| ROICexgc | 4.03% | ||
| OM | 22.51% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)1.45%
ROA(5y)1.84%
ROE(3y)4.73%
ROE(5y)5.95%
ROIC(3y)3.48%
ROIC(5y)3.52%
ROICexc(3y)3.5%
ROICexc(5y)3.53%
ROICexgc(3y)3.86%
ROICexgc(5y)3.92%
ROCE(3y)4.77%
ROCE(5y)4.8%
ROICexcg growth 3Y-0.67%
ROICexcg growth 5Y-1.89%
ROICexc growth 3Y-0.07%
ROICexc growth 5Y-1.05%
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
F-Score3
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.73 | ||
| Cap/Depr | 320.74% | ||
| Cap/Sales | 38.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 49.63% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 0.72 |
F-Score3
WACC5.49%
ROIC/WACC0.67
Cap/Depr(3y)302.73%
Cap/Depr(5y)307.39%
Cap/Sales(3y)32.18%
Cap/Sales(5y)32.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.65%
EPS 3Y9.1%
EPS 5Y7.71%
EPS Q2Q%16.49%
EPS Next Y-1.01%
EPS Next 2Y1.83%
EPS Next 3Y3.17%
EPS Next 5Y3.23%
Revenue 1Y (TTM)-5.12%
Revenue growth 3Y10.18%
Revenue growth 5Y7.04%
Sales Q2Q%9.73%
Revenue Next Year-2.66%
Revenue Next 2Y1.44%
Revenue Next 3Y1.86%
Revenue Next 5Y3.62%
EBIT growth 1Y10.68%
EBIT growth 3Y6.44%
EBIT growth 5Y6.8%
EBIT Next Year65.55%
EBIT Next 3Y23.28%
EBIT Next 5Y18.7%
FCF growth 1Y-111.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-6.41%
OCF growth 3Y-0.73%
OCF growth 5Y-2.1%