EVERSOURCE ENERGY (ES)
US30040W1080 - Common Stock
Taking everything into account, ES scores 2 out of 10 in our fundamental rating. ES was compared to 47 industry peers in the Electric Utilities industry. ES may be in some trouble as it scores bad on both profitability and health. ES does not seem to be growing, but still is valued expensively. Finally 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.
ES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ES has a Return On Assets of -0.16%. This is amonst the worse of the industry: ES underperforms 95.56% of its industry peers.
The Return On Equity of ES (-0.61%) is worse than 95.56% of its industry peers.
ES has a worse Return On Invested Capital (3.58%) than 60.00% 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 4.77%.
The 3 year average ROIC (3.48%) for ES is below the current ROIC(3.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.16% | ||
| ROE | -0.61% | ||
| ROIC | 3.58% |
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 22.32%, ES is in the better half of the industry, outperforming 71.11% of the companies in the same industry.
In the last couple of years the Operating Margin of ES has remained more or less at the same level.
The Profit Margin and Gross Margin are not available for ES so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.32% | ||
| 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.
ES has a worse debt/assets ratio than last year.
2.2 Solvency
ES has an Altman-Z score of 0.73. 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 0.73, ES is not doing good in the industry: 64.44% of the companies in the same industry are doing better.
ES has a Debt/Equity ratio of 1.84. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.84, ES is not doing good in the industry: 75.56% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.73 |
ROIC/WACC0.65
WACC5.51%
2.3 Liquidity
A Current Ratio of 0.75 indicates that ES may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.75, ES is doing worse than 71.11% of the companies in the same industry.
ES has a Quick Ratio of 0.75. 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 (0.66) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.66 |
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.
Measured over the past 5 years, ES shows a small growth in Earnings Per Share. The EPS has been growing by 7.71% on average per year.
ES shows a decrease in Revenue. In the last year, the revenue decreased by -2.54%.
ES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.04% yearly.
EPS 1Y (TTM)14.65%
EPS 3Y9.1%
EPS 5Y7.71%
EPS Q2Q%16.49%
Revenue 1Y (TTM)-2.54%
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.
ES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.95% yearly.
EPS Next Y-0.83%
EPS Next 2Y2.14%
EPS Next 3Y3.38%
EPS Next 5Y4.51%
Revenue Next Year-0.79%
Revenue Next 2Y2.26%
Revenue Next 3Y2.55%
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
The Price/Earnings ratio is 12.86, which indicates a correct valuation of ES.
Based on the Price/Earnings ratio, ES is valued a bit cheaper than the industry average as 68.89% of the companies are valued more expensively.
ES's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.20.
Based on the Price/Forward Earnings ratio of 12.82, the valuation of ES can be described as correct.
73.33% of the companies in the same industry are more expensive than ES, based on the Price/Forward Earnings ratio.
ES is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 12.82 |
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 71.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.86 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.67
EPS Next 2Y2.14%
EPS Next 3Y3.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.49%, ES is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.45, 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 2.26, ES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
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 their dividend for at least 10 years, which is a reliable track record.
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-1046.42%
EPS Next 2Y2.14%
EPS Next 3Y3.38%
EVERSOURCE ENERGY
NYSE:ES (11/4/2024, 8:05:42 PM)
After market: 63.23 -0.17 (-0.27%)63.4
-0.27 (-0.42%)
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 Cap22.66B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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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 | 12.86 | ||
| Fwd PE | 12.82 | ||
| 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)1.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.16% | ||
| ROE | -0.61% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.32% | ||
| 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 Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.66 | ||
| 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-0.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.54%
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