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EVERSOURCE ENERGY (ES) Stock Fundamental Analysis

NYSE:ES - New York Stock Exchange, Inc. - US30040W1080 - Common Stock

56.14  -2.09 (-3.59%)

Fundamental Rating

3

Taking everything into account, ES scores 3 out of 10 in our fundamental rating. ES was compared to 46 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.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

ES had positive earnings in the past year.
In the past year ES had a positive cash flow from operations.
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.
ES Yearly Net Income VS EBIT VS OCF VS FCFES Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B 2B -2B

1.2 Ratios

Looking at the Return On Assets, with a value of -0.94%, ES is doing worse than 91.89% of the companies in the same industry.
The Return On Equity of ES (-3.61%) is worse than 91.89% of its industry peers.
With a Return On Invested Capital value of 3.68%, ES perfoms like the industry average, outperforming 51.35% 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 4.61%.
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 RankSector 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%
ES Yearly ROA, ROE, ROICES Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2 -2 4 6 8

1.3 Margins

The Operating Margin of ES (22.51%) is better than 64.86% of its industry peers.
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 RankSector 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
ES Yearly Profit, Operating, Gross MarginsES Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15 20

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0

2. Health

2.1 Basic Checks

ES has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ES has been increased compared to 1 year ago.
Compared to 5 years ago, ES has more shares outstanding
ES has a worse debt/assets ratio than last year.
ES Yearly Shares OutstandingES Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M
ES Yearly Total Debt VS Total AssetsES Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B 50B

2.2 Solvency

Based on the Altman-Z score of 0.72, we must say that ES is in the distress zone and 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 1.78 is on the high side and indicates that ES has dependencies on debt financing.
The Debt to Equity ratio of ES (1.78) is worse than 67.57% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.78
Debt/FCF N/A
Altman-Z 0.72
ROIC/WACC0.66
WACC5.55%
ES Yearly LT Debt VS Equity VS FCFES Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B 20B

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.
Looking at the Current ratio, with a value of 0.86, ES is doing worse than 64.86% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that ES may have some problems paying its short term obligations.
The Quick ratio of ES (0.76) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.86
Quick Ratio 0.76
ES Yearly Current Assets VS Current LiabilitesES Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 14.65% over the past year.
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 -5.12%.
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)-5.12%
Revenue growth 3Y10.18%
Revenue growth 5Y7.04%
Sales Q2Q%9.73%

3.2 Future

Based on estimates for the next years, ES will show a small growth in Earnings Per Share. The EPS will grow by 3.23% on average per year.
Based on estimates for the next years, ES will show a small growth in Revenue. The Revenue will grow by 3.62% on average per year.
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

The EPS growth rate is decreasing: in the next years the growth will be less 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.
ES Yearly Revenue VS EstimatesES Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B
ES Yearly EPS VS EstimatesES Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4 5

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 11.39, which indicates a very decent 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 70.27% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, ES is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.42, the valuation of ES can be described as very reasonable.
78.38% of the companies in the same industry are more expensive than ES, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, ES is valued rather cheaply.
Industry RankSector Rank
PE 11.39
Fwd PE 11.42
ES Price Earnings VS Forward Price EarningsES Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

ES's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.2
ES Per share dataES EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)1.48
EPS Next 2Y1.83%
EPS Next 3Y3.17%

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7

5. Dividend

5.1 Amount

ES has a Yearly Dividend Yield of 4.92%, which is a nice return.
ES's Dividend Yield is rather good when compared to the industry average which is at 3.61. ES pays more dividend than 94.59% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, ES pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.92%

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
ES Yearly Dividends per shareES Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5 2 2.5

5.3 Sustainability

ES has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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%
ES Yearly Income VS Free CF VS DividendES Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B -2B

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EVERSOURCE ENERGY

NYSE:ES (1/22/2025, 2:03:56 PM)

56.14

-2.09 (-3.59%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)11-04 2024-11-04/amc
Earnings (Next)02-12 2025-02-12/amc
Inst Owners85.38%
Inst Owner Change0.02%
Ins Owners0.14%
Ins Owner Change1.33%
Market Cap20.57B
Analysts75.17
Price Target72.97 (29.98%)
Short Float %1.45%
Short Ratio2.38
Dividend
Industry RankSector Rank
Dividend Yield 4.92%
Yearly Dividend2.66
Dividend Growth(5Y)5.39%
DP-178.91%
Div Incr Years24
Div Non Decr Years24
Ex-DateN/A
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)-2.51%
PT rev (3m)-2.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.78%
Valuation
Industry RankSector Rank
PE 11.39
Fwd PE 11.42
P/S 1.77
P/FCF N/A
P/OCF 10.31
P/B 1.35
P/tB 1.93
EV/EBITDA 12.2
EPS(TTM)4.93
EY8.78%
EPS(NY)4.92
Fwd EY8.76%
FCF(TTM)-6.85
FCFYN/A
OCF(TTM)5.44
OCFY9.7%
SpS31.71
BVpS41.48
TBVpS29.13
PEG (NY)N/A
PEG (5Y)1.48
Profitability
Industry RankSector 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 RankSector 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
WACC5.55%
ROIC/WACC0.66
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 Year71.56%
EBIT Next 3Y25.59%
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%