Eversource Energy (ES) AI Stock Analysis

• Market Cap: $27.76B
• Dividend Yield: 4.54%
• Average Volume (3M): 2.72M
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.19
• Revenue Growth: 13.12%
• EPS Growth: N/A
• Country: US
• Employees: 10,000
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 1.12
• Shares Outstanding: 375,496,600
• 10 Day Avg. Volume: 2,374,691
• 30 Day Avg. Volume: 2,724,359
• PEG Ratio: 0.15
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 1.84
• P/FCF Ratio: -553.69
• Enterprise Value/Market Cap: 2.09
• Enterprise Value/Revenue: 4.27
• Enterprise Value/Gross Profit: 8.94
• Enterprise Value/Ebitda: 10.76
• 1Y Price Target: $75.75
• Price Target Upside: 2.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 4.89
• Revenue Forecast (FY): $13.00B

• Rating: 63 Neutral
• Price Target: $80.00 ▲(8.20% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held back primarily by weaker cash flow conversion and elevated leverage despite improving profitability. Technicals are supportive with strong price momentum, and valuation is reasonable with a solid ~4% dividend yield. Management’s guidance is constructive, but sizable financing needs and regulatory/timing uncertainties temper the outlook.

Positive Factors

Rate‑base driven regulated model

Eversource’s earnings are anchored in regulated rate base growth (8.3% through 2030). That predictable, regulator‑backed investment recovery supports durable revenue and allowed returns, making future cash flows more stable versus commodity‑exposed peers and underpinning multi‑year earnings visibility.

Strong operational reliability

Top‑decile outage metrics (MAIFI/SAIDI) reflect high operational execution and lower service interruptions. Persistent reliability reduces regulatory penalties, strengthens rate case credibility, and lowers maintenance/reliability costs volatility, supporting sustained allowed recoveries and customer/regulator goodwill over time.

Access to long‑dated hybrid capital

Issuing $1.5B of junior subordinated notes expands long‑dated, equity‑like capital, preserving senior borrowing room and smoothing near‑term refinancing needs. This structural financing tool improves flexibility to fund large multi‑year capex programs while limiting immediate senior debt pressure.

Negative Factors

Large multi‑year financing needs

The company requires $34.5–$35.0B over five years, leaving meaningful incremental financing needs. Sustained dependence on external funding raises execution risk, potential dilution from equity issuance, and sensitivity to credit markets and securitization/timing outcomes, pressuring long‑term financial flexibility.

Weak and volatile cash generation

Multi‑year negative/volatile free cash flow and OCF coverage near 0.15 in 2025 signal limited self‑funding capacity for heavy capex. Persistent weak cash conversion increases reliance on external finance, elevates refinancing risk, and constrains the company’s ability to absorb shocks or accelerate discretionary investments.

Regulatory timing and sale uncertainty

Uncertainty around the Aquarion sale and other regulatory timing (storm securitization) can delay expected proceeds (~$1.6B assumed) and rate relief. Such timing risk affects planned financing, increases near‑term cash pressure, and creates execution uncertainty for the company’s multi‑year investment plan.

Eversource Energy Business Overview & Revenue Model

Company Description

Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas. The company operates regulated water utilities that provide water services to approximately 226,000 customers. It serves residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy is based in Springfield, Massachusetts.

How the Company Makes Money

Eversource Energy generates revenue primarily through the sale of electricity and natural gas to residential, commercial, and industrial customers. The company operates on a regulated utility model, which allows it to earn a return on its investments in infrastructure, such as power lines and gas pipelines. Key revenue streams include charges for electricity distribution, natural gas delivery, and related services. Additionally, Eversource benefits from various regulatory mechanisms that allow for cost recovery and investment in renewable energy projects. The company also engages in energy efficiency programs, which not only enhance customer satisfaction but can lead to additional revenue through incentives and rebates from state and federal programs. Strategic partnerships with local governments and organizations further bolster its initiatives in renewable energy and sustainability.

Eversource Energy Financial Statement Overview

Summary

Earnings improved materially in 2024–2025 (net margin recovering from a 2023 loss to 12.5% in 2025), but the balance sheet remains highly leveraged despite improvement (debt-to-equity ~1.27 in 2025) and cash flow quality is the main weakness with multi-year negative free cash flow and low operating cash flow coverage of debt (down to ~0.15 in 2025).

Income Statement

Revenue has been relatively steady with modest growth in 2025 (+3.0%) after being flat-to-down in 2023–2024. Profitability recovered meaningfully: net margin improved from a loss in 2023 (-3.7%) to 6.8% in 2024 and 12.5% in 2025, with solid 2025 operating margin (22.1%) and EBITDA margin (39.8%). Offsetting this, gross margin has trended down versus 2020–2022 levels, and earnings have shown volatility (notably the 2023 loss).

Balance Sheet

Leverage remains elevated for the period shown: debt-to-equity was ~1.89–1.94 in 2023–2024 before improving to ~1.27 in 2025, indicating some balance-sheet repair. However, absolute debt is very large relative to equity and assets, and returns on equity are inconsistent (negative in 2023; modest in 2024; 2025 ROE appears extremely low based on the provided figure), which suggests earnings power relative to the capital base is not consistently strong.

Cash Flow

Cash generation quality is mixed. Operating cash flow covered only a modest portion of debt (coverage ~0.26–0.35 in 2020–2024, falling to ~0.15 in 2025). Free cash flow was negative in 2020–2024, indicating heavy ongoing investment needs, then turned positive in 2025; however the 2025 free-cash-flow growth figure is sharply negative, signaling high volatility in cash outcomes. Overall, the business has relied on funding capacity rather than consistently self-funding through free cash flow.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.55B	11.90B	11.91B	12.29B	9.86B
Gross Profit	4.08B	3.70B	4.85B	5.41B	4.75B
EBITDA	5.39B	4.13B	1.40B	4.19B	3.49B
Net Income	1.69B	811.65M	-442.24M	1.40B	1.22B
Balance Sheet
Total Assets	63.79B	59.59B	55.61B	53.23B	48.49B
Cash, Cash Equivalents and Short-Term Investments	135.35M	26.66M	53.87M	374.60M	66.77M
Total Debt	30.28B	29.11B	26.75B	22.94B	20.22B
Total Liabilities	47.43B	44.40B	41.28B	37.60B	33.74B
Stockholders Equity	16.20B	15.04B	14.17B	15.47B	14.60B
Cash Flow
Free Cash Flow	-45.10M	-2.32B	-2.69B	-1.04B	-1.21B
Operating Cash Flow	4.11B	2.16B	1.65B	2.40B	1.96B
Investing Cash Flow	-4.31B	-4.54B	-4.87B	-4.13B	-3.45B
Financing Cash Flow	311.53M	2.34B	2.87B	2.03B	1.44B

Eversource Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES, the sentiment is Positive. The current price of 73.94 is above the 20-day moving average (MA) of 73.23, above the 50-day MA of 70.07, and above the 200-day MA of 66.64, indicating a bullish trend. The MACD of 1.25 indicates Positive momentum. The RSI at 59.00 is Neutral, neither overbought nor oversold. The STOCH value of 36.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES.

Eversource Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EIX	70 Outperform	$27.52B	5.07	27.18%	5.68%	4.43%	123.35%
AEE	67 Neutral	$30.23B	18.55	11.48%	2.86%	22.71%	22.86%
PPL	67 Neutral	$28.28B	21.95	8.16%	3.13%	8.42%	32.48%
CMS	66 Neutral	$23.24B	19.63	12.33%	3.10%	10.96%	-0.77%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
FE	64 Neutral	$29.27B	25.33	8.04%	3.94%	7.64%	48.61%
ES	63 Neutral	$27.76B	14.75	10.71%	4.54%	13.12%	―

Eversource Energy Corporate Events

Eversource Energy Issues $1.5 Billion Subordinated Notes

On February 26, 2026, Eversource Energy issued $750 million of Junior Subordinated Notes, Series A, due 2056, and $750 million of Junior Subordinated Notes, Series B, also due 2056, under an underwriting agreement with a syndicate led by major investment banks. The unsecured notes were established under a junior subordinated note indenture and related supplemental indentures with The Bank of New York Mellon Trust Company, N.A., reinforcing Eversource’s access to long-dated hybrid-style capital that can support its financing flexibility and long-term investment plans.

The Series A Notes were issued pursuant to a first supplemental indenture dated February 1, 2026, while the Series B Notes were issued under a second supplemental indenture of the same date, both supplementing the base indenture executed with the same trustee. By placing $1.5 billion of junior subordinated debt in the market, the utility bolstered its capital structure with instruments that typically sit below senior debt, potentially preserving room for additional senior borrowing capacity and supporting future infrastructure and grid investment initiatives.

The most recent analyst rating on (ES) stock is a Hold with a $77.00 price target. To see the full list of analyst forecasts on Eversource Energy stock, see the ES Stock Forecast page.

Eversource Energy Projects Strong Growth With 2026 Outlook

Eversource Energy reported sharply higher results for 2025 on February 12, 2026, with GAAP earnings rising to $1.69 billion, or $4.56 per share, from $811.7 million, or $2.27 per share, in 2024, while non-GAAP recurring earnings improved to $1.77 billion, or $4.76 per share, from $1.63 billion, or $4.57 per share. The rebound reflects the absence of large 2024 losses tied to offshore wind divestitures and the pending Aquarion Water sale, alongside solid segment performance led by transmission, higher electric and gas distribution revenues from base rate increases, and stable water earnings.

Fourth-quarter 2025 earnings climbed to $421.3 million, or $1.12 per share, compared with $72.5 million, or $0.20 per share, a year earlier, with non-GAAP fourth-quarter earnings also up, highlighting improved operations across the utility portfolio despite customer credits, penalties and higher costs. Management outlined a more growth-oriented profile as a pure-play regulated utility, issuing 2026 earnings guidance of $4.80–$4.95 per share, projecting 5–7 percent annual EPS growth through 2030, unveiling a larger $26.5 billion five-year capital plan focused on electric and gas networks, and signaling $800 million to $1.1 billion of equity issuance over 2026–2030 to support the expanded investment program and balance sheet strength.

The most recent analyst rating on (ES) stock is a Hold with a $74.00 price target. To see the full list of analyst forecasts on Eversource Energy stock, see the ES Stock Forecast page.

Eversource Energy Elects W. Robert Mudge to Board

On December 3, 2025, Eversource Energy announced the election of W. Robert Mudge to its Board of Trustees, effective January 1, 2026. Mudge, who has extensive experience in network infrastructure and corporate governance, will also serve on the Audit Committee and Finance and Risk Management Committee. His appointment is expected to enhance Eversource’s efforts to modernize its energy delivery systems and improve service reliability. Additionally, the Board appointed David H. Long as the Chair of the Governance, Environmental and Sustainability Committee and approved updates to its Corporate Governance Guidelines.

The most recent analyst rating on (ES) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Eversource Energy stock, see the ES Stock Forecast page.