Eversource Energy (ES) AI Stock Analysis

• Market Cap: $25.11B
• Dividend Yield: 4.3%
• Average Volume (3M): 2.90M
• Price to Earnings (P/E): 29.1
• Beta (1Y): 0.21
• Revenue Growth: 14.44%
• EPS Growth: N/A
• Country: US
• Employees: 10,000
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.96
• Shares Outstanding: 371,115,170
• 10 Day Avg. Volume: 4,331,443
• 30 Day Avg. Volume: 2,898,499
• PEG Ratio: -0.09
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 1.73
• P/FCF Ratio: -8.85
• Enterprise Value/Market Cap: 2.11
• Enterprise Value/Revenue: 4.08
• Enterprise Value/Gross Profit: 10.63
• Enterprise Value/Ebitda: 11.66
• 1Y Price Target: $67.13
• Price Target Upside: -2.85% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 62 Neutral
• Price Target: $71.00 ▲(2.75% Upside)

Eversource Energy's overall stock score is driven by stable financial performance and positive technical indicators. The reaffirmed guidance and strategic investments from the earnings call add confidence, but high leverage and cash flow issues, along with regulatory challenges, weigh on the score.

Positive Factors

Infrastructure Investment

Increasing infrastructure investment by 10% indicates a commitment to growth and modernization, which can enhance service reliability and efficiency.

Electric Demand Growth

Rising electric demand suggests expanding customer base and increased usage, supporting revenue growth and operational scale.

Regulatory Outcomes

Positive regulatory outcomes in New Hampshire enhance revenue stability and support financial performance through favorable rate adjustments.

Negative Factors

High Leverage

High leverage can increase financial risk, especially if interest rates rise, potentially impacting cash flow and investment capacity.

Negative Cash Flow

Negative free cash flow indicates potential liquidity issues, limiting the ability to fund operations and investments without additional financing.

Regulatory Challenges in Connecticut

Regulatory challenges in Connecticut could hinder operational flexibility and financial performance, affecting long-term growth prospects.

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's revenue model is based on regulated utility rates set by state public utility commissions, which allows it to earn a return on its investments in infrastructure and service delivery. Key revenue streams include electricity transmission and distribution, natural gas distribution, and energy efficiency programs. Additionally, Eversource may engage in partnerships with renewable energy developers to support clean energy initiatives, which can provide additional income through power purchase agreements and incentives. The company's focus on expanding its renewable energy portfolio and improving energy efficiency also contributes to its long-term growth and stability.

Eversource Energy Financial Statement Overview

Summary

Eversource Energy presents a mixed financial picture with strengths in profit margins and operating cash flow, but challenges in revenue growth and leverage. The company has demonstrated resilience with a recent recovery in net income and free cash flow, yet maintaining this trajectory will be crucial, especially with the high debt levels typical of the industry. Strategic focus on enhancing revenue growth and managing leverage will be key to future financial health.

Income Statement

Eversource Energy shows a stable gross profit margin with a slight decline in revenue over recent years. The TTM data shows a strong net income recovery, leading to improved net profit margins. However, revenue growth has been inconsistent, with a notable decline in the previous year. EBIT and EBITDA margins indicate stable operating performance, but there is potential for improvement in revenue growth to enhance long-term profitability.

Balance Sheet

The balance sheet indicates a solid equity base with a stable equity ratio. The debt-to-equity ratio is relatively high, which is typical for the regulated electric industry but poses potential leverage risks. Return on equity has fluctuated, reflecting varying profitability levels. Overall, the company maintains a stable asset base, but leverage management remains critical.

Cash Flow

Eversource Energy's cash flow position benefits from a strong operating cash flow relative to net income, indicating quality earnings. However, free cash flow has been negative in past periods, though recent TTM data shows significant improvement. The company needs to sustain positive free cash flow trends to ensure long-term financial flexibility, especially given high capital expenditure requirements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.99B	11.90B	11.91B	12.29B	9.86B	8.90B
Gross Profit	4.99B	3.70B	4.85B	5.41B	4.75B	4.44B
EBITDA	4.55B	4.13B	1.40B	4.19B	3.49B	3.25B
Net Income	857.98M	811.65M	-442.24M	1.40B	1.22B	1.21B
Balance Sheet
Total Assets	60.96B	59.59B	55.61B	53.23B	48.49B	46.10B
Cash, Cash Equivalents and Short-Term Investments	343.69M	26.66M	53.87M	374.60M	66.77M	106.60M
Total Debt	29.78B	29.11B	26.75B	22.94B	20.22B	18.09B
Total Liabilities	45.13B	44.40B	41.28B	37.60B	33.74B	31.88B
Stockholders Equity	15.67B	15.04B	14.17B	15.47B	14.60B	14.06B
Cash Flow
Free Cash Flow	-1.01B	-2.32B	-2.69B	-1.04B	-1.21B	-1.26B
Operating Cash Flow	3.30B	2.16B	1.65B	2.40B	1.96B	1.68B
Investing Cash Flow	-3.71B	-4.54B	-4.87B	-4.13B	-3.45B	-4.13B
Financing Cash Flow	717.41M	2.34B	2.87B	2.03B	1.44B	2.59B

Eversource Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 69.1 is above the 20-day moving average (MA) of 64.28, above the 50-day MA of 64.65, and above the 200-day MA of 60.53, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 68.50 is Neutral, neither overbought nor oversold. The STOCH value of 87.91 is Negative, 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
AEE	75 Outperform	27.27B	22.16	9.96%	2.78%	17.32%	3.35%
FE	73 Outperform	25.45B	19.34	10.18%	3.95%	6.44%	49.07%
EIX	72 Outperform	21.18B	8.13	17.23%	5.93%	4.26%	173.18%
PPL	67 Neutral	26.99B	27.30	6.92%	2.95%	6.62%	17.35%
CMS	65 Neutral	21.45B	21.10	12.19%	2.99%	8.25%	4.37%
ES	62 Neutral	$25.11B	29.12	5.63%	4.30%	14.44%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%