Eversource Energy (ES) AI Stock Analysis

• Market Cap: $25.24B
• Dividend Yield: 4.43%
• Average Volume (3M): 2.81M
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.17
• Revenue Growth: 13.12%
• EPS Growth: N/A
• Country: US
• Employees: 10,000
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 1.19
• Shares Outstanding: 375,189,150
• 10 Day Avg. Volume: 2,683,838
• 30 Day Avg. Volume: 2,809,628
• 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: 2.23
• Enterprise Value/Revenue: 4.28
• Enterprise Value/Gross Profit: 8.79
• Enterprise Value/Ebitda: 10.96
• 1Y Price Target: $71.17
• Price Target Upside: 5.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 4.75
• Revenue Forecast (FY): $12.73B

• Rating: 66 Neutral
• Price Target: $72.00 ▲(7.21% Upside)

Eversource Energy's overall stock score reflects a mix of solid operational performance and strategic investments, offset by financial risks due to high leverage and cash flow challenges. The technical analysis indicates a bearish trend, while the valuation remains reasonable with a strong dividend yield. The earnings call provided positive guidance, but regulatory challenges and liability concerns are notable risks.

Positive Factors

Infrastructure Investment

Significant infrastructure investments strengthen Eversource's operational capabilities and support long-term growth in energy delivery.

Regulatory Progress

Improved regulatory environment can lead to more favorable outcomes, enhancing Eversource's ability to implement strategic initiatives.

Cash Flow Improvement

Improved cash flow strengthens financial flexibility, enabling Eversource to fund operations and investments without excessive reliance on debt.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting Eversource's ability to respond to economic changes and invest in growth opportunities.

Offshore Wind Liability

Increased liabilities from offshore wind projects could strain financial resources and impact profitability if not managed effectively.

Regulatory Challenges

Regulatory setbacks can hinder strategic plans, affecting Eversource's ability to optimize its asset portfolio and financial structure.

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

Eversource Energy demonstrates solid operational performance with stable margins and modest revenue growth. However, high leverage and low return on equity present potential financial risks. Cash flow challenges, particularly in free cash flow, need to be addressed to ensure long-term financial health.

Income Statement

Eversource Energy shows a stable gross profit margin of 38.4% in TTM, indicating efficient cost management. The net profit margin is modest at 6.6%, reflecting moderate profitability. Revenue growth is positive at 1.2% TTM, showing a recovery from previous declines. EBIT and EBITDA margins are healthy at 19.1% and 35.0% respectively, suggesting strong operational performance.

Balance Sheet

The company has a high debt-to-equity ratio of 1.90, indicating significant leverage, which could pose risks if not managed properly. Return on equity is low at 0.02% TTM, suggesting limited returns for shareholders. However, the equity ratio stands at 36.5%, indicating a reasonable proportion of equity financing.

Cash Flow

Free cash flow growth is negative, showing a significant decline, which is concerning. The operating cash flow to net income ratio is 0.48, indicating that cash generation is not fully aligned with reported earnings. The free cash flow to net income ratio is negative, highlighting potential cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.15B	11.90B	11.91B	12.29B	9.86B	8.90B
Gross Profit	6.40B	3.70B	4.85B	5.41B	4.75B	4.44B
EBITDA	5.13B	4.13B	1.40B	4.19B	3.49B	3.25B
Net Income	1.34B	811.65M	-442.24M	1.40B	1.22B	1.21B
Balance Sheet
Total Assets	61.70B	59.59B	55.61B	53.23B	48.49B	46.10B
Cash, Cash Equivalents and Short-Term Investments	259.34M	26.66M	53.87M	374.60M	66.77M	106.60M
Total Debt	29.84B	29.11B	26.75B	22.94B	20.22B	18.09B
Total Liabilities	45.52B	44.40B	41.28B	37.60B	33.74B	31.88B
Stockholders Equity	16.03B	15.04B	14.17B	15.47B	14.60B	14.06B
Cash Flow
Free Cash Flow	-524.39M	-2.32B	-2.69B	-1.04B	-1.21B	-1.26B
Operating Cash Flow	3.84B	2.16B	1.65B	2.40B	1.96B	1.68B
Investing Cash Flow	-4.50B	-4.54B	-4.87B	-4.13B	-3.45B	-4.13B
Financing Cash Flow	829.27M	2.34B	2.87B	2.03B	1.44B	2.59B

Eversource Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 67.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES, the sentiment is Neutral. The current price of 67.16 is above the 20-day moving average (MA) of 66.33, below the 50-day MA of 69.61, and above the 200-day MA of 64.02, indicating a neutral trend. The MACD of -0.47 indicates Negative momentum. The RSI at 47.26 is Neutral, neither overbought nor oversold. The STOCH value of 41.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES.

Eversource Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EIX	77 Outperform	$22.91B	7.80	19.13%	5.68%	4.43%	123.35%
AEE	72 Outperform	$26.65B	18.95	11.47%	2.88%	22.71%	22.86%
CMS	67 Neutral	$21.38B	20.28	12.34%	3.07%	10.96%	-0.77%
FE	67 Neutral	$25.55B	19.21	10.54%	3.94%	7.64%	48.61%
ES	66 Neutral	$25.24B	18.49	8.65%	4.43%	13.12%	―
PPL	66 Neutral	$25.40B	23.37	7.65%	3.14%	8.42%	32.48%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

Eversource Energy Corporate Events

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.

Eversource Energy’s Aquarion Sale Rejected by Regulators

On November 21, 2025, Eversource Energy announced that the Connecticut Public Utilities Regulatory Authority rejected the proposed sale of the Aquarion Water Company to the South Central Connecticut Regional Water Authority. In response, Eversource emphasized its strong financial position and strategic planning, including issuing common equity and $600 million in parent company debt earlier in the year. The company plans to submit an Aquarion rate case in early 2026 and remains focused on maintaining operational excellence and exploring regulatory and legal remedies following the decision.

Eversource Energy Reports Strong Q3 2025 Earnings

Eversource Energy reported significant financial improvements for the third quarter of 2025, with earnings of $367.5 million compared to a loss in the same period of 2024. The company has narrowed its full-year earnings guidance and continues to invest in its electric and natural gas infrastructure, which has led to higher revenues despite increased expenses. The results reflect Eversource’s strategic focus on regulated utility operations and its response to regulatory changes, positioning it for continued growth.

Eversource Energy Issues $600M Senior Notes

On October 17, 2025, Eversource Energy issued $600 million in 4.45% Senior Notes due in 2030, under an agreement with several financial institutions. This issuance, part of their unsecured obligations, is expected to impact their financial strategy and stakeholder interests by securing long-term capital.

Eversource Energy Updates Guidance Amid Liability Increase

On October 14, 2025, Eversource Energy announced an increase in liability related to future payments to Global Infrastructure Partners (GIP) following the sale of its South Fork Wind and Revolution Wind projects. This adjustment results in a non-recurring after-tax charge of approximately $75 million, despite a $210 million federal tax benefit mitigating the impact. The company also updated its full-year non-GAAP recurring EPS guidance, narrowing the range with a higher midpoint. The liability adjustments reflect increased construction costs for the Revolution Wind project, which faced delays due to a stop-work order from the Bureau of Ocean Energy Management.