Eversource Energy (ES) AI Stock Analysis

• Market Cap: $24.40B
• Dividend Yield: 4.41%
• Average Volume (3M): 2.20M
• Price to Earnings (P/E): 28.7
• Beta (1Y): 0.22
• Revenue Growth: 10.82%
• EPS Growth: N/A
• Country: US
• Employees: 10,000
• Sector: Utilities
• Sector Strength: 76
• Industry: Regulated Electric
• EPS (TTM): 1.50
• Shares Outstanding: 367,384,800
• 10 Day Avg. Volume: 1,936,298
• 30 Day Avg. Volume: 2,198,935
• PEG Ratio: 63.11
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.07
• Enterprise Value/Market Cap: 2.13
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 10.58
• Enterprise Value/Ebitda: 4.04
• 1Y Price Target: $66.17
• Price Target Upside: -0.68% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: $65.00 ▼(-2.43%Downside)

Eversource Energy's overall stock score is driven by strong technical indicators and a positive earnings call outlook, despite valuation concerns and leverage challenges. The company's strategic initiatives and growth projections provide a favorable long-term perspective, tempered by the need for sustained financial improvement.

Positive Factors

Regulatory Changes

SB4 authorizes $300 million in general obligation bonds, which may reduce utility costs on customer bills by transferring them to the state’s balance sheet.

Securitization Benefits

SB4 enables the securitization of storm-related costs and advanced metering infrastructure, potentially addressing up to $2.2 billion in cost recovery.

Negative Factors

Earnings Performance

Eversource Energy's earnings results are below Consensus and Bank of America expectations.

Regulatory Challenges

The relationship with the Connecticut Public Utilities Regulatory Authority remains contentious, with ongoing lawsuits and regulatory challenges.

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 distribution and sale of electricity and natural gas to residential, commercial, and industrial customers. The company's revenue model is based on regulated utility operations, where earnings are derived from rates approved by state regulatory commissions. These rates are designed to cover the costs of providing energy services while allowing for a reasonable return on investment. Eversource also earns money by investing in and operating renewable energy projects, such as solar and wind farms, which contribute to its income. Additionally, the company may engage in partnerships or joint ventures to expand its capabilities and service offerings, further enhancing its revenue streams.

Eversource Energy Financial Statement Overview

Summary

Eversource Energy shows strengths in profit margins and operating cash flow, but faces challenges in revenue growth and leverage. The recent recovery in net income and free cash flow is positive, yet sustaining this trajectory is crucial given high industry debt levels.

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	12.69B	11.90B	11.91B	12.29B	9.86B	8.90B
Gross Profit	4.91B	3.70B	4.85B	5.41B	4.75B	4.44B
EBITDA	4.26B	4.13B	1.40B	4.19B	3.49B	3.25B
Net Income	840.59M	811.65M	-442.24M	1.40B	1.22B	1.21B
Balance Sheet
Total Assets	60.19B	59.59B	55.61B	53.23B	48.49B	46.10B
Cash, Cash Equivalents and Short-Term Investments	111.36M	26.66M	53.87M	374.60M	66.77M	106.60M
Total Debt	29.09B	29.11B	26.75B	22.94B	20.22B	17.97B
Total Liabilities	38.17B	44.40B	41.28B	37.60B	33.74B	31.88B
Stockholders Equity	22.03B	15.04B	14.17B	15.47B	14.60B	14.06B
Cash Flow
Free Cash Flow	-1.43B	-2.32B	-2.69B	-1.04B	-1.21B	-1.26B
Operating Cash Flow	2.91B	2.16B	1.65B	2.40B	1.96B	1.68B
Investing Cash Flow	-4.09B	-4.54B	-4.87B	-4.13B	-3.45B	-4.13B
Financing Cash Flow	1.02B	2.34B	2.87B	2.03B	1.44B	2.59B

Eversource Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.62
• 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 66.62 is above the 20-day moving average (MA) of 64.99, above the 50-day MA of 64.41, and above the 200-day MA of 60.37, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 62.89 is Neutral, neither overbought nor oversold. The STOCH value of 86.48 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
CMS	72 Outperform	$21.80B	21.57	12.53%	2.90%	5.87%	3.59%
ES	71 Outperform	$24.40B	28.67	5.63%	4.41%	10.82%	―
FE	70 Outperform	$23.89B	22.02	8.69%	4.10%	7.92%	1.54%
DTE	69 Neutral	$28.85B	18.66	13.28%	3.08%	11.16%	20.94%
CNP	67 Neutral	$24.70B	25.87	8.76%	2.25%	4.84%	-11.24%
EIX	67 Neutral	$19.78B	7.42	17.93%	6.16%	5.36%	209.92%
Sector *	67 Neutral	$16.88B	17.11	4.48%	3.27%	4.75%	6.12%

Eversource Energy Corporate Events

Eversource Energy Enters $1.2 Billion Equity Agreement

On May 30, 2025, Eversource Energy entered into an Equity Distribution Agreement with several financial institutions, allowing the company to issue and sell up to $1.2 billion in common shares. This move is part of Eversource’s strategy to strengthen its financial position and potentially expand its market presence, impacting its operations and stakeholders positively.

The most recent analyst rating on (ES) stock is a Sell with a $56.00 price target. To see the full list of analyst forecasts on Eversource Energy stock, see the ES Stock Forecast page.

Eversource Energy Holds Annual Shareholder Meeting

On May 1, 2025, Eversource Energy held its Annual Meeting of Shareholders, where several key proposals were voted on, including the election of trustees and the approval of an amendment to its Declaration of Trust to eliminate supermajority voting requirements and allow virtual annual meetings. The company reported strong financial results for the first quarter of 2025, with earnings of $550.8 million, up from $521.8 million in the same period in 2024. Eversource also reaffirmed its earnings projections for the fiscal year and highlighted its strategic divestiture of the Aquarion water business, positioning itself as a pure-play regulated utility company with growth opportunities.