Eversource Energy (ES) AI Stock Analysis

• Market Cap: $24.08B
• Dividend Yield: 4.53%
• Average Volume (3M): 2.97M
• Price to Earnings (P/E): 28.3
• Beta (1Y): 0.24
• Revenue Growth: 10.82%
• EPS Growth: N/A
• Country: US
• Employees: 10,000
• Sector: Utilities
• Sector Strength: 83
• Industry: Regulated Electric
• EPS (TTM): 1.50
• Shares Outstanding: 367,384,800
• 10 Day Avg. Volume: 2,807,077
• 30 Day Avg. Volume: 2,969,943
• PEG Ratio: 0.10
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $62.60
• Price Target Upside: -0.73% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: $65.00 ▲( 3.08% Upside)

Eversource Energy's overall score reflects a solid financial performance with strengths in profit margins and cash flow, tempered by challenges in revenue growth and leverage. The positive sentiment from the earnings call and corporate events supports a stable outlook, reinforced by a strong dividend yield. While technical indicators present a neutral trend, strategic growth initiatives and regulatory improvements remain crucial for future performance.

Positive Factors

Cost Management

The passage of Senate Bill 1560, which allows securitization for storm costs and the removal of the public benefits charge, would be a big benefit for the company as it could improve debt, if storm cost recovery is approved, metrics and lower consumer bills.

Financial Strategy

The company maintains its 2025 EPS guidance and its capital plan, indicating confidence in its financial strategy.

Project Progress

Orsted announced the project is 75% complete and the company reiterated that it is well-positioned for its role.

Negative Factors

Earnings Performance

Results were below Consensus/BofA expectations of $1.51/$1.53.

Offshore Wind Risks

Balance sheet still requires significant repair and offshore wind risks are increasing.

Regulatory Challenges

The relationship with the CT 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 makes money through the regulated sale and distribution of electricity and natural gas to residential, commercial, and industrial customers. The company's revenue streams are primarily derived from its electric and natural gas utility operations, where it charges customers based on their energy consumption. Eversource operates under a regulated utility model, meaning its rates and services are approved by state regulatory commissions, ensuring a stable revenue structure. Additionally, Eversource invests in infrastructure development projects, which are often supported by regulatory mechanisms that allow for cost recovery through customer rates. The company may also engage in renewable energy projects, partnerships, and energy efficiency programs, further contributing to its revenue and sustainability goals.

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
12.69B	11.90B	11.91B	12.29B	9.86B	8.90B
	Gross Profit
4.91B	3.70B	4.85B	5.41B	4.75B	4.44B
	EBIT
2.79B	2.71B	2.40B	2.20B	1.99B	1.99B
	EBITDA
4.26B	4.13B	1.40B	4.19B	3.49B	3.25B
	Net Income Common Stockholders
840.59M	811.65M	-442.24M	1.40B	1.22B	1.21B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
259.21M	26.66M	53.87M	374.60M	66.77M	106.60M
	Total Assets
57.32B	59.59B	55.61B	53.23B	48.49B	46.10B
	Total Debt
28.29B	29.11B	26.75B	22.94B	20.22B	17.97B
	Net Debt
28.03B	29.09B	26.70B	22.57B	20.15B	17.86B
	Total Liabilities
42.62B	44.40B	41.28B	37.60B	33.74B	31.88B
	Stockholders Equity
14.54B	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: 63.06
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 63.06 is above the 20-day moving average (MA) of 60.90, above the 50-day MA of 59.49, and above the 200-day MA of 60.20, indicating a bullish trend. The MACD of 1.48 indicates Negative momentum. The RSI at 58.50 is Neutral, neither overbought nor oversold. The STOCH value of 64.50 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
DTE	72 Outperform	$28.72B	18.69	13.28%	3.05%	11.16%	20.94%
ES	71 Outperform	$24.08B	28.30	5.63%	4.53%	10.82%	―
CMS	71 Outperform	$21.53B	21.30	12.53%	2.90%	5.87%	3.59%
EIX	71 Outperform	$22.44B	8.27	17.93%	5.51%	5.36%	209.92%
FE	70 Neutral	$24.66B	22.73	8.69%	3.98%	7.92%	1.54%
CNP	67 Neutral	$24.45B	25.18	9.22%	2.21%	4.76%	4.08%
Sector *	63 Neutral	$8.63B	10.24	4.67%	4.35%	3.78%	-12.74%

Eversource Energy Corporate Events

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.