Eversource Energy (ES)
NYSE:ES
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Eversource Energy
(NYSE:ES)
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Rating:60Neutral
Price Target:
$70.00
â–²(1.08% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by improving profitability but ongoing balance-sheet leverage and historically weak free cash flow, which limit financial flexibility. Technicals are a notable drag given the stock’s downtrend and negative momentum. Offsetting factors include a relatively attractive valuation (low P/E and high dividend yield) and a mixed earnings-call read: solid operations and financing execution, but meaningful regulatory headwinds from the FERC ROE decision and reduced 2026 guidance.
Positive Factors
Regulated, rate‑base utility model
Eversource’s earnings are underpinned by regulated delivery and transmission businesses where revenue recovery and allowed returns are set by regulators. Rate‑base centric returns and cost recovery mechanisms create predictable long‑term cash flows tied to infrastructure investment rather than merchant volatility.
Negative Factors
Elevated leverage and weak free cash flow
A leveraged balance sheet and historically thin or negative free cash flow reduce financial flexibility. High debt relative to equity increases sensitivity to interest costs and limits the company’s ability to fund CapEx organically, making it more reliant on external equity/debt and regulatory outcomes over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated, rate‑base utility model
Eversource’s earnings are underpinned by regulated delivery and transmission businesses where revenue recovery and allowed returns are set by regulators. Rate‑base centric returns and cost recovery mechanisms create predictable long‑term cash flows tied to infrastructure investment rather than merchant volatility.
Read all positive factors
Eversource Energy (ES) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.60B
Dividend Yield4.54%
Average Volume (3M)2.07M
Price to Earnings (P/E)10.7
Beta (1Y)0.21
Revenue Growth9.83%
EPS Growth101.90%
CountryUS
Employees10,000
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)4.68
Shares Outstanding376,080,020
10 Day Avg. Volume2,446,390
30 Day Avg. Volume2,067,725
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)1.54
Price to Sales (P/S)1.84
P/FCF Ratio-553.69
Enterprise Value/Market Cap2.19
Enterprise Value/Revenue4.02
Enterprise Value/Gross Profit10.07
Enterprise Value/Ebitda10.31
Forecast
1Y Price Target
$70.33Price Target Upside1.56% Upside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)4.68
Revenue Forecast (FY)$13.38B
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 t...
How the Company Makes Money
Eversource primarily makes money through regulated utility operations, where revenues are largely set by state utility commissions and the Federal Energy Regulatory Commission (FERC) based on approved rates designed to recover operating costs and ...
Eversource Energy Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: strong operational performance (notably rapid storm response), year-over-year EPS improvement excluding the FERC-related charge, solid financing execution and healthy credit metrics, and clear pathways for storm-cost recovery. Offsetting these positives are significant regulatory and legal headwinds from the FERC ROE decision (immediate charge, reduced base ROE to 9.57%, and a ~$70M estimated 2026 earnings impact), pending appeals on Aquarion, potential refund exposure, and some higher parent-level costs. Management is proactively pursuing legal and regulatory remedies and has financing and securitization plans that mitigate some near-term risks, but the FERC outcome and remaining transactional uncertainties materially temper the upbeat operational story.Positive Updates
Strong Operational Response to Major Blizzard
Responded to a severe February nor’easter (over 40 inches of snow, gusts >70 mph), restored power to more than 500,000 customers and handled over 2,000 fire, police and safety events, demonstrating resilience and benefits of recent grid investments; majority of surveyed customers appreciated rapid restorations.
Negative Updates
Adverse FERC ROE Decision and Immediate Charge
FERC reduced the base transmission ROE from 10.57% to 9.57% (a 1.00 percentage-point decline, ~-9.5% relative). Company recorded an after-tax charge of $43.9 million (≈$0.12 per share) in Q1 related to the refund for the 15-month complaint period and disclosed an estimated aggregate after-tax earnings reduction of ~ $70 million for 2026 due to the ROE change.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Operational Response to Major Blizzard
Responded to a severe February nor’easter (over 40 inches of snow, gusts >70 mph), restored power to more than 500,000 customers and handled over 2,000 fire, police and safety events, demonstrating resilience and benefits of recent grid investments; majority of surveyed customers appreciated rapid restorations.
Read all positive updates
Company Guidance
Eversource revised 2026 non‑GAAP EPS guidance to $4.57–$4.72 per share and reaffirmed long‑term earnings growth of 5%–7% off the midpoint of 2026 (targeting the upper half by 2028); the company said the FERC cut to a 9.57% transmission base ROE will lower 2026 after‑tax earnings by ~ $70 million and booked a $43.9 million after‑tax charge ($0.12/share) for the 15‑month refund, while filing a section 205 that yields an 11.39% ROE (with a 12.89% cap) and expects implementation toward year‑end (subject to refund). Management reiterated a five‑year CapEx plan of $26.5 billion through 2030, nearly $800 million spent through March versus a $5.1 billion 2026 forecast, and equity needs of $800 million–$1.1 billion over the next five years; financing actions include $1.5 billion of junior subordinated notes issued in Feb (over 5x oversubscribed) and FFO‑to‑debt metrics of 14.2%–14.5% (S&P/Moody’s), >100 bps above downgrade thresholds. Finally, PURA approved the Aquarion sale (appeal window ends mid‑June), and Connecticut plus New Hampshire securitizations should recover ~ $2 billion of storm costs in the next 12–18 months (NH roughly $400M–$470M, targeting completion by late‑2027).Eversource Energy Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.93B | 13.55B | 11.90B | 11.91B | 12.29B | 9.86B |
| Gross Profit | 5.55B | 4.08B | 3.70B | 4.85B | 5.41B | 4.75B |
| EBITDA | 5.43B | 5.39B | 4.13B | 1.40B | 4.19B | 3.49B |
| Net Income | 1.75B | 1.69B | 811.65M | -442.24M | 1.40B | 1.22B |
Balance Sheet | ||||||
| Total Assets | 64.71B | 63.79B | 59.59B | 55.61B | 53.23B | 48.49B |
| Cash, Cash Equivalents and Short-Term Investments | 270.18M | 135.35M | 26.66M | 53.87M | 374.60M | 66.77M |
| Total Debt | 30.34B | 30.28B | 29.11B | 26.75B | 22.94B | 20.22B |
| Total Liabilities | 48.02B | 47.43B | 44.40B | 41.28B | 37.60B | 33.74B |
| Stockholders Equity | 16.53B | 16.20B | 15.04B | 14.17B | 15.47B | 14.60B |
Cash Flow | ||||||
| Free Cash Flow | 236.71M | -45.10M | -2.32B | -2.69B | -1.04B | -1.21B |
| Operating Cash Flow | 4.40B | 4.11B | 2.16B | 1.65B | 2.40B | 1.96B |
| Investing Cash Flow | -4.46B | -4.31B | -4.54B | -4.87B | -4.13B | -3.45B |
| Financing Cash Flow | 196.75M | 311.53M | 2.34B | 2.87B | 2.03B | 1.44B |
Eversource Energy Technical Analysis
Positive
69.25
Price Trends
68.47
Positive
68.71
Positive
67.37
Positive
Market Momentum
-0.20
Negative
53.99
Neutral
49.50
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 69.25 is above the 20-day moving average (MA) of 67.76, above the 50-day MA of 68.47, and above the 200-day MA of 67.37, indicating a bullish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 53.99 is Neutral, neither overbought nor oversold. The STOCH value of 49.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES.
Eversource Energy Risk Analysis
Eversource Energy disclosed 20 risk factors in its most recent earnings report. Eversource Energy reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Eversource Energy Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $29.72B | 21.28 | 11.71% | 2.86% | 12.32% | 23.95% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $25.64B | 18.07 | 8.38% | 3.94% | 11.30% | -1.99% | |
61 Neutral | $22.28B | 17.15 | 12.35% | 3.10% | 13.31% | 6.97% | |
61 Neutral | $26.28B | 15.88 | 8.32% | 3.13% | 7.52% | 21.81% | |
60 Neutral | $25.60B | 10.73 | 10.86% | 4.54% | 9.83% | 101.90% | |
58 Neutral | $26.34B | 12.36 | 21.54% | 5.68% | 13.14% | 30.35% |
* Utilities Sector Average
ES
Eversource Energy
68.81
6.13
9.78%
AEE
Ameren
109.00
13.19
13.77%
CMS
CMS Energy
73.31
3.46
4.95%
EIX
Edison International
70.68
15.64
28.41%
FE
FirstEnergy
45.07
4.01
9.76%
PPL
PPL
35.25
1.44
4.24%
Eversource Energy Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Eversource Updates Earnings Outlook Amid Regulatory Headwinds
Neutral
May 6, 2026
At its May 6, 2026 annual meeting, Eversource Energy shareholders elected nine trustees to one‑year terms, approved 2025 executive compensation on an advisory basis, and ratified Deloitte Touche LLP as independent auditor for 2026. Investor...
Business Operations and StrategyFinancial DisclosuresLegal ProceedingsRegulatory Filings and Compliance
Eversource Challenges FERC Ruling on Transmission ROE
Negative
Apr 1, 2026
On March 19, 2026, the Federal Energy Regulatory Commission set a base return on equity of 9.57% and a maximum incentive ROE of 12.09% for New England transmission owners, prompting Eversource Energy to challenge the order as inconsistent with the...
Business Operations and StrategyPrivate Placements and Financing
Eversource Energy Issues $1.5 Billion Subordinated Notes
Positive
Feb 26, 2026
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 inv...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Eversource Energy Projects Strong Growth With 2026 Outlook
Positive
Feb 12, 2026
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.