NYSE:ES

Stock Analysis Report

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Market Cap

US$29.6b

Last Updated

2021/07/31 00:08 UTC

Data Sources

Company Financials +

Executive Summary

Eversource Energy, a public utility holding company, engages in the energy delivery business. More Details


Snowflake Analysis

Established dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Eversource Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ES is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ES's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.06%

ES

2.4%

US Electric Utilities

0.8%

US Market


1 Year Return

-4.2%

ES

10.9%

US Electric Utilities

37.5%

US Market

Return vs Industry: ES underperformed the US Electric Utilities industry which returned 10.9% over the past year.

Return vs Market: ES underperformed the US Market which returned 37.5% over the past year.


Shareholder returns

ESIndustryMarket
7 Day0.06%2.4%0.8%
30 Day7.5%4.9%1.0%
90 Day0.06%0.2%3.8%
1 Year-1.5%-4.2%14.6%10.9%39.7%37.5%
3 Year54.1%41.6%26.4%15.7%64.4%54.1%
5 Year76.6%52.0%30.2%12.1%124.9%100.0%

Long-Term Price Volatility Vs. Market

How volatile is Eversource Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Eversource Energy undervalued compared to its fair value and its price relative to the market?

23.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ES ($86.27) is trading above our estimate of fair value ($69.49)

Significantly Below Fair Value: ES is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ES is poor value based on its PE Ratio (23.7x) compared to the US Electric Utilities industry average (21.8x).

PE vs Market: ES is poor value based on its PE Ratio (23.7x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: ES is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: ES's PB Ratio (2.1x) is in line with the US Electric Utilities industry average.


Future Growth

How is Eversource Energy forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ES's forecast earnings growth (8.9% per year) is above the savings rate (2%).

Earnings vs Market: ES's earnings (8.9% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: ES's earnings are forecast to grow, but not significantly.

Revenue vs Market: ES's revenue (4.9% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: ES's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ES's Return on Equity is forecast to be low in 3 years time (9.4%).


Past Performance

How has Eversource Energy performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ES has high quality earnings.

Growing Profit Margin: ES's current net profit margins (13.1%) are lower than last year (13.5%).


Past Earnings Growth Analysis

Earnings Trend: ES's earnings have grown by 5.4% per year over the past 5 years.

Accelerating Growth: ES's earnings growth over the past year (8%) exceeds its 5-year average (5.4% per year).

Earnings vs Industry: ES earnings growth over the past year (8%) underperformed the Electric Utilities industry 9.4%.


Return on Equity

High ROE: ES's Return on Equity (8.7%) is considered low.


Financial Health

How is Eversource Energy's financial position?


Financial Position Analysis

Short Term Liabilities: ES's short term assets ($3.1B) do not cover its short term liabilities ($5.5B).

Long Term Liabilities: ES's short term assets ($3.1B) do not cover its long term liabilities ($26.6B).


Debt to Equity History and Analysis

Debt Level: ES's debt to equity ratio (127%) is considered high.

Reducing Debt: ES's debt to equity ratio has increased from 97.2% to 127% over the past 5 years.

Debt Coverage: ES's debt is not well covered by operating cash flow (9.2%).

Interest Coverage: ES's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Dividend

What is Eversource Energy current dividend yield, its reliability and sustainability?

2.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ES's dividend (2.79%) is higher than the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: ES's dividend (2.79%) is low compared to the top 25% of dividend payers in the US market (3.5%).


Stability and Growth of Payments

Stable Dividend: ES's dividends per share have been stable in the past 10 years.

Growing Dividend: ES's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.4%), ES's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ES's dividends in 3 years are forecast to be covered by earnings (62.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average management tenure


CEO

Joe Nolan (57 yo)

0.17

Tenure

US$5,054,240

Compensation

Mr. Joseph R. Nolan Jr., also known as Joe, serves as chairman of The Connecticut Light and Power Company since May 5, 2021. He serves as President, CEO and Board of Trustees at Eversource Energy since Ma...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD5.05M) is below average for companies of similar size in the US market ($USD11.23M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ES's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: ES's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ES insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Eversource Energy's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eversource Energy
  • Ticker: ES
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: US$29.631b
  • Shares outstanding: 343.47m
  • Website: https://www.eversource.com

Number of Employees


Location

  • Eversource Energy
  • 300 Cadwell Drive
  • Springfield
  • Massachusetts
  • 1104
  • United States

Listings


Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 00:08
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.