NYSE:ES

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Solid track record established dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

ES

0.7%

US Electric Utilities

-0.4%

US Market


1 Year Return

7.8%

ES

2.4%

US Electric Utilities

18.3%

US Market

Return vs Industry: ES exceeded the US Electric Utilities industry which returned 2.4% over the past year.

Return vs Market: ES underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

ESIndustryMarket
7 Day0.6%0.7%-0.4%
30 Day15.0%12.1%6.6%
90 Day2.8%8.2%8.6%
1 Year10.7%7.8%5.8%2.4%21.0%18.3%
3 Year60.0%46.5%12.7%3.3%42.1%32.7%
5 Year110.4%80.5%51.6%29.6%85.6%64.7%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ES ($91.97) is trading below our estimate of fair value ($655.03)

Significantly Below Fair Value: ES is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ES is poor value based on its PE Ratio (26.2x) compared to the US Electric Utilities industry average (20.1x).

PE vs Market: ES is poor value based on its PE Ratio (26.2x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: ES is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: ES is overvalued based on its PB Ratio (2.3x) compared to the US Electric Utilities industry average (2x).


Next Steps

Future Growth

How is Eversource Energy forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ES's forecast earnings growth (8.1% per year) is above the savings rate (2.2%).

Earnings vs Market: ES's earnings (8.1% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: ES's revenue (5.4% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: ES's revenue (5.4% 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 (9.5%).


Next Steps

Past Performance

How has Eversource Energy performed over the past 5 years?

2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ES has high quality earnings.

Growing Profit Margin: ES's current net profit margins (13.5%) are higher than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: ES's earnings have grown by 2.4% per year over the past 5 years.

Accelerating Growth: ES's earnings growth over the past year (34.2%) exceeds its 5-year average (2.4% per year).

Earnings vs Industry: ES earnings growth over the past year (34.2%) exceeded the Electric Utilities industry 6.8%.


Return on Equity

High ROE: ES's Return on Equity (8.3%) is considered low.


Next Steps

Financial Health

How is Eversource Energy's financial position?


Financial Position Analysis

Short Term Liabilities: ES's short term assets ($2.4B) do not cover its short term liabilities ($3.3B).

Long Term Liabilities: ES's short term assets ($2.4B) do not cover its long term liabilities ($24.8B).


Debt to Equity History and Analysis

Debt Level: ES's debt to equity ratio (110.3%) is considered high.

Reducing Debt: ES's debt to equity ratio has increased from 95.8% to 110.3% over the past 5 years.

Debt Coverage: ES's debt is not well covered by operating cash flow (13.6%).

Interest Coverage: ES's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Next Steps

Dividend

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

2.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ES's dividend (2.47%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: ES's dividend (2.47%) is low compared to the top 25% of dividend payers in the US market (4.56%).


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 (62.8%), 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 (61.5% payout ratio).


Next Steps

Management

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

6.7yrs

Average management tenure


CEO

Jim Judge (64 yo)

4.5yrs

Tenure

US$19,806,088

Compensation

Mr. James J. Judge, also known as Jim, has been the Chief Executive Officer and President of Eversource Energy (formerly, Northeast Utilities/Northeast Utilities System) since May 4, 2016. Mr. Judge served ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD19.81M) is above average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: Jim's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Judge
Chairman4.5yrsUS$19.81m0.029%
$ 9.1m
Philip Lembo
Executive VP & CFO3.42yrsUS$4.48m0.010%
$ 3.2m
Werner Schweiger
Executive VP & COO6.08yrsUS$5.44m0.053%
$ 16.8m
Gregory Butler
Executive VP & General Counsel14.83yrsUS$5.55m0.023%
$ 7.1m
Joseph Nolan
Executive Vice President of Strategy8.5yrsUS$5.77m0.013%
$ 4.2m
Jay Buth
VP, Controller & Chief Accounting Officer8.5yrsno data0.0051%
$ 1.6m
Jeffrey Kotkin
Vice President of Investor Relations19.33yrsno datano data
Duncan MacKay
Chief Compliance Officer & Deputy General Counselno datano datano data
James Hunt
Chief Communications Officer & Senior VP for Regulatory Affairs4yrsno datano data
Christine Carmody
Executive Vice President of Human Resources & Information Technology4.17yrsno data0.011%
$ 3.5m
Robert Bersak
Chief Regulatory Counsel6.67yrsno datano data
Penni McLean-Conner
Chief Customer Officer & Senior VP of Customer Group8.42yrsno datano data

6.7yrs

Average Tenure

61yo

Average Age

Experienced Management: ES's management team is seasoned and experienced (6.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Judge
Chairman4.5yrsUS$19.81m0.029%
$ 9.1m
Cotton Cleveland
Independent Trustee28.75yrsUS$253.47kno data
William Van Faasen
Independent Lead Trustee0.42yrUS$268.47kno data
John Kim
Independent Trustee2.75yrsUS$253.47k0.0062%
$ 2.0m
David Long
Independent Trustee1.42yrsUS$177.32kno data
James DiStasio
Independent Trustee8.5yrsUS$268.47k0.00043%
$ 135.5k
Francis Doyle
Independent Trustee8.5yrsUS$273.47k0.0020%
$ 624.0k
Kenneth Leibler
Independent Trustee13.92yrsUS$253.47k0.0059%
$ 1.9m
Gregory Jones
Independent Trustee0.42yrno datano data
Frederica Williams
Independent Trustee8.5yrsUS$253.47kno data
Linda Forry
Independent Trustee2.42yrsUS$253.47kno data

3.4yrs

Average Tenure

64yo

Average Age

Experienced Board: ES's board of directors are considered experienced (3.4 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 been diluted in the past year, with total shares outstanding growing by 5.9%.


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: 1927
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: US$31.515b
  • Shares outstanding: 342.67m
  • Website: https://www.eversource.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
NWJDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
0IJ2LSE (London Stock Exchange)YesCommon SharesGBUSDJan 1968
NWJETLX (Eurotlx)YesCommon SharesITEURJan 1968
E1SE34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates in four segments: Electric Distribution, Electric Transmission, Natural Gas Distribution, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 23:40
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.