Eversource Energy (ES) AI Stock Analysis

• Market Cap: $20.40B
• Dividend Yield: 5.21%
• Average Volume (3M): 2.57M
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.32
• Revenue Growth: -0.08%
• EPS Growth: N/A
• Country: US
• Employees: 10,680
• Sector: Utilities
• Sector Strength: 95
• Industry: Regulated Electric
• EPS (TTM): 2.30
• Shares Outstanding: 367,081,900
• 10 Day Avg. Volume: 2,557,556
• 30 Day Avg. Volume: 2,567,475
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.88
• Price to Cash Flow (P/CF): 8.70
• P/FCF Ratio: 0.00
• 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: $67.67
• Price Target Upside: 24.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

Eversource Energy's overall stock score reflects stable financial performance with strengths in operational efficiency and strategic growth plans. However, high leverage, valuation concerns, and regulatory challenges pose risks. The robust dividend yield and positive earnings outlook are key strengths.

Positive Factors

Analyst Recommendation

Analyst maintains an Outperform rating on ES and raises the price target to $68 for current market multiples.

Capital Expenditure Plan

The five-year capital expenditure plan for Eversource Energy has been increased, focusing on electric sector modernization and infrastructure improvements.

Regulatory Approval

The Federal Energy Regulatory Commission (FERC) approves an abandoned plant incentive for the Eversource Energy project to support offshore wind, which is a significant regulatory backing.

Negative Factors

Financial Performance

Eversource Energy's guidance for 2025 is below consensus expectations, indicating slower growth than previously anticipated.

Investor Confidence

Investors appear to have little confidence in power companies in general, despite improving valuations due to the protracted timeline to clarity.

Regulatory Challenges

Connecticut's regulatory and legislative environment is becoming increasingly unfavorable for Eversource Energy.

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 displays stable financial performance with consistent revenue and strong operational efficiency. However, the company faces high leverage, with a Debt-to-Equity ratio of 1.32, and challenges in free cash flow generation due to significant capital investments.

Income Statement

Eversource Energy shows stable revenue levels with a total revenue of $11.91 billion in 2024, maintaining a consistent trend over the past few years. The gross profit remains robust, reflecting strong operational efficiency. However, the net profit margin has been volatile, with a significant improvement to $811.7 million in 2024 from a loss in 2023. EBIT and EBITDA margins are solid, indicating effective cost management. Revenue growth has been relatively flat, suggesting limited expansion in recent years.

Balance Sheet

The balance sheet reflects a high level of debt with a Debt-to-Equity ratio of approximately 1.32 in 2024, which suggests significant leverage. The Equity Ratio stands at around 36.5%, indicating a balanced reliance on equity financing. Return on Equity (ROE) has improved, highlighting better returns for shareholders compared to previous years. Despite the high debt levels, the company's asset base is strong with total assets of $59.59 billion in 2024.

Cash Flow

Eversource Energy's cash flows show a positive trend in operating cash flow, reaching $2.16 billion in 2024, but the free cash flow remains challenging due to high capital expenditures. The Free Cash Flow to Net Income Ratio has improved but remains below optimal levels. The Operating Cash Flow to Net Income Ratio reflects efficient cash generation from operations, supporting the company's liquidity position.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.90B	11.91B	12.29B	9.86B	8.90B
	Gross Profit
11.90T	4.85B	5.41B	4.75B	4.44B
	EBIT
2.41T	2.40B	2.20B	1.99B	1.99B
	EBITDA
2.41T	1.40B	4.19B	3.49B	3.25B
	Net Income Common Stockholders
811.65M	-442.24M	1.40B	1.22B	1.21B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.66B	53.87M	374.60M	66.77M	106.60M
	Total Assets
59.59T	55.61B	53.23B	48.49B	46.10B
	Total Debt
28.75T	26.75B	22.94B	20.22B	17.97B
	Net Debt
28.72T	26.70B	22.57B	20.15B	17.86B
	Total Liabilities
37.83T	41.28B	37.60B	33.74B	31.88B
	Stockholders Equity
21.76T	14.17B	15.47B	14.60B	14.06B
Cash Flow		Free Cash Flow
2.16T	-2.69B	-1.04B	-1.21B	-1.26B
	Operating Cash Flow
2.16T	1.65B	2.40B	1.96B	1.68B
	Investing Cash Flow
-4.54T	-4.87B	-4.13B	-3.45B	-4.13B
	Financing Cash Flow
2.34T	2.87B	2.03B	1.44B	2.59B

Eversource Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 54.25 is below the 20-day moving average (MA) of 60.33, below the 50-day MA of 60.17, and below the 200-day MA of 60.67, indicating a bearish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 57.16 is Neutral, neither overbought nor oversold. The STOCH value of 84.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES.

Eversource Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMS	78 Outperform	$21.22B	21.31	12.72%	2.94%	0.71%	11.07%
DTE	77 Outperform	$26.55B	18.90	12.32%	3.30%	-1.13%	0.16%
EIX	70 Outperform	$20.64B	16.19	8.83%	5.91%	7.72%	6.49%
FE	70 Outperform	$22.72B	23.23	8.54%	4.39%	4.68%	-11.66%
ES	66 Neutral	$20.40B	24.47	5.56%	5.21%	-0.08%	―
CNP	66 Neutral	$23.14B	22.44	10.02%	2.34%	-0.61%	15.54%
Sector *	65 Neutral	$11.42B	15.20	6.23%	4.60%	5.50%	-9.06%

Eversource Energy Corporate Events

Eversource Energy Reports Financial Turnaround with Strategic Plan

Eversource Energy reported a significant financial turnaround in 2024, achieving full-year earnings of $811.7 million compared to a loss in 2023. This recovery was driven by strategic divestments and increased investments in its transmission and distribution systems. The company plans to continue focusing on strengthening its balance sheet by divesting non-core assets like Aquarion Water Company and aims for a long-term growth rate of 5 to 7 percent through increased infrastructure investments. It introduced a new five-year $24.2 billion investment plan, reflecting a 10 percent increase over the previous plan, to support clean energy growth.

Eversource Energy Sells Aquarion Water for $2.4 Billion

On January 27, 2025, Eversource Energy announced the sale of its subsidiary, Aquarion Water Company, to the newly established Aquarion Water Authority for approximately $2.4 billion. This transaction, expected to close in late 2025, will allow Eversource to focus on its core electric and natural gas operations, optimize its portfolio, and strengthen its balance sheet. The company anticipates a loss of about $300 million from the sale in its fourth-quarter 2024 results, which includes a $140 million income tax expense. Eversource reaffirms its long-term earnings growth target of 5% to 7% through 2028.