Eversource Energy (ES) AI Stock Analysis

• Market Cap: $23.12B
• Dividend Yield: 4.54%
• Average Volume (3M): 3.43M
• Price to Earnings (P/E): 27.8
• Beta (1Y): 0.32
• Revenue Growth: -0.08%
• EPS Growth: N/A
• Country: US
• Employees: 10,171
• Sector: Utilities
• Sector Strength: 79
• Industry: Regulated Utilities
• EPS (TTM): 2.30
• Shares Outstanding: 367,000,000
• 10 Day Avg. Volume: 3,137,294
• 30 Day Avg. Volume: 3,431,606
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.94
• Price to Cash Flow (P/CF): 9.00
• 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: $65.20
• Price Target Upside: 9.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

Eversource Energy's stock is evaluated at a score of 71.5, reflecting stable financial performance with a solid dividend yield. The stock benefits from positive technical momentum and strategic growth initiatives announced during the earnings call. However, high debt levels and potential regulatory challenges pose risks, and the high P/E ratio indicates potential overvaluation.

Positive Factors

Capital Expenditure

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

Financial Performance

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

Negative Factors

Financial Stability

Credit metric targets for Eversource Energy have been removed from presentations, raising concerns about financial transparency and stability.

Project Costs

The delay in the Revolution Wind project is seen as a direct negative impact, as it could lead to a $150-$200 million higher payment to Global Infrastructure Partners to preserve the agreed 13% pre-tax internal rate of return.

Regulatory Environment

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

Eversource Energy Business Overview & Revenue Model

Company Description

Massachusetts-based Eversource Energy is an electric services company. The company is engaged in the transmission and distribution of electricity, as well as the distribution of natural gas. It also operates regulated water utilities. It operates in four segments: Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution.

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 demonstrates stable financial performance typical of the regulated utilities industry. The company maintains steady revenue and profitability metrics, with some improvement in net income. The balance sheet is characterized by high leverage, which is common in the industry but poses potential risks. Cash flows are improving, yet free cash generation remains a concern due to ongoing capital investments. The financial outlook is stable, with a need for careful debt management to mitigate risks.

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: 59.74
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 59.74 is below the 20-day moving average (MA) of 60.81, above the 50-day MA of 58.11, and below the 200-day MA of 60.26, indicating a neutral trend. The MACD of 1.05 indicates Positive momentum. The RSI at 47.40 is Neutral, neither overbought nor oversold. The STOCH value of 27.57 is Neutral, 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
DUK	77 Outperform	$90.39B	20.48	9.03%	3.50%	4.46%	54.09%
SO	77 Outperform	$99.64B	22.75	13.25%	3.17%	5.83%	10.23%
AEP	73 Outperform	$56.12B	18.85	73.81%	3.36%	2.76%	31.53%
D	72 Outperform	$48.46B	23.33	<0.01%	4.69%	-10.79%	18.04%
ES	72 Outperform	$23.12B	27.75	<0.01%	4.54%	-0.08%	―
NEE	67 Neutral	$145.74B	21.00	9.07%	2.95%	26.91%	-6.43%
Sector *	65 Neutral	$12.05B	15.92	6.71%	4.32%	8.04%	3.76%

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.

Eversource Energy Enhances Executive Retirement Benefits Plan

Eversource Energy’s Board of Trustees has enhanced its Supplemental Executive Retirement Program by introducing the Supplemental Cash Balance Pension Plan, set to take effect on January 1, 2025. This amendment aims to bolster retirement benefits for executives, reflecting the company’s commitment to providing competitive compensation packages.