Eversource Energy
Exchange: NYSESector: UtilitiesIndustry: Utilities - Regulated Electric
EnergySolutions, Inc. (EnergySolutions) is a provider of a range of nuclear services to government and commercial customers. The Company's range of nuclear services includes engineering, in-plant support services, spent nuclear fuel management, decontamination and decommissioning (D&D), operation of nuclear reactors, logistics, transportation, processing and low-level radioactive waste (LLRW) disposal. The Company also owns and operates strategic processing and disposal facilities. The Global Commercial Group includes three business divisions: Commercial Services, Logistics, Processing and Disposal (LP&D) and International. In May 2013, Energy Capital Partners II LLC, a unit of Energy Capital Partners, through its wholly owned subsidiary, acquired the entire share capital of EnergySolutions Inc.
Did you know?
Profit margin stands at 12.5%.
Current Price
$69.47
-0.26%GoodMoat Value
$72.68
4.6% undervaluedProfile
Valuation (TTM)
Market Cap$26.06B
P/E15.40
EV$55.36B
P/B1.61
Shares Out375.19M
P/Sales1.92
Revenue$13.55B
EV/EBITDA12.07
Eversource Energy (ES) Stock Analysis
GoodMoat Analysis
Eversource Energy is a regulated electric utility with a stable, government-protected monopoly in its service territories, but it faces significant financial strain. Its valuation appears marginally favourable, but high debt and negative free cash flow are major red flags for a value investor.
Read full analysis
Eversource Energy is a regulated electric utility operating in the Northeastern U.S. Its primary competitive advantage, or moat, stems from regulatory barriers. As a regulated monopoly, it operates with government-granted exclusive rights to provide service in its territories, which aligns with Section 1, Criterion 5 of the GoodMoat framework. This provides a predictable, though regulated, return on its massive infrastructure investments. However, this is largely its only durable moat, suggesting a low Moat Score. Applying the Decision Framework, the company's financial quality is unfavourable. Key metrics like a negative Free Cash Flow Yield (-0.2%) and a high Debt/Equity ratio of 1.86 fail the Quality Indicators in Section 2, particularly for balance sheet strength and cash flow generation. The GoodMoat Target price of $72.68 implies the stock is currently trading at a slight discount of about 7.8% to that fair value estimate, which falls into the 'Marginal' (10-20%) Margin of Safety band per Section 4. While the P/E of 14.9x and dividend yield of 4.35% may appear attractive, the combination of high financial leverage, cash burn, and a narrow margin of safety suggests this stock requires a 'with caution' assessment. A value investor should only investigate further with a deep understanding of the regulatory risks and capital expenditure plans driving its negative cash flow. Analysis based on data as of 2024-05-15.
Market Cap$26.06B
Current Price$69.47
P/E Ratio15.40
Forward P/E—
PEG Ratio0.03
EPS$4.56
Book Value$43.17
P/B Ratio1.61
ES Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 30.0B
Revenue
8.5B
FY19
8.9B
FY20
9.9B
FY21
12.3B
FY22
11.9B
FY23
11.9B
FY24
13.5B
FY25
Net Income
909M
FY19
1.2B
FY20
1.2B
FY21
1.4B
FY22
—
FY23
812M
FY24
1.7B
FY25
ES 52-Week Range
$51.87
$75.41
50-Day MA: $70.71200-Day MA: $67.19
Did you know?
Price sits at 75% of its 52-week range.
Eversource Energy (ES) Financial Summary
Eversource Energy (ES) is a Utilities company in the Utilities - Regulated Electric industry, listed on NYSE. The stock currently trades at $69.47 with a market capitalization of $26.06B.
Key valuation metrics include a P/E ratio of 15.40, price-to-book ratio of 1.61, and EPS of $4.56. The company reports a profit margin of 12.5% and return on equity of 10.4%.
ES Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $26.06B |
| P/E Ratio | 15.40 |
| EPS | $4.56 |
| P/B Ratio | 1.61 |
| P/S Ratio | 1.92 |
| EV/EBITDA | 12.07 |
| Dividend Yield | 4.19% |
| Profit Margin | 12.5% |
| Return on Equity | 10.4% |
| Debt/Equity | 1.86 |
ES Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $8.53B | $909.05M |
| FY20 | $8.90B | $1.21B |
| FY21 | $9.86B | $1.22B |
| FY22 | $12.29B | $1.40B |
| FY23 | $11.91B | $-442.24M |
| FY24 | $11.90B | $811.65M |
| FY25 | $13.55B | $1.69B |
Eversource Energy (ES) Valuation
Based on GoodMoat's DCF model, Eversource Energy has a fair value estimate of $72.68. At the current price of $69.47, the stock appears 4.4% undervalued relative to our intrinsic value estimate.
ES Quality Indicators
Eversource Energy maintains a profit margin of 12.5% and an operating margin of 22.1%. Return on equity stands at 10.4%. The current ratio is 0.65. Debt-to-equity ratio is 1.86.
About Eversource Energy
EnergySolutions, Inc. (EnergySolutions) is a provider of a range of nuclear services to government and commercial customers. The Company's range of nuclear services includes engineering, in-plant support services, spent nuclear fuel management, decontamination and decommissioning (D&D), operation of nuclear reactors, logistics, transportation, processing and low-level radioactive waste (LLRW) disposal. The Company also owns and operates strategic processing and disposal facilities. The Global Commercial Group includes three business divisions: Commercial Services, Logistics, Processing and Disposal (LP&D) and International. In May 2013, Energy Capital Partners II LLC, a unit of Energy Capital Partners, through its wholly owned subsidiary, acquired the entire share capital of EnergySolutions Inc.
ES Free Cash Flow
Eversource Energy generated $-45.10M in trailing twelve-month free cash flow, representing an FCF yield of -0.17%. This low FCF yield may reflect heavy reinvestment or growth spending.
ES Shares Outstanding
Eversource Energy has 0.38 billion shares outstanding at a share price of $69.47, giving it a market capitalization of $26.06B.
ES Recent Insider Trades
Recent insider transactions at Eversource Energy include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Conner Penelope M (EVP-Cust Exp & Energy Strategy) | SELL | 1,400 | $105000.00 |
| CLEVELAND COTTON M | SELL | 2,581 | $193239.47 |
| Kim John Y | SELL | 6,000 | $441330.00 |