Eversource Energy
Eversource Energy Fundamental Analysis
Eversource Energy (ES) shows moderate financial fundamentals with a PE ratio of 16.56, profit margin of 12.49%, and ROE of 10.71%. The company generates $13.5B in annual revenue with weak year-over-year growth of -0.08%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ES's fundamental strength across five key dimensions:
Efficiency Score
WeakES struggles to generate sufficient returns from assets.
Valuation Score
ExcellentES trades at attractive valuation levels.
Growth Score
WeakES faces weak or negative growth trends.
Financial Health Score
WeakES carries high financial risk with limited liquidity.
Profitability Score
WeakES struggles to sustain strong margins.
Key Financial Metrics
Is ES Expensive or Cheap?
P/E Ratio
ES trades at 16.56 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ES's PEG of 0.66 indicates potential undervaluation.
Price to Book
The market values Eversource Energy at 1.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -5504.29 times EBITDA. This is generally considered low.
How Well Does ES Make Money?
Net Profit Margin
For every $100 in sales, Eversource Energy keeps $12.49 as profit after all expenses.
Operating Margin
Core operations generate 22.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.71 in profit for every $100 of shareholder equity.
ROA
Eversource Energy generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Eversource Energy generates strong operating cash flow of $4.11B, reflecting robust business health.
Free Cash Flow
Eversource Energy generates weak or negative free cash flow of $-45.06M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.12 in free cash annually.
FCF Yield
ES converts -0.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1839.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How ES Stacks Against Its Sector Peers
| Metric | ES Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.56 | 19.20 | Better (Cheaper) |
| ROE | 10.71% | 1033.00% | Weak |
| Net Margin | 12.49% | 9191.00% | Weak |
| Debt/Equity | 1839.25 | 6.63 | Weak (High Leverage) |
| Current Ratio | 0.65 | 1.68 | Weak Liquidity |
| ROA | 0.00% | -237.00% (disorted) | Weak |
ES outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Eversource Energy's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.49%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
-19.72%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
-3.37%
Industry Style: Defensive, Dividend, Income
Declining