NSTAR Electric Company PFD 4.25%
NSTAR Electric Company PFD 4.25% Fundamental Analysis
NSTAR Electric Company PFD 4.25% (NSARP) shows weak financial fundamentals with a PE ratio of 48.35, profit margin of 15.82%, and ROE of 9.90%. The company generates $4.4B in annual revenue with moderate year-over-year growth of 5.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NSARP's fundamental strength across five key dimensions:
Efficiency Score
WeakNSARP struggles to generate sufficient returns from assets.
Valuation Score
ModerateNSARP shows balanced valuation metrics.
Growth Score
ExcellentNSARP delivers strong and consistent growth momentum.
Financial Health Score
ModerateNSARP shows balanced financial health with some risks.
Profitability Score
ModerateNSARP maintains healthy but balanced margins.
Key Financial Metrics
Is NSARP Expensive or Cheap?
P/E Ratio
NSARP trades at 48.35 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NSARP's PEG of -8.75 indicates potential undervaluation.
Price to Book
The market values NSTAR Electric Company PFD 4.25% at 4.01 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.97 times EBITDA. This signals the market has high growth expectations.
How Well Does NSARP Make Money?
Net Profit Margin
For every $100 in sales, NSTAR Electric Company PFD 4.25% keeps $15.82 as profit after all expenses.
Operating Margin
Core operations generate 22.18 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.90 in profit for every $100 of shareholder equity.
ROA
NSTAR Electric Company PFD 4.25% generates $3.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NSTAR Electric Company PFD 4.25% generates strong operating cash flow of $2.34T, reflecting robust business health.
Free Cash Flow
NSTAR Electric Company PFD 4.25% generates strong free cash flow of $2.34T, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5640.28 in free cash annually.
FCF Yield
NSARP converts 69.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
48.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-8.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.01
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.81
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How NSARP Stacks Against Its Sector Peers
| Metric | NSARP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 48.35 | 20.28 | Worse (Expensive) |
| ROE | 9.90% | 920.00% | Weak |
| Net Margin | 15.82% | 736.00% | Weak |
| Debt/Equity | 0.81 | 1.49 | Strong (Low Leverage) |
| Current Ratio | 1.00 | 1.44 | Weak Liquidity |
| ROA | 3.07% | -6170.00% (disorted) | Weak |
NSARP outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NSTAR Electric Company PFD 4.25%'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.00%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
42.24%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
298531.85%
Industry Style: Defensive, Dividend, Income
High Growth