Eversource Energy (ES) stock analysis

P/E below its 5-year median

Eversource Energy's P/E of 18.3 is below its own 5-year median of 19.8.

P/E below the industry

Eversource Energy's P/E of 18.3 is below the Electric Services median of 20.9.

EV/EBITDA below its 5-year median

Eversource Energy's EV/EBITDA of 10.2 is below its 5-year median of 12.7.

P/B below the industry

Eversource Energy's price-to-book of 1.63 is below the Electric Services median of 2.02.

Trading below fair value

The share price of $70.54 is below our fair value estimate of $80.57.

Margin of safety under 20%

The price is 12.5% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 3.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 4.0% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 7.8% over the last twelve months; the Electric Services median is 7.8%.

Guidance issued

The latest outlook (through 2030 cumulative long-term earnings per share growth rate, Jul 30, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity

Needs positive equity and five years of results.

Return on capital under 10%

Return on invested capital was 5.5%, below the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

High debt

Debt is 178% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 115% five years ago to 178%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 15.2% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 2.2 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.80 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.79; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Eversource Energy paid dividends worth 4.4% of the share price over the last twelve months.

Yield above Treasuries

The 4.4% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Eversource Energy yields 4.4%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Not covered by free cash flow

Dividends take 380% of free cash flow.