Eversource Energy (ES)

Eversource Energy (ES) Utility Operations & Dividend Profile

Eversource Energy delivers electricity, natural gas, and water services to residential, commercial, and industrial customers across Connecticut, Massachusetts, and New Hampshire. With a focus on regulated utilities, the company maintains a stable market position, leveraging its extensive infrastructure and regional presence in the Northeast.

What Is the Investment Thesis for ES?

Eversource Energy presents a stable investment profile within the regulated utilities sector, characterized by a consistent dividend yield of 4.58% and a relatively low beta of 0.78. The company's P/E ratio of 15.0 reflects a reasonable valuation compared to its earnings. Growth catalysts include ongoing investments in grid modernization and renewable energy projects, driven by increasing demand for reliable and clean energy sources. The company's regulated business model provides a degree of revenue predictability, though it is subject to regulatory oversight and rate approvals. Key risks include potential delays in project approvals, fluctuations in commodity prices, and the impact of extreme weather events on infrastructure. The company's profit margin of 12.5% and gross margin of 39.9% indicate healthy profitability within the utility sector.

Based on FMP financials and quantitative analysis

ES Key Highlights

• Market capitalization of $27.48B, reflecting its significant presence in the utility sector.
• Dividend yield of 4.58%, providing a steady income stream for investors.
• P/E ratio of 15.0, indicating a reasonable valuation relative to earnings.
• Profit margin of 12.5%, demonstrating solid profitability within the regulated utility industry.
• Beta of 0.78, suggesting lower volatility compared to the overall market.

Who Are ES's Competitors?

ES is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are ES's Key Strengths?

• Stable revenue stream from regulated utility operations.
• Extensive infrastructure network in the Northeast.
• Commitment to renewable energy investments.
• Strong relationships with regulatory agencies.

What Are ES's Weaknesses?

• Exposure to regulatory risks and rate approvals.
• Dependence on weather conditions and natural resources.
• Potential for infrastructure damage from extreme weather events.
• High capital expenditure requirements for infrastructure upgrades.

What Could Drive ES Stock Higher?

• Investments in grid modernization and smart grid technologies to improve reliability and efficiency.
• Expansion of renewable energy portfolio through solar, wind, and hydro projects.
• Electrification of transportation initiatives, including EV charging infrastructure.
• Regulatory approvals for proposed rate increases and infrastructure projects.
• Completion of key transmission line upgrades to enhance grid capacity.

What Are the Key Risks for ES?

• Financial-distress signal — its Altman Z-Score of 0.78 sits in the distress zone (elevated bankruptcy risk).
• Delays in regulatory approvals for proposed projects and rate increases.
• Fluctuations in commodity prices, particularly natural gas and electricity.
• Impact of extreme weather events on infrastructure and operations.
• Cybersecurity threats to critical infrastructure and customer data.
• Changes in environmental regulations and policies.

What Are the Growth Opportunities for ES?

• Expansion of Renewable Energy Portfolio: Eversource has the opportunity to expand its renewable energy portfolio through investments in solar, wind, and hydro projects. The increasing demand for clean energy, driven by government mandates and consumer preferences, creates a significant market opportunity. The company can leverage its existing infrastructure and expertise to develop and operate renewable energy facilities, contributing to a more sustainable energy mix. Timeline: Ongoing.
• Grid Modernization Initiatives: Investing in smart grid technologies and infrastructure upgrades can improve the reliability and efficiency of Eversource's electric distribution network. These initiatives can reduce energy losses, enhance grid resilience, and enable the integration of distributed energy resources, such as rooftop solar and electric vehicles. The market for smart grid technologies is expected to grow significantly in the coming years, driven by the need for a more resilient and flexible energy system. Timeline: Ongoing.
• Electrification of Transportation: The increasing adoption of electric vehicles (EVs) presents a growth opportunity for Eversource to expand its electric distribution business. The company can invest in EV charging infrastructure and offer incentives to encourage EV adoption among its customers. The electrification of transportation is a major trend in the energy sector, driven by environmental concerns and technological advancements in EV technology. Timeline: Ongoing.
• Water Infrastructure Investments: Eversource's water distribution segment can benefit from investments in aging water infrastructure. Upgrading water pipes, treatment plants, and distribution systems can improve water quality, reduce water losses, and ensure reliable water service for customers. The market for water infrastructure investments is significant, driven by the need to replace aging infrastructure and meet growing water demand. Timeline: Ongoing.
• Geographic Expansion of Water Services: Eversource has the opportunity to expand its water distribution business through acquisitions of smaller water utilities in the Northeast region. Consolidating water utilities can create economies of scale, improve operational efficiency, and enhance water service for customers. The market for water utility acquisitions is active, driven by the fragmented nature of the water utility industry and the need for infrastructure investments. Timeline: Ongoing.

What Opportunities Does ES Have?

• Expansion of renewable energy portfolio.
• Investments in smart grid technologies.
• Electrification of transportation initiatives.
• Acquisition of smaller water utilities.

What Threats Does ES Face?

• Changes in regulatory policies and environmental standards.
• Fluctuations in commodity prices.
• Competition from other utility companies.
• Cybersecurity threats to critical infrastructure.

What Are ES's Competitive Advantages?

• Regulated utility business model provides a degree of revenue predictability.
• Extensive infrastructure network creates a barrier to entry for competitors.
• Strong regional presence in the Northeast.
• Established relationships with regulatory agencies.

What Does ES Do?

Eversource Energy, formerly known as Northeast Utilities, rebranded in April 2015 to reflect its expanded service offerings and regional focus. The company's roots trace back to the early 20th century with the consolidation of various local utility providers. Today, Eversource operates as a public utility holding company, delivering electricity, natural gas, and water services to approximately 4 million customers across Connecticut, Massachusetts, and New Hampshire. The company's operations are divided into four main segments: Electric Distribution, which involves delivering electricity to residential, commercial, and industrial customers; Electric Transmission, which focuses on maintaining and upgrading the high-voltage transmission network; Natural Gas Distribution, which provides natural gas to customers in select areas; and Water Distribution, which operates regulated water utilities serving approximately 226,000 customers. Eversource also invests in solar power facilities, aligning with the growing demand for renewable energy sources. The company's geographic footprint is concentrated in the Northeast, providing a strong regional presence and established infrastructure.

What Products and Services Does ES Offer?

• Distributes electricity to residential, commercial, and industrial customers.
• Transmits electricity through high-voltage transmission lines.
• Distributes natural gas to customers in select areas.
• Operates regulated water utilities providing water services.
• Invests in solar power facilities.
• Maintains and upgrades energy infrastructure.

How Does ES Make Money?

• Generates revenue through regulated rates for electricity, natural gas, and water distribution.
• Invests in infrastructure and renewable energy projects.
• Operates and maintains energy and water distribution networks.
• Complies with regulatory requirements and environmental standards.

What Industry Does ES Operate In?

Eversource Energy operates within the regulated utilities sector, which is characterized by stable demand, regulated pricing, and significant infrastructure investments. The industry is undergoing a transformation driven by the increasing adoption of renewable energy sources, grid modernization initiatives, and growing demand for energy efficiency. Eversource competes with other large utility companies in the Northeast region and nationally, including ETR: Entergy Corporation, XEL: Xcel Energy Inc., EXC: Exelon Corporation, PEG: Public Service Enterprise Group Incorporated, and ED: Consolidated Edison, Inc. The market is influenced by regulatory policies, environmental concerns, and technological advancements in energy storage and distribution.

Who Are ES's Key Customers?

• Residential customers
• Commercial customers
• Industrial customers
• Municipal and fire protection services
• Other customers in Connecticut, Massachusetts, and New Hampshire

ES Valuation & Market Position

With a $27.48B market cap, Eversource Energy sits in the large-cap segment of the market. Relative to its peer group, ES's quantitative score of 59/100 is roughly in line with the peer average of 64/100.

FY2026 estForward Outlook

Wall Street analysts project Eversource Energy revenue of about $13.77B for fiscal 2026, with EPS near $4.65. The estimate reflects 5 contributing analysts.

F-Score 5/9Financial Health

Eversource Energy's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.78 places it in the distress zone, a signal of elevated financial risk.

ROE 11%Key Financial Metrics

Return on equity for Eversource Energy stands at 10.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.7%, showing how much profit it generates from its asset base. ES trades at a trailing price-to-earnings ratio of 14.99, below the Utilities sector average of ~28x. Its free cash flow yield is 0.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.65 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 6.4%, the inverse of the P/E and a quick read on earnings relative to price.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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