NSTAR Electric Company PFD 4.25% (NSARP)
For informational purposes only. Not financial advice. Analysis by Sedat Aydin, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
NSTAR Electric Company PFD 4.25% (NSARP) with AI Score 56/100 (Hold). NSTAR Electric Co. is a regulated electric utility serving eastern and western Massachusetts as a subsidiary of Northeast Utilities. Market cap: 0, Sector: Utilities.
Last analyzed: Mar 17, 2026NSTAR Electric Company PFD 4.25% (NSARP) Utility Operations & Dividend Profile
NSTAR Electric Co., a subsidiary of Northeast Utilities, operates as a regulated electric utility in Massachusetts, focusing on electricity distribution to diverse customer segments. With a solid dividend yield and negative beta, the company presents a stable investment profile within the utilities sector, characterized by consistent demand and regulated operations.
Investment Thesis
NSTAR Electric Co. presents a stable investment profile due to its regulated business model and consistent dividend yield of 5.90%. The company's negative beta of -0.12 suggests low volatility relative to the market, making it a noteworthy option for risk-averse investors. A key value driver is its established infrastructure and customer base in Massachusetts. Growth catalysts include potential infrastructure upgrades and regulatory approvals for rate adjustments. However, potential risks include regulatory changes and fluctuations in electricity prices, which could impact profitability. The company's P/E ratio of 47.78 indicates a premium valuation, reflecting investor confidence in its stability and dividend payout.
Based on FMP financials and quantitative analysis
Key Highlights
- Market capitalization of $30.05 billion, indicating a substantial presence in the regulated electric utility sector.
- Profit margin of 15.8%, reflecting efficient operations and effective cost management.
- Gross margin of 51.5%, showcasing the company's ability to generate revenue from its core business activities.
- Dividend yield of 5.90%, providing a steady income stream for investors.
- Negative beta of -0.12, indicating lower volatility compared to the overall market.
Competitors & Peers
Strengths
- Regulated business model provides stable revenue streams.
- Established infrastructure and customer base.
- High barriers to entry due to regulatory requirements.
- Consistent dividend yield.
Weaknesses
- Subject to regulatory oversight and constraints.
- Limited growth potential compared to unregulated businesses.
- Exposure to fluctuations in electricity prices.
- Dependence on aging infrastructure.
Catalysts
- Ongoing: Infrastructure upgrades to enhance reliability and efficiency of electricity distribution.
- Ongoing: Investments in renewable energy sources to meet clean energy mandates.
- Upcoming: Potential regulatory approvals for rate adjustments to reflect infrastructure investments.
- Ongoing: Expansion of energy efficiency programs to reduce peak demand and lower customer bills.
Risks
- Potential: Changes in regulatory policies impacting rate structures and investment decisions.
- Potential: Fluctuations in electricity prices affecting profitability.
- Potential: Cybersecurity threats to critical infrastructure.
- Ongoing: Dependence on aging infrastructure requiring ongoing maintenance and upgrades.
Growth Opportunities
- Infrastructure Modernization: NSTAR Electric can invest in upgrading its existing infrastructure to enhance reliability and efficiency. This includes replacing aging equipment, implementing smart grid technologies, and expanding transmission capacity. The modernization efforts can reduce operational costs, improve service quality, and support the integration of renewable energy sources. The market for smart grid technologies is projected to reach $61.3 billion by 2027, offering significant growth potential for NSTAR Electric.
- Renewable Energy Integration: NSTAR Electric can increase its investments in renewable energy sources, such as solar and wind power, to meet growing demand for clean energy and comply with regulatory mandates. This includes developing new renewable energy projects, entering into power purchase agreements with renewable energy developers, and supporting the deployment of distributed generation resources. The renewable energy market is expected to grow rapidly, driven by government incentives and declining costs.
- Electric Vehicle Charging Infrastructure: NSTAR Electric can capitalize on the growing adoption of electric vehicles (EVs) by investing in EV charging infrastructure. This includes installing public charging stations, offering incentives for residential EV chargers, and developing smart charging solutions. The EV charging infrastructure market is projected to reach $103.6 billion by 2030, presenting a significant growth opportunity for NSTAR Electric.
- Energy Efficiency Programs: NSTAR Electric can expand its energy efficiency programs to help customers reduce their energy consumption and lower their utility bills. This includes offering rebates for energy-efficient appliances, providing energy audits, and promoting energy conservation practices. Energy efficiency programs can reduce peak demand, lower greenhouse gas emissions, and improve customer satisfaction. The market for energy efficiency technologies and services is expected to grow steadily, driven by rising energy prices and environmental concerns.
- Data Analytics and Smart Metering: NSTAR Electric can leverage data analytics and smart metering technologies to improve its operational efficiency and customer service. This includes using data analytics to optimize grid operations, predict equipment failures, and personalize customer offerings. Smart metering can provide real-time data on energy consumption, enabling customers to better manage their energy usage. The market for smart metering is projected to reach $22.9 billion by 2027, offering significant opportunities for NSTAR Electric to enhance its operations and customer engagement.
Opportunities
- Investments in infrastructure modernization.
- Expansion of renewable energy portfolio.
- Development of electric vehicle charging infrastructure.
- Implementation of energy efficiency programs.
Threats
- Changes in regulatory policies.
- Increased competition from alternative energy sources.
- Cybersecurity risks to critical infrastructure.
- Extreme weather events impacting electricity distribution.
Competitive Advantages
- Regulated utility status provides a protected market and predictable revenue streams.
- Established infrastructure and customer base in Massachusetts.
- High barriers to entry due to regulatory requirements and capital investments.
About NSARP
NSTAR Electric Co. was established as a Massachusetts corporation and functions as a subsidiary of Northeast Utilities. The company is a regulated electric utility, primarily engaged in the purchase, delivery, and sale of electricity. NSTAR Electric serves a wide range of customers, including residential, commercial, and industrial clients, located in both eastern and western regions of Massachusetts. The company's core business revolves around ensuring a reliable supply of electricity to its customer base, maintaining the infrastructure required for electricity distribution, and complying with regulatory standards set by state and federal authorities. NSTAR Electric's operations are characterized by a focus on efficiency, reliability, and customer service, reflecting its commitment to meeting the energy needs of the communities it serves. Its position as a regulated utility provides a degree of stability and predictability in its revenue streams, although it also subjects the company to regulatory oversight and constraints on pricing and investment decisions.
What They Do
- Purchases electricity from various sources.
- Delivers electricity to residential customers.
- Delivers electricity to commercial customers.
- Delivers electricity to industrial customers.
- Maintains and operates electricity distribution infrastructure.
- Ensures reliable electricity supply to customers.
- Complies with regulatory standards for electricity distribution.
Business Model
- Generates revenue through the sale of electricity to customers.
- Operates under a regulated framework, with rates approved by regulatory authorities.
- Invests in infrastructure to maintain and improve electricity distribution network.
Industry Context
NSTAR Electric Co. operates within the regulated electric utility industry, which is characterized by stable demand and significant regulatory oversight. The industry is undergoing a transformation with the integration of renewable energy sources and the modernization of grid infrastructure. Key trends include increasing investments in smart grid technologies, growing adoption of electric vehicles, and rising demand for energy efficiency programs. NSTAR Electric competes with other regulated utilities in the region, and its performance is influenced by factors such as regulatory policies, energy prices, and infrastructure investments. The market is expected to grow steadily, driven by population growth and increasing electricity consumption.
Key Customers
- Residential customers in eastern and western Massachusetts.
- Commercial customers in eastern and western Massachusetts.
- Industrial customers in eastern and western Massachusetts.
Financials
Chart & Info
NSTAR Electric Company PFD 4.25% (NSARP) stock price: Price data unavailable
Latest News
No recent news available for NSARP.
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for NSARP.
Price Targets
Wall Street price target analysis for NSARP.
MoonshotScore
What does this score mean?
The MoonshotScore rates NSARP's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Leadership: Paul Chodak
Unknown
Information about Paul Chodak's background is not available in the provided data. Therefore, it is not possible to provide a detailed biography, including his career history, education, previous roles, or credentials.
Track Record: Information about Paul Chodak's track record is not available in the provided data. Therefore, it is not possible to provide details on his key achievements, strategic decisions, or company milestones under his leadership.
NSARP OTC Market Information
The OTC Other tier represents the lowest tier of the OTC market, indicating that NSTAR Electric Company PFD 4.25% may not meet the minimum financial standards or reporting requirements of higher tiers like OTCQX or OTCQB. Companies in this tier may have limited financial disclosure, making it more difficult for investors to assess their financial health and operational performance compared to companies listed on major exchanges like the NYSE or NASDAQ, which have stringent listing requirements.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited financial disclosure due to OTC Other tier status.
- Lower liquidity compared to stocks listed on major exchanges.
- Potential for wider bid-ask spreads and price volatility.
- Increased risk of fraud or manipulation due to less regulatory oversight.
- Verify the company's registration and legal status.
- Review available financial statements and disclosures.
- Assess the company's business model and competitive position.
- Evaluate the management team and their track record.
- Understand the risks associated with investing in OTC stocks.
- Monitor trading volume and price movements.
- Consult with a financial advisor before investing.
- Subsidiary of Northeast Utilities.
- Operates as a regulated electric utility.
- Serves residential, commercial, and industrial customers in Massachusetts.
Common Questions About NSARP
What does NSTAR Electric Company PFD 4.25% do?
NSTAR Electric Company PFD 4.25% operates as a regulated electric utility, primarily focused on the distribution of electricity to residential, commercial, and industrial customers in eastern and western Massachusetts. As a subsidiary of Northeast Utilities, NSTAR Electric purchases electricity from various sources and delivers it through its established infrastructure. The company's core business involves maintaining the electricity distribution network, ensuring reliable service, and complying with regulatory requirements, all while generating revenue through the sale of electricity to its customer base.
What do analysts say about NSARP stock?
As of 2026-03-17, formal analyst ratings for NSARP are limited due to its OTC Other listing and the fact that it is a preferred stock. However, key valuation metrics include its dividend yield of 5.90% and a P/E ratio of 47.78. Investors consider its stability as a regulated utility and its consistent dividend payout. Growth considerations involve infrastructure investments and regulatory approvals for rate adjustments. The OTC market introduces additional risks that should be carefully considered.
What are the main risks for NSARP?
The main risks for NSTAR Electric Company PFD 4.25% include regulatory changes that could impact its rate structure and profitability, fluctuations in electricity prices, and potential cybersecurity threats to its critical infrastructure. Additionally, the company faces risks associated with its aging infrastructure, which requires ongoing maintenance and upgrades. As an OTC-listed stock, NSARP also carries liquidity risks and limited financial disclosure, requiring investors to conduct thorough due diligence before investing.
What are the key factors to evaluate for NSARP?
NSTAR Electric Company PFD 4.25% (NSARP) currently holds an AI score of 56/100, indicating moderate score. Key strength: Regulated business model provides stable revenue streams.. Primary risk to monitor: Potential: Changes in regulatory policies impacting rate structures and investment decisions.. This is not financial advice.
How frequently does NSARP data refresh on this page?
NSARP prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.
What has driven NSARP's recent stock price performance?
Recent price movement in NSTAR Electric Company PFD 4.25% (NSARP) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. Notable catalyst: Regulated business model provides stable revenue streams.. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
Should investors consider NSARP overvalued or undervalued right now?
Determining whether NSTAR Electric Company PFD 4.25% (NSARP) is overvalued or undervalued requires examining multiple metrics. Compare valuation ratios (P/E, P/S, EV/EBITDA) against sector peers for a comprehensive view.
What research should beginners do before buying NSARP?
Before investing in NSTAR Electric Company PFD 4.25% (NSARP), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Limited analyst coverage due to OTC listing.
- Financial data based on available information and may not be comprehensive.