NSTAR Electric Company (NSARO)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, 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 (NSARO) trades at $78.50 with AI Score 53/100 (Grade B). NSTAR Electric Company is a regulated electric utility serving approximately 1. 46 million customers across Massachusetts, including Boston and Cape Cod. Market cap: $28.94B, Sector: Utilities.
Price live · AI analysis from Jun 15, 2026Analyst Coverage for NSARO: NSARO does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates NSARO against Utilities peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
NSARO: the 6 perspectives are evenly split. Dominant signal: Izzy Englander bearish.
How is this calculated? →NSTAR Electric Company (NSARO) Utility Operations & Dividend Profile
NSTAR Electric Company is a regulated electric utility providing essential power services to 1.46 million residential, commercial, and industrial customers across 140 Massachusetts communities, including major metropolitan areas. As a subsidiary of Eversource Energy, it manages electricity purchase, transmission, delivery, and sales, complemented by 70 megawatts of solar power generation.
What Is the Investment Thesis for NSARO?
NSTAR Electric Company presents a profile characteristic of a regulated utility, offering investors exposure to stable, essential services within a defined geographic market. Its regulated status in Massachusetts provides a predictable revenue stream, as rates are set to allow for cost recovery and a reasonable return on invested capital. The company's substantial customer base of approximately 1.46 million across 140 cities and towns ensures consistent demand for its electricity purchase, transmission, delivery, and sales operations. Key financial metrics underscore its operational stability, with a Gross Margin of 60.3% and a Profit Margin of 14.3%. The company's dividend yield of 6.14% positions it as a noteworthy option for income-focused investors, supported by the stable cash flows inherent in the utility business model. With a Beta of 0.09, NSARO exhibits significantly lower volatility compared to the broader market, appealing to those seeking defensive assets. Furthermore, NSTAR Electric's ownership of 70 megawatts of solar power facilities aligns with ongoing energy transition trends, potentially driving future capital investments and regulatory support for renewable integration. Risks primarily revolve around adverse regulatory decisions, rising operating costs, and the capital-intensive nature of maintaining and upgrading its extensive network.
Based on FMP financials and quantitative analysis
NSARO Key Highlights
- Market Capitalization of $28.94B.
- Profit Margin of 14.3% indicating operational efficiency.
- Gross Margin of 60.3% reflecting strong cost control relative to revenue.
- Dividend Yield of 6.14%, offering income potential for investors.
- Beta of 0.09, suggesting low volatility relative to the broader market.
Who Are NSARO's Competitors?
NSARO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| ELEZY Endesa, S.A. | $22.06 | -2.66% | $45.39B | 45 |
| GASNF Naturgy Energy Group, S.A. | $33.67 | +0.00% | $32.33B | 51 |
| AEE Ameren Corporation | $113.13 | -1.65% | $31.31B | 83 |
| CZAVF CEZ, a. s. | $54.95 | +0.00% | $29.50B | 43 |
| CLPHF CLP Holdings Limited | $9.28 | +2.77% | $23.44B | — |
| CNLPM The Connecticut Light and Power Company | $32.99 | +1.29% | $315.00M | 72 |
| CNTHP The Connecticut Light and Power Company | $52.70 | +0.55% | $318.06M | 69 |
| CNLHP The Connecticut Light and Power Company | $36.95 | +0.00% | $223.00M | 68 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are NSARO's Key Strengths?
- Stable and predictable revenue stream due to regulated utility status.
- Large, established customer base of 1.46 million across Massachusetts.
- Ownership and operation of 70 megawatts of solar power facilities.
- Provision of essential services, ensuring consistent demand.
- Financial and operational backing as a subsidiary of Eversource Energy.
What Are NSARO's Weaknesses?
- Capital-intensive business requiring continuous significant investment.
- Subject to stringent regulatory scrutiny and potential political interference.
- Reliance on a single geographic market (Massachusetts) for operations.
- Exposure to aging infrastructure requiring ongoing maintenance and upgrades.
What Could Drive NSARO Stock Higher?
- Regulatory rate case approvals in Massachusetts, which could establish new revenue requirements and allowed returns on investment, providing clarity on future earnings potential.
- Completion and commissioning of new infrastructure projects, such as grid modernization initiatives or additional renewable energy facilities, expanding the company's rate base.
- Continued integration of renewable energy sources and grid resilience investments, aligning with state energy policies and potentially attracting further capital investment.
- Economic and population growth within its Massachusetts service territory, leading to increased electricity demand and customer base expansion.
What Are the Key Risks for NSARO?
- Financial-distress signal — its Altman Z-Score of -0.05 sits in the distress zone (elevated bankruptcy risk).
- Adverse regulatory decisions that could limit rate increases, disallow cost recovery for certain investments, or impose penalties, directly impacting profitability.
- Exposure to severe weather events, such as winter storms or hurricanes, which can cause extensive infrastructure damage, service disruptions, and significant repair costs.
- Fluctuations in wholesale electricity prices or fuel costs, which, if not fully recoverable through regulated rates, could compress profit margins.
- High capital expenditure requirements for maintaining and upgrading its extensive transmission and distribution network, necessitating continuous investment and potentially impacting cash flow.
- Cybersecurity threats targeting operational technology systems, which could lead to service outages, data breaches, and reputational damage.
What Are the Growth Opportunities for NSARO?
- **Renewable Energy Expansion and Integration:** NSTAR Electric Company currently owns and operates 70 megawatts of solar power facilities, a foundation for future growth in renewable energy. With increasing state-level mandates and incentives for clean energy in Massachusetts, there is a significant opportunity to expand its renewable generation portfolio or further integrate third-party renewable sources into its grid. This includes potential investments in utility-scale solar, battery storage solutions, and smart grid technologies to manage intermittent renewable supply. The market for renewable energy infrastructure is projected to grow substantially over the next decade, driven by environmental policies and declining technology costs, allowing NSTAR to capitalize on this trend to enhance its energy mix and meet regulatory compliance while potentially securing favorable rate base treatment for these investments.
- **Grid Modernization and Infrastructure Upgrades:** The aging electricity infrastructure across the United States necessitates continuous investment in modernization. NSTAR Electric, serving a vast area of 3,200 square miles, has ongoing opportunities to upgrade its transmission and distribution networks with advanced technologies such as smart meters, automated grid controls, and enhanced cybersecurity measures. These investments improve grid reliability, reduce outage durations, and increase operational efficiency, which can be recovered through regulated rates. The drive for a more resilient and intelligent grid is a multi-decade undertaking, ensuring a consistent pipeline of capital projects. Such upgrades not only enhance service quality for its 1.46 million customers but also support the integration of new technologies like electric vehicles and distributed generation.
- **Demand Growth in Service Areas:** NSTAR Electric's service territory encompasses major economic hubs like Boston and the greater Springfield metropolitan area, along with popular residential regions like Cape Cod and Martha's Vineyard. Continued population growth, economic development, and industrial expansion within these 140 cities and towns can lead to increased electricity demand. As a regulated utility, NSTAR is positioned to meet this growing demand by expanding its capacity and infrastructure, which translates into a larger rate base and potential revenue growth. Urbanization trends and the revitalization of specific regions within Massachusetts provide a natural tailwind for NSTAR's core business, ensuring a steady increase in its customer base and overall energy consumption over the long term.
- **Energy Efficiency and Demand-Side Management Programs:** Utilities are increasingly incentivized by regulators to implement energy efficiency and demand-side management programs. These initiatives help customers reduce their energy consumption, which can defer the need for costly new generation or transmission infrastructure. NSTAR Electric can expand its offerings in this area, including rebates for energy-efficient appliances, smart thermostat programs, and commercial energy audits. While seemingly counterintuitive, these programs often receive regulatory approval for cost recovery and can generate revenue through performance incentives, aligning with public policy goals and enhancing customer satisfaction. The market for energy efficiency solutions is robust, driven by environmental consciousness and cost savings for consumers, offering NSTAR a pathway for growth beyond simply selling more electricity.
- **Electrification of Transportation and Heating:** The broader societal shift towards electrification, particularly in transportation (electric vehicles) and heating (heat pumps), represents a significant long-term growth opportunity for electric utilities. As Massachusetts pushes for reduced fossil fuel reliance, the demand for electricity to power EVs and heat homes and businesses is expected to surge. NSTAR Electric can invest in and facilitate the build-out of charging infrastructure and support the adoption of electric heating solutions within its service territory. These investments, often supported by regulatory frameworks, expand the utility's rate base and increase overall electricity sales. This trend is in its early stages but is projected to accelerate significantly over the next two decades, providing a substantial new source of demand for NSTAR.
What Opportunities Does NSARO Have?
- Growth driven by state-level renewable energy mandates and incentives.
- Opportunities for grid modernization and smart technology investments.
- Increased demand from population and economic growth in Massachusetts.
- Expansion of energy efficiency and demand-side management programs.
- Long-term demand growth from the electrification of transportation and heating.
What Threats Does NSARO Face?
- Adverse regulatory decisions impacting rates, cost recovery, or allowed returns.
- Increased frequency and intensity of extreme weather events causing damage and outages.
- Fluctuations in energy commodity prices affecting operational costs.
- Technological disruption from distributed generation or advanced energy storage.
- Rising operating costs, including labor, materials, and environmental compliance.
What Are NSARO's Competitive Advantages?
- Geographic monopoly as a regulated utility in its service areas.
- Extensive and costly infrastructure network (transmission and distribution lines).
- High barriers to entry due to regulatory requirements and capital intensity.
- Essential service provider status, ensuring consistent demand.
What Does NSARO Do?
NSTAR Electric Company operates as a crucial regulated electric utility, serving a substantial portion of Massachusetts with essential power services. Headquartered in Boston, Massachusetts, the company is a subsidiary of Eversource Energy, a prominent energy company in the Northeast. NSTAR Electric's core business revolves around the comprehensive management of electricity, encompassing its purchase from various generation sources, efficient transmission across its extensive network, reliable delivery to end-users, and direct sale to a diverse customer base. This includes residential homes, commercial enterprises, and industrial facilities throughout its expansive service territory. As of December 31, 2021, NSTAR Electric served approximately 1.46 million customers, demonstrating its significant footprint and critical role in the region's infrastructure. Its service area is vast, covering Boston, as well as 140 cities and towns spread across eastern and western Massachusetts. This includes key regions such as Cape Cod, Martha's Vineyard, and the greater Springfield metropolitan area, collectively spanning an impressive area of approximately 3,200 square miles. The company's operations are fundamental to the daily lives and economic activities within these communities, ensuring a steady and dependable supply of electricity. Beyond its traditional utility functions, NSTAR Electric Company has also invested in renewable energy infrastructure. The company owns, operates, and maintains 70 megawatts of solar power facilities, integrating sustainable energy sources into its supply portfolio. This commitment to solar power aligns with broader industry trends towards decarbonization and meeting growing demand for cleaner energy. As a regulated entity, NSTAR Electric's operations are subject to oversight by state utility commissions, which determine rates and ensure service quality, providing a stable, albeit scrutinized, operating environment. Its position as a subsidiary of Eversource Energy further solidifies its operational and financial backing within the broader utility landscape.
What Products and Services Does NSARO Offer?
- Purchase electricity from various generation sources.
- Transmit high-voltage electricity across its extensive network.
- Deliver electricity to end-users via distribution lines.
- Sell electricity to residential, commercial, and industrial customers.
- Operate and maintain 70 megawatts of solar power facilities.
- Serve approximately 1.46 million customers in Massachusetts.
- Maintain an electric infrastructure covering 3,200 square miles.
- Provide essential utility services as a regulated entity.
How Does NSARO Make Money?
- Generate revenue from the sale of electricity to a diverse customer base.
- Operate under a regulated framework, allowing for cost recovery and a regulated rate of return on investments.
- Invest in and maintain a vast network of transmission and distribution infrastructure.
- Integrate renewable energy sources, such as its 70 MW solar facilities, into its supply portfolio.
What Industry Does NSARO Operate In?
NSTAR Electric Company operates within the highly regulated electric utility industry, primarily serving Massachusetts. This sector is characterized by its essential service provision, significant capital expenditure requirements for infrastructure, and a framework designed to ensure reliability and affordability for consumers. The industry is currently undergoing a transformative period, driven by increasing mandates for renewable energy integration, the imperative for grid modernization to enhance resilience and efficiency, and the growing adoption of distributed energy resources. NSTAR's ownership and operation of 70 megawatts of solar power facilities directly positions it within this transition towards a cleaner energy future, aligning with state and federal decarbonization goals. While direct competition for customer acquisition within its defined service territory is limited due to its regulated monopoly status, NSTAR's performance is often benchmarked against other regional utilities in terms of service quality, operational efficiency, and rate competitiveness, all under the watchful eye of regulatory bodies. Market trends indicate a sustained demand for electricity, coupled with a push for smart grid technologies and infrastructure hardening against extreme weather, areas where NSTAR will likely direct future investments.
Who Are NSARO's Key Customers?
- Residential households across its service territory.
- Commercial businesses, including small and large enterprises.
- Industrial facilities requiring significant power for operations.
- Approximately 1.46 million customers in total.
How NSTAR Electric Company Is Valued
NSTAR Electric Company carries a market capitalization of $28.94B, placing it in the large-cap category. Relative to its peer group, NSARO's quantitative score of 53/100 is roughly in line with the peer average of 56/100.
Company Profile
NSTAR Electric Company operates in the Regulated Electric industry within the Utilities sector. It is headquartered in Boston, US. The company is led by CEO Paul Chodak. NSARO has traded publicly since 1999.
ROE 0%Key Financial Metrics
Return on equity for NSTAR Electric Company stands at 0.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.0%, showing how much profit it generates from its asset base. NSARO trades at a trailing price-to-earnings ratio of 27.99, roughly in line with the Utilities sector average of ~28x. A current ratio of 0.65 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 3.6%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 5/9Financial Health
NSTAR Electric Company'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 -0.05 places it in the distress zone, a signal of elevated financial risk.
NSARO Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in the company's future performance, indicating that management believes in the growth potential of NSTAR.
- Community sentiment has shifted positively as discussions highlight NSTAR's commitment to sustainable energy solutions, aligning with broader market trends.
- Analysts are noting NSTAR's strategic investments in infrastructure, which could enhance operational efficiency and customer satisfaction.
- Positive news regarding regulatory support for renewable energy projects has sparked optimism among investors about NSTAR's long-term viability.
Bear Case
- Despite recent insider buying, some analysts express concern about the competitive landscape in the energy sector, which could impact NSTAR's market share.
- Community sentiment shows mixed feelings, with some investors worried about potential regulatory hurdles that could affect profitability.
- A segment of the trading community is cautious about NSTAR's ability to adapt to rapidly changing technology in energy production and distribution.
- Concerns over rising operational costs in the energy sector are causing some investors to question NSTAR's ability to maintain margins in the near term.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
NSARO Latest News
No recent news available for NSARO.
NSARO Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for NSARO.
Price Targets
Wall Street price target analysis for NSARO.
NSARO MoonshotScore
What does this score mean?
The MoonshotScore rates NSARO's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Paul Chodak
Chief Executive Officer
Paul Chodak serves as a key leader within the NSTAR Electric Company, overseeing its operations as a regulated electric utility. While specific details of his educational background are not provided in the source data, his role in managing 1648 employees at a major utility company suggests extensive experience and expertise within the energy sector. Leaders in this industry typically possess strong backgrounds in engineering, business administration, or finance, often with a career trajectory that includes various operational and executive roles within utility companies or related infrastructure sectors. His position indicates a deep understanding of regulatory environments, infrastructure management, and customer service demands inherent to the electric utility business.
Track Record: Under Paul Chodak's leadership, NSTAR Electric Company continues its mission of providing reliable electricity to approximately 1.46 million customers across Massachusetts. His tenure has involved the ongoing management of critical infrastructure, including 70 megawatts of solar power facilities, and ensuring the efficient purchase, transmission, delivery, and sale of electricity. Navigating the complexities of a regulated utility environment and maintaining service for 140 cities and towns, including major metropolitan areas, are central to his operational track record.
NSARO OTC Market Information
NSTAR Electric Company trades on the OTC (Over-The-Counter) market under the "OTC Other" tier. This tier is typically for companies that do not meet the listing requirements for higher OTC tiers like OTCQX or OTCQB, or for those that choose not to provide extensive financial disclosures. Unlike stocks listed on major exchanges such as the NYSE or NASDAQ, which have stringent listing standards regarding financial health, corporate governance, and minimum share prices, companies in the "OTC Other" tier often have fewer reporting obligations. This can result in less publicly available information and potentially higher investment risk due to reduced transparency compared to exchange-listed or higher-tier OTC securities.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited public disclosure due to "Unknown" status, making fundamental analysis challenging.
- Lower liquidity and wider bid-ask spreads inherent to the "OTC Other" tier, impacting trade execution.
- Potential for greater price volatility due to fewer market participants and less trading volume.
- Absence of stringent listing requirements and oversight compared to major exchanges.
- Reliance on information from the parent company, Eversource Energy, for comprehensive financial context.
- Verify the latest financial statements and annual reports available from Eversource Energy, the parent company.
- Research any available regulatory filings related to NSTAR Electric Company with Massachusetts utility commissions.
- Assess the company's operational performance metrics, such as reliability rates and customer satisfaction scores.
- Investigate the regulatory environment in Massachusetts for electric utilities, including recent rate cases and policy changes.
- Understand the ownership structure and the strategic importance of NSTAR Electric within Eversource Energy's portfolio.
- Evaluate the company's capital expenditure plans and how they are funded and recovered through rates.
- Seek out any news or press releases specifically pertaining to NSTAR Electric Company's operations or financial health.
- It is a subsidiary of a publicly traded and well-established company, Eversource Energy.
- Operates as a regulated electric utility, providing essential services under government oversight.
- Serves a large customer base of approximately 1.46 million across a significant geographic area.
- Owns and operates physical assets, including 70 megawatts of solar power facilities and extensive infrastructure.
- Headquartered in Boston, Massachusetts, indicating a physical and established presence.
What Investors Ask About NSTAR Electric Company (NSARO) — Utilities
What does NSTAR Electric Company do?
NSTAR Electric Company operates as a regulated electric utility primarily serving residential, commercial, and industrial customers across Massachusetts. Its core business involves the end-to-end management of electricity, from its initial purchase from various generation sources to its transmission across high-voltage lines, and finally its distribution and sale directly to consumers. As of December 31, 2021, the company served approximately 1.46 million customers in Boston and 140 other cities and towns, covering about 3,200 square miles. Additionally, NSTAR Electric owns and maintains 70 megawatts of solar power facilities, integrating renewable energy into its supply. As a subsidiary of Eversource Energy, it provides essential, reliable power services critical to the daily lives and economic activity of its service territory.
What are the key financial metrics investors watch for NSARO?
For NSTAR Electric Company (NSARO), investors typically focus on metrics that reflect the stability and profitability inherent in a regulated utility. Key financial indicators include its Market Capitalization, currently $29.14 billion, which provides a sense of its overall market valuation. The P/E ratio, at 27.46, indicates how much investors are willing to pay for each dollar of earnings. Profit Margin (14.3%) and Gross Margin (60.3%) are crucial for assessing operational efficiency and cost control. The Dividend Yield of 6.14% is particularly important for income-focused investors, as utilities are often valued for their consistent payouts. Lastly, a low Beta of 0.09 suggests the stock's price is less volatile than the broader market, appealing to risk-averse investors.
How does NSTAR Electric Company compare to competitors in its industry?
NSTAR Electric Company operates as a regulated utility with a defined service territory in Massachusetts, which limits direct competition for customers within its specific geographic areas. However, its performance and operational efficiency are often benchmarked against other regional and international regulated electric utilities. Peers such as Ameren Corporation (AEE) in the U.S., or international entities like Endesa, S.A. (ELEZY), Naturgy Energy Group, S.A. (GASNF), CEZ, a. s. (CZAVF), and CLP Holdings Limited (CLPHF), offer comparisons in terms of scale, regulatory environments, and renewable energy integration efforts. NSTAR's 70 megawatts of solar capacity and its extensive customer base of 1.46 million position it as a significant player within its local market, with its regulated status providing a stable operational framework distinct from more competitive energy markets.
What are the main risks for NSARO?
NSTAR Electric Company faces several inherent risks typical of a regulated utility. A primary concern is regulatory risk, where adverse decisions from state utility commissions regarding rate approvals, cost recovery, or performance incentives could negatively impact its profitability and financial stability. Operational risks include the potential for severe weather events, such as major storms, to cause extensive damage to its transmission and distribution infrastructure, leading to costly repairs and service disruptions. Furthermore, the company is exposed to fluctuations in energy commodity prices, which, if not fully offset by regulatory mechanisms, can affect its purchasing costs. The capital-intensive nature of maintaining and upgrading its vast network also presents an ongoing financial burden, requiring continuous investment that must be prudently managed and approved for rate recovery.
How does NSTAR Electric Company's regulated status impact its business?
NSTAR Electric Company's regulated status fundamentally shapes its business model and financial profile. Operating under the oversight of state utility commissions in Massachusetts, the company is granted a geographic monopoly for electricity delivery within its service territory. In exchange, its rates for electricity sales and services are subject to regulatory approval, designed to allow for the recovery of prudently incurred costs and a reasonable rate of return on its invested capital (rate base). This framework provides a high degree of revenue predictability and stability, insulating the company from direct market competition. However, it also means that NSTAR's ability to increase prices or expand services is contingent on regulatory approval, and it must adhere to strict service quality, reliability, and safety standards set by these bodies.
What are the key factors to evaluate for NSARO?
NSTAR Electric Company (NSARO) holds an AI score of 53/100 (moderate). P/E: 28.0x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does NSARO data refresh on this page?
NSARO prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven NSARO's recent stock price performance?
NSTAR Electric Company (NSARO) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Stable and predictable revenue stream due to regulated utility status. See the News tab for the latest drivers. Past performance does not predict future results.
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.
- CEO's title and tenure years are inferred or not explicitly provided in the source data.
- Specific details on CEO's background and track record are generalized due to limited source data.
- OTC disclosure status is 'Unknown', leading to generalized statements about disclosure level and liquidity.
- Growth opportunity timelines are general as specific project timelines were not provided.