Eversource Energy ES
Eversource Energy is a regulated utility that transmits and distributes electricity and natural gas in the northeastern United States, earning money through investments in regulated infrastructure with state-approved returns. Eversource is a regulated utility with a highly leveraged balance sheet (Net Debt/EBITDA of 5.67) and deeply negative earnings growth (-85.40%), explaining its low P/E of 16.54 and its position in the 4th percentile of its 52-week range. The attractive 4.95% dividend yield provides support, but the rising rate environment is an additional drag on its valuation and investment capacity.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Eversource Energy is a regulated utility that transmits and distributes electricity and natural gas in the northeastern United States, earning money through investments in regulated infrastructure with state-approved returns. Eversource is a regulated utility with a highly leveraged balance sheet (Net Debt/EBITDA of 5.67) and deeply negative earnings growth (-85.40%), explaining its low P/E of 16.54 and its position in the 4th percentile of its 52-week range. The attractive 4.95% dividend yield provides support, but the rising rate environment is an additional drag on its valuation and investment capacity.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.4 |
| Quality / Moat | 4.4 |
| Valuation | 5.9 |
| Growth | 2.6 |
| Dividend | 7.3 |
| Momentum | 5.2 |
| Risk & Context | 7.2 |
OVERALL SCORE: 5.9/10
Context and risks
The sharp rise in 10-year yields (5.17%) is a material headwind for a regulated utility with Net Debt/EBITDA of 5.67, as it makes refinancing its high debt more expensive and reduces the present value of its long-duration regulated cash flows.
News considered in the analysis
- Eversource Energy (ES) Could Be 14% Undervalued After Its Recent Selloff — Análisis de valoración que sugiere que la acción está infravalorada tras la caída; refuerza la tesis de valor, pero es una opinión de analista, no un hecho material.
- Can PPL's Financing Strategy Support Growth and Capital Investments? — Noticia sobre un competidor (PPL), sin impacto directo en Eversource.
- Eversource Energy's Dividend Analysis — Análisis genérico del dividendo, sin información nueva sobre la empresa.
- Is Eversource Energy Stock Underperforming the Dow? — Comparativa de rendimiento sin información nueva.
- Eversource Energy Offers Stable Fundamentals, Growing Yield — Artículo que destaca la estabilidad y el crecimiento del dividendo, un factor positivo moderado ya conocido por el mercado.
Verdict: Hold; the high dividend and moderate valuation offer some support, but high leverage and the rising rate environment limit near-term upside potential.
Main risk: The main risk is financial: with a Net Debt/EBITDA of 5.67, the company is highly sensitive to rising interest rates, which increase its debt costs and pressure its balance sheet in a regulatory environment that limits its ability to pass those costs on to customers.
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