Download PDF

1. Company Snapshot

1.a. Company Description

Eversource Energy, a public utility holding company, engages in the energy delivery business.The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments.It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas.


The company operates regulated water utilities that provide water services to approximately 226,000 customers.It serves residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire.The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015.


Eversource Energy is based in Springfield, Massachusetts.

Show Full description

1.b. Last Insights on ES

Eversource Energy's recent performance was positively driven by strong Q3 earnings, beating estimates with $1.19 per share, up from $1.13 per share a year ago. The company's electric power segment showed solid gains, lifting profits and tightening its 2025 EPS guidance range. A quarterly dividend of $0.7525 per share was declared, showcasing its commitment to shareholders. Regulatory environment improvements in Connecticut, a key market, are expected to create tailwinds for growth. Additionally, the company has made progress on its offshore wind projects.

1.c. Company Highlights

2. Utility Company Beats Earnings Expectations

The company's third-quarter 2025 financial performance was strong, with non-GAAP recurring earnings per share coming in at $1.19, beating analyst estimates of $1.12. Revenue growth was robust, driven by electrification of transportation and heating, decarbonization initiatives, and economic expansion across manufacturing and commercial sectors. The company's GAAP earnings for the third quarter were $0.99 per share, including a $0.20 per share nonrecurring charge related to offshore wind liability.

Publication Date: Nov -10

📋 Highlights
  • Nonrecurring Offshore Wind Charge:: $75M after-tax charge ($0.20/share) impacted GAAP earnings, but non-GAAP recurring EPS rose to $1.19/share (up from $1.13/share YoY).
  • Yankee Rate Case Resolution:: Proposed alternative resolution could add $104M in revenue (vs. $55M draft), with approval expected to waive appeals for a "fair and balanced" outcome.
  • Capital Plan Execution:: $3.3B invested in infrastructure through Q3, with $24.2B 5-year plan reaffirmed; $1.5B–$2B additional opportunities identified.
  • Cash Flow Strength:: Operating cash flows grew over $1.7B YoY, with FFO/debt ratio projected 100 bps above rating agency thresholds by year-end.
  • Recurring EPS Guidance Raised:: 2025 outlook increased to $4.72–$4.80/share (midpoint $4.76), driven by regulatory progress and strategic investments.

Operational Highlights

The company continued to deliver on its operational metrics, with top decile reliability performance among its peers. The company's nation-leading energy efficiency programs have generated $1.4 billion in savings for its customers. The Revolution Wind project is 85% complete and on track to be finished in the second half of 2026, as stated by Joseph Nolan, "the project is on track to be finished in the second half of 2026."

Regulatory Environment

The company has made progress in its regulatory proceedings, with a new commission in Connecticut expected to collaborate with utilities on regulatory initiatives. The company recently filed an alternative resolution proposal in the Yankee rate case, which could increase revenues by approximately $104 million. The company's FFO to debt ratio is expected to be approximately 100 basis points above the rating agency thresholds by year-end.

Valuation

With a P/E Ratio of 31.38 and an EV/EBITDA of 12.43, the company's valuation appears to be reasonable given its growth prospects. Analysts estimate next year's revenue growth at 4.1%. The company's dividend yield is 4.07%, making it an attractive option for income-seeking investors. The ROE of 5.62% is relatively stable, and the Net Debt / EBITDA ratio of 6.47 indicates a manageable debt burden.

Outlook

The company has reaffirmed its 5-year capital plan of $24.2 billion and expects to issue equity in the latter half of the forecast period to meet its equity needs. The company's 2025 recurring earnings per share guidance has been raised to the range of $4.72 to $4.80 per share. With a strong track record of execution and a constructive regulatory environment, the company is well-positioned for future growth.

3. NewsRoom

Card image cap

CORRECTING and REPLACING Eversource Energy Declares Common Dividend

Dec -03

Source: businesswire.com

Card image cap

Eversource Energy Declares Common Dividend

Dec -03

Source: businesswire.com

Card image cap

Eversource Energy: The Self-Help Story Is Playing Out

Dec -01

Source: seekingalpha.com

Card image cap

Best Dividend Aristocrats For December 2025

Nov -29

Source: seekingalpha.com

Card image cap

Eversource Statement on Next Steps Following Aquarion Decision

Nov -21

Source: businesswire.com

Card image cap

Why Eversource Energy Stock Was Wilting This Week

Nov -21

Source: fool.com

Card image cap

Here Are Thursday's Top Wall Street Analyst Research Calls: AON, Apollo Global Managment, Bullish, Jack Henry, Marsh & McClennan, Nasdaq, NVIDIA,

Nov -20

Source: 247wallst.com

Card image cap

Connecticut regulators block Eversource's $2.4 billion Aquarion sale

Nov -19

Source: reuters.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.56%)

6. Segments

Electric Distribution

Expected Growth: 4.0%

Eversource Energy's Electric Distribution segment growth of 4.0% is driven by increasing demand for electricity, investments in grid modernization, and favorable regulatory environments. Additionally, the company's focus on renewable energy sources, energy efficiency programs, and customer growth in its service territories contribute to the segment's growth.

Eliminations

Expected Growth: 2.0%

Eversource Energy's 2.0% growth is driven by increasing electricity demand, favorable weather conditions, and strategic investments in grid modernization. Additionally, the company's focus on renewable energy sources, such as wind and solar, contributes to its growth. Furthermore, Eversource's efforts to improve operational efficiency and reduce costs also support its growth momentum.

Natural Gas Distribution

Expected Growth: 3.5%

Eversource Energy's Natural Gas Distribution segment growth of 3.5% is driven by increasing demand for clean energy, infrastructure upgrades, and expansion into new markets. Additionally, favorable regulatory environments, weather normalization, and customer growth contribute to the segment's growth.

Electric Transmission

Expected Growth: 4.5%

Eversource Energy's Electric Transmission segment growth of 4.5% is driven by increasing demand for reliable and efficient energy transmission, investments in grid modernization and resiliency, and strategic acquisitions. Additionally, favorable regulatory policies and growing renewable energy integration contribute to the segment's growth.

Other

Expected Growth: 3.0%

Eversource Energy's 3.0% growth is driven by increasing demand for electricity and natural gas, favorable weather conditions, and strategic investments in grid modernization and renewable energy. Additionally, the company's focus on energy efficiency and customer growth initiatives contribute to its growth momentum.

Water Distribution

Expected Growth: 3.8%

Eversource Energy's Water Distribution segment growth of 3.8% is driven by increasing demand for clean water, infrastructure upgrades, and acquisitions. Additionally, favorable weather patterns, population growth, and municipal contracts contribute to the segment's growth. Furthermore, Eversource's focus on water conservation and efficiency initiatives also supports the segment's expansion.

7. Detailed Products

Electricity

Eversource Energy provides electricity to residential, commercial, and industrial customers through its transmission and distribution networks.

Natural Gas

Eversource Energy offers natural gas services to customers, including supply, transportation, and storage solutions.

Renewable Energy

Eversource Energy invests in and develops renewable energy projects, such as wind and solar power, to reduce carbon footprint.

Energy Efficiency

Eversource Energy offers energy-efficient solutions and programs to help customers reduce energy consumption and lower their bills.

Transmission and Distribution

Eversource Energy operates and maintains a vast network of transmission and distribution lines to deliver energy to customers.

Energy Storage

Eversource Energy invests in energy storage solutions to improve grid resilience and reliability.

8. Eversource Energy's Porter Forces

Forces Ranking

Threat Of Substitutes

Eversource Energy's services are essential to the daily lives of its customers, making substitutes less likely.

Bargaining Power Of Customers

While customers have some bargaining power due to the availability of alternative energy sources, Eversource Energy's diversified customer base and regulated rates mitigate this power.

Bargaining Power Of Suppliers

Eversource Energy's diversified fuel mix and long-term contracts reduce its dependence on any single supplier, limiting supplier bargaining power.

Threat Of New Entrants

High barriers to entry, including significant capital requirements and regulatory hurdles, make it difficult for new entrants to compete with Eversource Energy.

Intensity Of Rivalry

While Eversource Energy operates in a regulated industry, it still faces competition from other utilities and alternative energy sources, contributing to a moderate level of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 65.38%
Debt Cost 3.95%
Equity Weight 34.62%
Equity Cost 6.86%
WACC 4.96%
Leverage 188.86%

11. Quality Control: Eversource Energy passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Idacor

A-Score: 6.6/10

Value: 4.8

Growth: 5.1

Quality: 5.3

Yield: 6.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
CenterPoint Energy

A-Score: 6.4/10

Value: 5.7

Growth: 3.4

Quality: 6.0

Yield: 5.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Alliant Energy

A-Score: 6.1/10

Value: 4.8

Growth: 4.2

Quality: 4.9

Yield: 6.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Eversource

A-Score: 6.1/10

Value: 5.3

Growth: 3.3

Quality: 3.9

Yield: 8.0

Momentum: 7.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
CMS Energy

A-Score: 5.7/10

Value: 4.1

Growth: 4.1

Quality: 4.2

Yield: 6.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
PNM Resources

A-Score: 4.4/10

Value: 5.4

Growth: 4.2

Quality: 2.6

Yield: 6.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

66.74$

Current Price

66.74$

Potential

-0.00%

Expected Cash-Flows