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Relative valuation derived from Utilities sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
7.2%
Sector: 9.9%
Dividend Analysis audit
INCOME
4.18%
Trailing Yield
$4.18
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
94%HIGH
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, EVERSOURCE ENERGY (ES) receives a "Hold" rating with a composite score of 51.2/100, ranked #831 out of 4446 stocks. Key factor scores: Quality 50/100, Value 73/100, Momentum 50/100. This is quantitative analysis only — not investment advice.
EVERSOURCE ENERGY (ES) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does EVERSOURCE ENERGY Do?
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. EVERSOURCE ENERGY (ES) is classified as a large-cap stock in the Utilities sector. The company is led by CEO Joseph R. Nolan and employs approximately 9,630 people, headquartered in Hartford, Connecticut. With a market capitalization of $26.2B, ES is one of the prominent companies in the Utilities sector.
EVERSOURCE ENERGY (ES) Stock Rating — Hold (April 2026)
As of April 2026, EVERSOURCE ENERGY receives a Hold rating with a composite score of 51.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.ES ranks #831 out of 4,446 stocks in our coverage universe. Within the Utilities sector, EVERSOURCE ENERGY ranks #66 of 112 stocks, placing it in the lower half of its Utilities peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
ES Stock Price and 52-Week Range
EVERSOURCE ENERGY (ES) currently trades at $69.97. The stock lost $0.60 (0.9%) in the most recent trading session. The 52-week high for ES is $76.41, which means the stock is currently trading -8.4% from its annual peak. The 52-week low is $52.28, putting the stock 33.8% above its annual trough. Recent trading volume was 2.2M shares, reflecting moderate market activity.
Is ES Overvalued or Undervalued? — Valuation Analysis
EVERSOURCE ENERGY (ES) carries a value factor score of 73/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 22.50x, compared to the Utilities sector average of 23.47x — a discount of 4%. The price-to-book ratio stands at 1.61x, versus the sector average of 1.98x. The price-to-sales ratio is 1.97x, compared to 0.82x for the average Utilities stock. On an enterprise value basis, ES trades at 9.04x EV/EBITDA, versus 4.75x for the sector.
Based on these multiples, EVERSOURCE ENERGY appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
EVERSOURCE ENERGY Profitability — ROE, Margins, and Quality Score
EVERSOURCE ENERGY (ES) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 7.2%, compared to the Utilities sector average of 9.9%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 1.8% versus the sector average of 3.1%.
On a margin basis, EVERSOURCE ENERGY reports gross margins of 51.0%, compared to 53.1% for the sector. The operating margin is 21.8% (sector: 21.5%). Net profit margin stands at 8.4%, versus 12.8% for the average Utilities stock. Revenue growth is running at 27.1% on a trailing basis, compared to 20.1% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
ES Debt, Balance Sheet, and Financial Health
EVERSOURCE ENERGY has a debt-to-equity ratio of 294.0%, compared to the Utilities sector average of 164.5%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.65x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $27.99B. Cash and equivalents stand at $259M.
ES has a beta of 0.39, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for EVERSOURCE ENERGY is 86/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
EVERSOURCE ENERGY Revenue and Earnings History — Quarterly Trend
In TTM 2026, EVERSOURCE ENERGY reported revenue of $13.24B and earnings per share (EPS) of $4.56. Net income for the quarter was $1.16B. Gross margin was 51.0%. Operating income came in at $2.89B.
In FY 2025, EVERSOURCE ENERGY reported revenue of $13.55B and earnings per share (EPS) of $4.56. Net income for the quarter was $1.70B. Revenue grew 13.8% year-over-year compared to FY 2024. Operating income came in at $2.99B.
In Q3 2025, EVERSOURCE ENERGY reported revenue of $3.22B and earnings per share (EPS) of $0.99. Net income for the quarter was $369M. Revenue grew 5.1% year-over-year compared to Q3 2024. Operating income came in at $689M.
In Q2 2025, EVERSOURCE ENERGY reported revenue of $2.84B and earnings per share (EPS) of $0.96. Net income for the quarter was $355M. Revenue grew 12.0% year-over-year compared to Q2 2024. Operating income came in at $663M.
Over the past 8 quarters, EVERSOURCE ENERGY has demonstrated a growth trajectory, with revenue expanding from $2.53B to $13.24B. Investors analyzing ES stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
ES Dividend Yield and Income Analysis
EVERSOURCE ENERGY (ES) currently pays a dividend yield of 4.2%. At this yield, a $10,000 investment in ES stock would generate approximately $$418.00 in annual dividend income. This compares to the Utilities sector average dividend yield of 2.8%, meaning ES offers above-average income for its sector. The net margin of 8.4% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
ES Momentum and Technical Analysis Profile
EVERSOURCE ENERGY (ES) has a momentum factor score of 50/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 18/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
ES vs Competitors — Utilities Sector Ranking and Peer Comparison
Comparing ES against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ES vs S&P 500 (SPY) comparison to assess how EVERSOURCE ENERGY stacks up against the broader market across all factor dimensions.
ES Next Earnings Date
No upcoming earnings date has been announced for EVERSOURCE ENERGY (ES) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy ES? — Investment Thesis Summary
EVERSOURCE ENERGY presents a balanced picture with arguments on both sides. The value score of 73/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 86/100) reduces downside risk.
In summary, EVERSOURCE ENERGY (ES) earns a Hold rating with a composite score of 51.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ES stock.
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Institutional Research Dossier
EVERSOURCE ENERGY (ES) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Eversource Energy (ES) receives a Hold rating, reflecting a balanced view of its strengths and weaknesses. While the company operates in a relatively stable, regulated industry and exhibits strong stability scores, concerns regarding its capital allocation, debt levels, and profitability relative to peers temper enthusiasm. The current valuation appears fair, but significant upside potential is limited by these factors.
The key takeaway is that Eversource represents a defensive investment with predictable cash flows, but its growth prospects and financial leverage warrant caution. Investors should closely monitor the company's debt management, capital expenditure plans, and ability to improve profitability metrics to determine if a more bullish stance is warranted.
Business Strategy & Overview
Eversource Energy operates as a regulated utility holding company, primarily engaged in the delivery of electricity, natural gas, and water services across Connecticut, Massachusetts, and New Hampshire. The company's revenue is generated through regulated tariffs, which are typically set by state regulatory bodies to allow for a reasonable return on invested capital. This regulatory framework provides a degree of revenue predictability and insulation from direct competition, but also subjects the company to regulatory oversight and potential limitations on profitability.
The company's strategic focus is on maintaining and upgrading its existing infrastructure, expanding its renewable energy portfolio, and improving operational efficiency. Eversource is investing heavily in grid modernization projects to enhance reliability and accommodate the increasing penetration of renewable energy sources. These investments are crucial for meeting growing demand for electricity and complying with state-level mandates for renewable energy adoption.
Eversource's business is divided into four segments: Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution. The Electric Distribution segment is the largest revenue contributor, followed by Electric Transmission. The Natural Gas and Water Distribution segments are smaller but provide diversification and contribute to overall earnings stability. The company's geographic focus on the Northeast region of the United States exposes it to specific regional economic and demographic trends.
A key aspect of Eversource's strategy is its commitment to sustainability and environmental responsibility. The company is actively pursuing opportunities to reduce its carbon footprint through investments in renewable energy projects and energy efficiency programs. This focus aligns with the growing societal emphasis on clean energy and positions Eversource favorably in the long term. However, these investments also require significant capital expenditures and may impact near-term profitability.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
27.1%
Sector: 20.1%
+35% VS SCTR
Economic Moat Analysis
Eversource Energy possesses a Narrow economic moat, primarily derived from its regulated utility status and the associated barriers to entry. The electric, gas, and water distribution businesses are characterized by high upfront capital costs, extensive regulatory oversight, and the need for established infrastructure. These factors make it difficult for new competitors to enter the market and challenge Eversource's established position.
The regulatory framework in which Eversource operates provides a degree of protection from competition. Regulatory bodies typically grant exclusive franchises to utility companies within specific geographic areas, ensuring a stable customer base and predictable revenue streams. This regulatory protection allows Eversource to earn a reasonable return on its invested capital, subject to regulatory approval.
However, the moat is considered narrow rather than wide due to the limitations imposed by regulation. While Eversource benefits from a lack of direct competition, its profitability is constrained by regulatory oversight. Regulators can limit rate increases, impose performance standards, and require investments in infrastructure upgrades, which can impact the company's earnings potential.
Furthermore, Eversource's moat is potentially vulnerable to technological disruption and changing consumer preferences. The increasing adoption of distributed generation technologies, such as solar panels and battery storage, could reduce demand for traditional utility services. While Eversource is investing in renewable energy and grid modernization, it faces the challenge of adapting to a rapidly evolving energy landscape.
The company's brand reputation and customer relationships also contribute to its moat, but to a lesser extent. Eversource has a long history of providing reliable utility services in its service territories, which has fostered customer loyalty. However, customer switching costs are relatively low, and customers may be willing to switch to alternative energy providers if they offer lower prices or more convenient services.
Financial Health & Profitability
Eversource Energy's financial health presents a mixed picture. The company's revenue has shown solid growth, with a TTM revenue of $13.55 billion and a recent year revenue growth of 27.1%, significantly outpacing the sector average of 20.1%. This growth is likely driven by increased demand for electricity and natural gas, as well as rate increases approved by regulatory bodies. However, net income has been more volatile, with a TTM net income of $1.70 billion but significant fluctuations in prior years, including a net loss in FY2023.
Profitability metrics are generally in line with or slightly below the sector average. The company's gross margin of 51.0% is slightly lower than the sector average of 53.3%, while its operating margin of 21.8% is comparable to the sector average of 21.7%. However, its net margin of 8.4% is significantly lower than the sector average of 12.8%, indicating potential inefficiencies or higher interest expenses.
Eversource's balance sheet is characterized by a high level of debt. The company's total debt of $27.99 billion is significantly higher than its total cash of $259.34 million, resulting in a high debt-to-equity ratio of 294.00, far exceeding the sector average of 165.00. This high level of leverage increases the company's financial risk and could constrain its ability to invest in future growth opportunities. The current ratio of 0.65 indicates potential liquidity concerns, as current liabilities exceed current assets.
Cash flow generation is a key strength of Eversource, with a TTM free cash flow of $2.12 billion. However, the company's free cash flow has been volatile in recent years, with a negative free cash flow in FY2024. This volatility is likely due to fluctuations in capital expenditures and working capital requirements. The quarterly financial history reveals inconsistent profitability, with net income varying significantly across quarters. This inconsistency could be attributed to seasonal factors, regulatory changes, or operational challenges.
Valuation Assessment
Eversource Energy's valuation appears to be relatively fair based on several key metrics. The company's price-to-earnings (P/E) ratio of 14.6x is significantly lower than the sector average of 22.7x, suggesting that the stock may be undervalued relative to its peers. However, this lower P/E ratio could also reflect concerns about the company's high debt levels and lower profitability.
The company's enterprise value-to-EBITDA (EV/EBITDA) ratio of 2.1x is also significantly lower than the sector average of 4.8x, further indicating potential undervaluation. This lower EV/EBITDA ratio suggests that the company's enterprise value is low relative to its earnings before interest, taxes, depreciation, and amortization, which could be attractive to investors.
However, the company's return on equity (ROE) of 7.2% is lower than the sector average of 10.0%, indicating that the company is not generating as much profit from its shareholders' equity as its peers. This lower ROE could be a concern for investors seeking higher returns.
Considering the company's solid revenue growth, relatively stable cash flows, and lower valuation multiples, the stock appears to be fairly priced. However, the high debt levels and lower profitability metrics warrant caution. The current valuation may not fully reflect the risks associated with the company's financial leverage and potential challenges in improving profitability.
A discounted cash flow (DCF) analysis would be necessary to determine a more precise intrinsic value for the stock. However, based on the available data, it appears that the stock is trading near its fair value, with limited upside potential in the near term. Investors should closely monitor the company's debt management and profitability improvements to determine if a more bullish valuation is warranted.
Risk & Uncertainty
Eversource Energy faces several specific risks that could negatively impact its business and financial performance. Regulatory risk is a significant concern, as the company's revenue and profitability are heavily dependent on regulatory approvals for rate increases and infrastructure investments. Changes in regulatory policies or adverse regulatory decisions could significantly impact the company's earnings.
Environmental risk is also a major factor, particularly in light of increasing concerns about climate change and the transition to renewable energy. Eversource faces the risk of increased environmental regulations, potential liabilities related to environmental contamination, and the need to invest heavily in renewable energy projects to comply with state-level mandates. The company's exposure to extreme weather events, such as hurricanes and severe storms, also poses a risk to its infrastructure and operations.
Financial risk is elevated due to the company's high debt levels. The company's high debt-to-equity ratio increases its vulnerability to rising interest rates and economic downturns. The company's ability to service its debt obligations and maintain its credit rating could be negatively impacted by adverse economic conditions or operational challenges.
Operational risk is present in the form of potential disruptions to the company's infrastructure and operations. Outages, equipment failures, and cybersecurity threats could disrupt the delivery of electricity, natural gas, and water services, leading to customer dissatisfaction and financial losses. The company's ability to effectively manage these operational risks is crucial for maintaining its reputation and financial stability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWEversource's regulated utility business provides stable and predictable cash flows, making it a defensive investment in uncertain economic times.
BULL VIEWThe company's investments in grid modernization and renewable energy position it favorably to benefit from the growing demand for clean energy and enhanced grid reliability.
BULL VIEWEversource's lower valuation multiples compared to its peers suggest that the stock is undervalued and offers potential upside for investors.
The Bear Case
BEAR VIEWEversource's high debt levels increase its financial risk and could constrain its ability to invest in future growth opportunities.
BEAR VIEWThe company's lower profitability metrics compared to its peers indicate potential inefficiencies and could limit its earnings potential.
BEAR VIEWIncreasing adoption of distributed generation technologies could reduce demand for traditional utility services and negatively impact Eversource's revenue.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score ES and 4,400+ other equities.
EVERSOURCE ENERGY exhibits a 52% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.8%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
51.0%
Sector: 53.1%
Operating Margin
Core business profitability
21.8%
Sector: 21.5%
Net Margin
Bottom-line profitability
8.4%
Sector: 12.8%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.83%
Yield Delta+48%
Income Projection audit
A $10,000 investment would generate approximately $418 annually in dividends at the current trailing rate.
