📊 ES Key Takeaways
Is ES a Good Investment? Thesis Analysis
Eversource Energy demonstrates stable utility fundamentals with solid profitability margins (22.1% operating margin) and reliable cash generation from operations ($4.1B), but faces capital intensity challenges with negative free cash flow and elevated leverage (1.66x D/E) limiting financial flexibility. The company's modest revenue growth (+0.4% YoY) and declining net income (-0.4% YoY) despite EPS expansion signal operational maturity typical of regulated utilities, requiring careful capital allocation monitoring.
Why Buy ES? Key Strengths
- Strong operating margin of 22.1% demonstrates pricing power and operational efficiency in regulated utility model
- Substantial operating cash flow of $4.1B provides foundation for dividend support and debt servicing
- Manageable interest coverage ratio of 3.6x indicates ability to service debt obligations under normal conditions
ES Investment Risks to Consider
- Negative free cash flow of -$45.1M indicates capex ($4.2B) exceeds operating cash generation, requiring external financing or debt accumulation
- Elevated debt-to-equity ratio of 1.66x limits financial flexibility during economic stress or rising interest rate environment
- Weak liquidity position with current ratio of 0.65x below industry safety threshold, creating refinancing dependence for working capital needs
Key Metrics to Watch
- Free cash flow trend and capital expenditure sustainability relative to operating cash flow
- Debt-to-equity ratio trajectory and refinancing rates in rising rate environment
- Revenue growth acceleration and regulatory rate relief approval impacts on profitability
ES Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
ES Profitability Ratios
ES vs Default Sector
How EVERSOURCE ENERGY compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is ES Overvalued or Undervalued?
Based on fundamental analysis, EVERSOURCE ENERGY has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
ES Balance Sheet & Liquidity
ES 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: EVERSOURCE ENERGY's revenue has grown significantly by 37% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.26 indicates the company is currently unprofitable.
ES Growth Metrics (YoY)
ES Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.1B | -$116.2M | $-0.33 |
| Q2 2025 | $2.5B | $337.2M | $0.95 |
| Q1 2025 | $3.3B | $523.7M | $1.49 |
| Q3 2024 | $2.8B | $17.3M | $-0.33 |
| Q2 2024 | $2.5B | $17.3M | $0.04 |
| Q1 2024 | $3.3B | $493.0M | $1.41 |
| Q3 2023 | $2.8B | $17.3M | $0.97 |
| Q2 2023 | $2.6B | $17.3M | $0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ES Capital Allocation
ES SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for EVERSOURCE ENERGY (CIK: 0000072741)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ES
What is the AI rating for ES?
EVERSOURCE ENERGY (ES) has an AI rating of HOLD with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are ES's key strengths?
Claude: Strong operating margin of 22.1% demonstrates pricing power and operational efficiency in regulated utility model. Substantial operating cash flow of $4.1B provides foundation for dividend support and debt servicing.
What are the risks of investing in ES?
Claude: Negative free cash flow of -$45.1M indicates capex ($4.2B) exceeds operating cash generation, requiring external financing or debt accumulation. Elevated debt-to-equity ratio of 1.66x limits financial flexibility during economic stress or rising interest rate environment.
What is ES's revenue and growth?
EVERSOURCE ENERGY reported revenue of $13.5B.
Does ES pay dividends?
EVERSOURCE ENERGY pays dividends, with $1,093.1M distributed to shareholders in the trailing twelve months.
Where can I find ES SEC filings?
Official SEC filings for EVERSOURCE ENERGY (CIK: 0000072741) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ES's EPS?
EVERSOURCE ENERGY has a diluted EPS of $4.56.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ES a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, EVERSOURCE ENERGY has a HOLD rating with 65% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ES stock overvalued or undervalued?
Valuation metrics for ES: ROE of 10.4% (sector avg: 15%), net margin of 12.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ES stock in 2026?
Our dual AI analysis gives EVERSOURCE ENERGY a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ES's free cash flow?
EVERSOURCE ENERGY's operating cash flow is $4.1B, with capital expenditures of $4.2B. FCF margin is -0.3%.
How does ES compare to other Default stocks?
Vs Default sector averages: Net margin 12.5% (avg: 12%), ROE 10.4% (avg: 15%), current ratio 0.65 (avg: 1.8).