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Eversource Energy (ES) Stock

Eversource Energy Stock Details, Movements and Public Alerts

Eversource Energy (ES): The $25B New England Utility Giant Rebuilding After Offshore Wind Retreat

CEO Joseph Nolan inherited New England's utility giant at a crossroads. Eversource's $2B+ offshore wind writedown (2023) ended the company's renewable ambitions, returning focus to its core regulated utility: 4.4 million customers across Connecticut, Massachusetts, and New Hampshire served by NSTAR Electric, PSNH, and Connecticut Light and Power. The pivot makes strategic sense—Eversource's regulated utilities earn 9-10% ROE on $40B+ rate base, generating predictable cash flows supporting a 5.1% dividend yield. But scars remain: the stock trades at 13x forward P/E (vs. 15-16x utility peers), reflecting destroyed investor confidence from offshore wind losses. Nolan's rehabilitation plan: $23B regulated capital investment through 2028, grid modernization, and LNG infrastructure addressing New England's energy security concerns. At $56, Eversource offers discounted utility exposure if execution restores credibility.

52-Week Range

$75.25 - $51.06

-9.13% from high · +33.92% from low

Avg Daily Volume

2,380,733

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

18.65

Near market average

Forward P/E

13.44

Earnings expected to grow

PEG Ratio

0.97

Potentially undervalued

Price to Book

1.58

EV/EBITDA

10.70

EPS (TTM)

$3.62

Price to Sales

1.93

Beta

0.77

Less volatile than market

How is ES valued relative to its earnings and growth?
Eversource Energy trades at a P/E ratio of 18.65, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 13.44 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.97 suggests the stock may be undervalued relative to its growth rate.
What is ES's risk profile compared to the market?
With a beta of 0.77, Eversource Energy is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 1.58 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

10.20%

Operating Margin

22.50%

EBITDA

$4.59B

Return on Equity

8.61%

Return on Assets

3.17%

Revenue Growth (YoY)

5.10%

Earnings Growth (YoY)

0.80%

How profitable and efficient is ES's business model?
Eversource Energy achieves a profit margin of 10.20%, meaning it retains $10.20 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 22.50% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 8.61% and ROA at 3.17%, the company achieves moderate returns on invested capital.
What are ES's recent growth trends?
Eversource Energy's revenue grew by 5.10% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 0.80% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against UTILITIES - REGULATED ELECTRIC industry averages for proper context.

Dividend Information

Dividend Per Share

$2.97

Dividend Yield

4.40%

Ex-Dividend Date

Dec 15, 2025

Dividend Date

Dec 31, 2025

What dividend income can investors expect from ES?
Eversource Energy offers a dividend yield of 4.40%, paying $2.97 per share annually. This high yield exceeds 4%, significantly outperforming the S&P 500 average of 1.5-2% and most investment-grade bonds. For income-focused investors, this represents an attractive cash flow opportunity, though high yields sometimes signal market concerns about sustainability. To receive the next dividend, shares must be purchased before the ex-dividend date of Dec 15, 2025.
How reliable is ES's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Eversource Energy pays $2.97 per share in dividends against earnings of $3.62 per share, resulting in a payout ratio of 82.13%. This high payout ratio of 60-90% leaves limited earnings for reinvestment. While currently sustainable, there's less buffer for dividend growth or protection during earnings downturns. The next dividend payment is scheduled for Dec 31, 2025.

Company Size & Market

Market Cap

$25.3B

Revenue (TTM)

$13.15B

Revenue/Share (TTM)

$35.67

Shares Outstanding

375.19M

Book Value/Share

$42.73

Asset Type

Common Stock

What is ES's market capitalization and position?
Eversource Energy has a market capitalization of $25.3B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 375.19M shares outstanding, the company's ownership is relatively concentrated. As a participant in the UTILITIES - REGULATED ELECTRIC industry, it competes with other firms in this sector.
How does ES's price compare to its book value?
Eversource Energy's book value per share is $42.73, while the current stock price is $68.38, resulting in a price-to-book (P/B) ratio of 1.60. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$72.93

6.65% upside potential

Analyst Recommendations

Strong Buy

1

Buy

6

Hold

8

Sell

1

Strong Sell

2

How reliable are analyst predictions for ES?
18 analysts cover ES with 39% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $72.93 implies 6.7% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on ES?
Current analyst recommendations:1 Strong Buy, 6 Buy, 8 Hold, 1 Sell, 2 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:25 AM

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Eversource Energy (ES) Stock Analysis 2025: Complete Investment Guide

The Offshore Wind Debacle and Path Forward

Eversource's offshore wind disaster exemplifies utility overreach consequences. In 2021, the company committed $4B+ to three offshore wind projects (Revolution Wind, South Fork Wind, Sunrise Wind) alongside partner Ørsted, betting New England's aggressive renewable mandates would deliver premium returns. Reality intervened: inflation spiked construction costs 30-40%, interest rates doubled financing expenses, and power purchase agreements signed in 2018-2020 became unprofitable. CEO Joseph Nolan made the painful call: exit offshore wind entirely at $2B+ loss, sell stakes to Ørsted (2023), and refocus on regulated utilities. The market's punishment was severe—shares dropped 30% in 2023—but the exit was correct. Today's Eversource is simpler: 93% regulated earnings, $40B+ rate base earning 9-10% returns, and $23B capital plan driving 6-7% rate base growth through 2028.

Business Model & Competitive Moat

Eversource's moat is regulated monopoly status across New England's wealthiest territories. The company operates as sole provider through Connecticut Light and Power, NSTAR Electric and Gas (Massachusetts), and Public Service of New Hampshire, serving densely populated suburbs where customers have no alternative. Regulators allow 9-10% ROE on invested capital, with multi-year rate plans reducing regulatory lag. New England's unique energy challenges—no indigenous gas production, pipeline constraints, extreme cold requiring reliable heating—support premium infrastructure investment. Eversource earns returns on LNG facilities, grid hardening, and distributed generation integration unavailable to utilities in energy-abundant regions. However, New England also has America's highest electricity rates ($0.25-0.30/kWh vs. $0.12 national average), creating political pressure limiting rate case approvals.

Financial Performance

  • •Revenue: $12B annually; 75% electric, 20% gas, 5% water distribution
  • •Earnings: $1.4-1.5B net income ($4.00-4.25 EPS); 5-6% annual growth guided
  • •Rate Base: $40B+ (2024), growing to $55B+ by 2028; $23B capital investment plan
  • •Dividend: $2.88/share (5.1% yield), 60-65% payout ratio; 25+ year growth streak
  • •Balance Sheet: $30B debt, 55% debt/cap; BBB+ credit rating (downgraded from A- post-wind exit)

Growth Catalysts

  • •Grid Modernization: $15B+ investment in transmission upgrades, smart meters, distributed energy integration
  • •New England Energy Security: LNG infrastructure, gas pipeline capacity addressing regional supply constraints
  • •Electric Vehicle Infrastructure: Connecticut, Massachusetts leading EV adoption; charging network investment opportunities
  • •Regulatory Relationship Rebuild: Offshore wind exit removed conflict; constructive rate cases expected 2025+
  • •Rate Base Growth: $23B capital plan through 2028; mechanical 6-7% earnings growth from regulated returns

Risks & Challenges

  • •Regulatory Scrutiny: High New England rates create political pressure; Massachusetts/Connecticut rate cases contentious
  • •Credit Rating Pressure: BBB+ rating (post-downgrade) increases borrowing costs; limited financial flexibility
  • •Storm Exposure: Nor'easters, hurricanes create restoration costs; 2021 Tropical Storm Isaias response criticized
  • •Interest Rate Sensitivity: Utility valuations decline with rising rates; 5.1% yield competes with risk-free alternatives
  • •Offshore Wind Overhang: Investor confidence damaged; proving reliability takes years

Competitive Landscape

Eversource competes for utility investor capital with regional peers National Grid (NGG, UK-listed, New England/New York), Avangrid (AGR, subsidiary of Iberdrola, Connecticut/Maine), and Northeast Utilities before Eversource merger. Among large U.S. utilities, peers include Duke Energy, Southern Company, and Exelon—all trading at 14-16x forward P/E versus Eversource's 13x. The discount reflects offshore wind damage: investors extrapolate management credibility concerns despite the strategic logic of refocusing on regulated utilities. Joseph Nolan's challenge is proving consistent execution over 2-3 years to close the valuation gap. Eversource's competitive advantage is New England's unique energy dynamics—pipeline constraints, heating demand, renewable mandates—creating investment opportunities unavailable in energy-abundant regions.

Who Is This Stock Suitable For?

Perfect For

  • ✓Income investors seeking 5.1% yield at discounted utility valuation
  • ✓Value investors betting offshore wind overhang closes over 2-3 years
  • ✓New England residents wanting local utility exposure
  • ✓Contrarian investors buying quality utilities at temporary discounts

Less Suitable For

  • ✗Risk-averse investors uncomfortable with recent execution failures
  • ✗Growth investors seeking double-digit appreciation
  • ✗Credit-quality focused investors concerned about BBB+ rating
  • ✗ESG investors disappointed by offshore wind exit

Investment Thesis

Eversource offers discounted regulated utility exposure through New England's largest energy provider. The 5.1% dividend yield—highest among major utilities—reflects offshore wind writedowns rather than operational deterioration. Core utilities generate $1.5B net income from 4.4 million customers with 93% regulated earnings. CEO Joseph Nolan's $23B capital plan through 2028 drives 6-7% rate base growth, supporting 5-6% annual EPS expansion and continued dividend increases.

The investment case is rehabilitation: investor confidence damaged by offshore wind requires consistent execution to restore. At 13x forward P/E (vs. 15-16x utility peers), successful rehabilitation implies 15-20% valuation upside plus 5.1% yield for 20%+ total return over 2-3 years. Risks include regulatory pushback on high New England rates and credit rating concerns. Suitable for income portfolios accepting near-term volatility for above-market yield and recovery potential.

Conclusion

Eversource is a BUY for income investors seeking above-market yield with recovery potential. The 5.1% dividend yield and 13x P/E offer margin of safety, while $23B capital plan provides earnings growth visibility. Offshore wind damage is priced in—successful rehabilitation over 2-3 years delivers 15-20% valuation upside plus yield. Position appropriately for utility volatility; suitable for diversified income portfolios.
Bull Case
$72 (29% upside) - Execution restores confidence, multiple re-rates to 15x, dividend grows 6%
Base Case
$63 (13% upside) - Gradual rehabilitation, 5-6% earnings growth, stable multiple
Bear Case
$48 (14% downside) - Regulatory setbacks, credit downgrade, multiple compresses to 11x

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