Eversource Energy (ES) Stock

Eversource Energy trades at a P/E ratio of 30.53, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 13.76 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.99 suggests the stock may be undervalued relative to its growth rate.

With a beta of 0.66, 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 1.65 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Eversource Energy achieves a profit margin of 6.60%, meaning it retains $6.60 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 24.60% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 5.62% and ROA at 3.11%, the company achieves moderate returns on invested capital.

Eversource Energy's revenue grew by 12.00% 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.

Eversource Energy offers a dividend yield of 4.21%, paying $2.94 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 Sep 22, 2025.

The dividend sustainability can be assessed through the payout ratio - Eversource Energy pays $2.94 per share in dividends against earnings of $2.31 per share, resulting in a payout ratio of 100.00%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for Sep 30, 2025.

Eversource Energy has a market capitalization of $26.2B, 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 371.12M 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.

Eversource Energy's book value per share is $42.22, while the current stock price is $73.67, resulting in a price-to-book (P/B) ratio of 1.74. 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.

17 analysts cover ES with 47% 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 $70.85 implies -3.8% downside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:1 Strong Buy, 7 Buy, 6 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.