📊 ES Key Takeaways
Is Eversource Energy (ES) a Good Investment?
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.
Eversource Energy shows stable regulated-utility fundamentals, with solid operating profitability and strong operating cash generation supporting the business despite minimal revenue and net income growth. However, growth quality is mixed because free cash flow is slightly negative after heavy capital spending, while leverage is elevated and liquidity is thin. The company appears fundamentally resilient, but balance-sheet pressure limits upside in a pure fundamentals-based view.
Why Buy Eversource Energy Stock? 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
- Solid operating margin of 22.1% and net margin of 12.5% indicate healthy core utility profitability
- Operating cash flow of $4.11B demonstrates strong cash generation from regulated operations
- ROE of 10.4% suggests the company is earning reasonable returns on shareholder capital
ES Stock Risks: Eversource Energy Investment Risks
- 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
- Revenue growth of just 0.4% and net income decline of 0.4% point to limited organic earnings momentum
- Free cash flow is slightly negative due to capital expenditures exceeding operating cash flow, reducing financial flexibility
- Leverage is meaningful with debt/equity of 1.66x, interest coverage of 3.6x, and current ratio of 0.65x indicating tight liquidity
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
- Free cash flow after capital expenditures
- Debt leverage and interest coverage
Eversource Energy (ES) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
ES Profit Margin, ROE & Profitability Analysis
ES vs Utilities Sector: How Eversource Energy Compares
How Eversource Energy compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Eversource Energy Stock Overvalued? ES Valuation Analysis 2026
Based on fundamental analysis, Eversource Energy has mixed fundamental signals relative to the Utilities 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.
Eversource Energy Balance Sheet: ES Debt, Cash & Liquidity
ES Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
ES Quarterly Earnings & 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.
Eversource Energy Dividends, Buybacks & Capital Allocation
ES SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 74% combined 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. ChatGPT: Solid operating margin of 22.1% and net margin of 12.5% indicate healthy core utility profitability. Operating cash flow of $4.11B demonstrates strong cash generation from regulated operations.
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. ChatGPT: Revenue growth of just 0.4% and net income decline of 0.4% point to limited organic earnings momentum. Free cash flow is slightly negative due to capital expenditures exceeding operating cash flow, reducing financial flexibility.
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 April 2026, Eversource Energy has a HOLD rating with 74% 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: 10%), net margin of 12.5% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
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 Utilities stocks?
Vs Utilities sector averages: Net margin 12.5% (avg: 12%), ROE 10.4% (avg: 10%), current ratio 0.65 (avg: 0.8).
Is Eversource Energy carrying too much debt?
ES has a debt-to-equity ratio of 1.66x, which is above the Utilities sector average of 1.4x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.