Eversource Energy (ES) AI Stock Analysis
ES AI stock analysis summary
AI ResearchEversource Energy is a regulated public utility holding company delivering electricity, natural gas, and water across New England. The company generated $14.00B in trailing twelve-month revenue with an operating margin of 23.9%. However, it carries significant leverage, with total debt of $29.81B against $1.82B in cash and short-term investments.
- Market cap
- $25.18B
- Revenue (TTM)
- $14.00B
- P/E
- 17.3x fwd 13.3x
- 1Y return
- -2.0% S&P 500 16.8%
- Avg. target
- $72.75 8.8% vs last close
Bull case
- Eversource achieved $1.69B in net income and $1.18B in free cash flow in FY2025, reversing negative free cash flow seen in prior years.
- The stock offers a 4.71% dividend yield supported by 28 consecutive years of dividend payments and a 63.4% payout ratio.
- Valuation multiples are discounted relative to the median of its S&P 500 Utilities peers, with a forward P/E of 13.3x versus the peer median of 16.0x.
Bear case
- The company carries substantial debt leverage, including $29.81B in total debt and a debt-to-equity ratio of 1.82 as of June 30, 2026.
- Quarterly earnings fell 85.4% year-over-year in the latest quarter ended June 30, 2026.
- Long-term shareholder returns have lagged broader markets, with the stock delivering a -5.2% return over 5 years compared to 83.0% for the S&P 500.
What Eversource does
Eversource Energy, formerly known as Northeast Utilities, is an energy delivery holding company headquartered in Springfield, Massachusetts. It operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. The company transmits and distributes electricity, manages solar power facilities, and supplies natural gas across Connecticut, Massachusetts, and New Hampshire. Through its regulated water utilities, Eversource provides water services to approximately 226,000 customers across residential, commercial, industrial, municipal, and fire protection sectors.
Growth and profitability
Between FY2020 and FY2025, Eversource grew revenue at an 8.8% CAGR, reaching $13.55B in FY2025 with 13.8% annual growth. Net income rebounded to $1.69B in FY2025 from -$442.2M in FY2023 and $811.7M in FY2024, yielding a net margin of 12.5%. Operating margin stood at 22.1% in FY2025 compared to 20.2% in FY2021. For the trailing twelve months ended June 30, 2026, revenue reached $14.00B with a profit margin of 10.3%. In the quarter ended June 30, 2026, revenue increased 2.3% year-over-year, while quarterly earnings declined 85.4%.
Balance sheet and cash flow
As of June 30, 2026, Eversource held $1.82B in cash and short-term investments alongside $29.81B in total debt, resulting in net debt of $27.99B. Shareholders' equity was $16.34B, with a debt-to-equity ratio of 1.82 and a current ratio of 0.80. In FY2025, operating cash flow was $1.18B and free cash flow was $1.18B, while capital expenditures reached $4.16B. Cash deployment included $1.34B in dividends paid, supplemented by $465.4M raised through share issuance, contributing to a 9.2% increase in share count over 5 years.
Valuation and performance
Eversource trades at a trailing P/E of 17.3x and a forward P/E of 13.3x, compared to medians of 21.0x and 16.0x for its S&P 500 Utilities peers. Its enterprise value to EBITDA is 10.5x, below the peer median of 12.2x, while its price-to-sales multiple is 1.8x compared to 2.9x for the peer group. Over the past year, the stock returned -2.0%, trailing the 16.8% return of the S&P 500 benchmark. Over 5 years, the stock returned -5.2% against an 83.0% gain for the S&P 500.
ES dividend
Eversource pays a quarterly dividend with an annualized forward payout of $3.15 per share, representing a 4.71% dividend yield. The company has paid dividends for 28 consecutive years and generated a 5-year annualized dividend growth rate of 5.8%. Its payout ratio stands at 63.4%, and the most recent ex-dividend date was September 21, 2026.
What analysts expect
Wall Street analysts hold 4 Strong Buy, 1 Buy, 8 Hold, 2 Sell, and 1 Strong Sell ratings on Eversource. The mean price target is $72.75, which is 8.8% above the October 16, 2026 closing price of $66.85. For FY2026, consensus estimates project revenue of $13.85B and EPS of $4.64. For FY2027, 13 analysts project 5.1% revenue growth to $14.56B and EPS of $4.93. The company beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for November 3, 2026.
Key risks and what to watch
- Short-term liquidity is tight, reflected in a current ratio of 0.80 as of June 30, 2026.
- Net debt of $27.99B exposes the utility to substantial financing commitments alongside heavy capital expenditures of $4.16B in FY2025.
- Shareholder dilution has occurred, with the share count expanding 9.2% over 5 years, including $465.4M in share issuance in FY2025.
- Consensus estimates expect EPS for FY2026 to decline 2.5% to $4.64 from $4.77 reported in FY2025.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this ES AI stock analysis
This page is an AI-written research summary of Eversource Energy (ES). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: ES income statement, ES balance sheet, ES key metrics, ES analyst forecast, ES chart. See the ES stock overview for the latest quote and news.
ES AI stock analysis FAQ
What is Eversource Energy's dividend yield and track record?
Eversource pays an annual forward dividend of $3.15 per share, resulting in a dividend yield of 4.71%. The company has paid dividends for 28 consecutive years, with a 5-year annualized dividend growth rate of 5.8% and a payout ratio of 63.4%.
How much debt does Eversource Energy carry?
As of June 30, 2026, Eversource had $29.81B in total debt and $1.82B in cash and short-term investments, leaving net debt at $27.99B. Its debt-to-equity ratio stood at 1.82.
How do Eversource's valuation multiples compare to peer utilities?
Eversource trades at a forward P/E of 13.3x and an EV/EBITDA of 10.5x. Both multiples are lower than the median of its S&P 500 Utilities peers, which stand at 16.0x and 12.2x, respectively.
What are analysts forecasting for Eversource's earnings?
For FY2026, analysts estimate EPS of $4.64 on revenue of $13.85B. For FY2027, consensus projections call for EPS to increase 6.1% to $4.93 on revenue of $14.56B.
When does Eversource report its next quarterly financial results?
Eversource Energy is scheduled to report its next earnings on November 3, 2026.
More Utilities AI stock analysis
- KEPKorea Electric Power
- EDNEmpresa Distribuidora y Comercializadora Norte Sociedad Anónima
- CEPUCentral Puerto
- CIG.CEnergy of Minas Gerais Co DRC
- CIGCompanhia Energética de Minas Gerais
- DUKDuke Energy
- SOMNSouthern
- SOSouthern Company
- NEENextEra Energy
- ELPCCompanhia Paranaense de Energia - COPEL
- PCGPG&E
- EXCExelon