Eversource Energy Stock To $48?

Eversource Energy (ES) stock has fallen 12% during the past day, and is currently trading at $65.26. Our multi-factor assessment suggests that it may be time to sell ES stock. We have, overall, a pessimistic view of the stock, and a price of $48 may not be out of reach. We believe there are a few things to fear in ES stock given its overall Moderate operating performance and financial condition. Hence, despite its Moderate valuation, this makes the stock look Risky.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $24 Bil in market cap, Eversource Energy provides energy delivery services including electricity transmission and distribution, solar power, natural gas distribution, and water distribution through multiple operational segments.

[1] Valuation Looks Moderate

This table highlights how ES is valued vs broader market. For more details see: ES Valuation Ratios

[2] Growth Is Moderate

• Eversource Energy has seen its top line grow at an average rate of 4.1% over the last 3 years
• Its revenues have grown 13% from $12 Bil to $13 Bil in the last 12 months
• Also, its quarterly revenues grew 5.1% to $3.2 Bil in the most recent quarter from $3.1 Bil a year ago.

This table highlights how ES is growing vs broader market. For more details see: ES Revenue Comparison

[3] Profitability Appears Strong

• ES last 12 month operating income was $2.9 Bil representing operating margin of 22.2%
• With cash flow margin of 29.2%, it generated nearly $3.8 Bil in operating cash flow over this period
• For the same period, ES generated nearly $1.3 Bil in net income, suggesting net margin of about 10.2%

This table highlights how ES profitability vs broader market. For more details see: ES Operating Income Comparison

[4] Financial Stability Looks Very Weak

• ES Debt was $30 Bil at the end of the most recent quarter, while its current Market Cap is $24 Bil. This implies Debt-to-Equity Ratio of 122.3%
• ES Cash (including cash equivalents) makes up $259 Mil of $62 Bil in total Assets. This yields a Cash-to-Assets Ratio of 0.4%

[5] Downturn Resilience Is Weak

ES has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• ES stock fell 44.2% from a high of $93.96 on 18 August 2022 to $52.46 on 23 October 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• The stock is yet to recover to its pre-Crisis high
• The highest the stock has reached since then is $74.88 on 28 October 2025 , and currently trades at $65.26

 
2020 Covid Pandemic

• ES stock fell 36.8% from a high of $98.54 on 4 March 2020 to $62.23 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• The stock is yet to recover to its pre-Crisis high

 
2008 Global Financial Crisis

• ES stock fell 42.9% from a high of $33.53 on 3 April 2007 to $19.15 on 10 October 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 1 February 2011

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read ES Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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