# Eversource Energy (ES.US)

Canonical: https://gigainvestors.com/s/ES

Analysis as of: 2026-10-16T07:34:31.666Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $65.99 per share; close as of 2026-10-15.

Estimated value: low $54.95 per share, central $67.78 per share, high $78.43 per share. Buy at or below the central value $67.78 per share. Valuation as of 2026-10-16T07:34:31.666Z; scenarios are not confidence intervals.

Expected annual return: 10.2% at the stated quote. About 10.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 1

- Operating margin variation: 0.09×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.25×

- FY2018: 0.20×

- FY2019: 0.19×

- FY2020: 0.22×

- FY2021: 0.20×

- FY2022: 0.18×

- FY2023: 0.20×

- FY2024: 0.23×

- FY2025: 0.22×

- LTM to Mar 2026: 0.23×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 17.5pp below the typical margin (limit 4pp)

- ROIC, median of available years: 5.4%

- ROIC, second-lowest year: 5.0%

- Typical minus recent gross margin: 17.5 pp

- Typical gross margin (annual median): 47.6%

- Recent gross margin (lower of latest and 3-year median): 30.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 31.4%

- ROIC including acquisitions, ten-year median: 0.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 6.7%

- FY2017: 6.2%

- FY2018: 6.2%

- FY2019: 5.2%

- FY2020: 5.6%

- FY2021: 5.1%

- FY2022: 5.0%

- FY2023: 5.2%

- FY2024: 3.8%

- FY2025: 6.6%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: -0.33×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$1.5B

- Net income, five-year total: $4.7B

- Return on incremental invested capital: 8.4%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -0.5 pp

- Working capital / revenue, final three-year average: 4.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 8.96×

- FY2024: -2.33×

- FY2025: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 6.2% vs 5.2%

- Per-share earnings: 2.96 to 2.27 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.5%

- Ordinary dilution, 5-year annual growth: 1.8%

- Market cap gain: $7.7B

- Cumulative retained earnings: $1.3B

- Diluted shares, 10-year annual growth: 1.5%

- Diluted shares, 5-year annual growth: 1.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -3.3%

- Per-share value change: -$0.69

- Per-share value, starting three-year median: $2.96

- Per-share value, ending three-year median: $2.27

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: $4.5B

- Cumulative net income, 10 years: $9.8B

- ROIC, first three-year median: 6.2%

- ROIC, last three-year median: 5.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.96

- FY2017: $3.11

- FY2018: $3.25

- FY2019: $2.81

- FY2020: $3.55

- FY2021: $3.54

- FY2022: $4.05

- FY2023: -$1.26

- FY2024: $2.27

- FY2025: $4.56

### accounting: pass

- Sloan accruals: 0.8%

- Receivables to sales index (DSRI): 1.13×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.69×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.26×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.8%

- FY2017: -2.8%

- FY2018: -2.0%

- FY2019: -2.7%

- FY2020: -1.0%

- FY2021: -1.5%

- FY2022: -1.9%

- FY2023: -3.8%

- FY2024: -2.3%

- FY2025: 0.8%

## Holders

## Price story

Down 29% since May 2022 · "Eversource Q2 income plunges on transmission ROE, offshore wind charges" (finance.yahoo.com, Aug 2026) · sales +2.8%

Story as of 2026-10-16T10:00:00.970Z; price observation 2026-10-15.

Price needs cash profits to grow 2.9% a year for ten years

- 2025-05-02: Eversource Energy (NYSE:ES) Maintains Dividend Approves Earnings Projection Amid Strong Sales Growth ([finance.yahoo.com](https://finance.yahoo.com/news/eversource-energy-nyse-es-maintains-174740675.html))

- 2025-09-17: Eversource faces financial risk over Trump administration’s offshore wind stop-work order: Fitch ([finance.yahoo.com](https://finance.yahoo.com/news/eversource-faces-financial-risk-over-091222826.html))

- 2025-11-20: Eversource Energy downgraded at Mizuho after denial of water unit sale ([seekingalpha.com](https://seekingalpha.com/news/4524625-eversource-energy-downgraded-at-mizuho-after-denial-of-water-unit-sale?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-02-13: Eversource Earnings Beat And US$26.5b Plan Reshape Utility Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/eversource-earnings-beat-us-26-191123499.html))

- 2026-03-27: Eversource Takes a Hit as Regulators Reset ROE and Trigger Refund Risk ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/eversource-takes-hit-regulators-reset-181500441.html))

- 2026-08-04: Eversource Q2 income plunges on transmission ROE, offshore wind charges ([finance.yahoo.com](https://finance.yahoo.com/energy/articles/eversource-q2-income-plunges-transmission-093556945.html))

### Sales · FY2025–2026

sales +2.8%; source https://www.sec.gov/Archives/edgar/data/72741/000162828026008461/es-20251231.htm; observed 2026-02-17.

- FY2017: $7.8B 

- FY2018: $8.4B 

- FY2019: $8.5B 

- FY2020: $8.9B 

- FY2021: $9.9B 

- FY2022: $12B 

- FY2023: $12B 

- FY2024: $12B 

- FY2025: $14B 

- FY2026: $14B 

### Gross margin · FY2025

gross margin 30.1%; source https://www.sec.gov/Archives/edgar/data/72741/000162828026008461/es-20251231.htm; observed 2026-02-17.

- FY2016: 49.9% 

- FY2017: 50.8% 

- FY2018: 47.0% 

- FY2019: 48.4% 

- FY2020: 49.8% 

- FY2021: 48.2% 

- FY2022: 44.0% 

- FY2023: 40.7% 

- FY2024: 31.1% 

- FY2025: 30.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities regulated electric; annual sales are USD 13.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/72741/000162828026008461/es-20251231.htm (filed 2026-02-17); FY2025: revenue 13547244000; grossProfit 4081459000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ES.US: Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas. The company also operates regulated water utilities that provides water services to residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was incorporated in 1927 and is headquartered in Springfield, Massachusetts.

### Why customers stay

Margins ranged from 30.1% to 40.7% during 2023–25; it earns 5.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2023: grossProfit / revenue = 40.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2024: grossProfit / revenue = 31.1%.

- Source: https://www.sec.gov/Archives/edgar/data/72741/000162828026008461/es-20251231.htm (filed 2026-02-17); FY2025: grossProfit / revenue = 30.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); 10-year return on capital observations [[2016,0.06748468040231957],[2017,0.062232908387955164],[2018,0.06164241647404773],[2019,0.051559783482180474],[2020,0.05605939274805694],[2021,0.05142610617658212],[2022,0.04964298243718814],[2023,0.05215616123978518],[2024,0.03798609654790837],[2025,0.06556122492911631]]; median 0.05410777699392106. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Earns 8.4% on new investment; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2018: growth capex 1451415000; upkeep 1071956000; owner earnings 1033000000. Growth capex / owner earnings = 1.4050484027105519.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2020: growth capex 1177458490.2491987; upkeep 1765537509.7508013; owner earnings 598688490.2491987. Growth capex / owner earnings = 1.9667297925822695.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2021: growth capex 1840107000; upkeep 1334973000; owner earnings 1220527000. Growth capex / owner earnings = 1.5076331781271533.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2022: growth capex 1798714000; upkeep 1643138000; owner earnings 1404875000. Growth capex / owner earnings = 1.2803373965655307.

- Source: https://www.sec.gov/Archives/edgar/data/72741/000162828026008461/es-20251231.htm (filed 2026-02-17); FY2025: growth capex 1754182000; upkeep 2404487000; owner earnings 1692372000. Growth capex / owner earnings = 1.036522703046375.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Incremental return on capital 0.08360217388180152, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Dividend observations: [[2016,572005000],[2017,609602000],[2018,647629000],[2019,670758000],[2020,752184000],[2021,812958000],[2022,867552000],[2023,926514000],[2024,1009007000],[2025,1340500000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ES.US SharesStats.PercentInsiders = 0.167 percentage points; cache date 2026-10-16.

### What could break it

"Rate Regulation, Cost Recovery and Affordability" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/72741/000162828026008461/es-20251231.htm (filed 2026-02-17); Rate Regulation, Cost Recovery and Affordability

### What the price says

The price assumes cash profits grow 2.9% yearly over ten years; actual growth was 15.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Ten-year compound average after fade. Initial solved rate 0.028250656968119015. Price 65.99; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.0796842644410198 → FY2025 4.558464027984497. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $55.06 per share

- 2016-11: $51.62 per share

- 2016-12: $55.23 per share

- 2017-01: $55.32 per share

- 2017-02: $58.66 per share

- 2017-03: $58.78 per share

- 2017-04: $59.40 per share

- 2017-05: $62.07 per share

- 2017-06: $60.71 per share

- 2017-07: $60.79 per share

- 2017-08: $63.00 per share

- 2017-09: $60.44 per share

- 2017-10: $62.64 per share

- 2017-11: $64.85 per share

- 2017-12: $63.18 per share

- 2018-01: $63.09 per share

- 2018-02: $57.00 per share

- 2018-03: $58.92 per share

- 2018-04: $60.25 per share

- 2018-05: $57.08 per share

- 2018-06: $58.61 per share

- 2018-07: $60.72 per share

- 2018-08: $62.43 per share

- 2018-09: $61.44 per share

- 2018-10: $63.26 per share

- 2018-11: $68.34 per share

- 2018-12: $65.04 per share

- 2019-01: $69.41 per share

- 2019-02: $69.81 per share

- 2019-03: $70.95 per share

- 2019-04: $71.66 per share

- 2019-05: $73.84 per share

- 2019-06: $75.76 per share

- 2019-07: $75.86 per share

- 2019-08: $80.13 per share

- 2019-09: $85.47 per share

- 2019-10: $83.74 per share

- 2019-11: $82.64 per share

- 2019-12: $85.07 per share

- 2020-01: $92.44 per share

- 2020-02: $86.46 per share

- 2020-03: $78.21 per share

- 2020-04: $80.70 per share

- 2020-05: $83.70 per share

- 2020-06: $83.27 per share

- 2020-07: $90.07 per share

- 2020-08: $85.71 per share

- 2020-09: $83.55 per share

- 2020-10: $87.27 per share

- 2020-11: $87.51 per share

- 2020-12: $86.51 per share

- 2021-01: $87.50 per share

- 2021-02: $79.48 per share

- 2021-03: $86.59 per share

- 2021-04: $86.22 per share

- 2021-05: $81.19 per share

- 2021-06: $80.24 per share

- 2021-07: $86.27 per share

- 2021-08: $90.73 per share

- 2021-09: $81.76 per share

- 2021-10: $84.90 per share

- 2021-11: $82.27 per share

- 2021-12: $90.98 per share

- 2022-01: $89.49 per share

- 2022-02: $81.80 per share

- 2022-03: $88.19 per share

- 2022-04: $87.40 per share

- 2022-05: $92.32 per share

- 2022-06: $84.47 per share

- 2022-07: $88.22 per share

- 2022-08: $89.69 per share

- 2022-09: $77.96 per share

- 2022-10: $76.28 per share

- 2022-11: $82.86 per share

- 2022-12: $83.84 per share

- 2023-01: $82.33 per share

- 2023-02: $75.36 per share

- 2023-03: $78.26 per share

- 2023-04: $77.61 per share

- 2023-05: $69.23 per share

- 2023-06: $70.92 per share

- 2023-07: $72.33 per share

- 2023-08: $63.82 per share

- 2023-09: $58.15 per share

- 2023-10: $53.79 per share

- 2023-11: $59.41 per share

- 2023-12: $61.72 per share

- 2024-01: $54.22 per share

- 2024-02: $58.70 per share

- 2024-03: $59.77 per share

- 2024-04: $60.62 per share

- 2024-05: $59.23 per share

- 2024-06: $56.71 per share

- 2024-07: $64.91 per share

- 2024-08: $67.53 per share

- 2024-09: $68.05 per share

- 2024-10: $65.85 per share

- 2024-11: $64.49 per share

- 2024-12: $57.43 per share

- 2025-01: $57.68 per share

- 2025-02: $63.01 per share

- 2025-03: $62.11 per share

- 2025-04: $59.48 per share

- 2025-05: $64.81 per share

- 2025-06: $63.62 per share

- 2025-07: $66.10 per share

- 2025-08: $64.07 per share

- 2025-09: $71.14 per share

- 2025-10: $73.81 per share

- 2025-11: $67.18 per share

- 2025-12: $67.33 per share

- 2026-01: $69.13 per share

- 2026-02: $76.21 per share

- 2026-03: $69.28 per share

- 2026-04: $70.70 per share

- 2026-05: $68.27 per share

- 2026-06: $72.27 per share

- 2026-07: $71.59 per share

- 2026-08: $70.14 per share

- 2026-09: $64.16 per share

- 2026-10: $65.99 per share

## Annual estimated value (USD per share)

- FY2016: low $21.98 per share, central $25.01 per share, high $29.05 per share

- FY2017: low $11.51 per share, central $13.10 per share, high $15.22 per share

- FY2018: low $12.55 per share, central $14.28 per share, high $16.58 per share

- FY2021: low $21.61 per share, central $25.30 per share, high $29.42 per share

- FY2022: low $50.04 per share, central $64.22 per share, high $75.00 per share

- FY2023: low $27.67 per share, central $35.00 per share, high $40.87 per share

- FY2024: low $26.30 per share, central $32.31 per share, high $37.68 per share

- FY2025: low $49.94 per share, central $62.54 per share, high $73.00 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:18.111Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/72741/000162828026008461/es-20251231.htm); period 2025-12-31, filed 2026-02-17.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.