Eversource Energy Intrinsic Value – EVERSOURCE ENERGY Reports 2.2% Increase in Revenue for Q2 2023
August 8, 2023
☀️Earnings Overview
For the quarter ending June 30 2023, EVERSOURCE ENERGY ($NYSE:ES) reported total revenue of USD 2629.3 million, an increase of 2.2% compared to the same quarter the previous year. Unfortunately, net income for the quarter was USD 15.4 million, marking a 94.7% decrease from Q2 of FY2022.
Analysis – Eversource Energy Intrinsic Value
GoodWhale is proud to provide a comprehensive analysis of EVERSOURCE ENERGY‘s financials. According to our proprietary Valuation Line, EVERSOURCE ENERGY’s fair value per share is estimated at $100.0. However, the stock price is currently trading at $72.3, indicating a 27.7% undervaluation. This presents investors with an attractive opportunity to purchase shares of EVERSOURCE ENERGY at a discounted rate before the stock price returns to its fair value. GoodWhale encourages investors to take advantage of this opportunity while it lasts. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Eversource Energy. More…
| Total Revenues | Net Income | Net Margin |
| 12.67k | 1.18k | 11.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Eversource Energy. More…
| Operations | Investing | Financing |
| 2.1k | -4.13k | 2.03k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Eversource Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 54.11k | 38.2k | 45.15 |
Key Ratios Snapshot
Some of the financial key ratios for Eversource Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.0% | 7.6% | 18.6% |
| FCF Margin | ROE | ROA |
| -12.3% | 9.3% | 2.7% |
Peers
In the United States, the electric utility industry is structured as a complex web of vertically-integrated monopolies, each with their own unique strengths and weaknesses. Eversource Energy is one of the largest electric utilities in the Northeast, with over 3.6 million customers in Connecticut, Massachusetts, and New Hampshire. The company has a long history dating back to the late 1800s, and it has weathered many storms, both literal and figurative. Eversource’s primary competitors are WEC Energy Group Inc, PG&E Corp, and OGE Energy Corp. These companies are all much larger than Eversource, with customer bases that span multiple states and regions. While Eversource has a strong presence in the Northeast, its competitors have a much broader reach.
– WEC Energy Group Inc ($NYSE:WEC)
WEC Energy Group Inc is a diversified energy company that owns and operates utilities and non-utilities businesses in the Midwest and Northeast United States. The company has a market cap of $27.37B and a return on equity of 11.61%. WEC Energy Group’s businesses include electric and natural gas utility operations, power generation, and energy services. The company’s utilities include Wisconsin Electric, Wisconsin Gas, Peoples Gas, North Shore Gas, and We Energies. Non-utilities businesses include Wispark LLC, Integrys Energy Services, Inc., and Wisconsin Public Service Corporation.
– PG&E Corp ($NYSE:PCG)
PG&E Corp is a publicly-traded utility company headquartered in San Francisco, California. The company provides electricity and gas service to customers in northern and central California. PG&E is the largest provider of electricity in California and serves approximately 16 million people. The company has a market cap of $34.42 billion as of 2022 and a return on equity of 6.62%. PG&E is a regulated utility and is subject to the jurisdiction of the California Public Utilities Commission.
– OGE Energy Corp ($NYSE:OGE)
Duke Energy Corp is one of the largest electric power holding companies in the United States. It supplies and delivers electricity to approximately 7.4 million customers in six states – North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky – and has commercial operations in three more states. The company operates through three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables.
Duke Energy has a market cap of $69.7 billion and a return on equity of 18.7%. The company is one of the largest electric power holding companies in the United States and supplies electricity to approximately 7.4 million customers in six states. Duke Energy operates through three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables.
Summary
EVERSOURCE ENERGY is a promising investment opportunity. The company reported total revenue of USD 2629.3 million for the quarter ending June 30 2023, up 2.2% from the same period the previous year. Net income for the quarter decreased 94.7% to USD 15.4 million, however this is likely due to one-time costs and non-recurring expenses impacting the bottom line. Going forward, investors should keep an eye on EVERSOURCE ENERGY as the company is poised to benefit from improved operational efficiency and cost cutting initiatives.
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