EVERSOURCE ENERGY

Forward P/E: 14.36×
Mkt cap: 26.6 B USD
EV: 56.5 B USD
Sector: Utilities
Coverage: 2009–2025
Currency: USD
Next event: Feb 17, 2027

JP Valuation

JP Score

4,5

Out of profile · window 5 years

JP entry price

OUT OF PROFILE

No target price is issued: the company falls outside the profile this method looks for.

Financial comments4

Interest coverage below 4×.
The share count grows: net dilution.
ROIC below the required return: growth destroys value.
Impairment of fcf: 100 % of the window, weighted by recency → 12.0 points. It is the only place in the model where a bad year subtracts.

Calculation comments1

An anomalous year is out of the estimators; it still counts in the counters and hard cuts.

Quality factors

Each factor scores 0–100 on its own scale; the score is their weighted average.

Score	Weight → points
Growth consistency40 Earnings · fit to the log-linear line · σ_resid = 0.19422 %4 Earnings · hit rate · 50 %16 %3 Earnings · volatility · σ = 0.18411 %35 Revenue · fit to the log-linear line · σ_resid = 0.05414 %86 Revenue · hit rate · 50 %11 %3 Revenue · volatility · σ = 0.0967 %84 Forward · trajectory coherence · consensus 1.6 % vs. trend 4.2 %20 %83 Short effective sample (N_eff = 3.8 < 4): the fit subcomponent is shrunk towards neutral.	·20 → 8,08
Growth pace28 Realized · 8.5 %50 %46 Expected · 1.6 %50 %10	·20 → 5,65
No recent stagnation30 Realized slowdown · 1.00×50 %58 Expected slowdown · 0.18×50 %3	·15 → 4,57
FCF quality0 FCF / net income conversion · -1.15×100 %0 Window chosen: last 5 years (the best of those evaluated). Anomalous financial year(s) in earnings (2023): out of this component's estimators; they still count in the counters and hard cuts. Positive FCF in 0 of the 5 years in the window. An anomalous year is out of the estimators; it still counts in the counters and hard cuts.	·15 → 0,00
Debt3 Net debt / EBITDA · 6.57×100 %3 Interest coverage (EBIT / \|interest\|) = 2.6×. Interest coverage below 4×.	·15 → 0,43
Return on invested capital (ROIC)9 Level (recency-weighted mean) · 3.3 %50 %0 Spread over the required return · −0.1 pp over the 10 % required30 %0 Trend · −0.7 pp over 5 years20 %44 Anomalous financial year(s) in earnings or invested capital (2023): out of this component's estimators; they still count in the counters and hard cuts. Average ROIC (3.3 %) below the required return (10 %): growth destroys value. An anomalous year is out of the estimators; it still counts in the counters and hard cuts. ROIC below the required return: growth destroys value.	·15 → 1,32
Weighted base	·100 → 20,05

Modifiers and penalties

The factors build the score; the modifiers correct it, within +23 / −28. Same 0–100 bar, 100 is always good.

Score	Range	Points
Gross margin trend · −0.4 pp accumulated over 4 years46	±8	-0,7
Altman Z'' · Z'' = 3.87100	0/−15	0,0
Shareholder returns · dilutes 1.2 % a year0 Effective buyback (net share count) · 1.2 % of dilution0 Dividend yield (last DPS / price today) · 4.3 % · does not count: the active branch is dilution—	+15/−5	-2,9
Impairment · 100 % · worst magnitude: fcf0 Earnings · 26.1 %74 Free cash flow · 100.0 %0 EBITDA · 0.0 %100	0/−12	-12,0
20,0 − 0,7 + 0,0 − 2,9 − 12,0 =4,5

Calculated on Sep 5, 2026

Score

Weight → points

Growth consistency40

Earnings · fit to the log-linear line · σ_resid = 0.19422 %4
Earnings · hit rate · 50 %16 %3
Earnings · volatility · σ = 0.18411 %35
Revenue · fit to the log-linear line · σ_resid = 0.05414 %86
Revenue · hit rate · 50 %11 %3
Revenue · volatility · σ = 0.0967 %84
Forward · trajectory coherence · consensus 1.6 % vs. trend 4.2 %20 %83
Short effective sample (N_eff = 3.8 < 4): the fit subcomponent is shrunk towards neutral.

·20 → 8,08

Growth pace28

Realized · 8.5 %50 %46
Expected · 1.6 %50 %10

·20 → 5,65

No recent stagnation30

Realized slowdown · 1.00×50 %58
Expected slowdown · 0.18×50 %3

·15 → 4,57

FCF quality0

FCF / net income conversion · -1.15×100 %0
Window chosen: last 5 years (the best of those evaluated).
Anomalous financial year(s) in earnings (2023): out of this component's estimators; they still count in the counters and hard cuts.
Positive FCF in 0 of the 5 years in the window.
An anomalous year is out of the estimators; it still counts in the counters and hard cuts.

·15 → 0,00

Debt3

Net debt / EBITDA · 6.57×100 %3
Interest coverage (EBIT / |interest|) = 2.6×.
Interest coverage below 4×.

·15 → 0,43

Return on invested capital (ROIC)9

Level (recency-weighted mean) · 3.3 %50 %0
Spread over the required return · −0.1 pp over the 10 % required30 %0
Trend · −0.7 pp over 5 years20 %44
Anomalous financial year(s) in earnings or invested capital (2023): out of this component's estimators; they still count in the counters and hard cuts.
Average ROIC (3.3 %) below the required return (10 %): growth destroys value.
An anomalous year is out of the estimators; it still counts in the counters and hard cuts.
ROIC below the required return: growth destroys value.

·15 → 1,32

Weighted base

·100 → 20,05

Score

Range

Points

Gross margin trend · −0.4 pp accumulated over 4 years46

±8

-0,7

Altman Z'' · Z'' = 3.87100

0/−15

0,0

Shareholder returns · dilutes 1.2 % a year0

Effective buyback (net share count) · 1.2 % of dilution0
Dividend yield (last DPS / price today) · 4.3 % · does not count: the active branch is dilution—

+15/−5

-2,9

Impairment · 100 % · worst magnitude: fcf0

Earnings · 26.1 %74
Free cash flow · 100.0 %0
EBITDA · 0.0 %100

0/−12

-12,0

20,0 − 0,7 + 0,0 − 2,9 − 12,0 =4,5