Eversource Energy is a regionally focused regulated utility providing electricity and natural‑gas transmission and distribution services, with a capital‑intensive profile and evidence of recovering earnings after recent volatility.
The company shows clear signs of top‑line recovery and earnings normalization: revenue per share has climbed to $37.41 most recently and one‑year revenue per share growth was 9.8% (see EPS Diluted & Revenue per Share and Revenue & Net Income), while trailing twelve‑month net income reached $1.76B as of 2026‑03‑31 and net margin improved to 12.6% as of 2026‑03‑31 (see Profit Margin Trends). Longer‑run compounding of equity and earnings also show positive trends, with a 3‑year EPS CAGR of 0.0634 (6.34%), a 5‑year revenue‑per‑share CAGR of 0.0690 (6.90%), and a reported 5‑year book value per share growth figure of 0.3351 (see Revenue & EPS Growth).
Capital structure remains relatively conservative on leverage metrics, with debt‑to‑equity at 0.4448. The market multiple has contracted from mid‑20s to a recent P/E of 14.7x, reflected in the latest reported ratio of 14.7 (see Price-to-Earnings (PE) Ratio Trend).
At the same time, there are tangible weaknesses to monitor. Liquidity is a concern: the current ratio is 0.6699, below 1.0, indicating short‑term coverage pressure. Cash‑flow quality has lagged reported earnings historically (the earnings/cash divergence indicator is -3.7867) and the most recent operating cash flow TTM on file is $1.65B (period end 2023‑12‑31) while investing cash flow was a negative ‑4.87B at that same date; financing cash flow has also trended sharply lower from $2.87B at 2023‑12‑31 to $196.7M at 2026‑03‑31 (see Earnings Quality Analysis and Strategic Capital Allocation). Return on equity remains modest and variable, with the latest ROE at 2.9% as of 2026‑03‑31 (see Return on Equity (ROE)).
See the linked cards for the underlying time series and quarter‑by‑quarter detail.
The foundation of business quality and long-term value creation
EVERSOURCE ENERGY's reported revenue shows higher year-end period_ends (Dec 31) with $8.57B in 2024 and $9.43B in 2025, while the March quarter revenues have trended upward year-over-year from $3.33B (2024-03) to $4.12B (2025-03) and $4.50B (2026-03). Across the most recent quarters, revenue has moved higher, with the December period_ends representing substantially larger reported totals than the single-quarter March figures.
Net income exhibited large volatility around late 2023 and 2024, including a $-1.27B loss at 2023-12-31 and a $-116.2M loss at 2024-09-30, followed by a return to positive results beginning 2024-12-31 ($74.4M) and a steady increase through 2025 into 2026. Recent quarterly net income rose from $423.2M at 2025-12-31 to $608.7M at 2026-03-31. The most recent quarterly revenue was $4.50B. The most recent quarterly net income was $608.7M.
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Over the period Apr 2025 to Mar 2026, Eversource Energy generates $13.93B in revenue. After accounting for taxes and expenses, the company retains 12.6% as net profit margin, resulting in $1.76B in net earnings from $13.93B in revenue.
Period Information
Report Type: Annual (10-K)
Period: Apr 2025 to Mar 2026
Analyzing long-term margin stability and competitive positioning
EVERSOURCE ENERGY's net profit margin shows a pronounced recovery in the most recent quarters. After a trough of -3.6% at 2023-12-31, net margin climbed to 6.9% at 2024-12-31, held near 6.7% in 2025-03-31, and then rose to 12.5% at 2025-12-31 and 12.6% at 2026-03-31, returning to the low-teens levels seen in several prior years (2016–2017).
Gross and operating margins display substantial volatility across the historical series. Gross margin reached unusually high readings in 2016–2018 (67.3% in 2016–2017 and 96.2% in 2018) before being recorded much lower at 14.0% in 2019 and 15.2% in 2022. Operating margin shifted from a positive 38.7% in 2012 to deeply negative values of -67.4% in 2019 and -66.9% in 2022. The latest observed values are: Gross Margin 15.2% (2022-12-31); Operating Margin -66.9% (2022-12-31); Net Profit Margin 12.6% (2026-03-31).
Understanding Profit Margins
Between Apr 2025 and Mar 2026, Eversource Energy converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
EVERSOURCE ENERGY's trailing twelve-month net income shows a clear inflection in 2024 and a steady recovery through 2025 into early 2026. Net income moved from -$66.8M (2024-06-30) to -$524.5M (2024-09-30) before turning positive at $819.2M (2024-12-31) and then rising sequentially to $848.1M (2025-03-31), $865.5M (2025-06-30), $1.35B (2025-09-30), $1.70B (2025-12-31) and $1.76B (2026-03-31).
Operating cash flow (TTM) is shown most recently at $1.65B as of 2023-12-31. At that same 2023-12-31 point net income was -$434.7M, indicating a notable divergence between reported earnings and cash generation at the end of 2023; subsequent net income figures recovered and, by 2026-03-31, exceeded the last reported operating cash flow value. The latest Net Income (TTM) is $1.76B (period ending 2026-03-31). The latest Operating Cash Flow (TTM) is $1.65B (period ending 2023-12-31).
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
Trailing Twelve Months
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
EVERSOURCE ENERGY's ROE has been variable over the past several quarters. After negative readings in late 2023 (-3.1%) and mid‑2024 (-0.5%), ROE recovered to 5.4% at 2024‑12‑31 but fell to 1.5% by 2025‑03‑31. Subsequent quarterly data show modest improvement to 2.7% at 2025‑09‑30, a notable spike to 10.5% at 2025‑12‑31, and then a decline to the most recent level.
The pattern shows intermittent recoveries from troughs rather than a steady upward trend, with a pronounced inflection point at 2025‑12‑31 when ROE reached 10.5% before retreating. The most recent Return on Equity (ROE) was 2.9% as of 2026-03-31.
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
Over the most recent trailing-twelve-month snapshots, EVERSOURCE ENERGY’s financing cash flow has declined markedly. Financing CF TTM fell from a multi‑billion dollar level at the end of 2023 (reported at $2.87B) to $2.34B at 2024-12-31, then dropped further to $311.5M at 2025-12-31 and most recently to $196.7M at 2026-03-31, showing a clear downtrend across these quarters.
The last reported figures at year-end 2023 show operating cash flow (TTM) was positive at $1.65B, while investing cash flow (TTM) was negative at -$4.87B. Most recent data indicates operating cash flow (TTM) remains at $1.65B (period end 2023-12-31). Investing cash flow (TTM) was -$4.87B (period end 2023-12-31). Financing cash flow (TTM) most recently stands at $196.7M (period end 2026-03-31).
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Trailing Twelve Months
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
EVERSOURCE ENERGY’s trailing twelve-month P/E has declined over the most recent year. After a mid-2025 high of 27.4x (2025-06-30), the ratio fell to 19.6x by 2025-09-30 and then to the mid-teens at 14.8x (2025-12-31) and 14.7x (2026-03-31), indicating a contraction in valuation versus the company’s mid-2025 levels. The dataset shows gaps for several quarters in 2024 and parts of 2023 where no P/E is reported.
Over a longer horizon the P/E was generally in the low-to-mid 20s through 2020–2022, with earlier peaks at 34.6x (2019-12-31) and 33.2x (2011-12-31). The most recent Price-to-Earnings ratio was 14.7x.
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.