| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 37.40 | -45 |
| Intrinsic value (DCF) | 27.43 | -60 |
| Graham-Dodd Method | 0.80 | -99 |
| Graham Formula | 14.10 | -79 |
Eversource Energy (LSE: 0IJ2.L) is a leading public utility holding company specializing in energy delivery across the Northeastern United States. Headquartered in Springfield, Massachusetts, the company operates through four key segments: Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution. Serving residential, commercial, industrial, and municipal customers in Connecticut, Massachusetts, and New Hampshire, Eversource plays a critical role in the region's energy infrastructure. The company manages electricity transmission and distribution, solar power facilities, natural gas distribution, and regulated water utilities serving approximately 226,000 customers. Formerly known as Northeast Utilities, Eversource rebranded in 2015 to reflect its commitment to sustainable energy solutions. With a market capitalization of approximately $22.9 billion, Eversource is a key player in the General Utilities sector, offering stable returns and essential services in a regulated industry. Its diversified utility operations make it a resilient investment in the utilities space.
Eversource Energy presents a stable investment opportunity within the regulated utilities sector, characterized by predictable cash flows and a strong dividend yield (currently $2.935 per share). The company's low beta (0.629) suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, high capital expenditures ($4.48 billion) and substantial total debt ($29.24 billion) could pressure financial flexibility, particularly in a rising interest rate environment. Revenue ($11.9 billion) and net income ($811.7 million) reflect steady performance, but regulatory risks in its Northeastern markets and exposure to climate-related infrastructure costs may impact long-term profitability. Investors should weigh its defensive positioning against potential regulatory and operational headwinds.
Eversource Energy holds a dominant position in the Northeastern U.S. utility market, benefiting from regulatory protections and a geographically concentrated customer base. Its competitive advantage stems from its vertically integrated operations, spanning electricity, natural gas, and water distribution, which provide revenue diversification. The company's focus on renewable energy, including solar power facilities, aligns with regional decarbonization goals, enhancing its regulatory standing. However, Eversource faces competition from other regional utilities and emerging decentralized energy solutions. Its high debt load could limit agility in adapting to industry disruptions, such as grid modernization or distributed generation trends. Compared to peers, Eversource's profitability metrics (e.g., diluted EPS of $2.27) are middling, reflecting the challenges of operating in high-cost, regulation-heavy markets. Its scale and infrastructure ownership provide a moat, but execution risks in capital projects and regulatory compliance remain key concerns.