Eversource Energy Stock Checklist: Never Miss a Key Step
Eversource Energy stock (NYSE: ES) is a regulated electric and natural gas utility serving 4.4 million customers across Connecticut, Massachusetts, and New Hampshire. The eversource energy stock trades around $60 to $68 per share as of April 2026, down sharply from its 2022 peak near $95 following large write-downs on its offshore wind portfolio and rising rate-base financing costs. Regulated utilities are supposed to be boring. Eversource has been anything but, which is exactly why a structured checklist matters before investing.
This post gives you the exact steps to work through.
Key Takeaways
- Eversource wrote down approximately $1.4 billion on its offshore wind joint venture assets in 2023 to 2024, creating one-time losses that distorted reported earnings significantly.
- The forward P/E on ES sits near 16.2x based on 2026 normalized EPS guidance of roughly $4.10 to $4.20 per share, broadly in line with regulated utility peers.
- Debt-to-equity stands near 1.8x, elevated relative to the utility sector median of 1.3x, driven by capital-intensive rate base investment.
- The dividend yield sits near 5.1% as of April 2026, but the dividend was cut in 2024 from $2.44 to $1.90 quarterly, a signal that cash flow coverage was stressed.
- Rate base is projected to grow 5 to 7% annually through 2028, driven by transmission and electric distribution infrastructure investment.
- The offshore wind exit removes ongoing capital risk but also eliminates a growth optionality story that investors had valued.
The Checklist: Eversource Energy Stock in 10 Steps
Work through these steps in order. Each one either confirms or disqualifies the next.
Step 1: Confirm the Regulatory Framework
Eversource operates under rate cases approved by Connecticut PURA, Massachusetts DPU, and New Hampshire PUC. Allowed ROEs in recent rate cases have come in between 9.0% and 9.8%. Check the most recent rate case outcome for each jurisdiction. If allowed ROE falls below 8.5%, the utility's ability to earn its cost of capital compresses.
Pass threshold: Allowed ROE above 9.0% in at least two of three jurisdictions.
Step 2: Verify Rate Base Growth Trajectory
Rate base is the total invested capital on which the utility earns its allowed return. Eversource's rate base stood near $22 billion in 2025. Management guidance targets 5 to 7% annual growth through 2028, which at the midpoint means roughly $26 to $27 billion by then.
| Year | Rate Base ($ bn) | Growth vs. Prior Year |
|---|---|---|
| 2022 | 19.3 | +6.2% |
| 2023 | 20.7 | +7.3% |
| 2024 | 21.4 | +3.4% |
| 2025 | 22.0 | +2.8% |
| 2026E | 23.3 | +5.9% |
| 2028E | ~26.5 | 6% CAGR |
Pass threshold: Rate base growth of at least 5% confirmed in the latest capital expenditure plan.
Step 3: Check the Dividend Coverage Ratio
The 2024 dividend cut to $1.90 quarterly (from $2.44) was a rare event for a regulated utility. Eversource cited the offshore wind losses and elevated financing costs. The new annualized dividend of $7.60 per share maps to a payout ratio near 85% on normalized 2026 EPS of $4.10. That is sustainable for a regulated utility, but leaves no cushion.
Run the cash dividend coverage ratio: operating cash flow minus capex divided by total dividends paid. Target above 1.0x for safety.
Pass threshold: Dividend coverage ratio of 1.05x or above.
Step 4: Evaluate the Offshore Wind Write-Down Impact
Eversource fully exited its offshore wind joint ventures with Orsted by late 2024, receiving approximately $625 million in proceeds against an original investment of roughly $2.1 billion. The $1.4 billion write-down is a sunk cost. The risk from here is litigation: Eversource faces potential legal claims related to the wind farm contract cancellations.
Check the most recent 10-K footnotes for outstanding offshore wind legal exposure. Any contingency above $300 million changes the thesis.
Pass threshold: Disclosed legal exposure below $300 million, or fully reserved.
Step 5: Assess Debt-to-Equity and Refinancing Risk
Eversource's debt-to-equity ratio sits near 1.8x as of early 2026, elevated for a regulated utility. The company carries approximately $16 billion in total debt. With roughly $2.5 billion in debt maturing in 2026 and 2027, refinancing at current rates (5.5 to 6.5% on utility-grade long-term bonds) increases interest expense relative to the 3.5 to 4.5% range at which the legacy debt was issued.
Run our screener debt-to-equity field and compare against the utility sector median of 1.3x. The gap tells you the refinancing headwind built into forward earnings.
Pass threshold: Debt-to-equity below 2.0x with no maturity wall larger than $1.5 billion in any single year.
Step 6: Check the Forward P/E Against Sector Peers
Eversource at 16.2x forward P/E compares against the regulated utility sector median near 15.4x. That modest premium to peers reflects the rate base growth story but assumes execution without further regulatory setbacks or write-downs.
| Utility | Forward P/E | Dividend Yield | Rate Base Growth |
|---|---|---|---|
| Eversource (ES) | 16.2x | 5.1% | 5-7% |
| NextEra Energy (NEE) | 19.8x | 3.2% | 8-10% |
| Consolidated Edison (ED) | 14.9x | 4.6% | 4-5% |
| Ameren (AEE) | 15.3x | 4.0% | 6-7% |
| Sector Median | 15.4x | 4.1% | 5-6% |
Pass threshold: Forward P/E within 15% of sector median, given the specific regulatory framework and growth rate.
Step 7: Review the EV/EBITDA Multiple
EV/EBITDA is a cleaner comparison for capital-heavy utilities because it strips out the distortion of varying depreciation schedules and tax structures. Eversource's EV/EBITDA sits near 12.1x on 2026 EBITDA guidance. Sector median is approximately 11.8x. The premium is thin, which is appropriate given the recent execution issues.
Pass threshold: EV/EBITDA below 13.0x, consistent with the growth rate on offer.
Step 8: Confirm EPS Normalization
The 2023 and 2024 reported EPS were distorted by the offshore wind write-downs. Normalized EPS for 2025 came in near $3.90 per share, and 2026 guidance is $4.10 to $4.20. Verify that the normalization adjustments are coherent: primarily the wind impairments and no ongoing charges being buried in extraordinary items.
Pass threshold: Normalized EPS growth of at least 5% annually through 2028, matching rate base growth.
Step 9: Check the Interest Coverage Ratio
With $16 billion in debt and rising refinancing costs, interest coverage is the stress test. Target EBIT-to-interest-expense of at least 2.5x. Eversource's 2025 interest coverage came in near 2.7x, barely above the threshold for regulated utilities and well below the 4.0x+ of peers with lower debt ratios.
Pass threshold: Interest coverage above 2.5x.
Step 10: Evaluate Management Track Record
The offshore wind bet, initiated under prior CEO Jim Judge and continued under Joe Nolan, destroyed roughly $1.4 billion in shareholder capital. Judge retired in 2020. Nolan navigated the exit but the board approved the original commitment. Check the latest proxy for board composition changes and whether the capital allocation framework has been formalized.
Pass threshold: Capital allocation policy documented in investor presentations, with explicit ROE thresholds for new business ventures.
Further reading: SEC EDGAR · FRED Economic Data
Related ValueMarkers Resources
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- Forward Pe — Glossary entry for Forward Pe
- Debt To Equity — Glossary entry for Debt To Equity
- Gold Mining Etf — related ValueMarkers analysis
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Frequently Asked Questions
what happens if the stock market crashes
Regulated utilities like eversource energy stock tend to outperform the broad market during crashes because their earnings are contractually supported by regulators and do not depend on economic growth. However, Eversource's elevated debt load makes it more sensitive than peers to credit market stress. During the 2022 rate-shock selloff, ES fell 30% even as the S&P 500 fell 19%, because rising interest rates compress utility valuations directly.
what time does the stock market open
The NYSE, where eversource energy stock trades under the ticker ES, opens at 9:30 a.m. Eastern Time on regular trading weekdays. Eversource is a large-cap, high-liquidity utility name, so bid-ask spreads are tight throughout the regular session and limit orders are rarely necessary for standard position sizes.
are stock markets closed today
U.S. stock markets are closed on nine federal holidays annually per the NYSE calendar: New Year's Day, Martin Luther King Jr. Day, Presidents' Day, Good Friday, Memorial Day, Juneteenth, Independence Day, Labor Day, Thanksgiving, and Christmas. Eversource rate case filings and regulatory decisions are sometimes published on days the market is closed, so check regulatory calendars independently.
what time does the stock market close
The NYSE closes at 4:00 p.m. Eastern Time on regular trading days. For eversource energy stock, after-hours trading runs to 8:00 p.m. Eastern. Major catalysts include rate case decisions from PURA and DPU, earnings releases, and any regulatory filings related to the offshore wind litigation.
when does the stock market open
The NYSE opens at 9:30 a.m. Eastern. For utility stocks like Eversource, the open is less volatile than for growth names because the earnings base is highly predictable. The largest intraday moves typically follow rate case outcomes published by state regulators, which can arrive at any hour.
why is the stock market down today
Broad market declines often include utility stocks if the cause is rising interest rate expectations, since higher rates compress the present value of regulated utility cash flows and increase refinancing costs. For eversource energy stock specifically, watch state regulatory decisions, offshore wind litigation updates, and quarterly earnings versus normalized EPS guidance.
Run eversource energy stock through all 10 checklist steps using our screener, which tracks debt-to-equity, forward P/E, EV/EBITDA, and dividend coverage in one view.
Written by Javier Sanz, Founder of ValueMarkers. Last updated April 2026.
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Disclaimer: This content is for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. Past performance does not guarantee future results. Consult a licensed financial advisor before making investment decisions.