Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Eversource Energy (ES): Pivots to Regulated Growth as Balance Sheet Transformation Takes Center Stage –Rate Case Impact on Earnings, Valuation Outlook & its Key Catalysts ?
Eversource Energy (ES) delivered mixed Q3 2024 results, with adjusted EPS of $1.13 beating expectations by $0.05, supported by solid contributions from transmission rate base expansion (+$0.49/share) and distribution rate adjustments (+$0.57/share), while GAAP EPS of -$0.33 reflected a $524 million offshore wind divestiture loss. Revenue of $3.06 billion missed by $15.62 million, highlighting softer top-line growth amid regulatory challenges in Connecticut, including unresolved Advanced Metering Infrastructure (AMI) approvals and delayed rate recovery. The company’s pivot to a regulated utility model aligns with its $23.7 billion capital investment plan through 2028, targeting stable, low-risk growth in electric, gas, and water operations. Tailwinds such as the $600 million Electric Sector Modernization Plan in Massachusetts and cash generation from offshore wind sales and tax equity investments ($1.5 billion) underpin long-term earnings growth. However, rising interest expenses and execution risks tied to balance sheet targets and Connecticut’s regulatory environment temper optimism. Management reaffirmed its 2024 EPS guidance of $4.52–$4.60 and 5%-7% CAGR through 2028, with catalysts including Q4 capital plan updates and AMI progress. Can Eversource successfully navigate regulatory bottlenecks and rising costs to leverage its regulated utility focus and capitalize on clean energy tailwinds for sustained growth?
