CluenexEversource Energy ES
Eversource Energy scores weak on business quality (4.4 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Eversource Energy does
Eversource Energy operates regulated electric and natural gas distribution utilities across New England, generating revenue through state-approved delivery rates paid by residential and commercial customers. The company is pursuing a $1 billion plus cash recovery and new growth path in Connecticut to expand its regulated asset base.
- What it does best
Eversource dominates regulated New England energy delivery, locking in regional customers through state-sanctioned utility monopolies. This entrenched infrastructure network produces steady operating margins of 22.4% that peers like FE struggle to match at 18.6%.
- The main risk
Heavy reliance on continuous capital deployment leaves Eversource vulnerable to regulatory pushback on rate cases. With net debt sitting at $30.1 billion against sparse free cash flow of $297 million, adverse rate decisions directly threaten cash generation.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins hold steady at 22.4%, while FCF margin hits the 81st sector percentile. Heavy capital expenditure required to maintain the utility grid prevents high cash flow conversion at scale.
The utility franchise creates a regulated territorial monopoly locking in regional utility customers. Its sector percentile of 26 for ROE reflects limited excess returns restricted by regulators.
Revenue growth of 13.8% leads the sector at the 79th percentile, driven by its regulated utility operations. This top-quartile rate represents an acceleration compared to historical periods.
Debt-to-equity of 1.8x and low interest coverage of 2.3x weigh heavily on the balance sheet. Free cash flow of $297 million finally turned positive, but heavy capital spending keeps financial flexibility soft.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $214K outside pre-planned sales.
Our sealed record on ES
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Eversource Energy scores weak on the Cluenex quality check (4.4 of 10), measured against its own industry. Profitability is weak, moat weak, growth steady and financial health weak.
In the last 90 days of SEC Form 4 filings: 1 sold $214K outside pre-planned sales.
Nov 2, 2026, after the close.
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Cite this page: Cluenex, “Eversource Energy (ES)”, https://cluenex.com/stocks/es/, data as of Oct 10, 2026.