U.S. Markets closed

Want To Invest In Eversource Energy (NYSE:ES)? Here's How It Performed Lately

Simply Wall St

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Measuring Eversource Energy's (NYSE:ES) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess ES's recent performance announced on 31 March 2019 and compare these figures to its historical trend and industry movements.

Check out our latest analysis for Eversource Energy

Did ES's recent earnings growth beat the long-term trend and the industry?

ES's trailing twelve-month earnings (from 31 March 2019) of US$1.1b has increased by 7.4% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 6.2%, indicating the rate at which ES is growing has accelerated. What's enabled this growth? Let's take a look at whether it is solely owing to an industry uplift, or if Eversource Energy has seen some company-specific growth.

NYSE:ES Income Statement, July 19th 2019

In terms of returns from investment, Eversource Energy has fallen short of achieving a 20% return on equity (ROE), recording 9.2% instead. Furthermore, its return on assets (ROA) of 4.0% is below the US Electric Utilities industry of 4.4%, indicating Eversource Energy's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Eversource Energy’s debt level, has declined over the past 3 years from 6.2% to 5.2%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 95% to 129% over the past 5 years.

What does this mean?

Eversource Energy's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Eversource Energy to get a more holistic view of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for ES’s future growth? Take a look at our free research report of analyst consensus for ES’s outlook.
  2. Financial Health: Are ES’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.