Operating Margin

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Price: 70.44 USD 0.16% Market Closed

Market Cap: $26.4B

22.2%

Improving

by 4%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

22.2%

Operating Income

$2.9B

Revenue

$13.1B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

22.2%

Operating Income

$2.9B

Revenue

$13.1B

Peer Comparison

Country	Company	Market Cap	Operating Margin
US	Eversource Energy NYSE:ES	26.4B USD	Loading...
US	Nextera Energy Inc NYSE:NEE	183.4B USD	Loading...
ES	Iberdrola SA MAD:IBE	121.1B EUR	Loading...
IT	Enel SpA MIL:ENEL	93.7B EUR	Loading...
US	Southern Co NYSE:SO	97.9B USD	Loading...
US	Duke Energy Corp NYSE:DUK	93.4B USD	Loading...
US	Constellation Energy Corp NASDAQ:CEG	90.3B USD	Loading...
US	American Electric Power Company Inc NASDAQ:AEP	63.7B USD	Loading...
FR	Electricite de France SA PAR:EDF	46.6B EUR	Loading...
US	Exelon Corp NASDAQ:EXC	45.2B USD	Loading...
US	Xcel Energy Inc NASDAQ:XEL	45.1B USD	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Eversource Energy
Glance View

Economic Moat

None

Market Cap

26.4B USD

Industry

Utilities

Eversource Energy, a sturdy pillar in the energy sector, plays a critical role in keeping the lights on and the warmth flowing across New England. Rooted deeply within the communities it serves, Eversource enjoys a robust presence in Massachusetts, Connecticut, and New Hampshire. This company is not merely a utility provider; it is a vital service entwined in the day-to-day lives of millions. The company operates through its regulated subsidiaries, ensuring reliable delivery of electricity, natural gas, and water. The framework of Eversource's business model pivots on generating steady, regulated revenues. By maintaining and operating an extensive network of transmission and distribution infrastructure, they command a substantial share of the region's energy market, providing essential services to a diverse array of customers. Eversource’s financial heartbeat is driven by its regulated revenue model, which ensures predictable and stable returns over time. Revenue streams originate primarily from service rates approved by state regulatory commissions, which allow Eversource to recover costs and earn a return on investments. The company also embraces sustainable and renewable energy projects, such as solar and offshore wind initiatives, aligning with broader environmental goals and future energy needs. Through strategic investments and modernization of infrastructure, Eversource not only seeks to enhance operational efficiency but also cement its reputation as a forward-thinking leader in environmental stewardship. In a world increasingly conscious of energy impact, Eversource's dedication to a sustainable future not only fulfills regulatory expectations but also captures the public's aspiration for cleaner energy, reinforcing its position as a critical player in the evolving energy landscape.

View ES Analysis

ES Intrinsic Value

Undervaluation 20%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Eversource Energy
NYSE:ES

Peer Comparison

Market Distribution

Other Profitability Ratios

Eversource Energy
Glance View

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Eversource Energy NYSE:ES