Eversource Energy Return On Asset vs. Current Valuation
| NWJ Stock | EUR 61.00 0.50 0.81% |
For Eversource Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Eversource Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Eversource Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Eversource Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Eversource Energy over time as well as its relative position and ranking within its peers.
Eversource |
Eversource Energy Current Valuation vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Eversource Energy's current stock value. Our valuation model uses many indicators to compare Eversource Energy value to that of its competitors to determine the firm's financial worth. Eversource Energy is considered to be number one stock in return on asset category among its peers. It also is rated top company in current valuation category among its peers reporting about 1,652,008,199,596 of Current Valuation per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Eversource Energy's earnings, one of the primary drivers of an investment's value.Eversource Current Valuation vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Eversource Energy |
| = | 0.0297 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Eversource Energy |
| = | 49.06 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Eversource Current Valuation vs Competition
Eversource Energy is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Utilities - Regulated Electric industry is now estimated at about 113.12 Billion. Eversource Energy totals roughly 49.06 Billion in current valuation claiming about 43% of Utilities - Regulated Electric industry.
Eversource Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Eversource Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Eversource Energy will eventually generate negative long term returns. The profitability progress is the general direction of Eversource Energy's change in net profit over the period of time. It can combine multiple indicators of Eversource Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Eversource Energy, a public utility holding company, engages in the energy delivery business. Eversource Energy was founded in 1927 and is based in Springfield, Massachusetts. EVERSOURCE ENERGY operates under Utilities - Regulated Electric classification in Germany and is traded on Frankfurt Stock Exchange. It employs 7998 people.
Eversource Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Eversource Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Eversource Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Eversource Energy's important profitability drivers and their relationship over time.
Use Eversource Energy in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Eversource Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Eversource Energy will appreciate offsetting losses from the drop in the long position's value.Eversource Energy Pair Trading
Eversource Energy Pair Trading Analysis
The ability to find closely correlated positions to Eversource Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Eversource Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Eversource Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Eversource Energy to buy it.
The correlation of Eversource Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Eversource Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Eversource Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Eversource Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Eversource Energy position
In addition to having Eversource Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Drugs Thematic Idea Now
Drugs
Companies involved in medical and pharmaceutical drug research, manufacturing, and delivery. The Drugs theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Drugs Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Information and Resources on Investing in Eversource Stock
When determining whether Eversource Energy is a strong investment it is important to analyze Eversource Energy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Eversource Energy's future performance. For an informed investment choice regarding Eversource Stock, refer to the following important reports:Check out Correlation Analysis. For more detail on how to invest in Eversource Stock please use our How to Invest in Eversource Energy guide.You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
To fully project Eversource Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Eversource Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Eversource Energy's income statement, its balance sheet, and the statement of cash flows.