Business Analysis of Eversource Energy

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Eversource Energy

EVERSOURCE ENERGY

Business Overview

Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates in three segments: Electric Distribution, Electric Transmission, and Natural Gas Distribution. It is involved in the generation, transmission, and distribution of electricity; and distribution of natural gas. The company serves residential, commercial, and industrial customers in Connecticut, Massachusetts, and New Hampshire, the United States. It provides energy delivery services to approximately 3.7 million electric and natural gas customers. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was founded in 1927 and is based in Springfield, Massachusetts.

Eversource Energy

Eversource Energy


R&P Rank: 361
Sector: Utilities
Industry:Electric Utilities
H.Q Location:Massachusetts
Website: www.eversource.com
Company Address:
300 CADWELL DRIVE, SPRINGFIELD MA 01104
Ph:860-665-5000

Business Analysis of Eversource Energy

The Utilities Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Eversource Energy compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Eversource Energy to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Eversource Energy with an interactive chart.

  1. Revenue Growth: Eversource Energy reported a revenue growth of -4.0% year-on-year during 2016. Electric Utilities Industry grew at 0.2% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Eversource Energy spent 58.4% of its total revenues on COGS. Electric Utilities industry average (COGS share of revenue) in the same period was 64.7%
  3. R&D share of Revenues: Eversource Energy R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: Eversource Energy SG&A share of Revenues details are not available because either company does not share the data or we do not have it
  5. Inventory share of Revenues: As a percentage of revenue, Eversource Energy spent 4.3% of its total revenues on Inventories. Electric Utilities industry average Inventory spending in the same period was 7.6%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Eversource Energy invested 11.6% of its total revenues on Accounts Payable (A/P) Electric Utilities industry average Accounts Payable investment in the same period was 11.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Eversource Energy invested 13.3% of its total revenues on Accounts Receivable (A/R). Electric Utilities industry average Accounts Receivable investment in the same period was 14.5%
  8. PP&E share of Revenues: As a percentage of revenue, Eversource Energy invested 279.5% of its total revenues on Property, Plants, and Equipments (PP&E). Electric Utilities industry average PPE investment in the same period was 286.7%
  9. Intangibles share of Revenues: As a percentage of revenue, Eversource Energy invested 46.1% of its total revenues on Intangibles. Electric Utilities industry average Intangibles investment in the same period was 22.3%
  10. Net Margins: Eversource Energy Net Margins in the year 2016 were 12.3%. Electric Utilities industry average Net Margins in the same period were 3.3%

Sector and Industry Association of Eversource Energy

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Eversource Energy is associated with Utilities Sector and Electric Utilities Industry.

Utilities sector is comprised of the following industries: Electric Utilities; Gas, Water, & Multiutlities. The definitions for each of the industries is as follows:

  • Electric Utilities industry includes companies engaged in generation, transmission, and/or distribution of electric energy for sale.
  • Gas, Water, & Multiutlities industry includes companies engaged in transmission and/or storage of natural gas for sale and those engaged in distributing water for sale for domestic, commercial, and industrial use. It also includes companies with significant presence in more than one utility.

Industry Ranking of Eversource Energy

With $7.6 billion revenues, Eversource Energy ranked number 11 of all the companies in the US Electric Utilities industry. There were a total of 33 public companies in the US Electric Utilities industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Electric Utilities industry by revenues during 2016 were:

  1. Southern ($19.9 billion)
  2. American Electric Power ($16.4 billion)
  3. NextEra Energy ($16.2 billion)
  4. FirstEnergy ($14.6 billion)
  5. AES ($13.6 billion)
  6. NRG Energy ($12.4 billion)
  7. Edison International ($11.9 billion)
  8. Dominion Resources ($11.7 billion)
  9. Entergy ($10.8 billion)
  10. DTE Energy ($10.6 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Eversource Energyand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of eversource-energy

Dominion Resources (D) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Dominion Resources Inc with $12 billion revenues in the year 2016 was the number 8 Electric Utilities company. Read this report to know the top competitors of Dominion Resources and identify growth and cost optimization opportunities of Dominion Resources

Entergy (ETR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Entergy Corp with $11 billion revenues in the year 2016 was the number 9 Electric Utilities company. Read this report to know the top competitors of Entergy and identify growth and cost optimization opportunities of Entergy

DTE Energy (DTE) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

DTE Energy Co with $11 billion revenues in the year 2016 was the number 10 Electric Utilities company. Read this report to know the top competitors of DTE Energy and identify growth and cost optimization opportunities of DTE Energy

CenterPoint Energy (CNP) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

CenterPoint Energy Inc with $8 billion revenues in the year 2016 was the number 12 Electric Utilities company. Read this report to know the top competitors of CenterPoint Energy and identify growth and cost optimization opportunities of CenterPoint Energy

PPL (PPL) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

PPL Corp with $8 billion revenues in the year 2016 was the number 13 Electric Utilities company. Read this report to know the top competitors of PPL and identify growth and cost optimization opportunities of PPL

Calpine (CPN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Calpine Corp with $7 billion revenues in the year 2016 was the number 14 Electric Utilities company. Read this report to know the top competitors of Calpine and identify growth and cost optimization opportunities of Calpine

Revenues Analysis

Eversource Energy (ES) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Eversource Energy (ES) from 2012 to 2016. Eversource Energy generated a total of $7.6 billion revenues during 2016. Eversource Energy reported a revenue growth of -4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Eversource Energy (ES) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Eversource Energy (ES) from 2002 to 2016. Eversource Energy generated a total of $7.6 billion revenues during 2016. Eversource Energy reported a revenue growth of -4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Eversource Energy (ES) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Eversource Energy (ES) revenue growth with Electric Utilities industry growth during the last five years from 2012 to 2016. Eversource Energy reported a revenue growth of -4% year-over-year during 2016. The Electric Utilities industry growth was 0.2% year-over-year during 2016. Eversource Energy growth was slower than the industry during 2016.

Profit Analysis

Eversource Energy (ES) Net Profit And Net Margin From 2012 To...

This report provides the last five years net profit and net margin of Eversource Energy (ES) from 2012 to 2016. Eversource Energy reported a total net income of $942.3 million during 2016. Eversource Energy generated a total of $7.6 billion revenues during 2016. Eversource Energy net profit margin was 12.3% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.