Eversource EnergyES +0.96%74 Operating Margin % is 23.89% as of Mar. 2026, which is 10% above its 10-year median of 21.76. GuruFocus rates ES with a GF Score™ of 74/100 and a GF Value™ of $68.05 (Fairly Valued). The stock has 10 warning signs investors should review. Among 499 Utilities - Regulated companies, Eversource Energy ranks better than 70.94% on this metric.
Eversource Energy (NYSE:ES) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Eversource Energy Operating Margin % Related Terms
Eversource Energy Operating Margin % Historical Data
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The historical data trend for Eversource Energy's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Regulated Electric subindustry, Eversource Energy's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Eversource Energy Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Eversource Energy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Eversource Energy's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Eversource Energy's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Eversource Energy (ES) has a Operating Margin % of 23.89% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Eversource Energy and its competitors. This is 10% above median its historical median of 21.76. Over the past decade, Eversource Energy's Operating Margin % has ranged from 17.89 to 24.36. According to the industry distribution chart, Eversource Energy ranks #145 out of 499 companies in the Utilities - Regulated industry, placing it in the top 29.1%.
Is Eversource Energy's Operating Margin % too high?
Eversource Energy's current Operating Margin % of 23.89% is 10% above median its 10-year median of 21.76. Over the past 10 years, this metric has ranged from a low of 17.89 to a high of 24.36. The Utilities - Regulated industry median Operating Margin % is 14.97. Eversource Energy's value of 23.89% is 59.6% above this industry median. Based on the distribution chart, Eversource Energy ranks #145 out of 499 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Eversource Energy has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Eversource Energy's Operating Margin % compare to PPL and FE?
According to the Utilities - Regulated industry distribution chart, Eversource Energy ranks #145 out of 499 companies for Operating Margin %. This puts Eversource Energy in the upper half of its industry. The industry median Operating Margin % is 14.97. Eversource Energy's value of 23.89% is 59.6% above this benchmark. Historically, Eversource Energy's own Operating Margin % has ranged from 17.89 to 24.36 over the past decade. While the company's 10-year median is 21.76 vs. the industry median of 14.97, Eversource Energy has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Eversource Energy's current Operating Margin % of 23.89% is 59.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Eversource Energy and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eversource Energy's current Operating Margin % is 23.89%, which is 10% above median its own 10-year median of 21.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eversource Energy stock overvalued right now?
Based on GuruFocus' analysis, Eversource Energy (ES) is currently considered Fairly Valued. The stock's GF Value™ is $68.05, compared to a current price of $71.71 — trading 5.4% above its estimated fair value. The current Operating Margin % is 23.89%, which is 10% above median its 10-year median of 21.76 and 59.6% above the Utilities - Regulated industry median of 14.97. Eversource Energy's overall GF Score™ is 74/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Eversource Energy (ES), the current Operating Margin % is 23.89% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Eversource Energy (ES) Overvalued in 2026?
Based on GuruFocus' analysis, Eversource Energy stock appears to be overvalued.
The current stock price of $71.71 is trading 5.4% above its estimated GF Value™ of $68.05.
GuruFocus considers Eversource Energy to be Fairly Valued.
Key valuation signals for ES:
Operating Margin %: 23.89% (10% above median its 10-year median of 21.76)
GF Value™: $68.05 vs. price of $71.71 (5.4% above fair value)
Industry Position: 59.6% above the Utilities - Regulated median (#145 of 499)
No single metric tells the full story. See the ES stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eversource Energy is a diversified holding company with subsidiaries that provide rate-regulated electric, gas, and water distribution service to more than 4 million customers in the Northeast US. Eversource expanded its service territories with acquisitions of NStar (2012), Aquarion (2017), and Columbia Gas (2020). In 2024 Eversource exited its 50% partnership with European utility Orsted to develop 2 gigawatts of offshore wind projects in the Northeast US. It plans to sell Aquarion in 2026. The company exited most of its unregulated businesses in 2006.
74GF Score
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