NST  Nstar

Exchange

NYSE

Sector

Public Utilities

Industry

Electric Utilities: Central

Market Cap.

4.936B

Vuru Grade

32.50/100

Current Price

$47.65
0.00 (0.00%)

Growth Price

$2.07
Overvalued by 95.66%

Company Metrics

  • P/E 18.4
  • P/S 1.68
  • P/B 2.42
  • EPS 2.59
  • Cash ROIC -636.94%
  • Cash Ratio 1.65
  • Dividend 1.3 / 2.73%
  • Avg. Vol. 594,139.00
  • Shares 603.05M
  • Market Cap. 4.936B

Company Description

NSTAR, through its subsidiaries, engages in sale, distribution, and transmission of electricity and natural gas to commercial, industrial, and residential customers in Massachusetts. The company distributes and transmits electricity at retail to an area of approximately 1,702 square miles covering Boston and 80 surrounding cities and towns, including Cambridge, New Bedford, and Plymouth, as well a... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

There is no news available at this time.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for NST to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate NST's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$47.65 Current Price

$2.07 Growth Price (DCF)

Overvalued by 95.66%


Growth Rate Assumed by Market: 75.76%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$0.21 NCA Price

Overvalued by 99.55%


Very Poor Cash Return on Invested Capital over the past 5 years

NST has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

NST has lost $636.94 of cash for every $100 invested.
Figures in USD. Fiscal year ends in June
20122013201420152016
Free Cash Flow 3.56M 3.65M -77.07M 209.34M 193.70M
divided by
Invested Capital -49.75M -35.90M 3.20M -31.59M -195.22M
Cash ROIC -7.15% -10.17% -2,405.43% -662.75% -99.22%

Poor Return on Equity over the past 5 years

NST has shown an inability to deliver strong results for shareholders. This could be due to poor management, NST operating in a highly competitive industry, or having a weak business in general.

NST has only generated $- of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in June
20122013201420152016
Net Income - - - - -
divided by
Stockholders' Equity - - - - -
Return on Equity - - - - -

Good Business Performance over the past 8 years

It's likely NST has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is NST has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

NST has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in June
20092010201120122013201420152016
Free Cash Flow 262.58M 189.48M 332.92M 3.56M 3.65M -77.07M 209.34M 193.70M

Very Strong Balance Sheet

NST has more Cash than its Total Liabilities, resulting in $0.01 Net Cash per share. In other words, if you buy NST today, the price you're paying for shares is actually $47.64 because $0.01 of Cash is included in the current share price. This much Cash is very healthy. It can help NST sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in USD. Fiscal year ends in June
20092010201120122013201420152016
Cash 143.45M 13.08M 11.66M 64.96M 55.78M 85.41M 167.44M 315.34M
Current Assets 1.19B 996.67M 765.14M 76.02M 69.90M 173.80M 263.09M 440.42M
Total Assets 8.14B 7.93B 8.07B 134.01M 157.35M 396.60M 593.40M 763.53M
Current Liabilities 1.73B 1.08B 1.35B 24.29M 27.14M 63.77M 134.29M 191.49M
Total Liabilities 6.27B 6.00B 6.03B 39.50M 47.01M 152.39M 270.15M 311.62M
Stockholder' Equity 1.87B 1.93B 2.04B - - - - -
Current Ratio 0.69 0.93 0.57 3.13 2.58 2.73 1.96 2.30
TL-to-TA 0.77 0.76 0.75 0.29 0.30 0.38 0.46 0.41

Low or No Reinvestment of Profits over the past 8 years

NST has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to NST operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in June
20092010201120122013201420152016
Retained Earnings 966.64M 1.05B 1.16B - - - - -
Retained Earnings Growth - 9.14% 10.24% -100.00% - - - -

Highly Competitive Industry over the past 8 years

It's likely that NST is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely NST invests heavily in R&D and Sales, General & Administrative expenses.

Only $3.72 of every $100 of Revenue have been profit, on average over the past 8 years.
Figures in USD. Fiscal year ends in June
20092010201120122013201420152016
Net Income 255.21M 354.91M 271.40M - - - - -
divided by
Revenue 3.05B 2.92B 2.93B 99.99M 144.29M 296.98M 845.65M 785.79M
Net Profit Margin 8.37% 12.17% 9.26% - - - - -

Strong Pricing Power over the past 8 years

NST has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$51.91 of every $100 worth of sales have been Gross Profit, on average over the past 8 years.
Figures in USD. Fiscal year ends in June
20092010201120122013201420152016
Gross Profit 1.49B 1.54B 1.63B 63.00M 89.05M 110.48M 355.61M 422.84M
divided by
Revenue 3.05B 2.92B 2.93B 99.99M 144.29M 296.98M 845.65M 785.79M
Gross Margin 48.91% 52.87% 55.74% 63.00% 61.72% 37.20% 42.05% 53.81%

High Capital Intensity over the past 8 years

NST spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

137.75% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in June
20092010201120122013201420152016
Capital Expenditure 375.16M 360.20M 447.14M 47.50M 62.24M 175.75M 149.67M 189.64M
divided by
Net Income 255.21M 354.91M 271.40M - - - - -
Capital Expenditure Ratio 147.00% 101.49% 164.76% - - - - -

Good Dividend History over the past 8 years

NST has distributed dividends for the past 4 years. Remember, the longer a company's dividend history, the more established the company might be and the more reliable the future of the dividend probably is.
Figures in USD. Fiscal year ends in June
20092010201120122013201420152016
Dividend Paid 160.21M 170.28M 178.06M - 14.84M 16.39M 26.53M 36.01M
divided by
Shares Outstanding 107.00M 105.22M 103.99M 430.67M 429.21M 481.55M 591.02M 603.05M
Dividend Paid Per Share 1.50 1.62 1.71 - 0.03 0.03 0.04 0.06
Price at Year End 34.29 40.35 46.51 47.65 47.65 47.65 10,900.00 8,600.00
Dividend Yield 4.37% 4.01% 3.68% - 0.07% 0.07% 0.00% 0.00%

History of Stock Buybacks over the past 8 years

NST has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in June
20092010201120122013201420152016
Shares Outstanding 107.00M 105.22M 103.99M 430.67M 429.21M 481.55M 591.02M 603.05M
Stock Bought Back - 1.69% 1.18% -75.85% 0.34% -10.87% -18.52% -2.00%
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