Risk factor
Very poor trading liquidity
Profitability factor
Excellent dividends
About
Operating as a regulated electric utility, The Connecticut Light and Power Company procures, transmits, and distributes electricity to residential, commercial, and industrial clients. As of December 31, 2021, the company furnished retail franchise electric services to approximately 1.27 million customers across 149 municipalities in Connecticut, covering an extensive area of 4,400 square miles. Established in 1927, its primary corporate offices are located in Berlin, Connecticut, and it operates as a subsidiary of Eversource Energy.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. In particular, the stock is reasonably priced on P/E, 'expensive' on EV/EB