Risk factor
Very poor trading liquidity
Profitability factor
Excellent dividends
About
NSTAR Electric Company operates as a regulated electric utility, primarily engaged in the procurement, transmission, distribution, and sale of electricity to a diverse client base, including residential, commercial, and industrial consumers, throughout Massachusetts. The company also manages and operates 70 megawatts of solar generation capacity. As of December 31, 2021, NSTAR's reach extended to approximately 1.46 million customers across an expansive service territory of about 3,200 square miles. This comprehensive coverage includes the city of Boston, 140 additional municipalities in both eastern and western Massachusetts, and prominent locations such as Cape Cod, Martha's Vineyard, and the wider Springfield metropolitan area. The company maintains its headquarters in Boston, Massachusetts, and ultimately operates as a subsidiary under the umbrella of Eversource Energy.
Company Valuation
From both historical and forecast perspectives, the stock is overpriced compared to similar stocks. In particular, the stock is overpriced on P/E, 'expensive' on EV/EBITD