Corporate Webpages NSTAR Company
Electric rates vary considerably all over the country.
Generally, higher rates are on the Atlantic and Pacific Coasts,
save for the Pacific Northwest, which has some of the lowest
rates of all. Thus they could go as low as 8 cents per
kilowatt/hour in the State of Washington, while in Massachusetts
the average rate is closer to double that at 16 cents. NStar
Electric Company is an integrated gas and electric utility that
serves the Boston area and communities around that area in
Massachusetts. Its rates are somewhat lower than nearby
utilities, such as Northern Grid, which as a company might be
rated higher along with its profits. Abundance of hydroelectric
power is a key factor deciding whether rates will be low or high.
The less-densely populated mid-section of the country also allows
for lower rates.
In Massachusetts, an electric utility faces an abundance of
special problems. Nor'Easter storms can cause frequent
blackouts, environmental restrictions in a heavily-populated
area are more stringent, and there are decided labor problems.
Utility electricians often hold the upper hand in labor union
strikes and can bully their way to higher wages holding a
company hostage to the fact that prolonged outages will be
unacceptable. Thus if NStar attempted to cut workers benefits
in say, healthcare, they would have to be quickly restored.
And environmental concerns stem all the way from unsightly
transmission line locations to inability to use herbicides to
control growth that might endanger power lines in certain areas.
Despite all this, we would point out NStar pays a healthy
dividend of over 4%, which is considerably more than one could
get from most online bank CD's. At the same time there is
growth seen in share performance.
Our two favorite research organizations each like the stock and
rate it as a "buy," as does Standard & Poor's, but other
analysts and researchers do not favor it, possibly because
utilities are fairly stable and not apt to go to the moon any
time soon. This stock would most likely be rated as a "buy and
hold" stock, but still it seems eminently tradeable to us with
comparitively low risk.
Massachusetts is one area of the country where utility rates got
so high that utility rates are actually being lowered, after previously
taking some quantum jumps of as much as 9% at a whack. Massachusetts
also has some unusual governmental regulation entities, some of which appear to
stem from governmental setup from the colonial revolution days. Sweetheart
commissions can be critical to the success or lack thereof for a utility.
Thus, a news headline like "electrical conduit muddies river water," leads us
to wonder a bit.
01-03-2010: NSTAR Company (NST): Rates Coming Down
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
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Comparison with Peers
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Research Reports
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Sentiment
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Stock Report
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Similar Companies Performance:
Bond Issue |
Zenith Index |
NSTAR (NST ) Sector: Utilities
800 Boylston Street Industry: Electric Utilities
Boston, MA 02199 Exchange: NYSE
NSTAR, through its subsidiaries, engages in the distribution,
transmission, and sale of energy in Massachusetts. The company
supplies electricity at retail in the City of Boston and 80
surrounding cities and towns, such as Cambridge, New Bedford,
Plymouth, and the geographic area comprising Cape Cod and Martha-Ęs
Vineyard. It distributes natural gas in central and eastern
Massachusetts, including the Hyde Park area of Boston, Cambridge,
Dedham, Framingham, New Bedford, Plymouth, Somerville, and
Worcester. The company also engages in district energy operations,
telecommunications, and a liquefied natural gas service. The
district energy operations include sale of chilled water, steam, and
electricity to hospitals, and teaching and research facilities
located in Boston-Ęs Longwood Medical Area. The telecommunications
services comprise installation, ownership, operation, and
maintenance of a wholesale transport network for other
telecommunications service providers in the metropolitan Boston area
to deliver voice, video, data, and Internet services to customers.
As of December 31, 2008, it served approximately 1.4 million
customers, including approximately 1.1 million electric distribution
customers in 81 communities and approximately 300,000 natural gas
distribution customers in 51 communities. The company was founded in
1886 and is based in Boston, Massachusetts.
Last Trade: 36.80 52-Week Range: 37.75 - 27.49
Trade Date: 01-01 Avg. Volume: 583,697 Shares
Index Membership: S&P 400 MidCap Employees: 3,250
Corporate Governance:
NSTAR's Corporate Governance Quotient (CGQ-«) as of 1-Dec-09 is
better than 73.2% of S&P 400 companies and 56.8% of Utilities
companies.
EPS: 2.32 Dividend Amount: $ 1.60 Yield: 4.30%
Ex-Dividend Date: 06-Jan-10 Mkt Cap: $ 3,930,000K
Payout Ratio: 64.00%
Last Split Factor (new for old): 2:1 Split Date: 06-Jun-05
Key Statistics:
Enterprise Value: $ 6,750,000K Revenue (ttm) : $ 3,240,000K
Gross Profit: $ 1,010,000K
Earnings before Income Tax, Depreciation and Amortization: $ 719,620K
Enterprise Value/Revenue (ttm): 2.08 Revenue per Share: $ 30.34
Enterprise Value/EBITDA (ttm): 9.38 Qtrly Rev Growth (y to y):-13.50%
P/E Ratio (fwd projected): 14.55 P/E Ratio (current): 15.90
P/E Growth Ratio (5 yr expected): 2.72 Operating Margin: 16.36%
Price/Sales Ratio: 1.24 Profit Margin: 7.64%
Price/Book Value: 2.14 Book Value: $ 17.51/sh.
Return on Assets: 4.21% Net Income Avl to Common: $ 247,730K
Return on Equity: 13.54% Diluted Earnings/Share: $ 2.32
Qrtly Earnings Growth (yoy): 2.10%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 23,430K Operating Cash Flow:$ 686,000K
Total Debt: $ 2,840,000K Lvgd Free Cash Flow:$ 382,400K
Total Debt/Equity: 0.00
Total Cash/Share: $ 0.22
Current Ratio: 0.51
Share Statistics: Stock Price History:
Shares Outstanding: 106,810K Stk 52-Week Change: 1.21%
Float: 106,350K S&P 500 52-Wk Chng: 19.67%
Sh. Short % of Float: 0.00% 50-Day Moving Avg: 34.45
Short Ratio: 6.50 200-Day Moving Avg: 32.36
% Held by Institutions: 47.10% Beta: 0.22
% Held by Insiders: 1.09%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Dec-09 Mar-10 Dec-09 Dec-10
Average Earnings Estimate 0.45 0.61 2.36 2.53
Average Revenue Estimate 807M 937M 3,310M 3,340M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 0.000 EPS Growth (Qrtly YoY): 0.029
PEG Ratio (ttm, 5 yr expected): 0.036 P/E Ratio (ttm): 0.082
Revenue Growth (Qrtly YoY): 0.000
Annual Income Statements: All numbers in thousands)
Period Ending 31-Dec-08 31-Dec-07 31-Dec-06
Total Revenue 3,345,387 3,261,784 3,577,702
Cost of Revenue 2,335,186 1,766,449 2,121,291
Gross Profit 1,010,201 1,495,335 1,456,411
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 100,442 611,432 600,332
Non-Recurring Expenses 0 0 0
Other Operating Expenses 379,761 369,642 362,222
Total Operating Expenses 0 0 0
Operating Income or Loss 529,998 514,261 493,857
Income from Continuing Operations:
Total Other Income/Expenses Net 14,882 5,545 12,076
Earnings Before Interest & Taxes 399,036 519,341 505,933
Interest Expense 161,489 167,402 177,857
Income Before Taxes 237,547 351,939 328,076
Income Tax Expense 143,884 130,424 119,342
Minority Interest -1,960 -1,960 -1,960
Net Income from Continuing Op.s 237,547 221,515 206,774
Non-recurring Events:
Discontinued Operations 0 0 0
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 237,547 221,515 206,774
Preferred Stock & Other Adjustmnts 0 0 0
Net Income Avail To Common Shares 237,547 221,515 206,774
Quarterly Income Statements: All numbers in thousands)
Period Ending 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08
Total Revenue 771,475 707,525 947,789 813,883
Cost of Revenue 517,344 431,795 684,152 641,710
Gross Profit 254,131 275,730 263,637 172,173
Operating Expenses:
Research & Development 0 0 0 0
Selling, General & Adminis. 111,105 63,797 29,891 26,634
Non-Recurring Expenses 0 0 0 -54,762
Other Operating Expenses 91,623 93,378 101,284 95,561
Total Operating Expenses 0 0 0 0
Operating Income or Loss 51,403 118,555 132,462 104,740
Income from Continuing Operations:
Total Other Income/Expenses Net -12,799 11,878 4,756 2,648
Earnings Before Int. & Taxes 108,031 96,914 101,310 81,460
Interest Expense 19,903 39,490 39,784 39,338
Income Before Taxes 88,128 57,424 61,526 42,122
Income Tax Expense -69,427 33,519 35,908 25,438
Minority Interest 0 0 0 -490
Net Income from Continuing Op.s 88,128 57,424 61,526 42,122
Non-recurring Events:
Discontinued Operations 0 0 0 0
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income 88,128 57,424 61,526 42,122
Preferred Stock & Other Adj.s -490 -490 -490 0
Net Income Avail To Common Shs 87,638 56,934 61,036 42,122
Annual Balance Sheets: All Numbers in Thousands
Period Ending 31-Dec-08 31-Dec-07 31-Dec-06
Current Assets:
Cash & Cash Equivalents 31,565 38,059 23,142
Short Term Investments 0 0 0
Net Receivables 523,477 388,510 376,196
Inventory 93,684 120,251 124,874
Other Current Assets 472,635 541,751 435,542
Total Current Assets 1,121,361 1,088,571 959,754
Long-Term Investments 79,176 90,731 211,715
Property, Plant & Equipt 4,538,166 4,286,225 4,086,127
Goodwill 0 638,379 658,539
Intangible Assets 0 0 768,406
Accumulated Amortization 0 0 0
Other Assets 2,466,018 1,655,639 1,084,854
Deferred Long Term Asset Charges 64,768 0 0
Total Assets 8,269,489 7,759,545 7,769,395
Current Liabilities:
Accounts Payable 1,052,479 879,700 844,090
Short/Current Long Term Debt 98,024 98,531 176,082
Other Current Liabilities 244,479 212,081 219,761
Total Current Liabilities 1,394,982 1,190,312 1,239,933
Long Term Debt 2,012,467 2,501,400 2,360,775
Other Liabilities 1,710,372 1,184,845 1,333,390
Deferred LT Liability Charges 1,320,513 1,136,173 1,209,734
Minority Interest 0 0 0
Negative Goodwill 0 0 0
Total Liabilities 6,481,334 6,012,730 6,143,832
Stockholder Equity:
Misc. Stocks Options Warrants 43,000 0 0
Redeemable Perferred Stock 0 43,000 0
Preferred Stock 0 0 43,000
Common Stock 106,808 106,808 106,808
Retained Earnings 876,271 790,926 664,323
Treasury Stock 0 0 0
Capital Surplus 818,601 818,674 823,450
Other Stockholder Equity -13,525 -12,593 -12,018
Total Stockholder Equity 1,788,155 1,703,815 1,625,563
Net Tangible Assets 1,788,155 1,065,436 198,618
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08
Current Assets:
Cash & Cash Equivalents 31,743 37,954 45,342 31,565
Short Term Investments 0 0 0 0
Net Receivables 463,177 485,500 561,743 523,477
Inventory 73,834 65,195 57,361 93,684
Other Current Assets 327,107 341,968 388,631 472,635
Total Current Assets 895,861 930,617 1,053,077 1,121,361
Long-Term Investments 78,649 70,306 78,847 79,176
Property, Plant & Equipt 4,648,842 4,621,623 4,567,563 4,538,166
Goodwill 0 0 0 0
Intangible Assets 0 0 0 0
Accumulated Amortization 0 0 0 0
Other Assets 2,390,658 2,443,042 2,408,708 2,466,018
Deferred LT Asset Charges 0 214,613 223,390 244,479
Total Assets 8,014,010 8,065,588 8,174,417 8,269,489
Current Liabilities:
Accounts Payable 892,264 836,269 886,152 1,052,479
Current Portion LT Debt 862,041 729,715 639,964 98,024
Other Current Liabilities 0 0 0 0
Total Current Liabilities 1,754,305 1,780,597 1,749,506 1,394,982
Long Term Debt 1,945,325 1,741,290 1,868,975 2,012,467
Other Liabilities 1,235,529 1,513,109 1,548,326 1,710,372
Deferred LT Liab. Charges 1,165,082 1,166,306 1,154,104 1,320,513
Minority Interest 43,000 43,000 43,000 0
Negative Goodwill 0 0 0 0
Total Liabilities 6,143,241 6,244,302 6,363,911 6,481,334
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 43,000
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 106,808 106,808 106,808 106,808
Retained Earnings 948,900 914,135 897,254 876,271
Treasury Stock 0 0 0 0
Capital Surplus 0 813,398 819,746 818,601
Other Stockholder Equity 815,061 -13,055 -13,302 -13,525
Total Stockholder Equity 1,870,769 1,821,286 1,810,506 1,788,155
Net Tangible Assets 1,870,769 1,821,286 1,810,506 1,788,155
Annual Cash Flow: All Numbers in Thousands
Period Ending 31-Dec-08 31-Dec-07 31-Dec-06
Net Income 237,547 57,424 206,774
Operating Activites:
Depreciation 386,566 371,510 363,480
Adjustments to Net Income 22,746 -55,719 -143,978
Changes in Accounts Recv'bls -5,847 -17,850 -5,819
Changes in Liabilities -31,536 13,567 -6,777
Changes in Inventories 26,567 4,622 -3,950
Changes in Other Op'ing Actv's -92,955 -46,265 123,731
Total Cash Flow fr Operations 543,088 491,380 533,461
Investing Activities:
Capital Expenditures -422,224 -360,130 -426,146
Investments 0 -1,137 1,571
Other Cash Flows fr Investing 4,604 3,049 13,057
Total Cash Flows fr Investing -417,620 -358,218 -411,518
Financing Acitivies:
Dividends Paid -149,532 -138,851 -129,239
Sale or Purchase of Stock 0 -12,299 -16,105
Net Borrowings 19,885 26,518 27,232
Other Cash Flows fr Financing -7,958 9,459 0
Total Cash Flows fr Financing -137,605 -115,173 -121,423
Effect of Exchange Rate Change 0 0 0
Change in Cash & Cash Equiv.s 12,137 -12,137 17,989
Quarterly Cash Flow: All Numbers in Thousands
Period Ending 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08
Net Income 88,128 57,424 61,526 42,122
Operating Activites:
Depreciation 93,128 94,881 102,836 97,187
Adjustments to Net Income 20,388 17,320 -417 26,682
Changes in Accounts Recv'bls 22,323 76,243 0 0
Changes in Liabilities 17,828 -124,755 -24,390 -74,829
Changes in Inventories -8,639 -7,834 36,323 54,749
Changes in Other Oper'g Acts -5,264 12,896 105,137 -31,273
Total Cash Flow f Operations 227,892 126,175 242,749 90,652
Investing Activities:
Capital Expenditures -76,438 -98,912 -108,185 -110,099
Investments 0 0 0 0
Other Cash Flows fr Investing 392 324 225 4,923
Total Cash Flows fr Investing -76,046 -98,588 -107,960 -105,176
Financing Acitivies:
Dividends Paid -41,472 -40,543 -40,543 -37,383
Sale or Purchase of Stock -537 -6,650 -1,314 5,822
Net Borrowings -187,721 86,199 -80,623 41,447
Other Cash Flows fr Financing 72,768 -72,528 192 -5,395
Total Cash Flows fr Financing 0 0 0 0
Effect of Exchange Rate Chg 0 0 0 0
Change in Cash & Cash Equiv. -5,116 -5,935 12,501 -10,033
NST NSTAR [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 1.7610 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: 3.0000 Forward P/E Ratio < 28? 1.9244
Sales Tests:
Price/Sales Ratio < 2.3? 1.8548 Inventory/Sales < 5%? 1.7855
Sales < $1 billion? 0.2989 Operating Margin < 7.5%? 0.4584
Balance Sheet Tests:
Debt/Equity < 0.40? 1.0000 Long-Term Debt Service: 0.8885
LTD Being Reduced? 1.8000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 0.2555 Working Capital >= 1.5? 3.0000
Leverage Ratio < 20%? 0.7679 Debt / Assets < 1? 3.0000
Quick Ratio > 1? 0.2821 Inventory Turnover > 1? 0.3642
Shares Out Decreasing? 1.2000 Market Cap.> 1.5 Billion? 0.3817
Profit Margin > 7.5%? 1.0186
Income Tests:
Dividend Yield > 2.0%? 1.3953 EPS Annual Growth > 10%? 0.0000
Enterprise Value/Revenue: 1.3867 EPS 5-yr Growth > 20%? 0.0000
Enterprise Value/EBITDA: 1.3403 EPS Growth Consistent? 2.4000
EPS Qrtly Growth > 10%? 0.2100 Collection < 45 days? 0.7879
Rev. Qtrly Growth > 15%? -2.0250 Gross Pft/Cur. LTD < 1? 1.0520
EPS Annual Growth > 10%? 0.0000 Borrowing Int. Rate< 6%? 1.3091
Stock Performance Tests:
Volatility > 25%? 1.2581 % Held by Insiders < 5%? 3.0000
Beta > 1.25? 0.1760 % Held by Institut. < 50? 1.0616
50 Da MA > 200 Da MA? 0.1704 % Held by Institut. > 30? 1.5700
52-Wk Change vs. S&P 500: 1.3114 Short Ratio > 5? 1.3000
Price/Book Value < 3? 1.8600 Short % of Float > 20? 0.0000
Return on Assets > 17%? 0.2476 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 1.7939 Positive Free Cash Flow? 1.0000
Positive Oper. Cash Flow? 1.0000 Price to C.F./sh. Ratio: 0.7341
Cash Flow / Assets >.10? 0.4772
NST NSTAR Overall Zenith Index: 1.2216
Financial Statements |
Financial Ratios |
. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |
Intrinsic Value |
Intrinsic Value by Discounted Cash Flow Method:
Intrinsic Value |
Intrinsic Value by Projected Earnings Growth Method:
Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Right Time Study |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for NStar Co.:
Symbol? NST
Total Months Available: 120
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
36.80 27.49 34.68 28.54 37.75 30.76
RANGE = 37.75 TO 27.49 Close = 37.56
CHANNEL = 34.68 TO 30.76 Degree = 4
Volatility = 10.44% Index = 4
Intraday Chart |
20 Days:
Stock Fetcher |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | + 1 |
| Industry | - 1 |
| Bond Issue | + 1 |
| Zenith Index | + 1 |
| GAAP vs. non-GAAP Earnings < 1% | + 1 |
| Cash Flow | + 1 |
| Ratios | + 1 |
| Market Grader | + 1 |
| Intrinsic Value DCF | + 1 |
| Intrinsic Value DDM | - 1 |
| Stock Scout | + 1 |
| Projected Earnings | + 1 |
| Research Reports | - 1 |
| Analysts | - 1 |
| Executive Perquisites | - 1 |
| Insider Activity | - 1 |
| Institutional Activity | + 1 |
| Management Reporting | + 1 |
| Short Interest | + 1 |
| Sentiment | + 1 |
| Standard & Poor's | + 1 |
| Moving Average | + 1 |
| Right Time Study | + 1 |
| Stock Fetcher | - 1 |
| Point & Figure | + 1 |
| Wall Street Analyzer | - 1 |
| Marketspace Chart | + 1 |
| Time Series Chart | - 1 |
| Neural Network | 0 |
| Stock Options | + 1 |
| Ultimate Trading Systems | - 1 |
| Total | + 11cd \wp GG |
Place 815 shares of NSTAR Company (NST) on the Active List.
