The Connecticut Light and Power Company (CNLPM): fair value, margin of safety and Wheel Score

Is CNLPM undervalued?

The Connecticut Light and Power Company (CNLPM) closed at 32.37 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 20,634.18, which puts the price 100% below it. 9 of the 9 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.

The 9 models disagree widely: DDM gives 47.67 while 10 Cap gives 129,080.10. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files CNLPM under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.

Nine valuation models for CNLPM

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Financial health is average - CNLPM passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 6.5 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.

Returns on capital are thin or negative - ROIC 3.2%, ROE 7.2%, ROA 2.7% - with debt at 1.27 times equity and a free-cash-flow yield of 772097.6%.

The dividend yield is high at 6.25% (payout ratio 534%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Residential 41%, Commercial 28%, Other Revenue Adjustments from Contract… 13% (quarter Q2 FY2026).

Institutional ownership scores 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 39: No options

CNLPM has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.

Volume runs at 0k shares a day on a market cap of $313M, with a beta of 0.47 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 6 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

No upcoming earnings date is recorded for CNLPM in the nightly calendar.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Regulated Electric

The 12 companies below are the closest to The Connecticut Light and Power Company by market cap within the Regulated Electric industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

⚖ Compare CNLPM with 7 of them   All Utilities stocks →