10 Best Undervalued Utilities Stocks for November 2025
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Market Overview & Selection Criteria
The utilities sector has demonstrated resilience amid market volatility, offering stable cash flows and defensive characteristics. For November 2025, our stock picks leverage ValueSense’s proprietary intrinsic value models, quality ratings, and fundamental analysis tools to identify undervalued opportunities within the sector. Selection criteria include:
- Intrinsic value discount: Stocks trading below their calculated fair value.
- Quality rating: Emphasis on companies with robust operational metrics.
- Growth and profitability: Focus on revenue growth, free cash flow, and return on invested capital (ROIC).
- Risk assessment: Consideration of debt levels and sector-specific risks.
Featured Stock Analysis
Stock #1: American Electric Power Company, Inc. (AEP)
| Metric | Value |
|---|---|
| Market Cap | $64.3B |
| Quality Rating | 6.7 |
| Intrinsic Value | $7,689.9 |
| 1Y Return | 24.1% |
| Revenue | $6,025.8B |
| Free Cash Flow | $2,165.5M |
| Revenue Growth | 30,640.5% |
| FCF margin | 0.0% |
| Gross margin | 0.1% |
| ROIC | 1,555.0% |
| Total Debt to Equity | 8.7% |
Investment Thesis
American Electric Power (AEP) stands out as a large-cap utility with a market capitalization of $64.3B and a ValueSense quality rating of 6.7. The company’s reported 1-year return of 24.1% signals strong recent performance. AEP’s intrinsic value is calculated at $7,689.9, suggesting a significant margin of safety relative to its market price. The company’s revenue figure is notably high, and its ROIC of 1,555.0% is exceptional, indicating efficient capital allocation. However, the reported FCF margin is 0.0%, and gross margin is just 0.1%, which may reflect sector-specific accounting or extraordinary items.
Key Catalysts
- Strong historical return and robust market capitalization.
- High intrinsic value relative to market price.
- Exceptional ROIC, suggesting operational efficiency.
- Revenue growth of 30,640.5%, indicating expansion or a recent structural change.
Risk Factors
- Extremely low gross margin and FCF margin could signal operational challenges.
- Total debt to equity at 8.7%—moderate leverage but worth monitoring.
- Unusual revenue and margin figures may require further due diligence.
Stock #2: Dominion Energy, Inc. (D)
| Metric | Value |
|---|---|
| Market Cap | $50.0B |
| Quality Rating | 5.2 |
| Intrinsic Value | $65.7 |
| 1Y Return | 0.9% |
| Revenue | $15.8B |
| Free Cash Flow | ($1,504.0M) |
| Revenue Growth | 8.4% |
| FCF margin | (9.5%) |
| Gross margin | 34.7% |
| ROIC | 9.1% |
| Total Debt to Equity | (47.3%) |
Investment Thesis
Dominion Energy (D) is a major utility player with a $50.0B market cap and a ValueSense quality rating of 5.2. The stock’s intrinsic value is $65.7, close to its current trading range, suggesting it is fairly valued. Dominion’s 1-year return is a modest 0.9%, reflecting sector stability. The company’s gross margin of 34.7% and revenue growth of 8.4% indicate steady operations, but negative free cash flow (–$1,504.0M) and a negative FCF margin (–9.5%) highlight cash generation challenges.
Key Catalysts
- Stable revenue growth and solid gross margin.
- Large market cap and established sector presence.
- Intrinsic value close to market price, indicating limited downside.
Risk Factors
- Negative free cash flow and FCF margin.
- Total debt to equity at –47.3%, suggesting high leverage or accounting adjustments.
- Modest 1-year return may limit near-term upside.
Stock #3: Exelon Corporation (EXC)
| Metric | Value |
|---|---|
| Market Cap | $46.2B |
| Quality Rating | 5.6 |
| Intrinsic Value | $60.9 |
| 1Y Return | 19.6% |
| Revenue | $23.8B |
| Free Cash Flow | ($1,764.0M) |
| Revenue Growth | 4.5% |
| FCF margin | (7.4%) |
| Gross margin | 41.8% |
| ROIC | 5.0% |
| Total Debt to Equity | 176.8% |
Investment Thesis
Exelon (EXC) is a leading utility with a $46.2B market cap and a ValueSense quality rating of 5.6. The company’s intrinsic value is $60.9, and its 1-year return of 19.6% reflects strong recent performance. Exelon’s gross margin is 41.8%, and revenue growth is 4.5%, indicating a stable and profitable business. However, negative free cash flow (–$1,764.0M) and a high total debt to equity ratio 176.8% highlight financial risks.
Key Catalysts
- Strong 1-year return and high gross margin.
- Stable revenue growth and sector leadership.
- Intrinsic value above current price, suggesting upside potential.
Risk Factors
- Negative free cash flow and FCF margin (–7.4%).
- High leverage with total debt to equity at 176.8%.
- Moderate quality rating may reflect operational or regulatory risks.
Stock #4: WEC Energy Group, Inc. (WEC)
| Metric | Value |
|---|---|
| Market Cap | $36.1B |
| Quality Rating | 6.0 |
| Intrinsic Value | $118.6 |
| 1Y Return | 19.0% |
| Revenue | $9,547.2M |
| Free Cash Flow | ($404.9M) |
| Revenue Growth | 11.9% |
| FCF margin | (4.2%) |
| Gross margin | 49.5% |
| ROIC | 5.3% |
| Total Debt to Equity | 9.0% |
Investment Thesis
WEC Energy Group (WEC) is a $36.1B utility with a ValueSense quality rating of 6.0 and an intrinsic value of $118.6. The company’s 1-year return is 19.0%, supported by revenue growth of 11.9%. WEC’s gross margin is 49.5%, and ROIC is 5.3%, indicating efficient operations. However, the company reports negative free cash flow (–$404.9M) and a FCF margin of –4.2%.
Key Catalysts
- High gross margin and solid ROIC.
- Consistent revenue growth and strong 1-year return.
- Intrinsic value above market price.
Risk Factors
- Negative free cash flow and FCF margin.
- Moderate leverage with total debt to equity at 9.0%.
- Quality rating suggests room for operational improvement.
Stock #5: Consolidated Edison, Inc. (ED)
| Metric | Value |
|---|---|
| Market Cap | $35.1B |
| Quality Rating | 5.3 |
| Intrinsic Value | $111.5 |
| 1Y Return | -2.5% |
| Revenue | $16.2B |
| Free Cash Flow | ($278.0M) |
| Revenue Growth | 9.0% |
| FCF margin | (1.7%) |
| Gross margin | 55.8% |
| ROIC | 4.2% |
| Total Debt to Equity | 114.0% |
Investment Thesis
Consolidated Edison (ED) is a $35.1B utility with a ValueSense quality rating of 5.3 and an intrinsic value of $111.5. The company’s 1-year return is –2.5%, underperforming the sector. However, ED boasts a gross margin of 55.8% and revenue growth of 9.0%. The company’s FCF margin is –1.7%, and total debt to equity is 114.0%, indicating high leverage.
Key Catalysts
- High gross margin and stable revenue growth.
- Intrinsic value significantly above market price.
- Large market cap and sector stability.
Risk Factors
- Negative 1-year return and FCF margin.
- High leverage with total debt to equity at 114.0%.
- Moderate quality rating.
Stock #6: NRG Energy, Inc. (NRG)
| Metric | Value |
|---|---|
| Market Cap | $33.7B |
| Quality Rating | 5.6 |
| Intrinsic Value | $204.9 |
| 1Y Return | 91.8% |
| Revenue | $29.4B |
| Free Cash Flow | $1,387.0M |
| Revenue Growth | 1.9% |
| FCF margin | 4.7% |
| Gross margin | 17.3% |
| ROIC | 10.9% |
| Total Debt to Equity | 485.8% |
Investment Thesis
NRG Energy (NRG) is a $33.7B utility with a ValueSense quality rating of 5.6 and an intrinsic value of $204.9. The company’s 1-year return is an impressive 91.8%, making it a standout performer. NRG’s gross margin is 17.3%, and ROIC is 10.9%. The company reports positive free cash flow of $1,387.0M and a FCF margin of 4.7%.
Key Catalysts
- Exceptional 1-year return and strong free cash flow.
- High intrinsic value relative to market price.
- Robust ROIC and sector momentum.
Risk Factors
- Lower gross margin compared to peers.
- High leverage with total debt to equity at 485.8%.
- Moderate quality rating.
Stock #7: DTE Energy Company JR SUB DB 2017 E (DTW)
| Metric | Value |
|---|---|
| Market Cap | $28.1B |
| Quality Rating | 5.9 |
| Intrinsic Value | $26.0 |
| 1Y Return | -3.5% |
| Revenue | $14.8B |
| Free Cash Flow | $2,135.0M |
| Revenue Growth | 20.6% |
| FCF margin | 14.4% |
| Gross margin | 88.6% |
| ROIC | 10.8% |
| Total Debt to Equity | (2.0%) |
Investment Thesis
DTW, a junior subordinated debenture of DTE Energy, has a $28.1B market cap and a ValueSense quality rating of 5.9. Its intrinsic value is $26.0, and the 1-year return is –3.5%. DTW’s gross margin is an impressive 88.6%, and FCF margin is 14.4%. The company reports positive free cash flow of $2,135.0M and revenue growth of 20.6%.
Key Catalysts
- High gross and FCF margins.
- Strong revenue growth and positive free cash flow.
- Intrinsic value above market price.
Risk Factors
- Negative 1-year return.
- Slightly negative total debt to equity (–2.0%).
- Moderate quality rating.
Stock #8: DTE Energy Company (DTE)
| Metric | Value |
|---|---|
| Market Cap | $28.1B |
| Quality Rating | 6.4 |
| Intrinsic Value | $147.1 |
| 1Y Return | 10.1% |
| Revenue | $14.9B |
| Free Cash Flow | $5,339.0M |
| Revenue Growth | 20.5% |
| FCF margin | 35.9% |
| Gross margin | 88.1% |
| ROIC | 11.6% |
| Total Debt to Equity | (2.0%) |
Investment Thesis
DTE Energy (DTE) is a $28.1B utility with a ValueSense quality rating of 6.4 and an intrinsic value of $147.1. The company’s 1-year return is 10.1%, with revenue growth of 20.5%. DTE’s gross margin is 88.1%, and FCF margin is 35.9%, both sector-leading figures. The company reports strong free cash flow of $5,339.0M and an ROIC of 11.6%.
Key Catalysts
- Leading gross and FCF margins.
- High intrinsic value and strong free cash flow.
- Robust ROIC and revenue growth.
Risk Factors
- Slightly negative total debt to equity (–2.0%).
- Moderate quality rating.
Stock #9: Eversource Energy (ES)
| Metric | Value |
|---|---|
| Market Cap | $27.2B |
| Quality Rating | 5.6 |
| Intrinsic Value | $86.9 |
| 1Y Return | 13.5% |
| Revenue | $13.0B |
| Free Cash Flow | ($1,013.4M) |
| Revenue Growth | 14.4% |
| FCF margin | (7.8%) |
| Gross margin | 50.1% |
| ROIC | 4.6% |
| Total Debt to Equity | 188.2% |
Investment Thesis
Eversource Energy (ES) is a $27.2B utility with a ValueSense quality rating of 5.6 and an intrinsic value of $86.9. The company’s 1-year return is 13.5%, and revenue growth is 14.4%. ES’s gross margin is 50.1%, but it reports negative free cash flow (–$1,013.4M) and a FCF margin of –7.8%. The total debt to equity is high at 188.2%.
Key Catalysts
- High gross margin and solid revenue growth.
- Intrinsic value above market price.
- Sector stability.
Risk Factors
- Negative free cash flow and high leverage.
- Moderate quality rating.
Stock #10: FirstEnergy Corp. (FE)
| Metric | Value |
|---|---|
| Market Cap | $26.6B |
| Quality Rating | 6.1 |
| Intrinsic Value | $51.0 |
| 1Y Return | 11.9% |
| Revenue | $10.3B |
| Free Cash Flow | $3,532.0M |
| Revenue Growth | (23.2%) |
| FCF margin | 34.2% |
| Gross margin | 67.4% |
| ROIC | 6.5% |
| Total Debt to Equity | 191.6% |
Investment Thesis
FirstEnergy (FE) is a $26.6B utility with a ValueSense quality rating of 6.1 and an intrinsic value of $51.0. The company’s 1-year return is 11.9%, and it reports strong free cash flow of $3,532.0M and a FCF margin of 34.2%. FE’s gross margin is 67.4%, and ROIC is 6.5%. However, revenue growth is negative at –23.2%, and total debt to equity is high at 191.6%.
Key Catalysts
- High gross and FCF margins.
- Strong free cash flow and ROIC.
- Intrinsic value above market price.
Risk Factors
- Negative revenue growth and high leverage.
- Moderate quality rating.
Portfolio Diversification Insights
This utilities-focused watchlist offers exposure to a range of large-cap companies with varying growth, profitability, and leverage profiles. The portfolio includes both regulated and diversified utilities, balancing high-growth names (e.g., NRG) with stable, income-oriented companies (e.g., AEP, DTE). Sector allocation is concentrated in utilities, but the diversity in financial health, growth rates, and operational focus helps mitigate single-company risk.
Market Timing & Entry Strategies
Utilities stocks often perform well during periods of market uncertainty due to their defensive nature and stable cash flows. Entry strategies may include:
- Staggered purchases to average into positions and reduce timing risk.
- Monitoring intrinsic value discounts for optimal entry points.
- Rebalancing based on changes in quality ratings, free cash flow, and sector outlook.
Explore More Investment Opportunities
For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:
📌 50 Undervalued Stocks (Best overall value plays for 2025)
📌 50 Undervalued Dividend Stocks (For income-focused investors)
📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)
🔍 Check out these stocks on the Value Sense platform for free!
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FAQ Section
Q1: How were these stocks selected?
Stocks were chosen using ValueSense’s proprietary intrinsic value models, quality ratings, and a focus on undervalued opportunities within the utilities sector, emphasizing growth, profitability, and risk metrics[1][2].
Q2: What's the best stock from this list?
Each stock offers unique strengths; for example, NRG Energy (NRG) delivered the highest 1-year return, while DTE Energy (DTE) and FirstEnergy (FE) lead in free cash flow and margins. The "best" depends on individual investment goals and risk tolerance.
Q3: Should I buy all these stocks or diversify?
Diversification within the utilities sector can help manage risk, but investors may also consider allocating across sectors for broader diversification. This list is intended as an educational watchlist, not a buy recommendation.
Q4: What are the biggest risks with these picks?
Key risks include high leverage (notably at NRG, Exelon, and FirstEnergy), negative free cash flow at several companies, and sector-specific regulatory or operational challenges.
Q5: When is the best time to invest in these stocks?
Utilities often provide defensive value during market volatility. Entry timing may be optimized by monitoring intrinsic value discounts and sector trends, and by averaging into positions over time.
This article is for educational purposes only and does not constitute investment advice. For more in-depth analysis and tools, visit ValueSense.