EMERA INC - EMACN 6.434 PERP (EMA-PR-C.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EMA-PR-C - CA2908765076
25.37 CAD
+0.02 (+0.08%)
Taking everything into account, EMA-PR-C scores 4 out of 10 in our fundamental rating. EMA-PR-C was compared to 18 industry peers in the Electric Utilities industry. While EMA-PR-C is still in line with the averages on profitability rating, there are concerns on its financial health. EMA-PR-C has a decent growth rate and is not valued too expensively. Finally EMA-PR-C also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- EMA-PR-C had positive earnings in the past year.
- In the past year EMA-PR-C had a positive cash flow from operations.
- In the past 5 years EMA-PR-C has always been profitable.
- Each year in the past 5 years EMA-PR-C had a positive operating cash flow.
1.2 Ratios
- EMA-PR-C has a Return On Assets of 2.56%. This is in the better half of the industry: EMA-PR-C outperforms 66.67% of its industry peers.
- With a decent Return On Equity value of 8.29%, EMA-PR-C is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 3.70%, EMA-PR-C is doing worse than 77.78% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for EMA-PR-C is in line with the industry average of 4.03%.
- The last Return On Invested Capital (3.70%) for EMA-PR-C is above the 3 year average (3.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 8.29% | ||
| ROIC | 3.7% |
ROA(3y)2%
ROA(5y)2.1%
ROE(3y)6.7%
ROE(5y)7.06%
ROIC(3y)3.14%
ROIC(5y)2.92%
1.3 Margins
- EMA-PR-C has a Profit Margin of 12.89%. This is in the lower half of the industry: EMA-PR-C underperforms 77.78% of its industry peers.
- In the last couple of years the Profit Margin of EMA-PR-C has declined.
- EMA-PR-C has a worse Operating Margin (23.65%) than 72.22% of its industry peers.
- EMA-PR-C's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.65% | ||
| PM (TTM) | 12.89% | ||
| GM | N/A |
OM growth 3Y3.96%
OM growth 5Y-4.26%
PM growth 3Y-8.12%
PM growth 5Y-8.76%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EMA-PR-C is destroying value.
- The number of shares outstanding for EMA-PR-C has been increased compared to 1 year ago.
- EMA-PR-C has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, EMA-PR-C has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.52, we must say that EMA-PR-C is in the distress zone and has some risk of bankruptcy.
- EMA-PR-C has a worse Altman-Z score (0.52) than 61.11% of its industry peers.
- A Debt/Equity ratio of 1.47 is on the high side and indicates that EMA-PR-C has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.47, EMA-PR-C is doing worse than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.52 |
ROIC/WACC0.77
WACC4.83%
2.3 Liquidity
- EMA-PR-C has a Current Ratio of 0.72. This is a bad value and indicates that EMA-PR-C is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of EMA-PR-C (0.72) is better than 72.22% of its industry peers.
- EMA-PR-C has a Quick Ratio of 0.72. This is a bad value and indicates that EMA-PR-C is not financially healthy enough and could expect problems in meeting its short term obligations.
- EMA-PR-C has a Quick ratio of 0.57. This is in the better half of the industry: EMA-PR-C outperforms 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 38.83% over the past year.
- EMA-PR-C shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.49% yearly.
- EMA-PR-C shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.17%.
- The Revenue has been growing slightly by 3.33% on average over the past years.
EPS 1Y (TTM)38.83%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%8.64%
Revenue 1Y (TTM)15.17%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%16.87%
3.2 Future
- EMA-PR-C is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.96% yearly.
- EMA-PR-C is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.56% yearly.
EPS Next Y21.58%
EPS Next 2Y9.9%
EPS Next 3Y7.77%
EPS Next 5Y7.96%
Revenue Next Year14.29%
Revenue Next 2Y4.69%
Revenue Next 3Y6.1%
Revenue Next 5Y2.56%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 6.69 indicates a rather cheap valuation of EMA-PR-C.
- Based on the Price/Earnings ratio, EMA-PR-C is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.60. EMA-PR-C is valued rather cheaply when compared to this.
- EMA-PR-C is valuated cheaply with a Price/Forward Earnings ratio of 7.14.
- EMA-PR-C's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. EMA-PR-C is more expensive than 61.11% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, EMA-PR-C is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.69 | ||
| Fwd PE | 7.14 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EMA-PR-C indicates a somewhat cheap valuation: EMA-PR-C is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.9 |
4.3 Compensation for Growth
- EMA-PR-C's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.31
PEG (5Y)2.69
EPS Next 2Y9.9%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.28%, EMA-PR-C is a good candidate for dividend investing.
- EMA-PR-C's Dividend Yield is a higher than the industry average which is at 3.93.
- Compared to an average S&P500 Dividend Yield of 1.82, EMA-PR-C pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
5.2 History
- The dividend of EMA-PR-C has a limited annual growth rate of 3.46%.
- EMA-PR-C has been paying a dividend for at least 10 years, so it has a reliable track record.
- EMA-PR-C has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.46%
Div Incr Years2
Div Non Decr Years12
5.3 Sustainability
- EMA-PR-C pays out 57.91% of its income as dividend. This is a bit on the high side, but may be sustainable.
- EMA-PR-C's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.91%
EPS Next 2Y9.9%
EPS Next 3Y7.77%
EMERA INC - EMACN 6.434 PERP / EMA-PR-C.CA FAQ
What is the fundamental rating for EMA-PR-C stock?
ChartMill assigns a fundamental rating of 4 / 10 to EMA-PR-C.CA.
What is the valuation status for EMA-PR-C stock?
ChartMill assigns a valuation rating of 5 / 10 to EMERA INC - EMACN 6.434 PERP (EMA-PR-C.CA). This can be considered as Fairly Valued.
How profitable is EMERA INC - EMACN 6.434 PERP (EMA-PR-C.CA) stock?
EMERA INC - EMACN 6.434 PERP (EMA-PR-C.CA) has a profitability rating of 4 / 10.
What is the financial health of EMERA INC - EMACN 6.434 PERP (EMA-PR-C.CA) stock?
The financial health rating of EMERA INC - EMACN 6.434 PERP (EMA-PR-C.CA) is 1 / 10.
How sustainable is the dividend of EMERA INC - EMACN 6.434 PERP (EMA-PR-C.CA) stock?
The dividend rating of EMERA INC - EMACN 6.434 PERP (EMA-PR-C.CA) is 8 / 10 and the dividend payout ratio is 57.91%.