EMERA INC - EMACN 4 1/4 PERP (EMA-PR-J.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EMA-PR-J - CA2908768468
25.25 CAD
-0.09 (-0.36%)
Taking everything into account, EMA-PR-J scores 4 out of 10 in our fundamental rating. EMA-PR-J was compared to 18 industry peers in the Electric Utilities industry. EMA-PR-J has a medium profitability rating, but doesn't score so well on its financial health evaluation. EMA-PR-J is not valued too expensively and it also shows a decent growth rate. EMA-PR-J also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- EMA-PR-J had positive earnings in the past year.
- In the past year EMA-PR-J had a positive cash flow from operations.
- EMA-PR-J had positive earnings in each of the past 5 years.
- Each year in the past 5 years EMA-PR-J had a positive operating cash flow.
1.2 Ratios
- EMA-PR-J has a better Return On Assets (2.56%) than 72.22% of its industry peers.
- Looking at the Return On Equity, with a value of 8.29%, EMA-PR-J is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
- EMA-PR-J has a Return On Invested Capital of 3.70%. This is in the lower half of the industry: EMA-PR-J underperforms 72.22% of its industry peers.
- EMA-PR-J had an Average Return On Invested Capital over the past 3 years of 3.14%. This is in line with the industry average of 4.03%.
- The last Return On Invested Capital (3.70%) for EMA-PR-J 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
- Looking at the Profit Margin, with a value of 12.89%, EMA-PR-J is doing worse than 72.22% of the companies in the same industry.
- EMA-PR-J's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 23.65%, EMA-PR-J is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of EMA-PR-J has declined.
| 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
- EMA-PR-J has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, EMA-PR-J has more shares outstanding
- Compared to 5 years ago, EMA-PR-J has more shares outstanding
- Compared to 1 year ago, EMA-PR-J has an improved debt to assets ratio.
2.2 Solvency
- EMA-PR-J has an Altman-Z score of 0.52. This is a bad value and indicates that EMA-PR-J is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.52, EMA-PR-J is doing worse than 66.67% of the companies in the same industry.
- EMA-PR-J has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
- EMA-PR-J has a Debt to Equity ratio of 1.47. This is in the lower half of the industry: EMA-PR-J underperforms 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.52 |
ROIC/WACC0.77
WACC4.82%
2.3 Liquidity
- EMA-PR-J has a Current Ratio of 0.72. This is a bad value and indicates that EMA-PR-J is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a decent Current ratio value of 0.72, EMA-PR-J is doing good in the industry, outperforming 77.78% of the companies in the same industry.
- A Quick Ratio of 0.57 indicates that EMA-PR-J may have some problems paying its short term obligations.
- EMA-PR-J's Quick ratio of 0.57 is fine compared to the rest of the industry. EMA-PR-J outperforms 77.78% 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-J shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.49% yearly.
- EMA-PR-J shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.17%.
- EMA-PR-J shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.33% yearly.
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
- The Earnings Per Share is expected to grow by 7.96% on average over the next years.
- EMA-PR-J 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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 6.66 indicates a rather cheap valuation of EMA-PR-J.
- Based on the Price/Earnings ratio, EMA-PR-J is valued a bit cheaper than 72.22% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, EMA-PR-J is valued rather cheaply.
- A Price/Forward Earnings ratio of 7.11 indicates a rather cheap valuation of EMA-PR-J.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EMA-PR-J is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of EMA-PR-J to the average of the S&P500 Index (25.95), we can say EMA-PR-J is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.66 | ||
| Fwd PE | 7.11 |
4.2 Price Multiples
- EMA-PR-J's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EMA-PR-J is cheaper than 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.9 |
4.3 Compensation for Growth
- The 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)2.68
EPS Next 2Y9.9%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.28%, EMA-PR-J is a good candidate for dividend investing.
- EMA-PR-J's Dividend Yield is a higher than the industry average which is at 3.93.
- EMA-PR-J's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
5.2 History
- The dividend of EMA-PR-J has a limited annual growth rate of 3.46%.
- EMA-PR-J has been paying a dividend for over 5 years, so it has already some track record.
- EMA-PR-J has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.46%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- EMA-PR-J pays out 57.91% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of EMA-PR-J is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.91%
EPS Next 2Y9.9%
EPS Next 3Y7.77%
EMERA INC - EMACN 4 1/4 PERP / EMA-PR-J.CA FAQ
Can you provide the ChartMill fundamental rating for EMERA INC - EMACN 4 1/4 PERP?
ChartMill assigns a fundamental rating of 4 / 10 to EMA-PR-J.CA.
What is the valuation status for EMA-PR-J stock?
ChartMill assigns a valuation rating of 5 / 10 to EMERA INC - EMACN 4 1/4 PERP (EMA-PR-J.CA). This can be considered as Fairly Valued.
What is the profitability of EMA-PR-J stock?
EMERA INC - EMACN 4 1/4 PERP (EMA-PR-J.CA) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for EMA-PR-J stock?
The Price/Earnings (PE) ratio for EMERA INC - EMACN 4 1/4 PERP (EMA-PR-J.CA) is 6.66 and the Price/Book (PB) ratio is 0.57.
What is the earnings growth outlook for EMERA INC - EMACN 4 1/4 PERP?
The Earnings per Share (EPS) of EMERA INC - EMACN 4 1/4 PERP (EMA-PR-J.CA) is expected to grow by 21.58% in the next year.