EMERA INC (EMA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EMA - CA2908761018 - Common Stock
66.12 CAD
-0.85 (-1.27%)
We assign a fundamental rating of 3 out of 10 to EMA. EMA was compared to 18 industry peers in the Electric Utilities industry. EMA has a bad profitability rating. Also its financial health evaluation is rather negative. EMA is valied quite expensively at the moment, while it does show a decent growth rate. EMA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EMA was profitable.
EMA had a positive operating cash flow in the past year.
Each year in the past 5 years EMA has been profitable.
In the past 5 years EMA always reported a positive cash flow from operatings.
1.2 Ratios
EMA's Return On Assets of 2.56% is in line compared to the rest of the industry. EMA outperforms 50.00% of its industry peers.
With a Return On Equity value of 8.29%, EMA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
EMA has a Return On Invested Capital of 3.70%. This is amonst the worse of the industry: EMA underperforms 94.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EMA is in line with the industry average of 4.03%.
The 3 year average ROIC (3.14%) for EMA is below the current ROIC(3.70%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 12.89%, EMA is not doing good in the industry: 94.44% of the companies in the same industry are doing better.
EMA's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 23.65%, EMA is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of EMA 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 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for EMA has been increased compared to 1 year ago.
The number of shares outstanding for EMA has been increased compared to 5 years ago.
Compared to 1 year ago, EMA has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.76, we must say that EMA is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.76, EMA belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
EMA has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of EMA (1.47) is worse than 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.65
WACC5.68%
2.3 Liquidity
EMA has a Current Ratio of 0.72. This is a bad value and indicates that EMA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.72, EMA is in line with its industry, outperforming 55.56% of the companies in the same industry.
EMA has a Quick Ratio of 0.72. This is a bad value and indicates that EMA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of EMA (0.57) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
EMA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.83%, which is quite impressive.
EMA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.49% yearly.
The Revenue has grown by 15.17% in the past year. This is quite good.
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
Based on estimates for the next years, EMA will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.58% on average per year.
Based on estimates for the next years, EMA will show a small growth in Revenue. The Revenue will grow by 3.05% on average per year.
EPS Next Y21.24%
EPS Next 2Y9.23%
EPS Next 3Y7.5%
EPS Next 5Y8.58%
Revenue Next Year13.64%
Revenue Next 2Y4.44%
Revenue Next 3Y5.15%
Revenue Next 5Y3.05%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.45 indicates a rather expensive valuation of EMA.
83.33% of the companies in the same industry are cheaper than EMA, based on the Price/Earnings ratio.
EMA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.46.
With a Price/Forward Earnings ratio of 18.85, EMA is valued on the expensive side.
83.33% of the companies in the same industry are cheaper than EMA, based on the Price/Forward Earnings ratio.
EMA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.45 | ||
| Fwd PE | 18.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EMA indicates a rather expensive valuation: EMA more expensive than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.66 |
4.3 Compensation for Growth
EMA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.82
PEG (5Y)7.01
EPS Next 2Y9.23%
EPS Next 3Y7.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.31%, EMA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.92, EMA pays a better dividend. On top of this EMA pays more dividend than 94.44% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, EMA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
5.2 History
The dividend of EMA has a limited annual growth rate of 3.46%.
EMA has been paying a dividend for at least 10 years, so it has a reliable track record.
EMA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.46%
Div Incr Years18
Div Non Decr Years26
5.3 Sustainability
57.91% of the earnings are spent on dividend by EMA. This is a bit on the high side, but may be sustainable.
The dividend of EMA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.91%
EPS Next 2Y9.23%
EPS Next 3Y7.5%
TSX:EMA (12/4/2025, 7:00:00 PM)
66.12
-0.85 (-1.27%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners57.67%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap19.88B
Revenue(TTM)8.53B
Net Income(TTM)1.10B
Analysts70
Price Target70.03 (5.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
Yearly Dividend2.11
Dividend Growth(5Y)3.46%
DP57.91%
Div Incr Years18
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.31%
Min EPS beat(2)0.29%
Max EPS beat(2)20.34%
EPS beat(4)4
Avg EPS beat(4)14.36%
Min EPS beat(4)0.29%
Max EPS beat(4)27.9%
EPS beat(8)5
Avg EPS beat(8)3.93%
EPS beat(12)8
Avg EPS beat(12)5.19%
EPS beat(16)9
Avg EPS beat(16)3.56%
Revenue beat(2)1
Avg Revenue beat(2)1.8%
Min Revenue beat(2)-7.41%
Max Revenue beat(2)11.02%
Revenue beat(4)2
Avg Revenue beat(4)2.24%
Min Revenue beat(4)-13.96%
Max Revenue beat(4)19.3%
Revenue beat(8)2
Avg Revenue beat(8)-3.63%
Revenue beat(12)4
Avg Revenue beat(12)1.72%
Revenue beat(16)8
Avg Revenue beat(16)3.07%
PT rev (1m)3.43%
PT rev (3m)3.69%
EPS NQ rev (1m)-2.71%
EPS NQ rev (3m)-3.9%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)32.55%
Revenue NQ rev (3m)7.03%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-2.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.45 | ||
| Fwd PE | 18.85 | ||
| P/S | 2.33 | ||
| P/FCF | N/A | ||
| P/OCF | 8.7 | ||
| P/B | 1.5 | ||
| P/tB | 2.68 | ||
| EV/EBITDA | 11.66 |
EPS(TTM)3.79
EY5.73%
EPS(NY)3.51
Fwd EY5.31%
FCF(TTM)-4.02
FCFYN/A
OCF(TTM)7.6
OCFY11.49%
SpS28.38
BVpS44.16
TBVpS24.67
PEG (NY)0.82
PEG (5Y)7.01
Graham Number61.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 8.29% | ||
| ROCE | 5.33% | ||
| ROIC | 3.7% | ||
| ROICexc | 3.72% | ||
| ROICexgc | 4.38% | ||
| OM | 23.65% | ||
| PM (TTM) | 12.89% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2%
ROA(5y)2.1%
ROE(3y)6.7%
ROE(5y)7.06%
ROIC(3y)3.14%
ROIC(5y)2.92%
ROICexc(3y)3.18%
ROICexc(5y)2.95%
ROICexgc(3y)3.8%
ROICexgc(5y)3.58%
ROCE(3y)4.61%
ROCE(5y)4.29%
ROICexgc growth 3Y1.9%
ROICexgc growth 5Y-7.94%
ROICexc growth 3Y3.35%
ROICexc growth 5Y-6.78%
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
F-Score7
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.99 | ||
| Cap/Depr | 279.52% | ||
| Cap/Sales | 40.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.76 |
F-Score7
WACC5.68%
ROIC/WACC0.65
Cap/Depr(3y)272.75%
Cap/Depr(5y)273.57%
Cap/Sales(3y)38.94%
Cap/Sales(5y)41.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)38.83%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%8.64%
EPS Next Y21.24%
EPS Next 2Y9.23%
EPS Next 3Y7.5%
EPS Next 5Y8.58%
Revenue 1Y (TTM)15.17%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%16.87%
Revenue Next Year13.64%
Revenue Next 2Y4.44%
Revenue Next 3Y5.15%
Revenue Next 5Y3.05%
EBIT growth 1Y28.78%
EBIT growth 3Y11.95%
EBIT growth 5Y-1.07%
EBIT Next Year100.79%
EBIT Next 3Y29.41%
EBIT Next 5Y19.8%
FCF growth 1Y-2.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y28.6%
OCF growth 3Y30.7%
OCF growth 5Y11.65%
EMERA INC / EMA.CA FAQ
What is the fundamental rating for EMA stock?
ChartMill assigns a fundamental rating of 3 / 10 to EMA.CA.
What is the valuation status for EMA stock?
ChartMill assigns a valuation rating of 2 / 10 to EMERA INC (EMA.CA). This can be considered as Overvalued.
What is the profitability of EMA stock?
EMERA INC (EMA.CA) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for EMA stock?
The Price/Earnings (PE) ratio for EMERA INC (EMA.CA) is 17.45 and the Price/Book (PB) ratio is 1.5.
How financially healthy is EMERA INC?
The financial health rating of EMERA INC (EMA.CA) is 2 / 10.