EMERA INC (EMA.CA) Stock Fundamental Analysis
Canada - TSX:EMA - CA2908761018 - Common Stock
67.26 CAD
-0.75 (-1.1%)
Taking everything into account, EMA scores 3 out of 10 in our fundamental rating. 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. Finally EMA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
EMA had positive earnings in the past year.
In the past year EMA had a positive cash flow from operations.
In the past 5 years EMA has always been profitable.
EMA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EMA has a Return On Assets (2.56%) which is in line with its industry peers.
EMA has a Return On Equity of 8.29%. This is comparable to the rest of the industry: EMA outperforms 50.00% of its industry peers.
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.
EMA had an Average Return On Invested Capital over the past 3 years of 3.14%. This is in line with the industry average of 4.02%.
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
EMA has a Profit Margin of 12.89%. This is amonst the worse of the industry: EMA underperforms 94.44% of its industry peers.
EMA's Profit Margin has declined in the last couple of years.
The Operating Margin of EMA (23.65%) is worse than 88.89% of its industry peers.
EMA'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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EMA is destroying value.
EMA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, EMA has more shares outstanding
The debt/assets ratio for EMA has been reduced compared to a year ago.
2.2 Solvency
EMA has an Altman-Z score of 0.77. This is a bad value and indicates that EMA is not financially healthy and even has some risk of bankruptcy.
EMA's Altman-Z score of 0.77 is amongst the best of the industry. EMA outperforms 83.33% of its industry peers.
A Debt/Equity ratio of 1.47 is on the high side and indicates that EMA has dependencies on debt financing.
EMA has a Debt to Equity ratio of 1.47. This is amonst the worse of the industry: EMA underperforms 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.64
WACC5.75%
2.3 Liquidity
A Current Ratio of 0.72 indicates that EMA may have some problems paying its short term obligations.
The Current ratio of EMA (0.72) is comparable to the rest of the industry.
A Quick Ratio of 0.57 indicates that EMA may have some problems paying 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
The earnings per share for EMA have decreased by -1.01% in the last year.
EMA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.49% yearly.
EMA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.17%.
Measured over the past years, EMA shows a small growth in Revenue. The Revenue has been growing by 3.33% on average per year.
EPS 1Y (TTM)-1.01%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%5396.38%
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 8.44% on average over the next years. This is quite good.
Based on estimates for the next years, EMA will show a small growth in Revenue. The Revenue will grow by 3.84% on average per year.
EPS Next Y21.24%
EPS Next 2Y9.23%
EPS Next 3Y7.5%
EPS Next 5Y8.44%
Revenue Next Year13.64%
Revenue Next 2Y4.44%
Revenue Next 3Y5.15%
Revenue Next 5Y3.84%
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
The Price/Earnings ratio is 22.88, which indicates a rather expensive current valuation of EMA.
EMA's Price/Earnings ratio is rather expensive when compared to the industry. EMA is more expensive than 88.89% of the companies in the same industry.
EMA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.17, the valuation of EMA can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EMA indicates a rather expensive valuation: EMA more expensive than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, EMA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.88 | ||
| Fwd PE | 19.17 |
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 | 11.76 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.08
PEG (5Y)9.19
EPS Next 2Y9.23%
EPS Next 3Y7.5%
5. Dividend
5.1 Amount
EMA has a Yearly Dividend Yield of 5.43%, which is a nice return.
EMA's Dividend Yield is rather good when compared to the industry average which is at 4.42. EMA pays more dividend than 94.44% of the companies in the same industry.
EMA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
5.2 History
The dividend of EMA has a limited annual growth rate of 3.46%.
EMA has paid a dividend for at least 10 years, which is a reliable track record.
EMA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
EMA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.91%
EPS Next 2Y9.23%
EPS Next 3Y7.5%
TSX:EMA (11/20/2025, 7:00:00 PM)
67.26
-0.75 (-1.1%)
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 Cap20.21B
Revenue(TTM)8.53B
Net Income(TTM)1.10B
Analysts70
Price Target69.01 (2.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
Yearly Dividend2.11
Dividend Growth(5Y)3.46%
DP57.91%
Div Incr Years18
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)1.93%
PT rev (3m)5.65%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)0.08%
EPS NY rev (3m)8.98%
Revenue NQ rev (1m)47.4%
Revenue NQ rev (3m)-7.11%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.88 | ||
| Fwd PE | 19.17 | ||
| P/S | 2.37 | ||
| P/FCF | N/A | ||
| P/OCF | 8.85 | ||
| P/B | 1.52 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 11.76 |
EPS(TTM)2.94
EY4.37%
EPS(NY)3.51
Fwd EY5.22%
FCF(TTM)-4.03
FCFYN/A
OCF(TTM)7.6
OCFY11.3%
SpS28.4
BVpS44.19
TBVpS24.69
PEG (NY)1.08
PEG (5Y)9.19
Graham Number54.07
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 | 0.77 |
F-Score7
WACC5.75%
ROIC/WACC0.64
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)-1.01%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%5396.38%
EPS Next Y21.24%
EPS Next 2Y9.23%
EPS Next 3Y7.5%
EPS Next 5Y8.44%
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 5Y3.84%
EBIT growth 1Y28.78%
EBIT growth 3Y11.95%
EBIT growth 5Y-1.07%
EBIT Next Year100.79%
EBIT Next 3Y29.41%
EBIT Next 5Y21.37%
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 1 / 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 22.88 and the Price/Book (PB) ratio is 1.52.
How financially healthy is EMERA INC?
The financial health rating of EMERA INC (EMA.CA) is 2 / 10.