EMERA INC (EMA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EMA - CA2908761018 - Common Stock
65.66 CAD
-0.46 (-0.7%)
EMA gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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
In the past year EMA was profitable.
EMA had a positive operating cash flow in the past year.
In the past 5 years EMA has always been profitable.
In the past 5 years EMA always reported a positive cash flow from operatings.
1.2 Ratios
EMA has a Return On Assets of 2.56%. This is comparable to the rest of the industry: EMA outperforms 50.00% of its industry peers.
EMA has a Return On Equity (8.29%) which is comparable to the rest of the 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.
The Average Return On Invested Capital over the past 3 years for EMA is in line with the industry average of 4.03%.
The last Return On Invested Capital (3.70%) for EMA 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 is doing worse than 94.44% of the companies in the same industry.
EMA's Profit Margin has declined in the last couple of years.
EMA has a worse Operating Margin (23.65%) 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
EMA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 0.76. This is a bad value and indicates that EMA is not financially healthy and even has some risk of bankruptcy.
EMA has a better Altman-Z score (0.76) than 83.33% of its industry peers.
EMA has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external 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 | 0.76 |
ROIC/WACC0.65
WACC5.68%
2.3 Liquidity
A Current Ratio of 0.72 indicates that EMA may have some problems paying 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.
With a Quick ratio value of 0.57, EMA perfoms like the industry average, outperforming 55.56% of the companies in the same 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.
Measured over the past 5 years, EMA shows a small growth in Earnings Per Share. The EPS has been growing by 2.49% on average per year.
EMA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.17%.
EMA 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
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 Y21.64%
EPS Next 2Y9.72%
EPS Next 3Y7.81%
EPS Next 5Y8.58%
Revenue Next Year16.17%
Revenue Next 2Y5.13%
Revenue Next 3Y6.1%
Revenue Next 5Y3.05%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.32, 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 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.49, EMA is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.55, the valuation of EMA can be described as rather expensive.
Based on the Price/Forward Earnings ratio, EMA is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
The average S&P500 Price/Forward Earnings ratio is at 23.69. EMA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.32 | ||
| Fwd PE | 18.55 |
4.2 Price Multiples
EMA's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. EMA is more expensive than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.61 |
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)0.8
PEG (5Y)6.96
EPS Next 2Y9.72%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
EMA has a Yearly Dividend Yield of 4.43%, which is a nice return.
Compared to an average industry Dividend Yield of 4.03, 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 2.31, EMA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
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 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.
The dividend of EMA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.91%
EPS Next 2Y9.72%
EPS Next 3Y7.81%
TSX:EMA (12/5/2025, 7:00:00 PM)
65.66
-0.46 (-0.7%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners59.5%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap19.74B
Revenue(TTM)8.53B
Net Income(TTM)1.10B
Analysts70
Price Target70.07 (6.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
Yearly Dividend2.11
Dividend Growth(5Y)3.46%
DP57.91%
Div Incr Years18
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)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)1.53%
PT rev (3m)3.62%
EPS NQ rev (1m)-2.71%
EPS NQ rev (3m)-3.76%
EPS NY rev (1m)0.33%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.03%
Revenue NY rev (1m)2.23%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.32 | ||
| Fwd PE | 18.55 | ||
| P/S | 2.31 | ||
| P/FCF | N/A | ||
| P/OCF | 8.64 | ||
| P/B | 1.49 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | 11.61 |
EPS(TTM)3.79
EY5.77%
EPS(NY)3.54
Fwd EY5.39%
FCF(TTM)-4.02
FCFYN/A
OCF(TTM)7.6
OCFY11.57%
SpS28.38
BVpS44.16
TBVpS24.67
PEG (NY)0.8
PEG (5Y)6.96
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 Y21.64%
EPS Next 2Y9.72%
EPS Next 3Y7.81%
EPS Next 5Y8.58%
Revenue 1Y (TTM)15.17%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%16.87%
Revenue Next Year16.17%
Revenue Next 2Y5.13%
Revenue Next 3Y6.1%
Revenue Next 5Y3.05%
EBIT growth 1Y28.78%
EBIT growth 3Y11.95%
EBIT growth 5Y-1.07%
EBIT Next Year102.49%
EBIT Next 3Y30.17%
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 17.32 and the Price/Book (PB) ratio is 1.49.
How financially healthy is EMERA INC?
The financial health rating of EMERA INC (EMA.CA) is 2 / 10.