EMERA INC (EMA.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:EMA • CA2908761018
67.49 CAD
-0.47 (-0.69%)
Last: Jan 30, 2026, 07:00 PM
Overall EMA gets a fundamental rating of 3 out of 10. We evaluated EMA 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 quite expensive at the moment. 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.
- In the past year EMA had a positive cash flow from operations.
- EMA had positive earnings in each of the past 5 years.
- EMA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of EMA (2.56%) is comparable to the rest of the industry.
- 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.
- Looking at the Return On Invested Capital, with a value of 3.70%, EMA is doing worse than 94.44% of the companies in the same industry.
- 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 4.03%.
- 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
- EMA has a Profit Margin of 12.89%. This is amonst the worse of the industry: EMA underperforms 94.44% of its industry peers.
- In the last couple of years the Profit Margin of EMA has declined.
- Looking at the Operating Margin, with a value of 23.65%, EMA is doing worse than 88.89% of the companies in the same industry.
- 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.
- Compared to 1 year ago, EMA has more shares outstanding
- The number of shares outstanding for EMA has been increased compared to 5 years ago.
- EMA has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.77, we must say that EMA is in the distress zone and has some risk of bankruptcy.
- EMA has a better Altman-Z score (0.77) than 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.
- 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 | 0.77 |
ROIC/WACC0.63
WACC5.84%
2.3 Liquidity
- A Current Ratio of 0.72 indicates that EMA may have some problems paying its short term obligations.
- EMA has a Current ratio (0.72) which is in line with its industry peers.
- A Quick Ratio of 0.57 indicates that EMA may have some problems paying its short term obligations.
- EMA has a Quick ratio (0.57) which is in line with its industry peers.
| 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.
- Looking at the last year, EMA shows a quite strong growth in Revenue. The Revenue has grown by 15.17% in the last year.
- 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 small growth in Earnings Per Share. The EPS will grow by 7.96% on average per year.
- The Revenue is expected to grow by 2.56% on average over the next years.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- EMA is valuated rather expensively with a Price/Earnings ratio of 17.81.
- 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 28.30.
- Based on the Price/Forward Earnings ratio of 19.01, 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.
- When comparing the Price/Forward Earnings ratio of EMA to the average of the S&P500 Index (25.57), we can say EMA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.81 | ||
| Fwd PE | 19.01 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EMA is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.83 |
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)0.83
PEG (5Y)7.16
EPS Next 2Y9.9%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
- EMA has a Yearly Dividend Yield of 4.28%, which is a nice return.
- EMA's Dividend Yield is rather good when compared to the industry average which is at 3.93. EMA pays more dividend than 94.44% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, EMA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
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 2Y9.9%
EPS Next 3Y7.77%
EMERA INC / EMA.CA FAQ
What is the fundamental rating for EMA stock?
ChartMill assigns a fundamental rating of 3 / 10 to EMA.CA.
Can you provide the valuation status for EMERA INC?
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.
What are the PE and PB ratios of EMERA INC (EMA.CA) stock?
The Price/Earnings (PE) ratio for EMERA INC (EMA.CA) is 17.81 and the Price/Book (PB) ratio is 1.53.
What is the expected EPS growth for EMERA INC (EMA.CA) stock?
The Earnings per Share (EPS) of EMERA INC (EMA.CA) is expected to grow by 21.58% in the next year.