EMERA INC (EMA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EMA - CA2908761018 - Common Stock
67.67 CAD
+0.72 (+1.08%)
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 may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, EMA is valued expensive at the moment. 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 (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.
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.
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 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.
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
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
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.
The Altman-Z score of EMA (0.77) is better 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.
With a Debt to Equity ratio value of 1.47, EMA is not doing good in the industry: 94.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.65
WACC5.73%
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.
EMA's Current ratio of 0.72 is in line compared to the rest of the industry. EMA outperforms 55.56% of its industry peers.
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.
EMA's Quick ratio of 0.57 is in line compared to the rest of the industry. EMA outperforms 55.56% of 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.
EMA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.49% yearly.
Looking at the last year, EMA shows a quite strong growth in Revenue. The Revenue has grown by 15.17% in the last year.
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)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 8.58% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.05% on average over the next years.
EPS Next Y21.44%
EPS Next 2Y9.9%
EPS Next 3Y7.83%
EPS Next 5Y8.58%
Revenue Next Year14.29%
Revenue Next 2Y4.69%
Revenue Next 3Y6.1%
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
With a Price/Earnings ratio of 17.85, EMA is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of EMA indicates a rather expensive valuation: EMA more expensive than 83.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of EMA to the average of the S&P500 Index (26.92), we can say EMA is valued slightly cheaper.
A Price/Forward Earnings ratio of 19.06 indicates a rather expensive valuation of EMA.
83.33% of the companies in the same industry are cheaper than EMA, based on the Price/Forward Earnings ratio.
EMA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.85 | ||
| Fwd PE | 19.06 |
4.2 Price Multiples
83.33% of the companies in the same industry are cheaper than EMA, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.8 |
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)7.18
EPS Next 2Y9.9%
EPS Next 3Y7.83%
5. Dividend
5.1 Amount
EMA has a Yearly Dividend Yield of 6.08%, which is a nice return.
EMA's Dividend Yield is a higher than the industry average which is at 5.86.
EMA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.08% |
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 2Y9.9%
EPS Next 3Y7.83%
TSX:EMA (1/7/2026, 7:00:00 PM)
67.67
+0.72 (+1.08%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners59.26%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap20.35B
Revenue(TTM)8.53B
Net Income(TTM)1.10B
Analysts70
Price Target71.48 (5.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.08% |
Yearly Dividend2.11
Dividend Growth(5Y)3.46%
DP57.91%
Div Incr Years18
Div Non Decr Years26
Ex-DateN/A
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)2.07%
PT rev (3m)5.58%
EPS NQ rev (1m)-1.84%
EPS NQ rev (3m)-4.5%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)-9.79%
Revenue NQ rev (3m)32.97%
Revenue NY rev (1m)-1.61%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.85 | ||
| Fwd PE | 19.06 | ||
| P/S | 2.38 | ||
| P/FCF | N/A | ||
| P/OCF | 8.91 | ||
| P/B | 1.53 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | 11.8 |
EPS(TTM)3.79
EY5.6%
EPS(NY)3.55
Fwd EY5.25%
FCF(TTM)-4.02
FCFYN/A
OCF(TTM)7.6
OCFY11.22%
SpS28.38
BVpS44.16
TBVpS24.67
PEG (NY)0.83
PEG (5Y)7.18
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 | 0.77 |
F-Score7
WACC5.73%
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 Y21.44%
EPS Next 2Y9.9%
EPS Next 3Y7.83%
EPS Next 5Y8.58%
Revenue 1Y (TTM)15.17%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%16.87%
Revenue Next Year14.29%
Revenue Next 2Y4.69%
Revenue Next 3Y6.1%
Revenue Next 5Y3.05%
EBIT growth 1Y28.78%
EBIT growth 3Y11.95%
EBIT growth 5Y-1.07%
EBIT Next Year99.77%
EBIT Next 3Y30.22%
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.
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 17.85 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 21.44% in the next year.