EMERA INC (EMA.CA) Stock Fundamental Analysis
TSX:EMA - Toronto Stock Exchange - CA2908761018 - Common Stock - Currency: CAD
EMA gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 19 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
EMA had positive earnings in the past year.
In the past year EMA had a positive cash flow from operations.
EMA had positive earnings in each of the past 5 years.
Each year in the past 5 years EMA had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.19%, EMA is not doing good in the industry: 94.74% of the companies in the same industry are doing better.
With a Return On Equity value of 7.00%, EMA perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
EMA has a Return On Invested Capital of 3.49%. This is amonst the worse of the industry: EMA underperforms 94.74% 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 3.84%.
The last Return On Invested Capital (3.49%) for EMA is above the 3 year average (3.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 7% | ||
| ROIC | 3.49% |
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 11.07%. This is amonst the worse of the industry: EMA underperforms 94.74% of its industry peers.
EMA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 22.82%, EMA is doing worse than 89.47% of the companies in the same industry.
In the last couple of years the Operating Margin of EMA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.82% | ||
| PM (TTM) | 11.07% | ||
| 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.
Compared to 1 year ago, EMA has more shares outstanding
EMA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, EMA has an improved debt to assets ratio.
2.2 Solvency
EMA has an Altman-Z score of 0.78. This is a bad value and indicates that EMA is not financially healthy and even has some risk of bankruptcy.
EMA has a Altman-Z score of 0.78. This is amongst the best in the industry. EMA outperforms 89.47% of its industry peers.
A Debt/Equity ratio of 1.50 is on the high side and indicates that EMA has dependencies on debt financing.
EMA has a worse Debt to Equity ratio (1.50) than 94.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.78 |
ROIC/WACC0.62
WACC5.67%
2.3 Liquidity
A Current Ratio of 0.72 indicates that EMA may have some problems paying its short term obligations.
With a Current ratio value of 0.72, EMA is not doing good in the industry: 89.47% of the companies in the same industry are doing better.
A Quick Ratio of 0.54 indicates that EMA may have some problems paying its short term obligations.
The Quick ratio of EMA (0.54) is worse than 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.28% over the past year.
The Earnings Per Share has been growing slightly by 2.49% on average over the past years.
EMA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.93%.
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)26.28%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%68.42%
Revenue 1Y (TTM)9.93%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%32.61%
3.2 Future
EMA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.79% yearly.
Based on estimates for the next years, EMA will show a small growth in Revenue. The Revenue will grow by 3.17% on average per year.
EPS Next Y11.25%
EPS Next 2Y7.26%
EPS Next 3Y6.57%
EPS Next 5Y5.79%
Revenue Next Year7.88%
Revenue Next 2Y3.3%
Revenue Next 3Y4.45%
Revenue Next 5Y3.17%
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 18.20 indicates a rather expensive valuation of EMA.
Compared to the rest of the industry, the Price/Earnings ratio of EMA indicates a rather expensive valuation: EMA more expensive than 84.21% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of EMA to the average of the S&P500 Index (27.30), we can say EMA is valued slightly cheaper.
A Price/Forward Earnings ratio of 18.62 indicates a rather expensive valuation of EMA.
Based on the Price/Forward Earnings ratio, EMA is valued expensively inside the industry as 89.47% of the companies are valued cheaper.
EMA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.2 | ||
| Fwd PE | 18.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMA is valued more expensive than 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.91 |
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)1.62
PEG (5Y)7.31
EPS Next 2Y7.26%
EPS Next 3Y6.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.81%, EMA is a good candidate for dividend investing.
EMA's Dividend Yield is comparable with the industry average which is at 6.60.
EMA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
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
70.92% of the earnings are spent on dividend by EMA. This is not a sustainable payout ratio.
EMA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP70.92%
EPS Next 2Y7.26%
EPS Next 3Y6.57%
TSX:EMA (7/11/2025, 7:00:00 PM)
62.97
+0.44 (+0.7%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners32.66%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap18.75B
Analysts70.53
Price Target64.73 (2.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
Yearly Dividend2.11
Dividend Growth(5Y)3.46%
DP70.92%
Div Incr Years18
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.4%
Min EPS beat(2)8.91%
Max EPS beat(2)27.9%
EPS beat(4)3
Avg EPS beat(4)7.35%
Min EPS beat(4)-10.21%
Max EPS beat(4)27.9%
EPS beat(8)4
Avg EPS beat(8)0.88%
EPS beat(12)7
Avg EPS beat(12)3.44%
EPS beat(16)8
Avg EPS beat(16)2.35%
Revenue beat(2)1
Avg Revenue beat(2)2.67%
Min Revenue beat(2)-13.96%
Max Revenue beat(2)19.3%
Revenue beat(4)1
Avg Revenue beat(4)-5.94%
Min Revenue beat(4)-23.25%
Max Revenue beat(4)19.3%
Revenue beat(8)1
Avg Revenue beat(8)-7.23%
Revenue beat(12)5
Avg Revenue beat(12)3.04%
Revenue beat(16)7
Avg Revenue beat(16)0.84%
PT rev (1m)5.76%
PT rev (3m)7.39%
EPS NQ rev (1m)-0.42%
EPS NQ rev (3m)-6.16%
EPS NY rev (1m)0%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)-7.36%
Revenue NQ rev (3m)-8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.2 | ||
| Fwd PE | 18.62 | ||
| P/S | 2.39 | ||
| P/FCF | N/A | ||
| P/OCF | 6.75 | ||
| P/B | 1.51 | ||
| P/tB | 2.71 | ||
| EV/EBITDA | 11.91 |
EPS(TTM)3.46
EY5.49%
EPS(NY)3.38
Fwd EY5.37%
FCF(TTM)-1.67
FCFYN/A
OCF(TTM)9.32
OCFY14.81%
SpS26.39
BVpS41.74
TBVpS23.28
PEG (NY)1.62
PEG (5Y)7.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 7% | ||
| ROCE | 5.05% | ||
| ROIC | 3.49% | ||
| ROICexc | 3.52% | ||
| ROICexgc | 4.14% | ||
| OM | 22.82% | ||
| PM (TTM) | 11.07% | ||
| 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%
ROICexcg growth 3Y1.9%
ROICexcg 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 | 1.5 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.21 | ||
| Cap/Depr | 272.83% | ||
| Cap/Sales | 41.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.78 |
F-Score7
WACC5.67%
ROIC/WACC0.62
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)26.28%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%68.42%
EPS Next Y11.25%
EPS Next 2Y7.26%
EPS Next 3Y6.57%
EPS Next 5Y5.79%
Revenue 1Y (TTM)9.93%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%32.61%
Revenue Next Year7.88%
Revenue Next 2Y3.3%
Revenue Next 3Y4.45%
Revenue Next 5Y3.17%
EBIT growth 1Y34.11%
EBIT growth 3Y11.95%
EBIT growth 5Y-1.07%
EBIT Next Year109.46%
EBIT Next 3Y30.88%
EBIT Next 5Y20.01%
FCF growth 1Y74.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y262.88%
OCF growth 3Y30.7%
OCF growth 5Y11.65%