EMERA INC (EMA.CA) Stock Fundamental Analysis
TSX:EMA - Toronto Stock Exchange - CA2908761018 - Common Stock - Currency: CAD
Taking everything into account, EMA scores 3 out of 10 in our fundamental rating. EMA was compared to 19 industry peers in the Electric Utilities industry. Both the profitability and financial health of EMA have multiple concerns. EMA does not seem to be growing, but still is valued expensively. 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.
Each year in the past 5 years EMA has been profitable.
Each year in the past 5 years EMA had a positive operating cash flow.
1.2 Ratios
EMA has a worse Return On Assets (1.59%) than 94.74% of its industry peers.
With a Return On Equity value of 5.06%, EMA is not doing good in the industry: 94.74% of the companies in the same industry are doing better.
The Return On Invested Capital of EMA (3.05%) is worse than 94.74% 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 3.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 5.06% | ||
| ROIC | 3.05% |
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
With a Profit Margin value of 8.49%, EMA is not doing good in the industry: 94.74% of the companies in the same industry are doing better.
EMA's Profit Margin has declined in the last couple of years.
EMA has a Operating Margin of 21.15%. This is amonst the worse of the industry: EMA underperforms 89.47% of its industry peers.
EMA's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.15% | ||
| PM (TTM) | 8.49% | ||
| 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.
The debt/assets ratio for EMA has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.72, we must say that EMA is in the distress zone and has some risk of bankruptcy.
EMA has a Altman-Z score of 0.72. This is amongst the best in the industry. EMA outperforms 84.21% of its industry peers.
EMA has a Debt/Equity ratio of 1.50. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.50, EMA is doing worse than 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.54
WACC5.62%
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.
Looking at the Current ratio, with a value of 0.72, EMA is in line with its industry, outperforming 52.63% of the companies in the same industry.
A Quick Ratio of 0.54 indicates that EMA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.54, EMA is in line with its industry, outperforming 47.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
EMA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -52.04%.
EMA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.14% yearly.
Looking at the last year, EMA shows a decrease in Revenue. The Revenue has decreased by -4.80% 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)-52.04%
EPS 3Y-4.73%
EPS 5Y-9.14%
EPS Q2Q%-49.27%
Revenue 1Y (TTM)-4.8%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%-10.6%
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 8.39% on average per year.
EMA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.11% yearly.
EPS Next Y12.39%
EPS Next 2Y8.03%
EPS Next 3Y8.17%
EPS Next 5Y8.39%
Revenue Next Year9.92%
Revenue Next 2Y5.14%
Revenue Next 3Y6.16%
Revenue Next 5Y3.11%
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 34.47, EMA can be considered very expensive at the moment.
Based on the Price/Earnings ratio, EMA is valued more expensive than 94.74% of the companies in the same industry.
When comparing the Price/Earnings ratio of EMA to the average of the S&P500 Index (29.35), we can say EMA is valued inline with the index average.
EMA is valuated rather expensively with a Price/Forward Earnings ratio of 18.15.
84.21% of the companies in the same industry are cheaper than EMA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of EMA to the average of the S&P500 Index (22.10), we can say EMA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.47 | ||
| Fwd PE | 18.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMA is valued more expensive than 89.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EMA does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.78
PEG (5Y)N/A
EPS Next 2Y8.03%
EPS Next 3Y8.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.98%, EMA is a good candidate for dividend investing.
EMA's Dividend Yield is rather good when compared to the industry average which is at 4.46. EMA pays more dividend than 94.74% of the companies in the same industry.
EMA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.98% |
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
EMA pays out 95.55% of its income as dividend. This is not a sustainable payout ratio.
EMA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP95.55%
EPS Next 2Y8.03%
EPS Next 3Y8.17%
TSX:EMA (3/7/2025, 7:00:00 PM)
58.95
+0.74 (+1.27%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners31.98%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap17.45B
Analysts70.59
Price Target59.62 (1.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.98% |
Yearly Dividend2.11
Dividend Growth(5Y)3.46%
DP95.55%
Div Incr Years18
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.7%
Min EPS beat(2)-10.21%
Max EPS beat(2)2.82%
EPS beat(4)1
Avg EPS beat(4)-6.5%
Min EPS beat(4)-11.73%
Max EPS beat(4)2.82%
EPS beat(8)4
Avg EPS beat(8)0.6%
EPS beat(12)5
Avg EPS beat(12)-0.04%
EPS beat(16)7
Avg EPS beat(16)0.9%
Revenue beat(2)0
Avg Revenue beat(2)-14.55%
Min Revenue beat(2)-23.25%
Max Revenue beat(2)-5.85%
Revenue beat(4)0
Avg Revenue beat(4)-9.49%
Min Revenue beat(4)-23.25%
Max Revenue beat(4)-1.8%
Revenue beat(8)2
Avg Revenue beat(8)1.46%
Revenue beat(12)6
Avg Revenue beat(12)3.35%
Revenue beat(16)6
Avg Revenue beat(16)-1.39%
PT rev (1m)3.15%
PT rev (3m)7.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.28%
EPS NY rev (1m)0%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.47 | ||
| Fwd PE | 18.15 | ||
| P/S | 2.35 | ||
| P/FCF | N/A | ||
| P/OCF | 7.35 | ||
| P/B | 1.4 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 12.71 |
EPS(TTM)1.71
EY2.9%
EPS(NY)3.25
Fwd EY5.51%
FCF(TTM)-2.44
FCFYN/A
OCF(TTM)8.03
OCFY13.61%
SpS25.04
BVpS41.99
TBVpS23.42
PEG (NY)2.78
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 5.06% | ||
| ROCE | 4.41% | ||
| ROIC | 3.05% | ||
| ROICexc | 3.07% | ||
| ROICexgc | 3.62% | ||
| OM | 21.15% | ||
| PM (TTM) | 8.49% | ||
| 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-Score4
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.86 | ||
| Cap/Depr | 270.72% | ||
| Cap/Sales | 41.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.72 |
F-Score4
WACC5.62%
ROIC/WACC0.54
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)-52.04%
EPS 3Y-4.73%
EPS 5Y-9.14%
EPS Q2Q%-49.27%
EPS Next Y12.39%
EPS Next 2Y8.03%
EPS Next 3Y8.17%
EPS Next 5Y8.39%
Revenue 1Y (TTM)-4.8%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%-10.6%
Revenue Next Year9.92%
Revenue Next 2Y5.14%
Revenue Next 3Y6.16%
Revenue Next 5Y3.11%
EBIT growth 1Y-24.74%
EBIT growth 3Y11.95%
EBIT growth 5Y-1.07%
EBIT Next Year101.64%
EBIT Next 3Y27.55%
EBIT Next 5Y23.27%
FCF growth 1Y38.76%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y33.73%
OCF growth 3Y30.7%
OCF growth 5Y11.65%