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
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. Both the profitability and financial health of EMA have multiple concerns. While showing a medium growth rate, EMA is valued expensive at the moment. 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.
- In the past 5 years EMA has always been profitable.
- 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 (8.29%) which is in line with its industry peers.
- EMA's Return On Invested Capital of 3.70% is on the low side compared to the rest of the industry. EMA is outperformed by 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 3 year average ROIC (3.14%) for EMA is below the current ROIC(3.70%), indicating increased profibility in the last year.
| 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 worse Profit Margin (12.89%) than 94.44% of its industry peers.
- In the last couple of years the Profit Margin of EMA has declined.
- EMA has a Operating Margin of 23.65%. This is amonst the worse of the industry: EMA underperforms 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
- 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.
- The number of shares outstanding for EMA has been increased compared to 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 0.77. This is a bad value and indicates that EMA is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.77, EMA belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- A Debt/Equity ratio of 1.47 is on the high side and indicates that EMA has dependencies on debt financing.
- EMA's Debt to Equity ratio of 1.47 is on the low side compared to the rest of the industry. EMA is outperformed by 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
- 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 has a Current ratio of 0.72. This is comparable to the rest of the industry: EMA outperforms 55.56% of its industry peers.
- A Quick Ratio of 0.57 indicates that EMA may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.57, EMA is in line with its industry, 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.
- The Revenue has grown by 15.17% in the past year. This is quite good.
- 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
- 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.
- EMA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.56% yearly.
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
- The Price/Earnings ratio is 17.81, 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.
- EMA is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 19.01 indicates a rather expensive valuation of EMA.
- EMA's Price/Forward Earnings ratio is rather expensive when compared to the industry. EMA is more expensive than 83.33% of the companies in the same industry.
- 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
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EMA indicates a rather expensive valuation: EMA more expensive than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.78 |
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)0.83
PEG (5Y)7.16
EPS Next 2Y9.9%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.31%, EMA is a good candidate for dividend investing.
- EMA's Dividend Yield is rather good when compared to the industry average which is at 3.94. EMA pays more dividend than 94.44% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, EMA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
5.2 History
- The dividend of EMA has a limited annual growth rate of 3.46%.
- EMA has paid a dividend for at least 10 years, which is 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 57.91% of its income as dividend. This is a bit on the high side, but may be sustainable.
- EMA's earnings are growing more than its dividend. This makes the dividend growth 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.