EMERA INC (EMA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EMA - CA2908761018 - Common Stock
67.34 CAD
+0.3 (+0.45%)
EMA gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 16 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. 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.
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
With a Return On Assets value of 2.56%, EMA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
EMA has a Return On Equity (8.29%) which is comparable to the rest of the industry.
EMA has a worse Return On Invested Capital (3.70%) than 93.75% 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 4.02%.
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 93.75% 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 93.75% of its industry peers.
In the last couple of years the Operating Margin of EMA has declined.
| 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.
The number of shares outstanding for EMA has been increased compared to 1 year ago.
EMA has more shares outstanding than it did 5 years ago.
EMA has a better debt/assets ratio than last year.
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.
EMA's Altman-Z score of 0.77 is amongst the best of the industry. EMA outperforms 87.50% 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.
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 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.65
WACC5.73%
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 perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
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 has a Quick ratio (0.57) which is comparable to the rest of the 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.
EMA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.49% yearly.
EMA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.17%.
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 quite strong growth in Earnings Per Share. The EPS will grow by 8.58% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.77, 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 81.25% of the companies in the same industry.
When comparing the Price/Earnings ratio of EMA to the average of the S&P500 Index (26.84), we can say EMA is valued slightly cheaper.
The Price/Forward Earnings ratio is 18.96, which indicates a rather expensive current valuation of EMA.
Based on the Price/Forward Earnings ratio, EMA is valued more expensive than 81.25% of the companies in the same industry.
EMA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 18.96 |
4.2 Price Multiples
81.25% 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 | 11.77 |
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)7.14
EPS Next 2Y9.9%
EPS Next 3Y7.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.31%, EMA is a good candidate for dividend investing.
EMA's Dividend Yield is comparable with the industry average which is at 5.32.
Compared to an average S&P500 Dividend Yield of 2.00, EMA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
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 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.
EMA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.91%
EPS Next 2Y9.9%
EPS Next 3Y7.83%
TSX:EMA (12/29/2025, 7:00:00 PM)
67.34
+0.3 (+0.45%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners59.5%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap20.25B
Revenue(TTM)8.53B
Net Income(TTM)1.10B
Analysts70
Price Target71.48 (6.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
Yearly Dividend2.11
Dividend Growth(5Y)3.46%
DP57.91%
Div Incr Years18
Div Non Decr Years26
Ex-Date
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)5.71%
EPS NQ rev (1m)-1.84%
EPS NQ rev (3m)-5.53%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)-9.79%
Revenue NQ rev (3m)-3.45%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 18.96 | ||
| P/S | 2.37 | ||
| P/FCF | N/A | ||
| P/OCF | 8.87 | ||
| P/B | 1.53 | ||
| P/tB | 2.73 | ||
| EV/EBITDA | 11.77 |
EPS(TTM)3.79
EY5.63%
EPS(NY)3.55
Fwd EY5.27%
FCF(TTM)-4.02
FCFYN/A
OCF(TTM)7.6
OCFY11.28%
SpS28.38
BVpS44.16
TBVpS24.67
PEG (NY)0.83
PEG (5Y)7.14
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.
What is the valuation status for EMA stock?
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.
Can you provide the PE and PB ratios for EMA stock?
The Price/Earnings (PE) ratio for EMERA INC (EMA.CA) is 17.77 and the Price/Book (PB) ratio is 1.53.
How financially healthy is EMERA INC?
The financial health rating of EMERA INC (EMA.CA) is 2 / 10.