EMERA INC (EMA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EMA - CA2908761018 - Common Stock
67.99 CAD
+0.1 (+0.15%)
Overall EMA gets a fundamental rating of 3 out of 10. We evaluated EMA against 18 industry peers in the Electric Utilities industry. Both the profitability and financial health of EMA have multiple concerns. EMA is valied quite expensively at the moment, while it does show a decent growth rate. EMA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
EMA had positive earnings in the past year.
EMA had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 2.56%, EMA is in line with its industry, outperforming 50.00% of the companies in the same industry.
With a Return On Equity value of 8.29%, EMA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
EMA has a Return On Invested Capital of 3.70%. This is amonst the worse of the industry: EMA underperforms 94.44% 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 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's Profit Margin of 12.89% is on the low side compared to the rest of the industry. EMA is outperformed by 94.44% of its industry peers.
In the last couple of years the Profit Margin of EMA has declined.
EMA's Operating Margin of 23.65% is on the low side compared to the rest of the industry. EMA is outperformed by 88.89% 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
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
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 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.
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/WACC0.65
WACC5.74%
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.
A Quick Ratio of 0.57 indicates that EMA may have some problems paying 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.
The Earnings Per Share has been growing slightly by 2.49% on average over the past years.
Looking at the last year, EMA shows a quite strong growth in Revenue. The Revenue has grown by 15.17% 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)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
EMA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.58% yearly.
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
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.94, which indicates a rather expensive current valuation of EMA.
83.33% of the companies in the same industry are cheaper than EMA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.19. EMA is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 19.15, the valuation of EMA can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EMA indicates a rather expensive valuation: EMA more expensive than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.88. EMA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.94 | ||
| Fwd PE | 19.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMA is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.82 |
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)0.84
PEG (5Y)7.21
EPS Next 2Y9.9%
EPS Next 3Y7.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.54%, EMA is a good candidate for dividend investing.
EMA's Dividend Yield is a higher than the industry average which is at 5.86.
Compared to an average S&P500 Dividend Yield of 1.94, EMA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
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.
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 (1/9/2026, 7:00:00 PM)
67.99
+0.1 (+0.15%)
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 Cap20.44B
Revenue(TTM)8.53B
Net Income(TTM)1.10B
Analysts70
Price Target71.48 (5.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
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 | 17.94 | ||
| Fwd PE | 19.15 | ||
| P/S | 2.4 | ||
| P/FCF | N/A | ||
| P/OCF | 8.95 | ||
| P/B | 1.54 | ||
| P/tB | 2.76 | ||
| EV/EBITDA | 11.82 |
EPS(TTM)3.79
EY5.57%
EPS(NY)3.55
Fwd EY5.22%
FCF(TTM)-4.02
FCFYN/A
OCF(TTM)7.6
OCFY11.17%
SpS28.38
BVpS44.16
TBVpS24.67
PEG (NY)0.84
PEG (5Y)7.21
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
WACC5.74%
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 17.94 and the Price/Book (PB) ratio is 1.54.
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.