EMERA INC (EMA.CA) Stock Fundamental Analysis
TSX:EMA - Toronto Stock Exchange - CA2908761018 - Common Stock - Currency: CAD
We assign a fundamental rating of 3 out of 10 to EMA. EMA was compared to 19 industry peers in the Electric Utilities industry. EMA may be in some trouble as it scores bad on both profitability and health. EMA has a expensive valuation and it also scores bad on growth. 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.
EMA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EMA's Return On Assets of 1.59% is on the low side compared to the rest of the industry. EMA is outperformed by 94.74% of its industry peers.
EMA has a worse Return On Equity (5.06%) than 94.74% of its industry peers.
With a Return On Invested Capital value of 3.05%, EMA is not doing good in the industry: 94.74% of the companies in the same industry are doing better.
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
The Profit Margin of EMA (8.49%) is worse than 94.74% of its industry peers.
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.
In the last couple of years the Operating Margin of EMA has declined.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for EMA has been reduced compared to a year ago.
2.2 Solvency
EMA has an Altman-Z score of 0.74. This is a bad value and indicates that EMA is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of EMA (0.74) is better than 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.
EMA's Debt to Equity ratio of 1.50 is on the low side compared to the rest of the industry. EMA is outperformed by 94.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.74 |
ROIC/WACC0.55
WACC5.54%
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.
The Current ratio of EMA (0.72) is comparable to the rest of the industry.
A Quick Ratio of 0.54 indicates that EMA may have some problems paying its short term obligations.
EMA has a Quick ratio (0.54) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for EMA have decreased by -1.01% in the last year.
EMA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.49% 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)-1.01%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%33.33%
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 small growth in Earnings Per Share. The EPS will grow by 5.39% on average per year.
Based on estimates for the next years, EMA will show a small growth in Revenue. The Revenue will grow by 2.62% on average per year.
EPS Next Y11.25%
EPS Next 2Y7.26%
EPS Next 3Y6.57%
EPS Next 5Y5.39%
Revenue Next Year7.88%
Revenue Next 2Y3.3%
Revenue Next 3Y4.45%
Revenue Next 5Y2.62%
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
A Price/Earnings ratio of 20.89 indicates a rather expensive valuation of EMA.
EMA's Price/Earnings ratio is rather expensive when compared to the industry. EMA is more expensive than 89.47% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.78, EMA is valued a bit cheaper.
With a Price/Forward Earnings ratio of 18.78, EMA is valued on the expensive side.
Based on the Price/Forward Earnings ratio, EMA is valued expensively inside the industry as 84.21% of the companies are valued cheaper.
The average S&P500 Price/Forward Earnings ratio is at 21.32. EMA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.89 | ||
| Fwd PE | 18.78 |
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 | 13.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.86
PEG (5Y)8.39
EPS Next 2Y7.26%
EPS Next 3Y6.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.74%, EMA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.21, EMA pays a better dividend. On top of this EMA pays more dividend than 94.74% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, EMA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
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
95.55% of the earnings are spent on dividend by EMA. This is not a sustainable payout ratio.
The dividend of EMA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP95.55%
EPS Next 2Y7.26%
EPS Next 3Y6.57%
TSX:EMA (4/25/2025, 7:00:00 PM)
61.41
+0.27 (+0.44%)
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 Cap18.28B
Analysts70.59
Price Target60.92 (-0.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
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)2.18%
PT rev (3m)5.71%
EPS NQ rev (1m)-0.83%
EPS NQ rev (3m)1.43%
EPS NY rev (1m)0.29%
EPS NY rev (3m)2.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)-1.86%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.89 | ||
| Fwd PE | 18.78 | ||
| P/S | 2.47 | ||
| P/FCF | N/A | ||
| P/OCF | 7.7 | ||
| P/B | 1.47 | ||
| P/tB | 2.64 | ||
| EV/EBITDA | 13.02 |
EPS(TTM)2.94
EY4.79%
EPS(NY)3.27
Fwd EY5.33%
FCF(TTM)-2.42
FCFYN/A
OCF(TTM)7.98
OCFY12.99%
SpS24.88
BVpS41.74
TBVpS23.28
PEG (NY)1.86
PEG (5Y)8.39
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 | 0.74 |
F-Score4
WACC5.54%
ROIC/WACC0.55
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)-1.01%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%33.33%
EPS Next Y11.25%
EPS Next 2Y7.26%
EPS Next 3Y6.57%
EPS Next 5Y5.39%
Revenue 1Y (TTM)-4.8%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%-10.6%
Revenue Next Year7.88%
Revenue Next 2Y3.3%
Revenue Next 3Y4.45%
Revenue Next 5Y2.62%
EBIT growth 1Y-24.74%
EBIT growth 3Y11.95%
EBIT growth 5Y-1.07%
EBIT Next Year99.26%
EBIT Next 3Y29.26%
EBIT Next 5Y19.32%
FCF growth 1Y38.76%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y33.73%
OCF growth 3Y30.7%
OCF growth 5Y11.65%