EMERA INC (EMA.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:EMA • CA2908761018
67.96 CAD
-0.17 (-0.25%)
Last: Jan 29, 2026, 07:00 PM
We assign a fundamental rating of 3 out of 10 to EMA. EMA was compared to 18 industry peers in the Electric Utilities industry. EMA has a bad profitability rating. Also its financial health evaluation is rather negative. 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
- EMA had positive earnings in the past year.
- EMA had a positive operating cash flow in the past year.
- EMA had positive earnings in each of the past 5 years.
- In the past 5 years EMA always reported a positive cash flow from operatings.
1.2 Ratios
- EMA has a Return On Assets (2.56%) which is in line with its industry peers.
- The Return On Equity of EMA (8.29%) is comparable to the rest of the industry.
- The Return On Invested Capital of EMA (3.70%) is worse than 94.44% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EMA is in line with the industry average of 4.03%.
- 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 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.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EMA 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.
- The debt/assets ratio for EMA has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.77, we must say that EMA is in the distress zone and has some risk of bankruptcy.
- EMA has a better Altman-Z score (0.77) than 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.
- Looking at the Debt to Equity ratio, with a value of 1.47, EMA is doing worse than 94.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.63
WACC5.85%
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 55.56% of the companies in the same industry.
- A Quick Ratio of 0.57 indicates that EMA may have some problems paying its short term obligations.
- With a Quick ratio value of 0.57, EMA perfoms like the industry average, 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
- The Earnings Per Share has grown by an impressive 38.83% over the past year.
- 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.
- The Revenue has been growing slightly by 3.33% on average over the past years.
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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.96% yearly.
- 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
- A Price/Earnings ratio of 17.93 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 83.33% of the companies in the same industry.
- EMA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.39.
- With a Price/Forward Earnings ratio of 19.14, EMA is valued on the expensive side.
- 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.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. EMA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.93 | ||
| Fwd PE | 19.14 |
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 | 11.83 |
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)7.21
EPS Next 2Y9.9%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
- EMA has a Yearly Dividend Yield of 4.28%, which is a nice return.
- EMA's Dividend Yield is rather good when compared to the industry average which is at 3.93. EMA pays more dividend than 94.44% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, EMA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
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 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 3Y7.77%
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 17.93 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 21.58% in the next year.