EMERA INC (EMA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EMA - CA2908761018 - Common Stock
67.64 CAD
+0.1 (+0.15%)
Taking everything into account, EMA scores 3 out of 10 in our fundamental rating. EMA was compared to 16 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. Finally 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
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.
The Return On Equity of EMA (8.29%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.70%, EMA is doing worse than 93.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EMA is in line with the industry average of 4.02%.
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
Looking at the Profit Margin, with a value of 12.89%, EMA is doing worse than 93.75% of the companies in the same industry.
EMA's Profit Margin has declined in the last couple of years.
The Operating Margin of EMA (23.65%) is worse than 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.
Compared to 1 year ago, EMA has more shares outstanding
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.
EMA has a Altman-Z score of 0.77. This is amongst the best in 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.
With a Debt to Equity ratio value of 1.47, EMA is not doing good in the industry: 93.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.65
WACC5.73%
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 56.25% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.57, EMA is in line with its industry, outperforming 56.25% 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.
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.
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
The Earnings Per Share is expected to grow by 8.58% on average over the next years. This is quite good.
EMA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.05% yearly.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.85 indicates a rather expensive valuation of EMA.
Based on the Price/Earnings ratio, EMA is valued more expensive than 81.25% 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 26.51.
Based on the Price/Forward Earnings ratio of 19.05, the valuation of EMA can be described as rather expensive.
Based on the Price/Forward Earnings ratio, EMA is valued expensively inside the industry as 81.25% of the companies are valued cheaper.
EMA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.85 | ||
| Fwd PE | 19.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMA is valued expensively inside the industry as 81.25% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.8 |
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)0.83
PEG (5Y)7.17
EPS Next 2Y9.9%
EPS Next 3Y7.83%
5. Dividend
5.1 Amount
EMA has a Yearly Dividend Yield of 5.31%, which is a nice return.
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 been paying a dividend for at least 10 years, so it has 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 (12/31/2025, 7:00:00 PM)
67.64
+0.1 (+0.15%)
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 Cap20.34B
Revenue(TTM)8.53B
Net Income(TTM)1.10B
Analysts70
Price Target71.48 (5.68%)
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-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)5.71%
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 | 17.85 | ||
| Fwd PE | 19.05 | ||
| P/S | 2.38 | ||
| P/FCF | N/A | ||
| P/OCF | 8.9 | ||
| P/B | 1.53 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | 11.8 |
EPS(TTM)3.79
EY5.6%
EPS(NY)3.55
Fwd EY5.25%
FCF(TTM)-4.02
FCFYN/A
OCF(TTM)7.6
OCFY11.23%
SpS28.38
BVpS44.16
TBVpS24.67
PEG (NY)0.83
PEG (5Y)7.17
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.
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 17.85 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 21.44% in the next year.