EMERA INC (EMA.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:EMA • CA2908761018
67.49 CAD
-0.47 (-0.69%)
Last: Jan 30, 2026, 07:00 PM
Overall EMA gets a fundamental rating of 3 out of 10. We evaluated EMA against 18 industry peers in the Electric Utilities industry. EMA has a bad profitability rating. Also its financial health evaluation is rather negative. EMA is valied quite expensively at the moment, while it does show a decent growth rate. 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.
- 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
- The Return On Assets of EMA (2.56%) is comparable to the rest of the industry.
- EMA's Return On Equity of 8.29% is in line compared to the rest of the industry. EMA outperforms 50.00% of its industry peers.
- 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.
- The Average Return On Invested Capital over the past 3 years for EMA 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
- With a Profit Margin value of 12.89%, EMA is not doing good in the industry: 94.44% of the companies in the same industry are doing better.
- 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.
- EMA's Operating Margin has declined in the last couple of years.
| 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.
- 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'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.
- 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
WACC5.84%
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 55.56% 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 in line with its industry peers.
| 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.
- EMA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.49% yearly.
- The Revenue has grown by 15.17% in the past year. This is quite good.
- 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 7.96% on average over the next years.
- The Revenue is expected to grow by 2.56% on average over the next years.
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
- 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 17.81, 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 83.33% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, EMA is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 19.01, the valuation of EMA can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, EMA is valued more expensive than 83.33% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. EMA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.81 | ||
| Fwd PE | 19.01 |
4.2 Price Multiples
- 83.33% 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 | 11.78 |
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)7.16
EPS Next 2Y9.9%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
- EMA has a Yearly Dividend Yield of 4.31%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.94, EMA pays a better dividend. On top of this EMA pays more dividend than 94.44% of the companies listed in the same industry.
- EMA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
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.
- 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 17.81 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 21.58% in the next year.