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
Taking everything into account, EMA scores 3 out of 10 in our fundamental rating. 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. 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.
- In the past year EMA had a positive cash flow from operations.
- 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
- 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.
- 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 Profit Margin of 12.89%. This is amonst the worse of the industry: EMA underperforms 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.
- 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
- 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.
- 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 0.77. 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.
- 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
- 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.
- 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 comparable to the rest of the 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.
- 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 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
- Based on estimates for the next years, EMA will show a small growth in Earnings Per Share. The EPS will grow by 7.96% on average per year.
- 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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 17.81, the valuation of EMA can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of EMA indicates a rather expensive valuation: EMA more expensive than 83.33% of the companies listed in the same industry.
- EMA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.30.
- With a Price/Forward Earnings ratio of 19.01, 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.
- When comparing the Price/Forward Earnings ratio of EMA to the average of the S&P500 Index (25.57), we can say EMA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.81 | ||
| Fwd PE | 19.01 |
4.2 Price Multiples
- EMA's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. EMA is more expensive than 83.33% of the companies 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)7.16
EPS Next 2Y9.9%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.31%, EMA is a good candidate for dividend investing.
- 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 | 4.31% |
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 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
- EMA pays out 57.91% of its income as dividend. 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 3Y7.77%
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.