EMERA INC (EMA.CA) Stock Fundamental Analysis
Canada - TSX:EMA - CA2908761018 - Common Stock
68.01 CAD
-0.41 (-0.6%)
EMA gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 18 industry peers in the Electric Utilities industry. Both the profitability and financial health of EMA have multiple concerns. EMA is quite expensive at the moment. 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
EMA has a Return On Assets of 2.56%. This is comparable to the rest of the industry: EMA outperforms 50.00% of its industry peers.
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.
With a Return On Invested Capital value of 3.70%, EMA is not doing good in the industry: 94.44% 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 4.02%.
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
The Profit Margin of EMA (12.89%) is worse 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.
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.
Compared to 1 year ago, EMA has an improved debt to assets ratio.
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 Altman-Z score of 0.77. This is amongst the best in 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.
EMA has a Debt to Equity ratio of 1.47. This is amonst the worse of the industry: EMA underperforms 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.64
WACC5.76%
2.3 Liquidity
A Current Ratio of 0.72 indicates that EMA may have some problems paying 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.
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's Quick ratio of 0.57 is in line compared to the rest of the industry. EMA outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
EMA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.01%.
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.
Measured over the past years, EMA shows a small growth in Revenue. The Revenue has been growing by 3.33% on average per year.
EPS 1Y (TTM)-1.01%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%5396.38%
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.44% yearly.
Based on estimates for the next years, EMA will show a small growth in Revenue. The Revenue will grow by 3.84% on average per year.
EPS Next Y21.24%
EPS Next 2Y9.23%
EPS Next 3Y7.5%
EPS Next 5Y8.44%
Revenue Next Year13.64%
Revenue Next 2Y4.44%
Revenue Next 3Y5.15%
Revenue Next 5Y3.84%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.13, EMA is valued on the expensive side.
88.89% of the companies in the same industry are cheaper than EMA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of EMA to the average of the S&P500 Index (25.47), we can say EMA is valued inline with the index average.
EMA is valuated rather expensively with a Price/Forward Earnings ratio of 19.39.
Based on the Price/Forward Earnings ratio, EMA is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
When comparing the Price/Forward Earnings ratio of EMA to the average of the S&P500 Index (35.42), we can say EMA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.13 | ||
| Fwd PE | 19.39 |
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 | 11.82 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.09
PEG (5Y)9.3
EPS Next 2Y9.23%
EPS Next 3Y7.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.43%, EMA is a good candidate for dividend investing.
EMA's Dividend Yield is rather good when compared to the industry average which is at 4.42. EMA pays more dividend than 94.44% of the companies in the same industry.
EMA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
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 2Y9.23%
EPS Next 3Y7.5%
TSX:EMA (11/19/2025, 7:00:00 PM)
68.01
-0.41 (-0.6%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners57.67%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap20.43B
Revenue(TTM)8.53B
Net Income(TTM)1.10B
Analysts70
Price Target69.01 (1.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
Yearly Dividend2.11
Dividend Growth(5Y)3.46%
DP57.91%
Div Incr Years18
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)1.93%
PT rev (3m)5.65%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)0.08%
EPS NY rev (3m)8.98%
Revenue NQ rev (1m)47.4%
Revenue NQ rev (3m)-7.11%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.13 | ||
| Fwd PE | 19.39 | ||
| P/S | 2.39 | ||
| P/FCF | N/A | ||
| P/OCF | 8.95 | ||
| P/B | 1.54 | ||
| P/tB | 2.75 | ||
| EV/EBITDA | 11.82 |
EPS(TTM)2.94
EY4.32%
EPS(NY)3.51
Fwd EY5.16%
FCF(TTM)-4.03
FCFYN/A
OCF(TTM)7.6
OCFY11.18%
SpS28.4
BVpS44.19
TBVpS24.69
PEG (NY)1.09
PEG (5Y)9.3
Graham Number54.07
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
WACC5.76%
ROIC/WACC0.64
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%5396.38%
EPS Next Y21.24%
EPS Next 2Y9.23%
EPS Next 3Y7.5%
EPS Next 5Y8.44%
Revenue 1Y (TTM)15.17%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%16.87%
Revenue Next Year13.64%
Revenue Next 2Y4.44%
Revenue Next 3Y5.15%
Revenue Next 5Y3.84%
EBIT growth 1Y28.78%
EBIT growth 3Y11.95%
EBIT growth 5Y-1.07%
EBIT Next Year100.79%
EBIT Next 3Y29.41%
EBIT Next 5Y21.37%
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.
What is the valuation status for EMA stock?
ChartMill assigns a valuation rating of 1 / 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.
Can you provide the PE and PB ratios for EMA stock?
The Price/Earnings (PE) ratio for EMERA INC (EMA.CA) is 23.13 and the Price/Book (PB) ratio is 1.54.
How financially healthy is EMERA INC?
The financial health rating of EMERA INC (EMA.CA) is 2 / 10.