EMERA INC (EMA.CA) Stock Fundamental Analysis
Canada - TSX:EMA - CA2908761018 - Common Stock
69.17 CAD
+0.11 (+0.16%)
Overall EMA gets a fundamental rating of 3 out of 10. We evaluated EMA against 18 industry peers in the Electric Utilities industry. EMA may be in some trouble as it scores bad on both profitability and health. 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
In the past year EMA was profitable.
In the past year EMA had a positive cash flow from operations.
EMA had positive earnings in each of the past 5 years.
EMA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.04%, EMA is doing worse than 94.44% of the companies in the same industry.
EMA's Return On Equity of 6.60% is on the low side compared to the rest of the industry. EMA is outperformed by 94.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.62%, EMA is doing worse than 94.44% of the companies in the same industry.
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 (3.62%) for EMA is above the 3 year average (3.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 6.6% | ||
| ROIC | 3.62% |
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 (10.65%) is worse than 94.44% of its industry peers.
EMA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 24.00%, EMA is doing worse than 88.89% of the companies in the same industry.
EMA's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24% | ||
| PM (TTM) | 10.65% | ||
| 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.
Compared to 5 years ago, EMA has more shares outstanding
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's Altman-Z score of 0.77 is amongst the best of the industry. EMA outperforms 83.33% of its industry peers.
A Debt/Equity ratio of 1.47 is on the high side and indicates that EMA has dependencies on debt 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/WACC0.63
WACC5.78%
2.3 Liquidity
A Current Ratio of 0.72 indicates that EMA may have some problems paying its short term obligations.
The Current ratio of EMA (0.72) is comparable to the rest of the industry.
A Quick Ratio of 0.57 indicates that EMA may have some problems paying 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 39.33% 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 12.00% in the past year. This is quite good.
EMA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.33% yearly.
EPS 1Y (TTM)39.33%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%49.06%
Revenue 1Y (TTM)12%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%26.21%
3.2 Future
The Earnings Per Share is expected to grow by 8.29% on average over the next years. This is quite good.
Based on estimates for the next years, EMA will show a small growth in Revenue. The Revenue will grow by 3.70% on average per year.
EPS Next Y21.14%
EPS Next 2Y9.12%
EPS Next 3Y7.37%
EPS Next 5Y8.29%
Revenue Next Year13.49%
Revenue Next 2Y4.24%
Revenue Next 3Y4.95%
Revenue Next 5Y3.7%
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
The Price/Earnings ratio is 18.59, which indicates a rather expensive current valuation of EMA.
83.33% of the companies in the same industry are cheaper than EMA, based on the Price/Earnings ratio.
EMA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.91.
Based on the Price/Forward Earnings ratio of 19.76, 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 83.33% of the companies are valued cheaper.
EMA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.59 | ||
| Fwd PE | 19.76 |
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 | 12.17 |
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)0.88
PEG (5Y)7.47
EPS Next 2Y9.12%
EPS Next 3Y7.37%
5. Dividend
5.1 Amount
EMA has a Yearly Dividend Yield of 4.26%, which is a nice return.
Compared to an average industry Dividend Yield of 3.87, 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
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 71.12% of its income as dividend. This is not a sustainable payout ratio.
EMA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP71.12%
EPS Next 2Y9.12%
EPS Next 3Y7.37%
TSX:EMA (10/24/2025, 7:00:00 PM)
69.17
+0.11 (+0.16%)
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 Cap20.78B
Revenue(TTM)8.23B
Net Income(TTM)876.00M
Analysts70
Price Target67.7 (-2.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend2.11
Dividend Growth(5Y)3.46%
DP71.12%
Div Incr Years18
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.12%
Min EPS beat(2)20.34%
Max EPS beat(2)27.9%
EPS beat(4)4
Avg EPS beat(4)14.99%
Min EPS beat(4)2.82%
Max EPS beat(4)27.9%
EPS beat(8)5
Avg EPS beat(8)3.91%
EPS beat(12)8
Avg EPS beat(12)5.32%
EPS beat(16)9
Avg EPS beat(16)3.65%
Revenue beat(2)1
Avg Revenue beat(2)5.95%
Min Revenue beat(2)-7.41%
Max Revenue beat(2)19.3%
Revenue beat(4)1
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-13.96%
Max Revenue beat(4)19.3%
Revenue beat(8)1
Avg Revenue beat(8)-6.12%
Revenue beat(12)4
Avg Revenue beat(12)2.34%
Revenue beat(16)7
Avg Revenue beat(16)1.31%
PT rev (1m)0.13%
PT rev (3m)4.15%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)0.1%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)8.89%
Revenue NQ rev (1m)-2.3%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)5.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.59 | ||
| Fwd PE | 19.76 | ||
| P/S | 2.53 | ||
| P/FCF | N/A | ||
| P/OCF | 9.23 | ||
| P/B | 1.57 | ||
| P/tB | 2.8 | ||
| EV/EBITDA | 12.17 |
EPS(TTM)3.72
EY5.38%
EPS(NY)3.5
Fwd EY5.06%
FCF(TTM)-4.23
FCFYN/A
OCF(TTM)7.5
OCFY10.84%
SpS27.39
BVpS44.19
TBVpS24.69
PEG (NY)0.88
PEG (5Y)7.47
Graham Number60.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 6.6% | ||
| ROCE | 5.22% | ||
| ROIC | 3.62% | ||
| ROICexc | 3.64% | ||
| ROICexgc | 4.29% | ||
| OM | 24% | ||
| PM (TTM) | 10.65% | ||
| 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 Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.12 | ||
| Cap/Depr | 287.67% | ||
| Cap/Sales | 42.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.77 |
F-Score7
WACC5.78%
ROIC/WACC0.63
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)39.33%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%49.06%
EPS Next Y21.14%
EPS Next 2Y9.12%
EPS Next 3Y7.37%
EPS Next 5Y8.29%
Revenue 1Y (TTM)12%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%26.21%
Revenue Next Year13.49%
Revenue Next 2Y4.24%
Revenue Next 3Y4.95%
Revenue Next 5Y3.7%
EBIT growth 1Y40.87%
EBIT growth 3Y11.95%
EBIT growth 5Y-1.07%
EBIT Next Year100.79%
EBIT Next 3Y29.41%
EBIT Next 5Y21.2%
FCF growth 1Y25.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y89.08%
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 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.
Can you provide the PE and PB ratios for EMA stock?
The Price/Earnings (PE) ratio for EMERA INC (EMA.CA) is 18.59 and the Price/Book (PB) ratio is 1.57.
How financially healthy is EMERA INC?
The financial health rating of EMERA INC (EMA.CA) is 2 / 10.