EMERA INC (EMA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EMA - CA2908761018 - Common Stock
65.96 CAD
+0.73 (+1.12%)
We assign a fundamental rating of 3 out of 10 to EMA. EMA was compared to 18 industry peers in the Electric Utilities industry. EMA may be in some trouble as it scores bad on both profitability and health. 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.
EMA had a positive operating cash flow in the past year.
In the past 5 years EMA has always been profitable.
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.
Looking at the Return On Equity, with a value of 8.29%, EMA is in line with its industry, outperforming 50.00% of the companies in the same industry.
EMA's Return On Invested Capital of 3.70% is on the low side compared to the rest of the industry. EMA is outperformed by 94.44% of its industry peers.
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 4.03%.
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.
EMA's Profit Margin has declined in the last couple of years.
EMA has a worse Operating Margin (23.65%) than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EMA is destroying value.
Compared to 1 year ago, EMA has more shares outstanding
EMA has more shares outstanding than it did 5 years ago.
EMA has a better debt/assets ratio than last year.
2.2 Solvency
EMA has an Altman-Z score of 0.76. This is a bad value and indicates that EMA is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.76, EMA belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
EMA has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
EMA's Debt to Equity ratio of 1.47 is on the low side compared to the rest of the industry. EMA is outperformed by 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.65
WACC5.68%
2.3 Liquidity
A Current Ratio of 0.72 indicates that EMA may have some problems paying its short term obligations.
EMA has a Current ratio (0.72) which 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
EMA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.83%, which is quite impressive.
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.
The Revenue has grown by 15.17% in the past year. This is quite good.
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)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
EMA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.58% yearly.
Based on estimates for the next years, EMA will show a small growth in Revenue. The Revenue will grow by 3.05% on average per year.
EPS Next Y21.64%
EPS Next 2Y9.72%
EPS Next 3Y7.81%
EPS Next 5Y8.58%
Revenue Next Year16.17%
Revenue Next 2Y5.13%
Revenue Next 3Y6.1%
Revenue Next 5Y3.05%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
EMA is valuated rather expensively with a Price/Earnings ratio of 17.40.
83.33% of the companies in the same industry are cheaper than EMA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.56, EMA is valued a bit cheaper.
EMA is valuated rather expensively with a Price/Forward Earnings ratio of 18.63.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EMA indicates a rather expensive valuation: EMA more expensive than 83.33% of the companies listed in the same industry.
EMA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.4 | ||
| Fwd PE | 18.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMA is valued more expensive than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.64 |
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)0.8
PEG (5Y)6.99
EPS Next 2Y9.72%
EPS Next 3Y7.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.49%, EMA is a good candidate for dividend investing.
EMA's Dividend Yield is rather good when compared to the industry average which is at 4.10. EMA pays more dividend than 94.44% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, EMA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
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 2Y9.72%
EPS Next 3Y7.81%
TSX:EMA (12/12/2025, 7:00:00 PM)
65.96
+0.73 (+1.12%)
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 Cap19.83B
Revenue(TTM)8.53B
Net Income(TTM)1.10B
Analysts70
Price Target70.07 (6.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
Yearly Dividend2.11
Dividend Growth(5Y)3.46%
DP57.91%
Div Incr Years18
Div Non Decr Years26
Ex-Date
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)1.53%
PT rev (3m)3.62%
EPS NQ rev (1m)-2.71%
EPS NQ rev (3m)-3.76%
EPS NY rev (1m)0.33%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.03%
Revenue NY rev (1m)2.23%
Revenue NY rev (3m)2.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.4 | ||
| Fwd PE | 18.63 | ||
| P/S | 2.32 | ||
| P/FCF | N/A | ||
| P/OCF | 8.68 | ||
| P/B | 1.49 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 11.64 |
EPS(TTM)3.79
EY5.75%
EPS(NY)3.54
Fwd EY5.37%
FCF(TTM)-4.02
FCFYN/A
OCF(TTM)7.6
OCFY11.52%
SpS28.38
BVpS44.16
TBVpS24.67
PEG (NY)0.8
PEG (5Y)6.99
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 | 0.76 |
F-Score7
WACC5.68%
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 Y21.64%
EPS Next 2Y9.72%
EPS Next 3Y7.81%
EPS Next 5Y8.58%
Revenue 1Y (TTM)15.17%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%16.87%
Revenue Next Year16.17%
Revenue Next 2Y5.13%
Revenue Next 3Y6.1%
Revenue Next 5Y3.05%
EBIT growth 1Y28.78%
EBIT growth 3Y11.95%
EBIT growth 5Y-1.07%
EBIT Next Year102.49%
EBIT Next 3Y30.17%
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.
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 17.4 and the Price/Book (PB) ratio is 1.49.
How financially healthy is EMERA INC?
The financial health rating of EMERA INC (EMA.CA) is 2 / 10.