Overall HE gets a fundamental rating of 3 out of 10. We evaluated HE against 46 industry peers in the Electric Utilities industry. HE scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. HE has a valuation in line with the averages, but on the other hand it scores bad on growth.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year HE was profitable.
HE had a positive operating cash flow in the past year.
HE had positive earnings in 4 of the past 5 years.
Each year in the past 5 years HE had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of 0.17%, HE is not doing good in the industry: 93.48% of the companies in the same industry are doing better.
With a Return On Equity value of 0.95%, HE is not doing good in the industry: 93.48% of the companies in the same industry are doing better.
HE's Return On Invested Capital of 2.25% is on the low side compared to the rest of the industry. HE is outperformed by 86.96% of its industry peers.
HE had an Average Return On Invested Capital over the past 3 years of 1.99%. This is below the industry average of 4.57%.
The 3 year average ROIC (1.99%) for HE is below the current ROIC(2.25%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	0.17%
ROE	0.95%
ROIC	2.25%

ROA(3y)-4.44%

ROA(5y)-2.09%

ROE(3y)-25.02%

ROE(5y)-11.32%

ROIC(3y)1.99%

ROIC(5y)1.95%

1.3 Margins

Looking at the Profit Margin, with a value of 0.55%, HE is doing worse than 91.30% of the companies in the same industry.
With a Operating Margin value of 8.33%, HE is not doing good in the industry: 84.78% of the companies in the same industry are doing better.
HE's Operating Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	8.33%
PM (TTM)	0.55%
GM	N/A

OM growth 3Y-17.69%

OM growth 5Y-9.56%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HE is destroying value.
The number of shares outstanding for HE has been increased compared to 1 year ago.
The number of shares outstanding for HE has been increased compared to 5 years ago.
HE has a worse debt/assets ratio than last year.

2.2 Solvency

HE has an Altman-Z score of 0.59. This is a bad value and indicates that HE is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.59, HE is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
HE has a debt to FCF ratio of 36.77. This is a negative value and a sign of low solvency as HE would need 36.77 years to pay back of all of its debts.
The Debt to FCF ratio of HE (36.77) is better than 78.26% of its industry peers.
HE has a Debt/Equity ratio of 1.76. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of HE (1.76) is worse than 67.39% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.76
Debt/FCF	36.77
Altman-Z	0.59

ROIC/WACC0.6

WACC3.77%

2.3 Liquidity

HE has a Current Ratio of 2.20. This indicates that HE is financially healthy and has no problem in meeting its short term obligations.
HE's Current ratio of 2.20 is amongst the best of the industry. HE outperforms 95.65% of its industry peers.
A Quick Ratio of 2.20 indicates that HE has no problem at all paying its short term obligations.
HE's Quick ratio of 2.20 is amongst the best of the industry. HE outperforms 95.65% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.2
Quick Ratio	2.2

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

HE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -55.19%.
Measured over the past years, HE shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.97% on average per year.
The Revenue for HE has decreased by -24.97% in the past year. This is quite bad
HE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.30% yearly.

EPS 1Y (TTM)-55.19%

EPS 3Y-11.55%

EPS 5Y-4.97%

EPS Q2Q%-58.7%

Revenue 1Y (TTM)-24.97%

Revenue growth 3Y4.15%

Revenue growth 5Y2.3%

Sales Q2Q%-15.75%

3.2 Future

HE is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.98% yearly.
The Revenue is expected to grow by 1.72% on average over the next years.

EPS Next Y-33.77%

EPS Next 2Y-20.83%

EPS Next 3Y-15.13%

EPS Next 5Y-8.98%

Revenue Next Year-1.71%

Revenue Next 2Y0.11%

Revenue Next 3Y0.85%

Revenue Next 5Y1.72%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 18.68, which indicates a rather expensive current valuation of HE.
Compared to the rest of the industry, the Price/Earnings ratio of HE is on the same level as its industry peers.
HE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.32.
The Price/Forward Earnings ratio is 15.77, which indicates a correct valuation of HE.
The rest of the industry has a similar Price/Forward Earnings ratio as HE.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, HE is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	18.68
Fwd PE	15.77

4.2 Price Multiples

60.87% of the companies in the same industry are more expensive than HE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HE is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.