HAWAIIAN ELECTRIC INDS (HE) Stock Fundamental Analysis
NYSE:HE - New York Stock Exchange, Inc. - US4198701009 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to HE. HE was compared to 46 industry peers in the Electric Utilities industry. HE has a bad profitability rating. Also its financial health evaluation is rather negative. HE is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
HE had positive earnings in the past year.
HE had a positive operating cash flow in the past year.
Each year in the past 5 years HE has been profitable.
In the past 5 years HE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -7.38%, HE is doing worse than 94.59% of the companies in the same industry.
Looking at the Return On Equity, with a value of -81.24%, HE is doing worse than 94.59% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.65%, HE is doing worse than 89.19% of the companies in the same industry.
HE had an Average Return On Invested Capital over the past 3 years of 1.90%. This is below the industry average of 4.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.38% | ||
| ROE | -81.24% | ||
| ROIC | 1.65% |
ROA(3y)1.4%
ROA(5y)1.42%
ROE(3y)9.77%
ROE(5y)9.41%
ROIC(3y)1.9%
ROIC(5y)1.93%
1.3 Margins
In the last couple of years the Profit Margin of HE has declined.
The Operating Margin of HE (9.59%) is worse than 83.78% of its industry peers.
HE's Operating Margin has declined in the last couple of years.
HE has a worse Gross Margin (9.59%) than 81.08% of its industry peers.
HE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.59% | ||
| PM (TTM) | N/A | ||
| GM | 9.59% |
OM growth 3Y-7.44%
OM growth 5Y-3.85%
PM growth 3Y-10.97%
PM growth 5Y-5.17%
GM growth 3Y-7.44%
GM growth 5Y-3.85%
2. Health
2.1 Basic Checks
HE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
HE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HE has more shares outstanding
HE has a worse debt/assets ratio than last year.
2.2 Solvency
HE has an Altman-Z score of 0.36. This is a bad value and indicates that HE is not financially healthy and even has some risk of bankruptcy.
HE's Altman-Z score of 0.36 is on the low side compared to the rest of the industry. HE is outperformed by 89.19% of its industry peers.
The Debt to FCF ratio of HE is 60.53, which is on the high side as it means it would take HE, 60.53 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 60.53, HE is in the better half of the industry, outperforming 72.97% of the companies in the same industry.
A Debt/Equity ratio of 2.36 is on the high side and indicates that HE has dependencies on debt financing.
HE has a worse Debt to Equity ratio (2.36) than 91.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.36 | ||
| Debt/FCF | 60.53 | ||
| Altman-Z | 0.36 |
ROIC/WACC0.54
WACC3.07%
2.3 Liquidity
A Current Ratio of 1.84 indicates that HE should not have too much problems paying its short term obligations.
HE's Current ratio of 1.84 is amongst the best of the industry. HE outperforms 86.49% of its industry peers.
A Quick Ratio of 1.84 indicates that HE should not have too much problems paying its short term obligations.
HE has a Quick ratio of 1.84. This is amongst the best in the industry. HE outperforms 89.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
HE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.02%.
The Earnings Per Share has been growing slightly by 2.09% on average over the past years.
HE shows a decrease in Revenue. In the last year, the revenue decreased by -1.49%.
The Revenue has been growing slightly by 5.18% on average over the past years.
EPS 1Y (TTM)-12.02%
EPS 3Y5.85%
EPS 5Y2.09%
EPS Q2Q%-17.86%
Revenue 1Y (TTM)-1.49%
Revenue growth 3Y12.59%
Revenue growth 5Y5.18%
Sales Q2Q%4.05%
3.2 Future
Based on estimates for the next years, HE will show a decrease in Earnings Per Share. The EPS will decrease by -9.39% on average per year.
HE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.33% yearly.
EPS Next Y-11.89%
EPS Next 2Y-27.59%
EPS Next 3Y-18.66%
EPS Next 5Y-9.39%
Revenue Next Year-3.94%
Revenue Next 2Y-4.5%
Revenue Next 3Y-2.24%
Revenue Next 5Y-0.33%
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.
4. Valuation
4.1 Price/Earnings Ratio
HE is valuated cheaply with a Price/Earnings ratio of 5.88.
83.78% of the companies in the same industry are more expensive than HE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HE to the average of the S&P500 Index (29.63), we can say HE is valued rather cheaply.
A Price/Forward Earnings ratio of 10.06 indicates a reasonable valuation of HE.
HE's Price/Forward Earnings ratio is rather cheap when compared to the industry. HE is cheaper than 83.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HE to the average of the S&P500 Index (22.68), we can say HE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.88 | ||
| Fwd PE | 10.06 |
4.2 Price Multiples
94.59% 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 81.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.58 | ||
| EV/EBITDA | 6.41 |
4.3 Compensation for Growth
HE's earnings are expected to decrease with -18.66% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.82
EPS Next 2Y-27.59%
EPS Next 3Y-18.66%
5. Dividend
5.1 Amount
HE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.76
-0.21 (-1.91%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners44.1%
Inst Owner Change4.73%
Ins Owners0.18%
Ins Owner Change0%
Market Cap1.86B
Analysts43.64
Price Target10.88 (1.12%)
Short Float %6.81%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend1.05
Dividend Growth(5Y)-3.55%
DP-0.14%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.88%
Min EPS beat(2)-14.93%
Max EPS beat(2)-12.82%
EPS beat(4)0
Avg EPS beat(4)-12.94%
Min EPS beat(4)-19.09%
Max EPS beat(4)-4.89%
EPS beat(8)1
Avg EPS beat(8)-9.2%
EPS beat(12)4
Avg EPS beat(12)-2.27%
EPS beat(16)7
Avg EPS beat(16)4.53%
Revenue beat(2)0
Avg Revenue beat(2)-2.53%
Min Revenue beat(2)-4.4%
Max Revenue beat(2)-0.66%
Revenue beat(4)1
Avg Revenue beat(4)27.62%
Min Revenue beat(4)-7.67%
Max Revenue beat(4)123.21%
Revenue beat(8)5
Avg Revenue beat(8)20.35%
Revenue beat(12)9
Avg Revenue beat(12)20.1%
Revenue beat(16)9
Avg Revenue beat(16)12.11%
PT rev (1m)-1.54%
PT rev (3m)4.07%
EPS NQ rev (1m)30.22%
EPS NQ rev (3m)-15.9%
EPS NY rev (1m)11.32%
EPS NY rev (3m)2.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.88 | ||
| Fwd PE | 10.06 | ||
| P/S | 0.5 | ||
| P/FCF | 29.58 | ||
| P/OCF | 4.34 | ||
| P/B | 1.15 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 6.41 |
EPS(TTM)1.83
EY17.01%
EPS(NY)1.07
Fwd EY9.94%
FCF(TTM)0.36
FCFY3.38%
OCF(TTM)2.48
OCFY23.02%
SpS21.39
BVpS9.34
TBVpS9.34
PEG (NY)N/A
PEG (5Y)2.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.38% | ||
| ROE | -81.24% | ||
| ROCE | 2.1% | ||
| ROIC | 1.65% | ||
| ROICexc | 1.77% | ||
| ROICexgc | 1.94% | ||
| OM | 9.59% | ||
| PM (TTM) | N/A | ||
| GM | 9.59% | ||
| FCFM | 1.7% |
ROA(3y)1.4%
ROA(5y)1.42%
ROE(3y)9.77%
ROE(5y)9.41%
ROIC(3y)1.9%
ROIC(5y)1.93%
ROICexc(3y)1.95%
ROICexc(5y)1.97%
ROICexgc(3y)2.12%
ROICexgc(5y)2.17%
ROCE(3y)2.44%
ROCE(5y)2.45%
ROICexcg growth 3Y-1%
ROICexcg growth 5Y-4.39%
ROICexc growth 3Y-0.05%
ROICexc growth 5Y-3.62%
OM growth 3Y-7.44%
OM growth 5Y-3.85%
PM growth 3Y-10.97%
PM growth 5Y-5.17%
GM growth 3Y-7.44%
GM growth 5Y-3.85%
F-Score4
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.36 | ||
| Debt/FCF | 60.53 | ||
| Debt/EBITDA | 6.07 | ||
| Cap/Depr | 134.08% | ||
| Cap/Sales | 9.88% | ||
| Interest Coverage | 1444.46 | ||
| Cash Conversion | 68.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z | 0.36 |
F-Score4
WACC3.07%
ROIC/WACC0.54
Cap/Depr(3y)143.18%
Cap/Depr(5y)157.95%
Cap/Sales(3y)10.8%
Cap/Sales(5y)12.64%
Profit Quality(3y)40.82%
Profit Quality(5y)34.14%
High Growth Momentum
Growth
EPS 1Y (TTM)-12.02%
EPS 3Y5.85%
EPS 5Y2.09%
EPS Q2Q%-17.86%
EPS Next Y-11.89%
EPS Next 2Y-27.59%
EPS Next 3Y-18.66%
EPS Next 5Y-9.39%
Revenue 1Y (TTM)-1.49%
Revenue growth 3Y12.59%
Revenue growth 5Y5.18%
Sales Q2Q%4.05%
Revenue Next Year-3.94%
Revenue Next 2Y-4.5%
Revenue Next 3Y-2.24%
Revenue Next 5Y-0.33%
EBIT growth 1Y-0.2%
EBIT growth 3Y4.22%
EBIT growth 5Y1.13%
EBIT Next Year-205.45%
EBIT Next 3Y18.52%
EBIT Next 5Y13.77%
FCF growth 1Y727.41%
FCF growth 3Y31.38%
FCF growth 5YN/A
OCF growth 1Y32.9%
OCF growth 3Y8.7%
OCF growth 5Y2.01%