HAWAIIAN ELECTRIC INDS (HE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HE - US4198701009 - Common Stock
11.42 USD
-0.76 (-6.24%)
11.52 USD
+0.1 (+0.88%)
Overall HE gets a fundamental rating of 3 out of 10. We evaluated HE against 47 industry peers in the Electric Utilities industry. While HE seems to be doing ok healthwise, there are quite some concerns on its profitability. HE is valued correctly, but it does not seem to be growing.
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.
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 0.17%, HE is doing worse than 95.83% of the companies in the same industry.
HE has a Return On Equity of 0.95%. This is amonst the worse of the industry: HE underperforms 95.83% of its industry peers.
HE has a Return On Invested Capital of 2.25%. This is amonst the worse of the industry: HE underperforms 87.50% 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 5.04%.
The last Return On Invested Capital (2.25%) for HE is above the 3 year average (1.99%), which is a sign of increasing profitability.
| 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
The Profit Margin of HE (0.55%) is worse than 93.75% of its industry peers.
HE has a Operating Margin of 8.33%. This is amonst the worse of the industry: HE underperforms 87.50% of its industry peers.
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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HE is destroying value.
Compared to 1 year ago, HE has more shares outstanding
HE has more shares outstanding than it did 5 years ago.
HE has a worse debt/assets ratio than last year.
2.2 Solvency
HE has an Altman-Z score of 0.53. This is a bad value and indicates that HE is not financially healthy and even has some risk of bankruptcy.
HE has a Altman-Z score of 0.53. This is amonst the worse of the industry: HE underperforms 85.42% of its industry peers.
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.
HE has a better Debt to FCF ratio (36.77) than 77.08% of its industry peers.
A Debt/Equity ratio of 1.76 is on the high side and indicates that HE has dependencies on debt financing.
HE has a Debt to Equity ratio of 1.76. This is in the lower half of the industry: HE underperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 36.77 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.72
WACC3.11%
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 93.75% of its industry peers.
A Quick Ratio of 2.20 indicates that HE has no problem at all paying its short term obligations.
The Quick ratio of HE (2.20) is better than 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 2.2 |
3. Growth
3.1 Past
The earnings per share for HE have decreased strongly by -55.19% in the last year.
The Earnings Per Share has been decreasing by -4.97% on average over the past years.
HE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.97%.
Measured over the past years, HE shows a small growth in Revenue. The Revenue has been growing by 2.30% on average per year.
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
Based on estimates for the next years, HE will show a very negative growth in Earnings Per Share. The EPS will decrease by -10.07% on average per year.
HE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.62% yearly.
EPS Next Y-33.77%
EPS Next 2Y-19.85%
EPS Next 3Y-14.42%
EPS Next 5Y-10.07%
Revenue Next Year-1.71%
Revenue Next 2Y0.11%
Revenue Next 3Y0.85%
Revenue Next 5Y1.62%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
HE is valuated correctly with a Price/Earnings ratio of 13.93.
Based on the Price/Earnings ratio, HE is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.39. HE is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 11.47, the valuation of HE can be described as very reasonable.
72.92% of the companies in the same industry are more expensive than HE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HE to the average of the S&P500 Index (23.84), we can say HE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 11.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HE is valued a bit cheaper than the industry average as 72.92% of the companies are valued more expensively.
HE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HE is cheaper than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.59 | ||
| EV/EBITDA | 9.05 |
4.3 Compensation for Growth
A cheap valuation may be justified as HE's earnings are expected to decrease with -14.42% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.85%
EPS Next 3Y-14.42%
5. Dividend
5.1 Amount
No dividends for HE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
11.42
-0.76 (-6.24%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners74.38%
Inst Owner Change-1.94%
Ins Owners0.19%
Ins Owner Change9.05%
Market Cap1.97B
Revenue(TTM)2.77B
Net Income(TTM)15.26M
Analysts42
Price Target11.22 (-1.75%)
Short Float %5.46%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend0.01
Dividend Growth(5Y)-59.93%
DP12.39%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)99%
Min EPS beat(2)6.69%
Max EPS beat(2)191.32%
EPS beat(4)2
Avg EPS beat(4)35.59%
Min EPS beat(4)-51.9%
Max EPS beat(4)191.32%
EPS beat(8)2
Avg EPS beat(8)11.33%
EPS beat(12)3
Avg EPS beat(12)5.73%
EPS beat(16)6
Avg EPS beat(16)7.2%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.12%
PT rev (3m)-7.69%
EPS NQ rev (1m)-36.56%
EPS NQ rev (3m)-36.56%
EPS NY rev (1m)0.67%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 11.47 | ||
| P/S | 0.71 | ||
| P/FCF | 24.59 | ||
| P/OCF | 4.68 | ||
| P/B | 1.23 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 9.05 |
EPS(TTM)0.82
EY7.18%
EPS(NY)1
Fwd EY8.72%
FCF(TTM)0.46
FCFY4.07%
OCF(TTM)2.44
OCFY21.37%
SpS16.04
BVpS9.26
TBVpS9.26
PEG (NY)N/A
PEG (5Y)N/A
Graham Number13.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.17% | ||
| ROE | 0.95% | ||
| ROCE | 2.77% | ||
| ROIC | 2.25% | ||
| ROICexc | 2.41% | ||
| ROICexgc | 2.77% | ||
| OM | 8.33% | ||
| PM (TTM) | 0.55% | ||
| GM | N/A | ||
| FCFM | 2.9% |
ROA(3y)-4.44%
ROA(5y)-2.09%
ROE(3y)-25.02%
ROE(5y)-11.32%
ROIC(3y)1.99%
ROIC(5y)1.95%
ROICexc(3y)2.09%
ROICexc(5y)2.03%
ROICexgc(3y)2.33%
ROICexgc(5y)2.25%
ROCE(3y)2.54%
ROCE(5y)2.47%
ROICexgc growth 3Y8.08%
ROICexgc growth 5Y3.01%
ROICexc growth 3Y6.51%
ROICexc growth 5Y2.51%
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
F-Score6
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 36.77 | ||
| Debt/EBITDA | 5.8 | ||
| Cap/Depr | 134.96% | ||
| Cap/Sales | 12.32% | ||
| Interest Coverage | 4191.95 | ||
| Cash Conversion | 87.17% | ||
| Profit Quality | 525.51% | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 2.2 | ||
| Altman-Z | 0.53 |
F-Score6
WACC3.11%
ROIC/WACC0.72
Cap/Depr(3y)144.45%
Cap/Depr(5y)144.46%
Cap/Sales(3y)11.17%
Cap/Sales(5y)11.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-55.19%
EPS 3Y-11.55%
EPS 5Y-4.97%
EPS Q2Q%-58.7%
EPS Next Y-33.77%
EPS Next 2Y-19.85%
EPS Next 3Y-14.42%
EPS Next 5Y-10.07%
Revenue 1Y (TTM)-24.97%
Revenue growth 3Y4.15%
Revenue growth 5Y2.3%
Sales Q2Q%-15.75%
Revenue Next Year-1.71%
Revenue Next 2Y0.11%
Revenue Next 3Y0.85%
Revenue Next 5Y1.62%
EBIT growth 1Y-34.85%
EBIT growth 3Y-14.27%
EBIT growth 5Y-7.48%
EBIT Next Year50.64%
EBIT Next 3Y17.87%
EBIT Next 5Y12.29%
FCF growth 1Y-69.91%
FCF growth 3Y32.77%
FCF growth 5Y21.1%
OCF growth 1Y-41.22%
OCF growth 3Y9.07%
OCF growth 5Y-1%
HAWAIIAN ELECTRIC INDS / HE FAQ
What is the ChartMill fundamental rating of HAWAIIAN ELECTRIC INDS (HE) stock?
ChartMill assigns a fundamental rating of 3 / 10 to HE.
What is the valuation status for HE stock?
ChartMill assigns a valuation rating of 5 / 10 to HAWAIIAN ELECTRIC INDS (HE). This can be considered as Fairly Valued.
Can you provide the profitability details for HAWAIIAN ELECTRIC INDS?
HAWAIIAN ELECTRIC INDS (HE) has a profitability rating of 2 / 10.
What is the earnings growth outlook for HAWAIIAN ELECTRIC INDS?
The Earnings per Share (EPS) of HAWAIIAN ELECTRIC INDS (HE) is expected to decline by -33.77% in the next year.
How sustainable is the dividend of HAWAIIAN ELECTRIC INDS (HE) stock?
The dividend rating of HAWAIIAN ELECTRIC INDS (HE) is 0 / 10 and the dividend payout ratio is 12.39%.