HAWAIIAN ELECTRIC INDS (HE) Stock Fundamental Analysis
USA - NYSE:HE - US4198701009 - Common Stock
11.86 USD
+0.21 (+1.8%)
11.89 USD
+0.03 (+0.25%)
We assign a fundamental rating of 3 out of 10 to HE. HE was compared to 47 industry peers in the Electric Utilities industry. Both the profitability and financial health of HE have multiple concerns. HE is valued correctly, but it does not seem to be growing.
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.
Of the past 5 years HE 4 years were profitable.
HE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HE has a worse Return On Assets (-1.44%) than 95.74% of its industry peers.
Looking at the Return On Equity, with a value of -7.64%, HE is doing worse than 95.74% of the companies in the same industry.
The Return On Invested Capital of HE (3.03%) is worse than 76.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HE is below the industry average of 4.90%.
The last Return On Invested Capital (3.03%) for HE is above the 3 year average (1.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.44% | ||
| ROE | -7.64% | ||
| ROIC | 3.03% |
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
HE has a worse Operating Margin (9.94%) than 87.23% of its industry peers.
HE's Operating Margin has declined in the last couple of years.
HE does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.94% | ||
| PM (TTM) | N/A | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HE is destroying value.
The number of shares outstanding for HE has been increased compared to 1 year ago.
Compared to 5 years ago, HE has more shares outstanding
Compared to 1 year ago, HE has a worse debt to assets ratio.
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's Altman-Z score of 0.53 is on the low side compared to the rest of the industry. HE is outperformed by 85.11% of its industry peers.
HE has a debt to FCF ratio of 16.51. This is a negative value and a sign of low solvency as HE would need 16.51 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.51, HE is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
HE has a Debt/Equity ratio of 1.51. This is a high value indicating a heavy dependency on external financing.
HE has a Debt to Equity ratio of 1.51. This is comparable to the rest of the industry: HE outperforms 42.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 16.51 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.97
WACC3.13%
2.3 Liquidity
HE has a Current Ratio of 1.15. This is a normal value and indicates that HE is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of HE (1.15) is better than 76.60% of its industry peers.
A Quick Ratio of 1.15 indicates that HE should not have too much problems paying its short term obligations.
HE has a Quick ratio of 1.15. This is amongst the best in the industry. HE outperforms 80.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The earnings per share for HE have decreased strongly by -43.52% in the last year.
The Earnings Per Share has been decreasing by -4.97% on average over the past years.
The Revenue for HE has decreased by -20.18% 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)-43.52%
EPS 3Y-11.55%
EPS 5Y-4.97%
EPS Q2Q%-54.55%
Revenue 1Y (TTM)-20.18%
Revenue growth 3Y4.15%
Revenue growth 5Y2.3%
Sales Q2Q%-16.82%
3.2 Future
The Earnings Per Share is expected to decrease by -10.07% on average over the next years. This is quite bad
Based on estimates for the next years, HE will show a small growth in Revenue. The Revenue will grow by 1.62% on average per year.
EPS Next Y-34.05%
EPS Next 2Y-18.99%
EPS Next 3Y-13.77%
EPS Next 5Y-10.07%
Revenue Next Year-1.73%
Revenue Next 2Y0.16%
Revenue Next 3Y0.85%
Revenue Next 5Y1.62%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
HE is valuated reasonably with a Price/Earnings ratio of 10.88.
HE's Price/Earnings ratio is a bit cheaper when compared to the industry. HE is cheaper than 76.60% of the companies in the same industry.
HE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.91.
The Price/Forward Earnings ratio is 11.66, which indicates a very decent valuation of HE.
Based on the Price/Forward Earnings ratio, HE is valued a bit cheaper than the industry average as 72.34% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, HE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.88 | ||
| Fwd PE | 11.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HE indicates a somewhat cheap valuation: HE is cheaper than 78.72% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HE is valued cheaper than 80.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.42 | ||
| EV/EBITDA | 7.92 |
4.3 Compensation for Growth
HE's earnings are expected to decrease with -13.77% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-18.99%
EPS Next 3Y-13.77%
5. Dividend
5.1 Amount
No dividends for HE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.86
+0.21 (+1.8%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners76.45%
Inst Owner Change0.54%
Ins Owners0.19%
Ins Owner Change9.05%
Market Cap2.05B
Revenue(TTM)2.92B
Net Income(TTM)-119891000
Analysts42
Price Target11.09 (-6.49%)
Short Float %5.63%
Short Ratio5.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)-59.93%
DP-1.58%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.47%
Min EPS beat(2)-3.75%
Max EPS beat(2)6.69%
EPS beat(4)1
Avg EPS beat(4)-15.97%
Min EPS beat(4)-51.9%
Max EPS beat(4)6.69%
EPS beat(8)2
Avg EPS beat(8)-12.42%
EPS beat(12)3
Avg EPS beat(12)-10.16%
EPS beat(16)5
Avg EPS beat(16)-5.06%
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)-8.74%
PT rev (3m)-10.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-183.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.69%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.88 | ||
| Fwd PE | 11.66 | ||
| P/S | 0.7 | ||
| P/FCF | 13.42 | ||
| P/OCF | 4.28 | ||
| P/B | 1.3 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 7.92 |
EPS(TTM)1.09
EY9.19%
EPS(NY)1.02
Fwd EY8.58%
FCF(TTM)0.88
FCFY7.45%
OCF(TTM)2.77
OCFY23.37%
SpS16.89
BVpS9.09
TBVpS9.09
PEG (NY)N/A
PEG (5Y)N/A
Graham Number14.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.44% | ||
| ROE | -7.64% | ||
| ROCE | 3.76% | ||
| ROIC | 3.03% | ||
| ROICexc | 3.09% | ||
| ROICexgc | 3.56% | ||
| OM | 9.94% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM | 5.23% |
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-Score5
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 16.51 | ||
| Debt/EBITDA | 4.35 | ||
| Cap/Depr | 127.01% | ||
| Cap/Sales | 11.18% | ||
| Interest Coverage | 3815.3 | ||
| Cash Conversion | 87.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 0.53 |
F-Score5
WACC3.13%
ROIC/WACC0.97
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)-43.52%
EPS 3Y-11.55%
EPS 5Y-4.97%
EPS Q2Q%-54.55%
EPS Next Y-34.05%
EPS Next 2Y-18.99%
EPS Next 3Y-13.77%
EPS Next 5Y-10.07%
Revenue 1Y (TTM)-20.18%
Revenue growth 3Y4.15%
Revenue growth 5Y2.3%
Sales Q2Q%-16.82%
Revenue Next Year-1.73%
Revenue Next 2Y0.16%
Revenue Next 3Y0.85%
Revenue Next 5Y1.62%
EBIT growth 1Y-8.68%
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-52.22%
FCF growth 3Y32.77%
FCF growth 5Y21.1%
OCF growth 1Y-36.33%
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 6 / 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 -34.05% 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 -1.58%.