HAWAIIAN ELECTRIC INDS (HE) Stock Fundamental Analysis
NYSE:HE - New York Stock Exchange, Inc. - US4198701009 - Common Stock - Currency: USD
Overall HE gets a fundamental rating of 3 out of 10. We evaluated HE against 46 industry peers in the Electric Utilities industry. The financial health of HE is average, but there are quite some concerns on its profitability. 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.
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
HE has a Return On Assets of -15.97%. This is in the lower half of the industry: HE underperforms 78.26% of its industry peers.
The Return On Equity of HE (-94.23%) is worse than 80.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.09%, HE is doing worse than 67.39% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HE is below the industry average of 4.69%.
The 3 year average ROIC (1.99%) for HE is below the current ROIC(3.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.97% | ||
| ROE | -94.23% | ||
| ROIC | 3.09% |
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 Operating Margin of 10.10%. This is in the lower half of the industry: HE underperforms 69.57% of its industry peers.
In the last couple of years the Operating Margin of HE has declined.
The Gross Margin of HE (0.13%) is worse than 67.39% of its industry peers.
HE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.1% | ||
| PM (TTM) | N/A | ||
| GM | 0.13% |
OM growth 3Y-17.69%
OM growth 5Y-9.56%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-17.69%
GM growth 5Y-9.56%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HE is creating some value.
The number of shares outstanding for HE has been increased compared to 1 year ago.
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 0.60. 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 (0.60) which is in line with its industry peers.
HE has a debt to FCF ratio of 22.86. This is a negative value and a sign of low solvency as HE would need 22.86 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 22.86, HE belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
A Debt/Equity ratio of 2.09 is on the high side and indicates that HE has dependencies on debt financing.
HE has a Debt to Equity ratio of 2.09. This is in the lower half of the industry: HE underperforms 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.09 | ||
| Debt/FCF | 22.86 | ||
| Altman-Z | 0.6 |
ROIC/WACC1.03
WACC3%
2.3 Liquidity
HE has a Current Ratio of 2.71. This indicates that HE is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HE (2.71) is better than 97.83% of its industry peers.
A Quick Ratio of 2.71 indicates that HE has no problem at all paying its short term obligations.
The Quick ratio of HE (2.71) is better than 97.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.71 | ||
| Quick Ratio | 2.71 |
3. Growth
3.1 Past
HE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.02%.
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 -12.56%.
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)-24.02%
EPS 3Y-11.55%
EPS 5Y-4.97%
EPS Q2Q%-58.33%
Revenue 1Y (TTM)-12.56%
Revenue growth 3Y4.15%
Revenue growth 5Y2.3%
Sales Q2Q%-16.87%
3.2 Future
HE is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.67% yearly.
The Revenue is expected to grow by 1.62% on average over the next years.
EPS Next Y-32.91%
EPS Next 2Y-16.47%
EPS Next 3Y-10.25%
EPS Next 5Y-4.67%
Revenue Next Year7.43%
Revenue Next 2Y4.55%
Revenue Next 3Y3.71%
Revenue Next 5Y1.62%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 cheaply with a Price/Earnings ratio of 6.68.
Based on the Price/Earnings ratio, HE is valued cheaper than 84.78% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.92, HE is valued rather cheaply.
The Price/Forward Earnings ratio is 9.96, which indicates a very decent valuation of HE.
Based on the Price/Forward Earnings ratio, HE is valued cheaply inside the industry as 84.78% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.65. HE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.68 | ||
| Fwd PE | 9.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HE indicates a rather cheap valuation: HE is cheaper than 86.96% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HE is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.48 | ||
| EV/EBITDA | 7.26 |
4.3 Compensation for Growth
HE's earnings are expected to decrease with -10.25% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.47%
EPS Next 3Y-10.25%
5. Dividend
5.1 Amount
HE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.36
+0.05 (+0.48%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners72.87%
Inst Owner Change0.36%
Ins Owners0.17%
Ins Owner Change-1.38%
Market Cap1.79B
Analysts78.33
Price Target12.3 (18.73%)
Short Float %9%
Short Ratio4.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)-59.93%
DP-0.13%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-33.42%
Min EPS beat(2)-51.9%
Max EPS beat(2)-14.93%
EPS beat(4)0
Avg EPS beat(4)-24.69%
Min EPS beat(4)-51.9%
Max EPS beat(4)-12.82%
EPS beat(8)1
Avg EPS beat(8)-14.71%
EPS beat(12)3
Avg EPS beat(12)-7.95%
EPS beat(16)6
Avg EPS beat(16)-0.68%
Revenue beat(2)0
Avg Revenue beat(2)-16.92%
Min Revenue beat(2)-33.18%
Max Revenue beat(2)-0.66%
Revenue beat(4)0
Avg Revenue beat(4)-11.48%
Min Revenue beat(4)-33.18%
Max Revenue beat(4)-0.66%
Revenue beat(8)4
Avg Revenue beat(8)12.67%
Revenue beat(12)8
Avg Revenue beat(12)16.52%
Revenue beat(16)9
Avg Revenue beat(16)12.26%
PT rev (1m)8.43%
PT rev (3m)11.35%
EPS NQ rev (1m)-19.02%
EPS NQ rev (3m)-57.04%
EPS NY rev (1m)-2.77%
EPS NY rev (3m)-25.35%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)8.49%
Revenue NY rev (3m)5.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.68 | ||
| Fwd PE | 9.96 | ||
| P/S | 0.55 | ||
| P/FCF | 12.48 | ||
| P/OCF | 3.67 | ||
| P/B | 1.18 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 7.26 |
EPS(TTM)1.55
EY14.96%
EPS(NY)1.04
Fwd EY10.04%
FCF(TTM)0.83
FCFY8.02%
OCF(TTM)2.83
OCFY27.28%
SpS18.67
BVpS8.77
TBVpS8.77
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.97% | ||
| ROE | -94.23% | ||
| ROCE | 3.83% | ||
| ROIC | 3.09% | ||
| ROICexc | 3.39% | ||
| ROICexgc | 3.9% | ||
| OM | 10.1% | ||
| PM (TTM) | N/A | ||
| GM | 0.13% | ||
| FCFM | 4.45% |
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%
ROICexcg growth 3Y8.08%
ROICexcg 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 3Y-17.69%
GM growth 5Y-9.56%
F-Score4
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.09 | ||
| Debt/FCF | 22.86 | ||
| Debt/EBITDA | 5.39 | ||
| Cap/Depr | 131.54% | ||
| Cap/Sales | 10.69% | ||
| Interest Coverage | 2482.75 | ||
| Cash Conversion | 83.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.71 | ||
| Quick Ratio | 2.71 | ||
| Altman-Z | 0.6 |
F-Score4
WACC3%
ROIC/WACC1.03
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)-24.02%
EPS 3Y-11.55%
EPS 5Y-4.97%
EPS Q2Q%-58.33%
EPS Next Y-32.91%
EPS Next 2Y-16.47%
EPS Next 3Y-10.25%
EPS Next 5Y-4.67%
Revenue 1Y (TTM)-12.56%
Revenue growth 3Y4.15%
Revenue growth 5Y2.3%
Sales Q2Q%-16.87%
Revenue Next Year7.43%
Revenue Next 2Y4.55%
Revenue Next 3Y3.71%
Revenue Next 5Y1.62%
EBIT growth 1Y-7.76%
EBIT growth 3Y-14.27%
EBIT growth 5Y-7.48%
EBIT Next Year48.66%
EBIT Next 3Y18.83%
EBIT Next 5Y12.29%
FCF growth 1Y38.82%
FCF growth 3Y32.77%
FCF growth 5Y21.1%
OCF growth 1Y-11.6%
OCF growth 3Y9.07%
OCF growth 5Y-1%