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 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
In the past year HE was profitable.
In the past year HE had a positive cash flow from operations.
HE had positive earnings in 4 of the past 5 years.
HE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HE's Return On Assets of -16.44% is on the low side compared to the rest of the industry. HE is outperformed by 93.62% of its industry peers.
The Return On Equity of HE (-93.59%) is worse than 95.74% of its industry peers.
HE's Return On Invested Capital of 3.13% is on the low side compared to the rest of the industry. HE is outperformed by 85.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HE is significantly below the industry average of 38.54%.
The last Return On Invested Capital (3.13%) for HE is above the 3 year average (1.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -16.44% | ||
| ROE | -93.59% | ||
| ROIC | 3.13% |
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
With a Operating Margin value of 10.15%, HE is not doing good in the industry: 87.23% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of HE has declined.
HE does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.15% | ||
| 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
HE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HE has more shares outstanding
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 0.54. This is a bad value and indicates that HE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.54, HE is doing worse than 82.98% of the companies in the same industry.
The Debt to FCF ratio of HE is 38.54, which is on the high side as it means it would take HE, 38.54 years of fcf income to pay off all of its debts.
HE has a Debt to FCF ratio of 38.54. This is in the better half of the industry: HE outperforms 72.34% 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's Debt to Equity ratio of 1.76 is on the low side compared to the rest of the industry. HE is outperformed by 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 38.54 | ||
| Altman-Z | 0.54 |
ROIC/WACC0.58
WACC5.37%
2.3 Liquidity
HE has a Current Ratio of 1.40. This is a normal value and indicates that HE is financially healthy and should not expect problems in meeting its short term obligations.
HE has a Current ratio of 1.40. This is in the better half of the industry: HE outperforms 74.47% of its industry peers.
A Quick Ratio of 1.40 indicates that HE should not have too much problems paying its short term obligations.
HE has a better Quick ratio (1.40) than 76.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
HE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.17%.
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 -16.01%.
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)-33.17%
EPS 3Y-11.55%
EPS 5Y-4.97%
EPS Q2Q%-48.89%
Revenue 1Y (TTM)-16.01%
Revenue growth 3Y4.15%
Revenue growth 5Y2.3%
Sales Q2Q%-17.06%
3.2 Future
HE is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.51% yearly.
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-32.91%
EPS Next 2Y-16.39%
EPS Next 3Y-10.3%
EPS Next 5Y-4.51%
Revenue Next Year7.43%
Revenue Next 2Y4.55%
Revenue Next 3Y3.72%
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 stable.
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
With a Price/Earnings ratio of 7.99, the valuation of HE can be described as very cheap.
HE's Price/Earnings ratio is a bit cheaper when compared to the industry. HE is cheaper than 78.72% of the companies in the same industry.
HE is valuated cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
HE is valuated reasonably with a Price/Forward Earnings ratio of 9.81.
76.60% 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 (21.60), we can say HE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.99 | ||
| Fwd PE | 9.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HE is valued a bit cheaper than 74.47% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HE is valued cheaply inside the industry as 80.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.56 | ||
| EV/EBITDA | 7.53 |
4.3 Compensation for Growth
HE's earnings are expected to decrease with -10.30% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.39%
EPS Next 3Y-10.3%
5. Dividend
5.1 Amount
No dividends for HE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.63
-0.02 (-0.19%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.51%
Inst Owner Change4.65%
Ins Owners0.15%
Ins Owner Change-1.38%
Market Cap1.83B
Analysts78.33
Price Target12.43 (16.93%)
Short Float %3.96%
Short Ratio3.73
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)-27.82%
Min EPS beat(2)-51.9%
Max EPS beat(2)-3.75%
EPS beat(4)0
Avg EPS beat(4)-20.85%
Min EPS beat(4)-51.9%
Max EPS beat(4)-3.75%
EPS beat(8)1
Avg EPS beat(8)-14.2%
EPS beat(12)2
Avg EPS beat(12)-11.51%
EPS beat(16)5
Avg EPS beat(16)-4.44%
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)0.52%
PT rev (3m)9.55%
EPS NQ rev (1m)-0.42%
EPS NQ rev (3m)-20.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.77%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)8.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.99 | ||
| Fwd PE | 9.81 | ||
| P/S | 0.6 | ||
| P/FCF | 22.56 | ||
| P/OCF | 4.44 | ||
| P/B | 1.19 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 7.53 |
EPS(TTM)1.33
EY12.51%
EPS(NY)1.08
Fwd EY10.19%
FCF(TTM)0.47
FCFY4.43%
OCF(TTM)2.39
OCFY22.5%
SpS17.78
BVpS8.93
TBVpS8.93
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -16.44% | ||
| ROE | -93.59% | ||
| ROCE | 3.89% | ||
| ROIC | 3.13% | ||
| ROICexc | 3.4% | ||
| ROICexgc | 3.93% | ||
| OM | 10.15% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM | 2.65% |
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 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 38.54 | ||
| Debt/EBITDA | 4.77 | ||
| Cap/Depr | 128.04% | ||
| Cap/Sales | 10.8% | ||
| Interest Coverage | 3536.83 | ||
| Cash Conversion | 72.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 0.54 |
F-Score4
WACC5.37%
ROIC/WACC0.58
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)-33.17%
EPS 3Y-11.55%
EPS 5Y-4.97%
EPS Q2Q%-48.89%
EPS Next Y-32.91%
EPS Next 2Y-16.39%
EPS Next 3Y-10.3%
EPS Next 5Y-4.51%
Revenue 1Y (TTM)-16.01%
Revenue growth 3Y4.15%
Revenue growth 5Y2.3%
Sales Q2Q%-17.06%
Revenue Next Year7.43%
Revenue Next 2Y4.55%
Revenue Next 3Y3.72%
Revenue Next 5Y1.62%
EBIT growth 1Y-7.23%
EBIT growth 3Y-14.27%
EBIT growth 5Y-7.48%
EBIT Next Year48.66%
EBIT Next 3Y18.83%
EBIT Next 5Y12.29%
FCF growth 1Y-47.15%
FCF growth 3Y32.77%
FCF growth 5Y21.1%
OCF growth 1Y-24.01%
OCF growth 3Y9.07%
OCF growth 5Y-1%