EMERA INC - EMACN 4.951 PERP (EMA-PR-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EMA-PR-A - CA2908763097
22 CAD
-0.11 (-0.5%)
Taking everything into account, EMA-PR-A scores 4 out of 10 in our fundamental rating. EMA-PR-A was compared to 18 industry peers in the Electric Utilities industry. There are concerns on the financial health of EMA-PR-A while its profitability can be described as average. EMA-PR-A is not valued too expensively and it also shows a decent growth rate. Finally EMA-PR-A also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- EMA-PR-A had positive earnings in the past year.
- EMA-PR-A had a positive operating cash flow in the past year.
- In the past 5 years EMA-PR-A has always been profitable.
- EMA-PR-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- EMA-PR-A's Return On Assets of 2.56% is fine compared to the rest of the industry. EMA-PR-A outperforms 77.78% of its industry peers.
- Looking at the Return On Equity, with a value of 8.29%, EMA-PR-A is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
- The Return On Invested Capital of EMA-PR-A (3.70%) is worse than 66.67% of its industry peers.
- EMA-PR-A had an Average Return On Invested Capital over the past 3 years of 3.14%. This is in line with the industry average of 4.03%.
- The last Return On Invested Capital (3.70%) for EMA-PR-A is above the 3 year average (3.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 8.29% | ||
| ROIC | 3.7% |
ROA(3y)2%
ROA(5y)2.1%
ROE(3y)6.7%
ROE(5y)7.06%
ROIC(3y)3.14%
ROIC(5y)2.92%
1.3 Margins
- With a Profit Margin value of 12.89%, EMA-PR-A is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- EMA-PR-A's Profit Margin has declined in the last couple of years.
- EMA-PR-A's Operating Margin of 23.65% is on the low side compared to the rest of the industry. EMA-PR-A is outperformed by 61.11% of its industry peers.
- EMA-PR-A's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.65% | ||
| PM (TTM) | 12.89% | ||
| GM | N/A |
OM growth 3Y3.96%
OM growth 5Y-4.26%
PM growth 3Y-8.12%
PM growth 5Y-8.76%
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), EMA-PR-A is destroying value.
- The number of shares outstanding for EMA-PR-A has been increased compared to 1 year ago.
- EMA-PR-A has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for EMA-PR-A has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.50, we must say that EMA-PR-A is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.50, EMA-PR-A is doing worse than 77.78% of the companies in the same industry.
- A Debt/Equity ratio of 1.47 is on the high side and indicates that EMA-PR-A has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.47, EMA-PR-A is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.5 |
ROIC/WACC0.79
WACC4.7%
2.3 Liquidity
- A Current Ratio of 0.72 indicates that EMA-PR-A may have some problems paying its short term obligations.
- EMA-PR-A's Current ratio of 0.72 is amongst the best of the industry. EMA-PR-A outperforms 83.33% of its industry peers.
- A Quick Ratio of 0.57 indicates that EMA-PR-A may have some problems paying its short term obligations.
- The Quick ratio of EMA-PR-A (0.57) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 38.83% over the past year.
- The Earnings Per Share has been growing slightly by 2.49% on average over the past years.
- Looking at the last year, EMA-PR-A shows a quite strong growth in Revenue. The Revenue has grown by 15.17% in the last year.
- EMA-PR-A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.33% yearly.
EPS 1Y (TTM)38.83%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%8.64%
Revenue 1Y (TTM)15.17%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%16.87%
3.2 Future
- EMA-PR-A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.96% yearly.
- Based on estimates for the next years, EMA-PR-A will show a small growth in Revenue. The Revenue will grow by 2.56% on average per year.
EPS Next Y21.58%
EPS Next 2Y9.9%
EPS Next 3Y7.77%
EPS Next 5Y7.96%
Revenue Next Year14.29%
Revenue Next 2Y4.69%
Revenue Next 3Y6.1%
Revenue Next 5Y2.56%
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 accelerating.
- 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
- A Price/Earnings ratio of 5.80 indicates a rather cheap valuation of EMA-PR-A.
- Based on the Price/Earnings ratio, EMA-PR-A is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.82. EMA-PR-A is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 6.20, which indicates a rather cheap valuation of EMA-PR-A.
- Based on the Price/Forward Earnings ratio, EMA-PR-A is valued a bit cheaper than 77.78% of the companies in the same industry.
- EMA-PR-A is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.8 | ||
| Fwd PE | 6.2 |
4.2 Price Multiples
- EMA-PR-A's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EMA-PR-A is cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.6 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.27
PEG (5Y)2.33
EPS Next 2Y9.9%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.28%, EMA-PR-A is a good candidate for dividend investing.
- EMA-PR-A's Dividend Yield is a higher than the industry average which is at 3.93.
- Compared to an average S&P500 Dividend Yield of 1.82, EMA-PR-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
5.2 History
- The dividend of EMA-PR-A has a limited annual growth rate of 3.46%.
- EMA-PR-A has paid a dividend for at least 10 years, which is a reliable track record.
- EMA-PR-A has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.46%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- EMA-PR-A pays out 57.91% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of EMA-PR-A is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.91%
EPS Next 2Y9.9%
EPS Next 3Y7.77%
EMERA INC - EMACN 4.951 PERP / EMA-PR-A.CA FAQ
Can you provide the ChartMill fundamental rating for EMERA INC - EMACN 4.951 PERP?
ChartMill assigns a fundamental rating of 4 / 10 to EMA-PR-A.CA.
Can you provide the valuation status for EMERA INC - EMACN 4.951 PERP?
ChartMill assigns a valuation rating of 6 / 10 to EMERA INC - EMACN 4.951 PERP (EMA-PR-A.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for EMERA INC - EMACN 4.951 PERP?
EMERA INC - EMACN 4.951 PERP (EMA-PR-A.CA) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for EMA-PR-A stock?
The Price/Earnings (PE) ratio for EMERA INC - EMACN 4.951 PERP (EMA-PR-A.CA) is 5.8 and the Price/Book (PB) ratio is 0.5.
Can you provide the financial health for EMA-PR-A stock?
The financial health rating of EMERA INC - EMACN 4.951 PERP (EMA-PR-A.CA) is 2 / 10.