EMERA INC - EMACN 4.48 PERP (EMA-PR-B.CA) Stock Fundamental Analysis
TSX:EMA-PR-B - Toronto Stock Exchange - CA2908764087 - Currency: CAD
We assign a fundamental rating of 4 out of 10 to EMA-PR-B. EMA-PR-B was compared to 19 industry peers in the Electric Utilities industry. There are concerns on the financial health of EMA-PR-B while its profitability can be described as average. EMA-PR-B is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year EMA-PR-B was profitable.
EMA-PR-B had a positive operating cash flow in the past year.
EMA-PR-B had positive earnings in each of the past 5 years.
EMA-PR-B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.59%, EMA-PR-B perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
The Return On Equity of EMA-PR-B (5.06%) is comparable to the rest of the industry.
EMA-PR-B's Return On Invested Capital of 3.05% is in line compared to the rest of the industry. EMA-PR-B outperforms 42.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EMA-PR-B is in line with the industry average of 3.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 5.06% | ||
| ROIC | 3.05% |
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 8.49%, EMA-PR-B perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
In the last couple of years the Profit Margin of EMA-PR-B has declined.
EMA-PR-B's Operating Margin of 21.15% is in line compared to the rest of the industry. EMA-PR-B outperforms 47.37% of its industry peers.
EMA-PR-B's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.15% | ||
| PM (TTM) | 8.49% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EMA-PR-B is destroying value.
Compared to 1 year ago, EMA-PR-B has more shares outstanding
Compared to 5 years ago, EMA-PR-B has more shares outstanding
EMA-PR-B has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.44, we must say that EMA-PR-B is in the distress zone and has some risk of bankruptcy.
EMA-PR-B's Altman-Z score of 0.44 is on the low side compared to the rest of the industry. EMA-PR-B is outperformed by 89.47% of its industry peers.
A Debt/Equity ratio of 1.50 is on the high side and indicates that EMA-PR-B has dependencies on debt financing.
EMA-PR-B has a Debt to Equity ratio (1.50) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.44 |
ROIC/WACC0.67
WACC4.59%
2.3 Liquidity
EMA-PR-B has a Current Ratio of 0.72. This is a bad value and indicates that EMA-PR-B is not financially healthy enough and could expect problems in meeting its short term obligations.
With an excellent Current ratio value of 0.72, EMA-PR-B belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
A Quick Ratio of 0.54 indicates that EMA-PR-B may have some problems paying its short term obligations.
EMA-PR-B's Quick ratio of 0.54 is amongst the best of the industry. EMA-PR-B outperforms 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
EMA-PR-B shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.01%.
The Earnings Per Share has been growing slightly by 2.49% on average over the past years.
EMA-PR-B shows a decrease in Revenue. In the last year, the revenue decreased by -4.80%.
The Revenue has been growing slightly by 3.33% on average over the past years.
EPS 1Y (TTM)-1.01%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%33.33%
Revenue 1Y (TTM)-4.8%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%-10.6%
3.2 Future
Based on estimates for the next years, EMA-PR-B will show a small growth in Earnings Per Share. The EPS will grow by 5.39% on average per year.
EMA-PR-B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.62% yearly.
EPS Next Y11.25%
EPS Next 2Y7.26%
EPS Next 3Y6.57%
EPS Next 5Y5.39%
Revenue Next Year7.88%
Revenue Next 2Y3.3%
Revenue Next 3Y4.45%
Revenue Next 5Y2.62%
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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 5.61 indicates a rather cheap valuation of EMA-PR-B.
Based on the Price/Earnings ratio, EMA-PR-B is valued cheaper than 84.21% of the companies in the same industry.
EMA-PR-B is valuated cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 5.04 indicates a rather cheap valuation of EMA-PR-B.
EMA-PR-B's Price/Forward Earnings ratio is rather cheap when compared to the industry. EMA-PR-B is cheaper than 84.21% of the companies in the same industry.
EMA-PR-B is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.61 | ||
| Fwd PE | 5.04 |
4.2 Price Multiples
EMA-PR-B's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EMA-PR-B is cheaper than 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.09 |
4.3 Compensation for Growth
EMA-PR-B's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.5
PEG (5Y)2.26
EPS Next 2Y7.26%
EPS Next 3Y6.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.73%, EMA-PR-B is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.20, EMA-PR-B has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, EMA-PR-B pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
5.2 History
The dividend of EMA-PR-B has a limited annual growth rate of 3.46%.
EMA-PR-B has paid a dividend for at least 10 years, which is a reliable track record.
EMA-PR-B has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.46%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
EMA-PR-B pays out 95.55% of its income as dividend. This is not a sustainable payout ratio.
EMA-PR-B's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP95.55%
EPS Next 2Y7.26%
EPS Next 3Y6.57%
TSX:EMA-PR-B (5/1/2025, 7:00:00 PM)
16.5
+0.03 (+0.18%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners31.98%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap4.91B
Analysts70.59
Price Target16.24 (-1.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
Yearly Dividend2.11
Dividend Growth(5Y)3.46%
DP95.55%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.7%
Min EPS beat(2)-10.21%
Max EPS beat(2)2.82%
EPS beat(4)1
Avg EPS beat(4)-6.5%
Min EPS beat(4)-11.73%
Max EPS beat(4)2.82%
EPS beat(8)4
Avg EPS beat(8)0.6%
EPS beat(12)5
Avg EPS beat(12)-0.04%
EPS beat(16)7
Avg EPS beat(16)0.9%
Revenue beat(2)0
Avg Revenue beat(2)-14.55%
Min Revenue beat(2)-23.25%
Max Revenue beat(2)-5.85%
Revenue beat(4)0
Avg Revenue beat(4)-9.49%
Min Revenue beat(4)-23.25%
Max Revenue beat(4)-1.8%
Revenue beat(8)2
Avg Revenue beat(8)1.46%
Revenue beat(12)6
Avg Revenue beat(12)3.35%
Revenue beat(16)6
Avg Revenue beat(16)-1.39%
PT rev (1m)-8.54%
PT rev (3m)-15.3%
EPS NQ rev (1m)-0.83%
EPS NQ rev (3m)-0.54%
EPS NY rev (1m)0.29%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-1.86%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.61 | ||
| Fwd PE | 5.04 | ||
| P/S | 0.66 | ||
| P/FCF | N/A | ||
| P/OCF | 2.07 | ||
| P/B | 0.4 | ||
| P/tB | 0.71 | ||
| EV/EBITDA | 8.09 |
EPS(TTM)2.94
EY17.82%
EPS(NY)3.27
Fwd EY19.82%
FCF(TTM)-2.42
FCFYN/A
OCF(TTM)7.98
OCFY48.34%
SpS24.88
BVpS41.74
TBVpS23.28
PEG (NY)0.5
PEG (5Y)2.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 5.06% | ||
| ROCE | 4.41% | ||
| ROIC | 3.05% | ||
| ROICexc | 3.07% | ||
| ROICexgc | 3.62% | ||
| OM | 21.15% | ||
| PM (TTM) | 8.49% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2%
ROA(5y)2.1%
ROE(3y)6.7%
ROE(5y)7.06%
ROIC(3y)3.14%
ROIC(5y)2.92%
ROICexc(3y)3.18%
ROICexc(5y)2.95%
ROICexgc(3y)3.8%
ROICexgc(5y)3.58%
ROCE(3y)4.61%
ROCE(5y)4.29%
ROICexcg growth 3Y1.9%
ROICexcg growth 5Y-7.94%
ROICexc growth 3Y3.35%
ROICexc growth 5Y-6.78%
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
F-Score4
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.86 | ||
| Cap/Depr | 270.72% | ||
| Cap/Sales | 41.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.44 |
F-Score4
WACC4.59%
ROIC/WACC0.67
Cap/Depr(3y)272.75%
Cap/Depr(5y)273.57%
Cap/Sales(3y)38.94%
Cap/Sales(5y)41.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.01%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%33.33%
EPS Next Y11.25%
EPS Next 2Y7.26%
EPS Next 3Y6.57%
EPS Next 5Y5.39%
Revenue 1Y (TTM)-4.8%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%-10.6%
Revenue Next Year7.88%
Revenue Next 2Y3.3%
Revenue Next 3Y4.45%
Revenue Next 5Y2.62%
EBIT growth 1Y-24.74%
EBIT growth 3Y11.95%
EBIT growth 5Y-1.07%
EBIT Next Year99.26%
EBIT Next 3Y29.26%
EBIT Next 5Y19.32%
FCF growth 1Y38.76%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y33.73%
OCF growth 3Y30.7%
OCF growth 5Y11.65%