EMERA INC - EMACN 4.52 PERP (EMA-PR-B.CA) Stock Fundamental Analysis
TSX:EMA-PR-B - Toronto Stock Exchange - CA2908764087 - Currency: CAD
EMA-PR-B gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 19 industry peers in the Electric Utilities industry. EMA-PR-B has a medium profitability rating, but doesn't score so well on its financial health evaluation. EMA-PR-B scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year EMA-PR-B was profitable.
In the past year EMA-PR-B had a positive cash flow from operations.
In the past 5 years EMA-PR-B has always been profitable.
In the past 5 years EMA-PR-B always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of EMA-PR-B (2.19%) is comparable to the rest of the industry.
EMA-PR-B's Return On Equity of 7.00% is amongst the best of the industry. EMA-PR-B outperforms 84.21% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.49%, EMA-PR-B is in line with its industry, outperforming 42.11% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EMA-PR-B is in line with the industry average of 3.84%.
The last Return On Invested Capital (3.49%) for EMA-PR-B is above the 3 year average (3.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 7% | ||
| ROIC | 3.49% |
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
EMA-PR-B has a Profit Margin of 11.07%. This is comparable to the rest of the industry: EMA-PR-B outperforms 42.11% of its industry peers.
In the last couple of years the Profit Margin of EMA-PR-B has declined.
EMA-PR-B's Operating Margin of 22.82% is in line compared to the rest of the industry. EMA-PR-B outperforms 47.37% of its industry peers.
In the last couple of years the Operating Margin of EMA-PR-B has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.82% | ||
| PM (TTM) | 11.07% | ||
| 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.
EMA-PR-B has more shares outstanding than it did 1 year ago.
EMA-PR-B has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, EMA-PR-B has an improved debt to assets ratio.
2.2 Solvency
EMA-PR-B has an Altman-Z score of 0.50. This is a bad value and indicates that EMA-PR-B is not financially healthy and even has some risk of bankruptcy.
EMA-PR-B has a worse Altman-Z score (0.50) than 78.95% of its industry peers.
EMA-PR-B has a Debt/Equity ratio of 1.50. This is a high value indicating a heavy dependency on external 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 | 0.5 |
ROIC/WACC0.76
WACC4.62%
2.3 Liquidity
A Current Ratio of 0.72 indicates that EMA-PR-B may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.72, EMA-PR-B is in line with its industry, outperforming 47.37% of the companies in the same industry.
EMA-PR-B has a Quick 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.
EMA-PR-B has a Quick ratio (0.54) which is in line with 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 strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.28%, which is quite impressive.
The Earnings Per Share has been growing slightly by 2.49% on average over the past years.
The Revenue has grown by 9.93% in the past year. This is quite good.
The Revenue has been growing slightly by 3.33% on average over the past years.
EPS 1Y (TTM)26.28%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%68.42%
Revenue 1Y (TTM)9.93%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%32.61%
3.2 Future
The Earnings Per Share is expected to grow by 5.79% on average over the next years.
EMA-PR-B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.17% yearly.
EPS Next Y11.25%
EPS Next 2Y7.26%
EPS Next 3Y6.57%
EPS Next 5Y5.79%
Revenue Next Year7.88%
Revenue Next 2Y3.3%
Revenue Next 3Y4.45%
Revenue Next 5Y3.17%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.87, the valuation of EMA-PR-B can be described as very cheap.
Based on the Price/Earnings ratio, EMA-PR-B is valued cheaper than 84.21% of the companies in the same industry.
When comparing the Price/Earnings ratio of EMA-PR-B to the average of the S&P500 Index (27.25), we can say EMA-PR-B is valued rather cheaply.
EMA-PR-B is valuated cheaply with a Price/Forward Earnings ratio of 6.00.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EMA-PR-B indicates a rather cheap valuation: EMA-PR-B is cheaper than 84.21% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.80, EMA-PR-B is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.87 | ||
| Fwd PE | 6 |
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 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.72 |
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)0.52
PEG (5Y)2.36
EPS Next 2Y7.26%
EPS Next 3Y6.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.63%, EMA-PR-B is a good candidate for dividend investing.
EMA-PR-B's Dividend Yield is comparable with the industry average which is at 5.43.
EMA-PR-B's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.63% |
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 70.92% of its income as dividend. This is not a sustainable payout ratio.
The dividend of EMA-PR-B is growing, but earnings are growing more, so the dividend growth is sustainable.
DP70.92%
EPS Next 2Y7.26%
EPS Next 3Y6.57%
TSX:EMA-PR-B (7/31/2025, 7:00:00 PM)
20.3
-0.21 (-1.02%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners32.66%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap6.07B
Analysts70.53
Price Target20.61 (1.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.63% |
Yearly Dividend2.11
Dividend Growth(5Y)3.46%
DP70.92%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.4%
Min EPS beat(2)8.91%
Max EPS beat(2)27.9%
EPS beat(4)3
Avg EPS beat(4)7.35%
Min EPS beat(4)-10.21%
Max EPS beat(4)27.9%
EPS beat(8)4
Avg EPS beat(8)0.88%
EPS beat(12)7
Avg EPS beat(12)3.44%
EPS beat(16)8
Avg EPS beat(16)2.35%
Revenue beat(2)1
Avg Revenue beat(2)2.67%
Min Revenue beat(2)-13.96%
Max Revenue beat(2)19.3%
Revenue beat(4)1
Avg Revenue beat(4)-5.94%
Min Revenue beat(4)-23.25%
Max Revenue beat(4)19.3%
Revenue beat(8)1
Avg Revenue beat(8)-7.23%
Revenue beat(12)5
Avg Revenue beat(12)3.04%
Revenue beat(16)7
Avg Revenue beat(16)0.84%
PT rev (1m)6.02%
PT rev (3m)26.9%
EPS NQ rev (1m)3.78%
EPS NQ rev (3m)-6.17%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-6.67%
Revenue NQ rev (3m)-7.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.87 | ||
| Fwd PE | 6 | ||
| P/S | 0.77 | ||
| P/FCF | N/A | ||
| P/OCF | 2.19 | ||
| P/B | 0.49 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 7.72 |
EPS(TTM)3.46
EY17.04%
EPS(NY)3.38
Fwd EY16.66%
FCF(TTM)-1.66
FCFYN/A
OCF(TTM)9.28
OCFY45.7%
SpS26.26
BVpS41.53
TBVpS23.16
PEG (NY)0.52
PEG (5Y)2.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 7% | ||
| ROCE | 5.05% | ||
| ROIC | 3.49% | ||
| ROICexc | 3.52% | ||
| ROICexgc | 4.14% | ||
| OM | 22.82% | ||
| PM (TTM) | 11.07% | ||
| 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-Score7
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.21 | ||
| Cap/Depr | 272.83% | ||
| Cap/Sales | 41.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.5 |
F-Score7
WACC4.62%
ROIC/WACC0.76
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)26.28%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%68.42%
EPS Next Y11.25%
EPS Next 2Y7.26%
EPS Next 3Y6.57%
EPS Next 5Y5.79%
Revenue 1Y (TTM)9.93%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%32.61%
Revenue Next Year7.88%
Revenue Next 2Y3.3%
Revenue Next 3Y4.45%
Revenue Next 5Y3.17%
EBIT growth 1Y34.11%
EBIT growth 3Y11.95%
EBIT growth 5Y-1.07%
EBIT Next Year109.46%
EBIT Next 3Y30.88%
EBIT Next 5Y20.01%
FCF growth 1Y74.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y262.88%
OCF growth 3Y30.7%
OCF growth 5Y11.65%