EMERA INC - EMACN 6.434 PERP (EMA-PR-C.CA) Stock Fundamental Analysis
TSX:EMA-PR-C - Toronto Stock Exchange - CA2908765076 - Currency: CAD
EMA-PR-C gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 19 industry peers in the Electric Utilities industry. Both the profitability and financial health of EMA-PR-C have multiple concerns. EMA-PR-C has a correct valuation and a medium growth rate. Finally EMA-PR-C also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
EMA-PR-C had positive earnings in the past year.
EMA-PR-C had a positive operating cash flow in the past year.
In the past 5 years EMA-PR-C has always been profitable.
Each year in the past 5 years EMA-PR-C had a positive operating cash flow.
1.2 Ratios
EMA-PR-C has a worse Return On Assets (2.19%) than 78.95% of its industry peers.
EMA-PR-C's Return On Equity of 7.00% is fine compared to the rest of the industry. EMA-PR-C outperforms 63.16% of its industry peers.
EMA-PR-C has a Return On Invested Capital of 3.49%. This is in the lower half of the industry: EMA-PR-C underperforms 78.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EMA-PR-C is in line with the industry average of 3.84%.
The last Return On Invested Capital (3.49%) for EMA-PR-C 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-C has a worse Profit Margin (11.07%) than 78.95% of its industry peers.
EMA-PR-C's Profit Margin has declined in the last couple of years.
EMA-PR-C's Operating Margin of 22.82% is on the low side compared to the rest of the industry. EMA-PR-C is outperformed by 73.68% of its industry peers.
EMA-PR-C's Operating Margin has declined in the last couple of years.
| 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-C is destroying value.
Compared to 1 year ago, EMA-PR-C has more shares outstanding
The number of shares outstanding for EMA-PR-C has been increased compared to 5 years ago.
Compared to 1 year ago, EMA-PR-C has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.53, we must say that EMA-PR-C is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EMA-PR-C (0.53) is better than 68.42% of its industry peers.
A Debt/Equity ratio of 1.50 is on the high side and indicates that EMA-PR-C has dependencies on debt financing.
The Debt to Equity ratio of EMA-PR-C (1.50) is worse than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.53 |
ROIC/WACC0.74
WACC4.71%
2.3 Liquidity
EMA-PR-C has a Current Ratio of 0.72. This is a bad value and indicates that EMA-PR-C is not financially healthy enough and could expect problems in meeting its short term obligations.
EMA-PR-C's Current ratio of 0.72 is on the low side compared to the rest of the industry. EMA-PR-C is outperformed by 73.68% of its industry peers.
EMA-PR-C has a Quick Ratio of 0.72. This is a bad value and indicates that EMA-PR-C is not financially healthy enough and could expect problems in meeting its short term obligations.
EMA-PR-C's Quick ratio of 0.54 is on the low side compared to the rest of the industry. EMA-PR-C is outperformed by 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
EMA-PR-C 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.
Measured over the past years, EMA-PR-C shows a small growth in Revenue. The Revenue has been growing by 3.33% on average per year.
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
Based on estimates for the next years, EMA-PR-C will show a small growth in Earnings Per Share. The EPS will grow by 5.39% on average per year.
Based on estimates for the next years, EMA-PR-C will show a small growth in Revenue. The Revenue will grow by 2.62% on average per year.
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
EMA-PR-C is valuated cheaply with a Price/Earnings ratio of 7.08.
Based on the Price/Earnings ratio, EMA-PR-C is valued a bit more expensive than 63.16% of the companies in the same industry.
When comparing the Price/Earnings ratio of EMA-PR-C to the average of the S&P500 Index (26.52), we can say EMA-PR-C is valued rather cheaply.
The Price/Forward Earnings ratio is 7.24, which indicates a rather cheap valuation of EMA-PR-C.
EMA-PR-C's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. EMA-PR-C is more expensive than 63.16% of the companies in the same industry.
EMA-PR-C's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.25.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.08 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
63.16% of the companies in the same industry are more expensive than EMA-PR-C, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.12 |
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)0.63
PEG (5Y)2.85
EPS Next 2Y7.26%
EPS Next 3Y6.57%
5. Dividend
5.1 Amount
EMA-PR-C has a Yearly Dividend Yield of 4.63%, which is a nice return.
Compared to an average industry Dividend Yield of 4.18, EMA-PR-C pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, EMA-PR-C pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.63% |
5.2 History
The dividend of EMA-PR-C has a limited annual growth rate of 3.46%.
EMA-PR-C has been paying a dividend for at least 10 years, so it has a reliable track record.
EMA-PR-C has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.46%
Div Incr Years2
Div Non Decr Years12
5.3 Sustainability
70.92% of the earnings are spent on dividend by EMA-PR-C. This is not a sustainable payout ratio.
The dividend of EMA-PR-C 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-C (6/6/2025, 7:00:00 PM)
24.5
+0.05 (+0.2%)
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 Cap7.29B
Analysts70.59
Price Target23.07 (-5.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.63% |
Yearly Dividend2.11
Dividend Growth(5Y)3.46%
DP70.92%
Div Incr Years2
Div Non Decr Years12
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)2.77%
PT rev (3m)-5.85%
EPS NQ rev (1m)-9.59%
EPS NQ rev (3m)-2.62%
EPS NY rev (1m)0%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)7.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.08 | ||
| Fwd PE | 7.24 | ||
| P/S | 0.93 | ||
| P/FCF | N/A | ||
| P/OCF | 2.63 | ||
| P/B | 0.59 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 8.12 |
EPS(TTM)3.46
EY14.12%
EPS(NY)3.38
Fwd EY13.81%
FCF(TTM)-1.67
FCFYN/A
OCF(TTM)9.32
OCFY38.06%
SpS26.39
BVpS41.74
TBVpS23.28
PEG (NY)0.63
PEG (5Y)2.85
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 | 0.53 |
F-Score7
WACC4.71%
ROIC/WACC0.74
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 5Y5.39%
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 5Y2.62%
EBIT growth 1Y34.11%
EBIT growth 3Y11.95%
EBIT growth 5Y-1.07%
EBIT Next Year109.46%
EBIT Next 3Y30.88%
EBIT Next 5Y19.32%
FCF growth 1Y74.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y262.88%
OCF growth 3Y30.7%
OCF growth 5Y11.65%