EMERA INC - EMACN 6.434 PERP (EMA-PR-C.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EMA-PR-C - CA2908765076
25.37 CAD
+0.02 (+0.08%)
Taking everything into account, EMA-PR-C scores 4 out of 10 in our fundamental rating. EMA-PR-C was compared to 18 industry peers in the Electric Utilities industry. There are concerns on the financial health of EMA-PR-C while its profitability can be described as average. EMA-PR-C has a correct valuation and a medium growth rate. EMA-PR-C also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year EMA-PR-C was profitable.
- In the past year EMA-PR-C had a positive cash flow from operations.
- Each year in the past 5 years EMA-PR-C has been profitable.
- EMA-PR-C had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- EMA-PR-C has a Return On Assets of 2.56%. This is in the better half of the industry: EMA-PR-C outperforms 61.11% of its industry peers.
- With a decent Return On Equity value of 8.29%, EMA-PR-C is doing good in the industry, outperforming 61.11% of the companies in the same industry.
- EMA-PR-C has a worse Return On Invested Capital (3.70%) than 83.33% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EMA-PR-C is in line with the industry average of 4.03%.
- The last Return On Invested Capital (3.70%) for EMA-PR-C is above the 3 year average (3.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| 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-C is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
- EMA-PR-C's Profit Margin has declined in the last couple of years.
- EMA-PR-C's Operating Margin of 23.65% is on the low side compared to the rest of the industry. EMA-PR-C is outperformed by 77.78% of its industry peers.
- EMA-PR-C'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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EMA-PR-C is destroying value.
- EMA-PR-C has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, EMA-PR-C has more shares outstanding
- Compared to 1 year ago, EMA-PR-C has an improved debt to assets ratio.
2.2 Solvency
- EMA-PR-C has an Altman-Z score of 0.52. This is a bad value and indicates that EMA-PR-C is not financially healthy and even has some risk of bankruptcy.
- EMA-PR-C's Altman-Z score of 0.52 is in line compared to the rest of the industry. EMA-PR-C outperforms 44.44% of its industry peers.
- EMA-PR-C has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of EMA-PR-C (1.47) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.52 |
ROIC/WACC0.77
WACC4.83%
2.3 Liquidity
- A Current Ratio of 0.72 indicates that EMA-PR-C may have some problems paying its short term obligations.
- EMA-PR-C has a better Current ratio (0.72) than 66.67% of its industry peers.
- A Quick Ratio of 0.57 indicates that EMA-PR-C may have some problems paying its short term obligations.
- EMA-PR-C's Quick ratio of 0.57 is fine compared to the rest of the industry. EMA-PR-C outperforms 66.67% 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.
- The Revenue has grown by 15.17% 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)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-C is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.96% yearly.
- EMA-PR-C is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.56% yearly.
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
- 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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 6.69, the valuation of EMA-PR-C can be described as very cheap.
- Based on the Price/Earnings ratio, EMA-PR-C is valued a bit cheaper than 61.11% of the companies in the same industry.
- EMA-PR-C's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- Based on the Price/Forward Earnings ratio of 7.14, the valuation of EMA-PR-C can be described as very cheap.
- Based on the Price/Forward Earnings ratio, EMA-PR-C is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, EMA-PR-C is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.69 | ||
| Fwd PE | 7.14 |
4.2 Price Multiples
- 61.11% 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 | 7.91 |
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)0.31
PEG (5Y)2.69
EPS Next 2Y9.9%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.28%, EMA-PR-C is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.93, EMA-PR-C pays a better dividend. On top of this EMA-PR-C pays more dividend than 83.33% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, EMA-PR-C pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
5.2 History
- The dividend of EMA-PR-C has a limited annual growth rate of 3.46%.
- EMA-PR-C has paid a dividend for at least 10 years, which is 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
- 57.91% of the earnings are spent on dividend by EMA-PR-C. This is a bit on the high side, but may be sustainable.
- EMA-PR-C's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.91%
EPS Next 2Y9.9%
EPS Next 3Y7.77%
EMERA INC - EMACN 6.434 PERP / EMA-PR-C.CA FAQ
What is the fundamental rating for EMA-PR-C stock?
ChartMill assigns a fundamental rating of 4 / 10 to EMA-PR-C.CA.
What is the valuation status for EMA-PR-C stock?
ChartMill assigns a valuation rating of 5 / 10 to EMERA INC - EMACN 6.434 PERP (EMA-PR-C.CA). This can be considered as Fairly Valued.
How profitable is EMERA INC - EMACN 6.434 PERP (EMA-PR-C.CA) stock?
EMERA INC - EMACN 6.434 PERP (EMA-PR-C.CA) has a profitability rating of 4 / 10.
What is the financial health of EMERA INC - EMACN 6.434 PERP (EMA-PR-C.CA) stock?
The financial health rating of EMERA INC - EMACN 6.434 PERP (EMA-PR-C.CA) is 1 / 10.
How sustainable is the dividend of EMERA INC - EMACN 6.434 PERP (EMA-PR-C.CA) stock?
The dividend rating of EMERA INC - EMACN 6.434 PERP (EMA-PR-C.CA) is 8 / 10 and the dividend payout ratio is 57.91%.