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. There are concerns on the financial health of EMA-PR-C while its profitability can be described as average. EMA-PR-C is not valued too expensively and it also shows a decent growth rate. 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.
EMA-PR-C had positive earnings in each of the past 5 years.
Each year in the past 5 years EMA-PR-C had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EMA-PR-C (2.19%) is better than 63.16% 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.
The Return On Invested Capital of EMA-PR-C (3.49%) is worse than 78.95% 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 3.84%.
The 3 year average ROIC (3.14%) for EMA-PR-C is below the current ROIC(3.49%), indicating increased profibility in the last year.
| 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 Profit Margin of 11.07%. This is in the lower half of the industry: EMA-PR-C underperforms 78.95% of its industry peers.
In the last couple of years the Profit Margin of EMA-PR-C has declined.
The Operating Margin of EMA-PR-C (22.82%) is worse than 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EMA-PR-C is destroying value.
EMA-PR-C has more shares outstanding than it did 1 year ago.
The number of shares outstanding for EMA-PR-C has been increased compared to 5 years ago.
The debt/assets ratio for EMA-PR-C has been reduced compared to a year ago.
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 fine compared to the rest of the industry. EMA-PR-C outperforms 68.42% of its industry peers.
EMA-PR-C has a Debt/Equity ratio of 1.50. This is a high value indicating a heavy dependency on external financing.
EMA-PR-C's Debt to Equity ratio of 1.50 is on the low side compared to the rest of the industry. EMA-PR-C is outperformed by 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.52 |
ROIC/WACC0.74
WACC4.7%
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 has a better Current ratio (0.72) than 68.42% of its industry peers.
A Quick Ratio of 0.54 indicates that EMA-PR-C may have some problems paying its short term obligations.
The Quick ratio of EMA-PR-C (0.54) is better than 68.42% 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.
EMA-PR-C shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.49% yearly.
EMA-PR-C shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.93%.
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
EMA-PR-C is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.39% yearly.
The Revenue is expected to grow by 2.62% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 6.92, which indicates a rather cheap valuation of EMA-PR-C.
EMA-PR-C's Price/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/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.35.
The Price/Forward Earnings ratio is 7.07, which indicates a rather cheap valuation of EMA-PR-C.
Based on the Price/Forward Earnings ratio, EMA-PR-C is valued a bit more expensive than the industry average as 63.16% of the companies are valued more cheaply.
EMA-PR-C's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.92 | ||
| Fwd PE | 7.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EMA-PR-C indicates a somewhat cheap valuation: EMA-PR-C is cheaper than 63.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.05 |
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)0.61
PEG (5Y)2.78
EPS Next 2Y7.26%
EPS Next 3Y6.57%
5. Dividend
5.1 Amount
EMA-PR-C has a Yearly Dividend Yield of 4.68%, which is a nice return.
EMA-PR-C's Dividend Yield is a higher than the industry average which is at 4.19.
Compared to an average S&P500 Dividend Yield of 2.40, EMA-PR-C pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
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
EMA-PR-C pays out 70.92% of its income as dividend. This is not a sustainable payout ratio.
EMA-PR-C's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP70.92%
EPS Next 2Y7.26%
EPS Next 3Y6.57%
TSX:EMA-PR-C (5/27/2025, 7:00:00 PM)
23.93
+0.19 (+0.8%)
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 Cap7.12B
Analysts70.59
Price Target23.07 (-3.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
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)-1.38%
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 | 6.92 | ||
| Fwd PE | 7.07 | ||
| P/S | 0.91 | ||
| P/FCF | N/A | ||
| P/OCF | 2.57 | ||
| P/B | 0.57 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 8.05 |
EPS(TTM)3.46
EY14.46%
EPS(NY)3.38
Fwd EY14.13%
FCF(TTM)-1.67
FCFYN/A
OCF(TTM)9.32
OCFY38.96%
SpS26.39
BVpS41.74
TBVpS23.28
PEG (NY)0.61
PEG (5Y)2.78
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 | 0.52 |
F-Score7
WACC4.7%
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%