EMERA INC - EMACN 4 1/4 PERP (EMA-PR-J.CA) Stock Fundamental Analysis
TSX:EMA-PR-J - Toronto Stock Exchange - CA2908768468 - Currency: CAD
We assign a fundamental rating of 3 out of 10 to EMA-PR-J. EMA-PR-J was compared to 19 industry peers in the Electric Utilities industry. EMA-PR-J may be in some trouble as it scores bad on both profitability and health. EMA-PR-J has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
EMA-PR-J had positive earnings in the past year.
EMA-PR-J had a positive operating cash flow in the past year.
Each year in the past 5 years EMA-PR-J has been profitable.
EMA-PR-J had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EMA-PR-J has a Return On Assets of 2.19%. This is in the lower half of the industry: EMA-PR-J underperforms 78.95% of its industry peers.
The Return On Equity of EMA-PR-J (7.00%) is better than 63.16% of its industry peers.
EMA-PR-J's Return On Invested Capital of 3.49% is on the low side compared to the rest of the industry. EMA-PR-J is outperformed by 78.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EMA-PR-J is in line with the industry average of 3.84%.
The 3 year average ROIC (3.14%) for EMA-PR-J 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-J's Profit Margin of 11.07% is on the low side compared to the rest of the industry. EMA-PR-J is outperformed by 78.95% of its industry peers.
In the last couple of years the Profit Margin of EMA-PR-J has declined.
EMA-PR-J has a Operating Margin of 22.82%. This is in the lower half of the industry: EMA-PR-J underperforms 73.68% of its industry peers.
In the last couple of years the Operating Margin of EMA-PR-J 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-J is destroying value.
The number of shares outstanding for EMA-PR-J has been increased compared to 1 year ago.
EMA-PR-J has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EMA-PR-J has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.52, we must say that EMA-PR-J is in the distress zone and has some risk of bankruptcy.
EMA-PR-J has a better Altman-Z score (0.52) than 68.42% of its industry peers.
EMA-PR-J has a Debt/Equity ratio of 1.50. This is a high value indicating a heavy dependency on external financing.
EMA-PR-J's Debt to Equity ratio of 1.50 is on the low side compared to the rest of the industry. EMA-PR-J 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/WACC0.53
WACC6.55%
2.3 Liquidity
EMA-PR-J has a Current Ratio of 0.72. This is a bad value and indicates that EMA-PR-J is not financially healthy enough and could expect problems in meeting its short term obligations.
EMA-PR-J has a worse Current ratio (0.72) than 73.68% of its industry peers.
A Quick Ratio of 0.54 indicates that EMA-PR-J may have some problems paying its short term obligations.
EMA-PR-J has a worse Quick ratio (0.54) than 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.28% over the past year.
EMA-PR-J shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.49% yearly.
Looking at the last year, EMA-PR-J shows a quite strong growth in Revenue. The Revenue has grown by 9.93% in the last year.
Measured over the past years, EMA-PR-J 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
EMA-PR-J is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.80% yearly.
EMA-PR-J is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.18% yearly.
EPS Next Y11.25%
EPS Next 2Y7.26%
EPS Next 3Y6.57%
EPS Next 5Y5.8%
Revenue Next Year7.88%
Revenue Next 2Y3.3%
Revenue Next 3Y4.45%
Revenue Next 5Y3.18%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
EMA-PR-J is valuated cheaply with a Price/Earnings ratio of 6.97.
Based on the Price/Earnings ratio, EMA-PR-J is valued a bit more expensive than 63.16% of the companies in the same industry.
EMA-PR-J's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.32.
EMA-PR-J is valuated cheaply with a Price/Forward Earnings ratio of 7.12.
63.16% of the companies in the same industry are cheaper than EMA-PR-J, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of EMA-PR-J to the average of the S&P500 Index (22.19), we can say EMA-PR-J is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.97 | ||
| Fwd PE | 7.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EMA-PR-J indicates a somewhat cheap valuation: EMA-PR-J is cheaper than 63.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.08 |
4.3 Compensation for Growth
EMA-PR-J's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.62
PEG (5Y)2.8
EPS Next 2Y7.26%
EPS Next 3Y6.57%
5. Dividend
5.1 Amount
EMA-PR-J has a Yearly Dividend Yield of 4.74%, which is a nice return.
Compared to an average industry Dividend Yield of 5.05, EMA-PR-J is paying slightly less dividend.
EMA-PR-J's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
5.2 History
The dividend of EMA-PR-J has a limited annual growth rate of 3.46%.
EMA-PR-J has been paying a dividend for over 5 years, so it has already some track record.
EMA-PR-J has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.46%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
70.92% of the earnings are spent on dividend by EMA-PR-J. This is not a sustainable payout ratio.
EMA-PR-J'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-J (6/17/2025, 7:00:00 PM)
24.1
+0.1 (+0.42%)
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 Cap7.18B
Analysts70
Price Target24.78 (2.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
Yearly Dividend2.11
Dividend Growth(5Y)3.46%
DP70.92%
Div Incr Years0
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)8.01%
PT rev (3m)2.83%
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)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.97 | ||
| Fwd PE | 7.12 | ||
| P/S | 0.91 | ||
| P/FCF | N/A | ||
| P/OCF | 2.58 | ||
| P/B | 0.58 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 8.08 |
EPS(TTM)3.46
EY14.36%
EPS(NY)3.38
Fwd EY14.04%
FCF(TTM)-1.67
FCFYN/A
OCF(TTM)9.32
OCFY38.69%
SpS26.39
BVpS41.74
TBVpS23.28
PEG (NY)0.62
PEG (5Y)2.8
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
WACC6.55%
ROIC/WACC0.53
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 5Y5.8%
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 5Y3.18%
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%