EMERA INC (EMA.CA) Stock Fundamental Analysis
Canada - TSX:EMA - CA2908761018 - Common Stock
67.06 CAD
-0.13 (-0.19%)
Overall EMA gets a fundamental rating of 3 out of 10. We evaluated EMA against 18 industry peers in the Electric Utilities industry. Both the profitability and financial health of EMA have multiple concerns. EMA is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
EMA had positive earnings in the past year.
In the past year EMA had a positive cash flow from operations.
Each year in the past 5 years EMA has been profitable.
EMA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EMA has a Return On Assets of 2.04%. This is amonst the worse of the industry: EMA underperforms 94.44% of its industry peers.
EMA has a worse Return On Equity (6.60%) than 94.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.62%, EMA is doing worse than 94.44% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EMA is in line with the industry average of 4.02%.
The last Return On Invested Capital (3.62%) for EMA is above the 3 year average (3.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 6.6% | ||
| ROIC | 3.62% |
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
The Profit Margin of EMA (10.65%) is worse than 94.44% of its industry peers.
EMA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 24.00%, EMA is doing worse than 88.89% of the companies in the same industry.
EMA's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24% | ||
| PM (TTM) | 10.65% | ||
| 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 is destroying value.
EMA has more shares outstanding than it did 1 year ago.
EMA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EMA has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.76, we must say that EMA is in the distress zone and has some risk of bankruptcy.
EMA's Altman-Z score of 0.76 is amongst the best of the industry. EMA outperforms 83.33% of its industry peers.
EMA has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.47, EMA is not doing good in the industry: 94.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.62
WACC5.85%
2.3 Liquidity
A Current Ratio of 0.72 indicates that EMA may have some problems paying its short term obligations.
EMA has a Current ratio (0.72) which is in line with its industry peers.
EMA has a Quick Ratio of 0.72. This is a bad value and indicates that EMA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.57, EMA perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
| 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 39.33% over the past year.
The Earnings Per Share has been growing slightly by 2.49% on average over the past years.
EMA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.00%.
The Revenue has been growing slightly by 3.33% on average over the past years.
EPS 1Y (TTM)39.33%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%49.06%
Revenue 1Y (TTM)12%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%26.21%
3.2 Future
The Earnings Per Share is expected to grow by 8.29% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.70% on average over the next years.
EPS Next Y21.14%
EPS Next 2Y9.12%
EPS Next 3Y7.37%
EPS Next 5Y8.29%
Revenue Next Year13.49%
Revenue Next 2Y4.24%
Revenue Next 3Y4.95%
Revenue Next 5Y3.7%
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
With a Price/Earnings ratio of 18.03, EMA is valued on the expensive side.
Based on the Price/Earnings ratio, EMA is valued more expensive than 83.33% of the companies in the same industry.
EMA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.70.
A Price/Forward Earnings ratio of 19.16 indicates a rather expensive valuation of EMA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EMA indicates a rather expensive valuation: EMA more expensive than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.15. EMA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.03 | ||
| Fwd PE | 19.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EMA is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.98 |
4.3 Compensation for Growth
EMA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.85
PEG (5Y)7.24
EPS Next 2Y9.12%
EPS Next 3Y7.37%
5. Dividend
5.1 Amount
EMA has a Yearly Dividend Yield of 2.64%.
Compared to an average industry Dividend Yield of 3.98, EMA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, EMA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
5.2 History
The dividend of EMA has a limited annual growth rate of 3.46%.
EMA has paid a dividend for at least 10 years, which is a reliable track record.
EMA 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 Years18
Div Non Decr Years26
5.3 Sustainability
71.12% of the earnings are spent on dividend by EMA. This is not a sustainable payout ratio.
EMA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP71.12%
EPS Next 2Y9.12%
EPS Next 3Y7.37%
TSX:EMA (10/9/2025, 7:00:00 PM)
67.06
-0.13 (-0.19%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners57.67%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap20.15B
Analysts70
Price Target67.7 (0.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Yearly Dividend2.11
Dividend Growth(5Y)3.46%
DP71.12%
Div Incr Years18
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.12%
Min EPS beat(2)20.34%
Max EPS beat(2)27.9%
EPS beat(4)4
Avg EPS beat(4)14.99%
Min EPS beat(4)2.82%
Max EPS beat(4)27.9%
EPS beat(8)5
Avg EPS beat(8)3.91%
EPS beat(12)8
Avg EPS beat(12)5.32%
EPS beat(16)9
Avg EPS beat(16)3.65%
Revenue beat(2)1
Avg Revenue beat(2)5.95%
Min Revenue beat(2)-7.41%
Max Revenue beat(2)19.3%
Revenue beat(4)1
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-13.96%
Max Revenue beat(4)19.3%
Revenue beat(8)1
Avg Revenue beat(8)-6.12%
Revenue beat(12)4
Avg Revenue beat(12)2.34%
Revenue beat(16)7
Avg Revenue beat(16)1.31%
PT rev (1m)0.25%
PT rev (3m)4.6%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-0.18%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)8.89%
Revenue NQ rev (1m)-2.3%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)-2.98%
Revenue NY rev (3m)5.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.03 | ||
| Fwd PE | 19.16 | ||
| P/S | 2.45 | ||
| P/FCF | N/A | ||
| P/OCF | 8.95 | ||
| P/B | 1.52 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 11.98 |
EPS(TTM)3.72
EY5.55%
EPS(NY)3.5
Fwd EY5.22%
FCF(TTM)-4.23
FCFYN/A
OCF(TTM)7.5
OCFY11.18%
SpS27.39
BVpS44.19
TBVpS24.69
PEG (NY)0.85
PEG (5Y)7.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 6.6% | ||
| ROCE | 5.22% | ||
| ROIC | 3.62% | ||
| ROICexc | 3.64% | ||
| ROICexgc | 4.29% | ||
| OM | 24% | ||
| PM (TTM) | 10.65% | ||
| 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 Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.12 | ||
| Cap/Depr | 287.67% | ||
| Cap/Sales | 42.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.76 |
F-Score7
WACC5.85%
ROIC/WACC0.62
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)39.33%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%49.06%
EPS Next Y21.14%
EPS Next 2Y9.12%
EPS Next 3Y7.37%
EPS Next 5Y8.29%
Revenue 1Y (TTM)12%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%26.21%
Revenue Next Year13.49%
Revenue Next 2Y4.24%
Revenue Next 3Y4.95%
Revenue Next 5Y3.7%
EBIT growth 1Y40.87%
EBIT growth 3Y11.95%
EBIT growth 5Y-1.07%
EBIT Next Year100.79%
EBIT Next 3Y29.41%
EBIT Next 5Y21.2%
FCF growth 1Y25.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y89.08%
OCF growth 3Y30.7%
OCF growth 5Y11.65%