EMERA INC (EMA.CA) Stock Fundamental Analysis
TSX:EMA - Toronto Stock Exchange - CA2908761018 - Common Stock - Currency: CAD
Overall EMA gets a fundamental rating of 3 out of 10. We evaluated EMA against 19 industry peers in the Electric Utilities industry. EMA may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, EMA is valued expensive at the moment. Finally EMA also has an excellent dividend rating.
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.
EMA had positive earnings in each of the past 5 years.
EMA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.19%, EMA is not doing good in the industry: 94.74% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 7.00%, EMA is in line with its industry, outperforming 47.37% of the companies in the same industry.
With a Return On Invested Capital value of 3.49%, EMA is not doing good in the industry: 94.74% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for EMA is in line with the industry average of 3.84%.
The 3 year average ROIC (3.14%) for EMA 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 has a Profit Margin of 11.07%. This is amonst the worse of the industry: EMA underperforms 94.74% of its industry peers.
In the last couple of years the Profit Margin of EMA has declined.
EMA has a worse Operating Margin (22.82%) than 89.47% of its industry peers.
In the last couple of years the Operating Margin of EMA 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
EMA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for EMA has been increased compared to 1 year ago.
Compared to 5 years ago, EMA has more shares outstanding
Compared to 1 year ago, EMA has an improved debt to assets ratio.
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 has a better Altman-Z score (0.76) than 89.47% of its industry peers.
A Debt/Equity ratio of 1.50 is on the high side and indicates that EMA has dependencies on debt financing.
The Debt to Equity ratio of EMA (1.50) is worse than 94.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.63
WACC5.57%
2.3 Liquidity
A Current Ratio of 0.72 indicates that EMA may have some problems paying its short term obligations.
EMA's Current ratio of 0.72 is on the low side compared to the rest of the industry. EMA is outperformed by 89.47% of 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.
EMA's Quick ratio of 0.54 is on the low side compared to the rest of the industry. EMA is outperformed by 89.47% 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 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 shows a quite strong growth in Revenue. The Revenue has grown by 9.93% in the last year.
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
Based on estimates for the next years, EMA will show a small growth in Earnings Per Share. The EPS will grow by 5.80% on average per year.
Based on estimates for the next years, EMA will show a small growth in Revenue. The Revenue will grow by 3.18% on average per year.
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
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EMA is valuated rather expensively with a Price/Earnings ratio of 17.51.
Based on the Price/Earnings ratio, EMA is valued expensively inside the industry as 84.21% of the companies are valued cheaper.
EMA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
With a Price/Forward Earnings ratio of 17.91, EMA is valued on the expensive side.
84.21% of the companies in the same industry are cheaper than EMA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, EMA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 17.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EMA indicates a rather expensive valuation: EMA more expensive than 84.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.71 |
4.3 Compensation for Growth
EMA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.56
PEG (5Y)7.04
EPS Next 2Y7.26%
EPS Next 3Y6.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.74%, EMA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.25, EMA pays a better dividend. On top of this EMA pays more dividend than 94.74% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, EMA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.46%
Div Incr Years18
Div Non Decr Years26
5.3 Sustainability
70.92% of the earnings are spent on dividend by EMA. This is not a sustainable payout ratio.
The dividend of EMA 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 (6/11/2025, 7:00:00 PM)
60.58
-0.09 (-0.15%)
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 Cap18.04B
Analysts70
Price Target64.43 (6.36%)
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 Years18
Div Non Decr Years26
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)5.76%
PT rev (3m)8.06%
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 | 17.51 | ||
| Fwd PE | 17.91 | ||
| P/S | 2.3 | ||
| P/FCF | N/A | ||
| P/OCF | 6.5 | ||
| P/B | 1.45 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 11.71 |
EPS(TTM)3.46
EY5.71%
EPS(NY)3.38
Fwd EY5.58%
FCF(TTM)-1.67
FCFYN/A
OCF(TTM)9.32
OCFY15.39%
SpS26.39
BVpS41.74
TBVpS23.28
PEG (NY)1.56
PEG (5Y)7.04
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 | 0.76 |
F-Score7
WACC5.57%
ROIC/WACC0.63
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%