EMERA INC (EMA.CA) Stock Fundamental Analysis
TSX:EMA - CA2908761018 - Common Stock
65.19 CAD
-0.22 (-0.34%)
Taking everything into account, EMA scores 3 out of 10 in our fundamental rating. EMA was compared to 18 industry peers in the Electric Utilities industry. EMA may be in some trouble as it scores bad on both profitability and health. EMA is valied quite expensively at the moment, while it does show a decent growth rate. 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.
Each year in the past 5 years EMA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EMA (2.04%) is worse than 94.44% of its industry peers.
With a Return On Equity value of 6.60%, EMA is not doing good in the industry: 94.44% of the companies in the same industry are doing better.
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.
The Average Return On Invested Capital over the past 3 years 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
EMA has a worse Profit Margin (10.65%) than 94.44% of its industry peers.
In the last couple of years the Profit Margin of EMA has declined.
EMA has a Operating Margin of 24.00%. This is amonst the worse of the industry: EMA underperforms 88.89% of its industry peers.
In the last couple of years the Operating Margin of EMA has declined.
| 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.
Compared to 1 year ago, EMA has more shares outstanding
EMA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, EMA has an improved debt to assets ratio.
2.2 Solvency
EMA has an Altman-Z score of 0.75. This is a bad value and indicates that EMA is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of EMA (0.75) is better than 83.33% of its industry peers.
A Debt/Equity ratio of 1.47 is on the high side and indicates that EMA has dependencies on debt financing.
EMA has a worse Debt to Equity ratio (1.47) than 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.62
WACC5.84%
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 of 0.72. This is comparable to the rest of the industry: EMA outperforms 55.56% 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.
The Quick ratio of EMA (0.57) is comparable to the rest of the 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.
EMA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.49% yearly.
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
Based on estimates for the next years, EMA will show a small growth in Earnings Per Share. The EPS will grow by 6.44% on average per year.
Based on estimates for the next years, EMA will show a small growth in Revenue. The Revenue will grow by 3.31% on average per year.
EPS Next Y21.27%
EPS Next 2Y9.31%
EPS Next 3Y7.27%
EPS Next 5Y6.44%
Revenue Next Year16.98%
Revenue Next 2Y7.53%
Revenue Next 3Y11.38%
Revenue Next 5Y3.31%
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 is valuated rather expensively with a Price/Earnings ratio of 17.52.
EMA's Price/Earnings ratio is rather expensive when compared to the industry. EMA is more expensive than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.84, EMA is valued a bit cheaper.
With a Price/Forward Earnings ratio of 18.56, EMA is valued on the expensive side.
EMA's Price/Forward Earnings ratio is rather expensive when compared to the industry. EMA is more expensive than 83.33% of the companies in the same industry.
EMA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.48, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.52 | ||
| Fwd PE | 18.56 |
4.2 Price Multiples
EMA's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. EMA is more expensive than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.79 |
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)0.82
PEG (5Y)7.04
EPS Next 2Y9.31%
EPS Next 3Y7.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.16%, EMA is a good candidate for dividend investing.
EMA's Dividend Yield is comparable with the industry average which is at 5.89.
EMA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.16% |
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
EMA pays out 71.12% of its income as dividend. This is not a sustainable payout ratio.
The dividend of EMA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP71.12%
EPS Next 2Y9.31%
EPS Next 3Y7.27%
TSX:EMA (9/2/2025, 7:00:00 PM)
65.19
-0.22 (-0.34%)
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 Cap19.51B
Analysts70.53
Price Target67.53 (3.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.16% |
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)3.89%
PT rev (3m)10.35%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)7.48%
EPS NY rev (1m)9.01%
EPS NY rev (3m)9.01%
Revenue NQ rev (1m)0.89%
Revenue NQ rev (3m)5.48%
Revenue NY rev (1m)3.95%
Revenue NY rev (3m)8.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.52 | ||
| Fwd PE | 18.56 | ||
| P/S | 2.37 | ||
| P/FCF | N/A | ||
| P/OCF | 8.66 | ||
| P/B | 1.47 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | 11.79 |
EPS(TTM)3.72
EY5.71%
EPS(NY)3.51
Fwd EY5.39%
FCF(TTM)-4.25
FCFYN/A
OCF(TTM)7.53
OCFY11.54%
SpS27.5
BVpS44.37
TBVpS24.79
PEG (NY)0.82
PEG (5Y)7.04
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 | 0.75 |
F-Score7
WACC5.84%
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 Y21.27%
EPS Next 2Y9.31%
EPS Next 3Y7.27%
EPS Next 5Y6.44%
Revenue 1Y (TTM)12%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%26.21%
Revenue Next Year16.98%
Revenue Next 2Y7.53%
Revenue Next 3Y11.38%
Revenue Next 5Y3.31%
EBIT growth 1Y40.87%
EBIT growth 3Y11.95%
EBIT growth 5Y-1.07%
EBIT Next Year109.46%
EBIT Next 3Y30.88%
EBIT Next 5Y20.51%
FCF growth 1Y25.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y89.08%
OCF growth 3Y30.7%
OCF growth 5Y11.65%