EMERA INC (EMA.CA) Stock Fundamental Analysis
Canada - TSX:EMA - CA2908761018 - Common Stock
63.24 CAD
-0.52 (-0.82%)
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 has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
EMA had a positive operating cash flow in the past year.
Each year in the past 5 years EMA has been profitable.
In the past 5 years EMA always reported a positive cash flow from operatings.
1.2 Ratios
EMA's Return On Assets of 2.04% is on the low side compared to the rest of the industry. EMA is outperformed by 94.44% of its industry peers.
The Return On Equity of EMA (6.60%) is worse 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.
The Average Return On Invested Capital over the past 3 years for EMA is in line with the industry average of 4.02%.
The 3 year average ROIC (3.14%) for EMA is below the current ROIC(3.62%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 10.65%, EMA is not doing good in the industry: 94.44% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of EMA has declined.
EMA has a worse Operating Margin (24.00%) than 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.
EMA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, EMA has more shares outstanding
EMA has a better debt/assets ratio than last year.
2.2 Solvency
EMA has an Altman-Z score of 0.73. This is a bad value and indicates that EMA is not financially healthy and even has some risk of bankruptcy.
EMA's Altman-Z score of 0.73 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.
Looking at the Debt to Equity ratio, with a value of 1.47, EMA is doing worse than 94.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.73 |
ROIC/WACC0.62
WACC5.81%
2.3 Liquidity
EMA has a Current 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 has a Current ratio of 0.72. This is comparable to the rest of the industry: EMA outperforms 55.56% of its industry peers.
A Quick Ratio of 0.57 indicates that EMA may have some problems paying its short term obligations.
EMA has a Quick ratio of 0.57. This is comparable to the rest of the industry: EMA outperforms 55.56% of its industry peers.
| 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%.
EMA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.33% yearly.
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 6.35% on average per year.
Based on estimates for the next years, EMA will show a small growth in Revenue. The Revenue will grow by 3.23% on average per year.
EPS Next Y21.27%
EPS Next 2Y9.31%
EPS Next 3Y7.27%
EPS Next 5Y6.35%
Revenue Next Year13.08%
Revenue Next 2Y5.22%
Revenue Next 3Y5.69%
Revenue Next 5Y3.23%
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 17.00, EMA is valued on the expensive side.
Based on the Price/Earnings ratio, EMA is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
The average S&P500 Price/Earnings ratio is at 27.41. EMA is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.00, which indicates a rather expensive current valuation of EMA.
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.
The average S&P500 Price/Forward Earnings ratio is at 22.88. EMA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 18 |
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 | 11.6 |
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)0.8
PEG (5Y)6.83
EPS Next 2Y9.31%
EPS Next 3Y7.27%
5. Dividend
5.1 Amount
EMA has a Yearly Dividend Yield of 2.66%.
Compared to an average industry Dividend Yield of 3.26, EMA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, EMA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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.
EMA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP71.12%
EPS Next 2Y9.31%
EPS Next 3Y7.27%
TSX:EMA (9/18/2025, 7:00:00 PM)
63.24
-0.52 (-0.82%)
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 Cap18.92B
Analysts70
Price Target67.62 (6.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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)3.52%
PT rev (3m)4.95%
EPS NQ rev (1m)1.22%
EPS NQ rev (3m)7.36%
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)0.48%
Revenue NY rev (3m)4.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 18 | ||
| P/S | 2.3 | ||
| P/FCF | N/A | ||
| P/OCF | 8.4 | ||
| P/B | 1.43 | ||
| P/tB | 2.55 | ||
| EV/EBITDA | 11.6 |
EPS(TTM)3.72
EY5.88%
EPS(NY)3.51
Fwd EY5.55%
FCF(TTM)-4.25
FCFYN/A
OCF(TTM)7.53
OCFY11.9%
SpS27.5
BVpS44.37
TBVpS24.79
PEG (NY)0.8
PEG (5Y)6.83
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 | 0.73 |
F-Score7
WACC5.81%
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 5Y6.35%
Revenue 1Y (TTM)12%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%26.21%
Revenue Next Year13.08%
Revenue Next 2Y5.22%
Revenue Next 3Y5.69%
Revenue Next 5Y3.23%
EBIT growth 1Y40.87%
EBIT growth 3Y11.95%
EBIT growth 5Y-1.07%
EBIT Next Year109.46%
EBIT Next 3Y30.88%
EBIT Next 5Y20.42%
FCF growth 1Y25.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y89.08%
OCF growth 3Y30.7%
OCF growth 5Y11.65%