EMERA INC (EMA.CA) Stock Fundamental Analysis
Canada - TSX:EMA - CA2908761018 - Common Stock
67.23 CAD
-0.29 (-0.43%)
We assign a fundamental rating of 3 out of 10 to EMA. EMA was compared to 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. Finally EMA also has an excellent dividend rating.
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.
In the past 5 years EMA has always been profitable.
EMA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EMA has a worse Return On Assets (2.04%) than 94.44% of its industry peers.
The Return On Equity of EMA (6.60%) is worse than 94.44% of its industry peers.
The Return On Invested Capital of EMA (3.62%) is worse than 94.44% of its industry peers.
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 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.
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.
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.
The number of shares outstanding for EMA has been increased compared to 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.
Looking at the Altman-Z score, with a value of 0.76, EMA belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 1.47 is on the high side and indicates that EMA has dependencies on debt financing.
The Debt to Equity ratio of EMA (1.47) is worse than 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.63
WACC5.75%
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 in line compared 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
EMA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.33%, which is quite impressive.
The Earnings Per Share has been growing slightly by 2.49% on average over the past years.
The Revenue has grown by 12.00% in the past year. This is quite good.
Measured over the past years, EMA shows a small growth in Revenue. The Revenue has been growing by 3.33% on average per year.
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 quite strong growth in Earnings Per Share. The EPS will grow by 8.29% on average per year.
EMA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.70% yearly.
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
EMA is valuated rather expensively with a Price/Earnings ratio of 18.07.
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.
When comparing the Price/Earnings ratio of EMA to the average of the S&P500 Index (25.83), we can say EMA is valued slightly cheaper.
EMA is valuated rather expensively with a Price/Forward Earnings ratio of 19.21.
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 32.68. EMA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.07 | ||
| Fwd PE | 19.21 |
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 | 12.03 |
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)7.26
EPS Next 2Y9.12%
EPS Next 3Y7.37%
5. Dividend
5.1 Amount
EMA has a Yearly Dividend Yield of 4.32%, which is a nice return.
EMA's Dividend Yield is rather good when compared to the industry average which is at 3.93. EMA pays more dividend than 94.44% of the companies in the same industry.
EMA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
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
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 2Y9.12%
EPS Next 3Y7.37%
TSX:EMA (11/7/2025, 7:00:00 PM)
67.23
-0.29 (-0.43%)
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 Cap20.20B
Revenue(TTM)8.23B
Net Income(TTM)876.00M
Analysts70
Price Target69.01 (2.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
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)2.05%
PT rev (3m)6.16%
EPS NQ rev (1m)-2.11%
EPS NQ rev (3m)-1.73%
EPS NY rev (1m)0%
EPS NY rev (3m)8.89%
Revenue NQ rev (1m)-6.27%
Revenue NQ rev (3m)-7.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.07 | ||
| Fwd PE | 19.21 | ||
| P/S | 2.45 | ||
| P/FCF | N/A | ||
| P/OCF | 8.97 | ||
| P/B | 1.52 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 12.03 |
EPS(TTM)3.72
EY5.53%
EPS(NY)3.5
Fwd EY5.21%
FCF(TTM)-4.23
FCFYN/A
OCF(TTM)7.5
OCFY11.15%
SpS27.39
BVpS44.19
TBVpS24.69
PEG (NY)0.85
PEG (5Y)7.26
Graham Number60.82
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%
ROICexgc growth 3Y1.9%
ROICexgc 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
WACC5.75%
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)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%
EMERA INC / EMA.CA FAQ
What is the fundamental rating for EMA stock?
ChartMill assigns a fundamental rating of 3 / 10 to EMA.CA.
What is the valuation status for EMA stock?
ChartMill assigns a valuation rating of 2 / 10 to EMERA INC (EMA.CA). This can be considered as Overvalued.
What is the profitability of EMA stock?
EMERA INC (EMA.CA) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for EMA stock?
The Price/Earnings (PE) ratio for EMERA INC (EMA.CA) is 18.07 and the Price/Book (PB) ratio is 1.52.
How financially healthy is EMERA INC?
The financial health rating of EMERA INC (EMA.CA) is 2 / 10.