Logo image of EMA.CA

EMERA INC (EMA.CA) Stock Fundamental Analysis

TSX:EMA - Toronto Stock Exchange - CA2908761018 - Common Stock - Currency: CAD

56.52  +0.59 (+1.05%)

Fundamental Rating

3

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. EMA has a expensive valuation and it also scores bad on growth. Finally EMA also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

3

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.
Each year in the past 5 years EMA had a positive operating cash flow.
EMA.CA Yearly Net Income VS EBIT VS OCF VS FCFEMA.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B 2B

1.2 Ratios

The Return On Assets of EMA (1.59%) is worse than 94.74% of its industry peers.
EMA has a Return On Equity of 5.06%. This is amonst the worse of the industry: EMA underperforms 94.74% of its industry peers.
With a Return On Invested Capital value of 3.68%, EMA is not doing good in the industry: 94.74% of the companies in the same industry are doing better.
EMA had an Average Return On Invested Capital over the past 3 years of 3.69%. This is in line with the industry average of 3.96%.
Industry RankSector Rank
ROA 1.59%
ROE 5.06%
ROIC 3.68%
ROA(3y)2.11%
ROA(5y)2.29%
ROE(3y)7.14%
ROE(5y)7.87%
ROIC(3y)3.69%
ROIC(5y)3.76%
EMA.CA Yearly ROA, ROE, ROICEMA.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8 10

1.3 Margins

EMA's Profit Margin of 8.49% is on the low side compared to the rest of the industry. EMA is outperformed by 94.74% of its industry peers.
In the last couple of years the Profit Margin of EMA has grown nicely.
EMA's Operating Margin of 21.15% is on the low side compared to the rest of the industry. EMA is outperformed by 89.47% of its industry peers.
EMA's Operating Margin has improved in the last couple of years.
Industry RankSector Rank
OM 21.15%
PM (TTM) 8.49%
GM N/A
OM growth 3Y3.68%
OM growth 5Y2.05%
PM growth 3Y-8.78%
PM growth 5Y3.51%
GM growth 3YN/A
GM growth 5YN/A
EMA.CA Yearly Profit, Operating, Gross MarginsEMA.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60 80

1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
EMA has a worse debt/assets ratio than last year.
EMA.CA Yearly Shares OutstandingEMA.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
EMA.CA Yearly Total Debt VS Total AssetsEMA.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

2.2 Solvency

Based on the Altman-Z score of 0.70, 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 0.70, EMA belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
A Debt/Equity ratio of 1.50 is on the high side and indicates that EMA has dependencies on debt financing.
EMA's Debt to Equity ratio of 1.50 is on the low side compared to the rest of the industry. EMA is outperformed by 94.74% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.5
Debt/FCF N/A
Altman-Z 0.7
ROIC/WACC0.63
WACC5.84%
EMA.CA Yearly LT Debt VS Equity VS FCFEMA.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B

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 amonst the worse of the industry: EMA underperforms 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 has a worse Quick ratio (0.54) than 94.74% of its industry peers.
Industry RankSector Rank
Current Ratio 0.72
Quick Ratio 0.54
EMA.CA Yearly Current Assets VS Current LiabilitesEMA.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

3

3. Growth

3.1 Past

EMA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.51%.
Measured over the past 5 years, EMA shows a small growth in Earnings Per Share. The EPS has been growing by 0.62% on average per year.
EMA shows a decrease in Revenue. In the last year, the revenue decreased by -6.79%.
Measured over the past years, EMA shows a small growth in Revenue. The Revenue has been growing by 3.00% on average per year.
EPS 1Y (TTM)-16.51%
EPS 3Y3.36%
EPS 5Y0.62%
EPS Q2Q%8%
Revenue 1Y (TTM)-6.79%
Revenue growth 3Y11.16%
Revenue growth 5Y3%
Sales Q2Q%3.56%

3.2 Future

The Earnings Per Share is expected to grow by 6.08% on average over the next years.
EMA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.80% yearly.
EPS Next Y-2.71%
EPS Next 2Y4.58%
EPS Next 3Y4.29%
EPS Next 5Y6.08%
Revenue Next Year1.26%
Revenue Next 2Y4.97%
Revenue Next 3Y3.56%
Revenue Next 5Y2.8%

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.
EMA.CA Yearly Revenue VS EstimatesEMA.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B 8B
EMA.CA Yearly EPS VS EstimatesEMA.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3

1

4. Valuation

4.1 Price/Earnings Ratio

EMA is valuated rather expensively with a Price/Earnings ratio of 20.70.
EMA's Price/Earnings ratio is rather expensive when compared to the industry. EMA is more expensive than 89.47% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.19, EMA is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.40, EMA is valued on the expensive side.
Based on the Price/Forward Earnings ratio, EMA is valued more expensive than 84.21% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.58. EMA is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 20.7
Fwd PE 17.4
EMA.CA Price Earnings VS Forward Price EarningsEMA.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, EMA is valued expensively inside the industry as 89.47% of the companies are valued cheaper.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.45
EMA.CA Per share dataEMA.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)33.54
EPS Next 2Y4.58%
EPS Next 3Y4.29%

8

5. Dividend

5.1 Amount

EMA has a Yearly Dividend Yield of 5.19%, which is a nice return.
EMA's Dividend Yield is rather good when compared to the industry average which is at 4.54. EMA pays more dividend than 94.74% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, EMA pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.19%

5.2 History

The dividend of EMA has a limited annual growth rate of 3.92%.
EMA has been paying a dividend for at least 10 years, so it has a reliable track record.
EMA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.92%
Div Incr Years18
Div Non Decr Years26
EMA.CA Yearly Dividends per shareEMA.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

EMA pays out 95.55% 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.
DP95.55%
EPS Next 2Y4.58%
EPS Next 3Y4.29%
EMA.CA Yearly Income VS Free CF VS DividendEMA.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M -1B -1.5B
EMA.CA Dividend Payout.EMA.CA Dividend Payout, showing the Payout Ratio.EMA.CA Dividend Payout.PayoutRetained Earnings

EMERA INC

TSX:EMA (2/14/2025, 7:00:00 PM)

56.52

+0.59 (+1.05%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)11-08 2024-11-08/amc
Earnings (Next)02-21 2025-02-21/amc
Inst Owners28.14%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap16.73B
Analysts70.59
Price Target57.8 (2.26%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.19%
Yearly Dividend2
Dividend Growth(5Y)3.92%
DP95.55%
Div Incr Years18
Div Non Decr Years26
Ex-Date01-31 2025-01-31 (0.725)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.7%
Min EPS beat(2)-10.21%
Max EPS beat(2)2.82%
EPS beat(4)1
Avg EPS beat(4)-6.5%
Min EPS beat(4)-11.73%
Max EPS beat(4)2.82%
EPS beat(8)4
Avg EPS beat(8)0.6%
EPS beat(12)5
Avg EPS beat(12)-0.04%
EPS beat(16)7
Avg EPS beat(16)0.9%
Revenue beat(2)0
Avg Revenue beat(2)-14.55%
Min Revenue beat(2)-23.25%
Max Revenue beat(2)-5.85%
Revenue beat(4)0
Avg Revenue beat(4)-9.49%
Min Revenue beat(4)-23.25%
Max Revenue beat(4)-1.8%
Revenue beat(8)2
Avg Revenue beat(8)1.46%
Revenue beat(12)6
Avg Revenue beat(12)3.35%
Revenue beat(16)6
Avg Revenue beat(16)-1.39%
PT rev (1m)0.3%
PT rev (3m)5.12%
EPS NQ rev (1m)2.28%
EPS NQ rev (3m)1.32%
EPS NY rev (1m)0.6%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)7.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.29%
Valuation
Industry RankSector Rank
PE 20.7
Fwd PE 17.4
P/S 2.26
P/FCF N/A
P/OCF 7.04
P/B 1.35
P/tB 2.41
EV/EBITDA 12.45
EPS(TTM)2.73
EY4.83%
EPS(NY)3.25
Fwd EY5.75%
FCF(TTM)-2.44
FCFYN/A
OCF(TTM)8.03
OCFY14.2%
SpS25.04
BVpS41.99
TBVpS23.42
PEG (NY)N/A
PEG (5Y)33.54
Profitability
Industry RankSector Rank
ROA 1.59%
ROE 5.06%
ROCE 4.41%
ROIC 3.68%
ROICexc 3.71%
ROICexgc 4.36%
OM 21.15%
PM (TTM) 8.49%
GM N/A
FCFM N/A
ROA(3y)2.11%
ROA(5y)2.29%
ROE(3y)7.14%
ROE(5y)7.87%
ROIC(3y)3.69%
ROIC(5y)3.76%
ROICexc(3y)3.74%
ROICexc(5y)3.8%
ROICexgc(3y)4.52%
ROICexgc(5y)4.66%
ROCE(3y)4.52%
ROCE(5y)4.59%
ROICexcg growth 3Y4.08%
ROICexcg growth 5Y-0.88%
ROICexc growth 3Y5.88%
ROICexc growth 5Y0.52%
OM growth 3Y3.68%
OM growth 5Y2.05%
PM growth 3Y-8.78%
PM growth 5Y3.51%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.19
Health
Industry RankSector Rank
Debt/Equity 1.5
Debt/FCF N/A
Debt/EBITDA 6.86
Cap/Depr 270.72%
Cap/Sales 41.8%
Interest Coverage 250
Cash Conversion 87.61%
Profit Quality N/A
Current Ratio 0.72
Quick Ratio 0.54
Altman-Z 0.7
F-Score4
WACC5.84%
ROIC/WACC0.63
Cap/Depr(3y)268.53%
Cap/Depr(5y)274.25%
Cap/Sales(3y)37.99%
Cap/Sales(5y)40.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.51%
EPS 3Y3.36%
EPS 5Y0.62%
EPS Q2Q%8%
EPS Next Y-2.71%
EPS Next 2Y4.58%
EPS Next 3Y4.29%
EPS Next 5Y6.08%
Revenue 1Y (TTM)-6.79%
Revenue growth 3Y11.16%
Revenue growth 5Y3%
Sales Q2Q%3.56%
Revenue Next Year1.26%
Revenue Next 2Y4.97%
Revenue Next 3Y3.56%
Revenue Next 5Y2.8%
EBIT growth 1Y-24.74%
EBIT growth 3Y15.25%
EBIT growth 5Y5.11%
EBIT Next Year90.59%
EBIT Next 3Y30.06%
EBIT Next 5Y20.34%
FCF growth 1Y49.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y129.69%
OCF growth 3Y11.04%
OCF growth 5Y5.81%