EMERA INC (EMA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EMA - CA2908761018 - Common Stock
47.41 USD
-0.34 (-0.71%)
47.41 USD
0 (0%)
Overall EMA gets a fundamental rating of 3 out of 10. We evaluated EMA against 47 industry peers in the Electric Utilities industry. EMA has a medium profitability rating, but doesn't score so well on its financial health evaluation. EMA is valied quite expensively at the moment, while it does show a decent growth rate. EMA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EMA was profitable.
EMA had a positive operating cash flow in the past year.
In the past 5 years EMA has always 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 2.56% is in line compared to the rest of the industry. EMA outperforms 42.55% of its industry peers.
EMA has a Return On Equity of 8.29%. This is in the lower half of the industry: EMA underperforms 72.34% of its industry peers.
The Return On Invested Capital of EMA (4.58%) is better than 63.83% of its industry peers.
EMA had an Average Return On Invested Capital over the past 3 years of 3.89%. This is in line with the industry average of 5.00%.
The 3 year average ROIC (3.89%) for EMA is below the current ROIC(4.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 8.29% | ||
| ROIC | 4.58% |
ROA(3y)2%
ROA(5y)2.1%
ROE(3y)6.7%
ROE(5y)7.06%
ROIC(3y)3.89%
ROIC(5y)3.61%
1.3 Margins
The Profit Margin of EMA (12.89%) is comparable to the rest of the industry.
EMA's Profit Margin has declined in the last couple of years.
EMA has a Operating Margin of 23.65%. This is in the better half of the industry: EMA outperforms 63.83% of its industry peers.
In the last couple of years the Operating Margin of EMA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.65% | ||
| PM (TTM) | 12.89% | ||
| 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
The number of shares outstanding for EMA has been increased compared to 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 0.77, 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 0.77, EMA is doing worse than 61.70% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.78
WACC5.88%
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 70.21% 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 0.57 is in line compared to the rest of the industry. EMA outperforms 40.43% of its industry peers.
| 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 38.83%, which is quite impressive.
Measured over the past 5 years, EMA shows a small growth in Earnings Per Share. The EPS has been growing by 2.49% on average per year.
The Revenue has grown by 15.17% in the past year. This is quite good.
The Revenue has been growing slightly by 3.33% on average over the past years.
EPS 1Y (TTM)38.83%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%8.64%
Revenue 1Y (TTM)15.17%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%16.87%
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 8.44% on average per year.
Based on estimates for the next years, EMA will show a small growth in Revenue. The Revenue will grow by 3.84% on average per year.
EPS Next Y21.24%
EPS Next 2Y9.23%
EPS Next 3Y7.5%
EPS Next 5Y8.44%
Revenue Next Year13.64%
Revenue Next 2Y4.44%
Revenue Next 3Y5.15%
Revenue Next 5Y3.84%
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
Based on the Price/Earnings ratio of 17.62, the valuation of EMA can be described as rather expensive.
EMA's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.45. EMA is valued slightly cheaper when compared to this.
EMA is valuated rather expensively with a Price/Forward Earnings ratio of 19.04.
Based on the Price/Forward Earnings ratio, EMA is valued a bit more expensive than the industry average as 63.83% of the companies are valued more cheaply.
EMA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 19.04 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EMA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.71 |
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)0.83
PEG (5Y)7.08
EPS Next 2Y9.23%
EPS Next 3Y7.5%
5. Dividend
5.1 Amount
EMA has a Yearly Dividend Yield of 4.36%, which is a nice return.
Compared to an average industry Dividend Yield of 3.44, EMA pays a better dividend. On top of this EMA pays more dividend than 87.23% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, EMA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
5.2 History
The dividend of EMA has a limited annual growth rate of 3.46%.
EMA has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)3.46%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
EMA pays out 57.91% of its income as dividend. This is a bit on the high side, but may be sustainable.
EMA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.91%
EPS Next 2Y9.23%
EPS Next 3Y7.5%
47.41
-0.34 (-0.71%)
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 Cap14.24B
Revenue(TTM)8.53B
Net Income(TTM)1.10B
Analysts70
Price Target49.97 (5.4%)
Short Float %1.92%
Short Ratio38.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
Yearly Dividend1.5
Dividend Growth(5Y)3.46%
DP57.91%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.31%
Min EPS beat(2)0.29%
Max EPS beat(2)20.34%
EPS beat(4)4
Avg EPS beat(4)14.36%
Min EPS beat(4)0.29%
Max EPS beat(4)27.9%
EPS beat(8)5
Avg EPS beat(8)3.93%
EPS beat(12)8
Avg EPS beat(12)5.19%
EPS beat(16)9
Avg EPS beat(16)3.56%
Revenue beat(2)1
Avg Revenue beat(2)1.8%
Min Revenue beat(2)-7.41%
Max Revenue beat(2)11.02%
Revenue beat(4)2
Avg Revenue beat(4)2.24%
Min Revenue beat(4)-13.96%
Max Revenue beat(4)19.3%
Revenue beat(8)2
Avg Revenue beat(8)-1.26%
Revenue beat(12)4
Avg Revenue beat(12)3.29%
Revenue beat(16)8
Avg Revenue beat(16)4.25%
PT rev (1m)2.83%
PT rev (3m)2.56%
EPS NQ rev (1m)-2.52%
EPS NQ rev (3m)-2.65%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)47.4%
Revenue NQ rev (3m)7.03%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-2.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 19.04 | ||
| P/S | 2.35 | ||
| P/FCF | N/A | ||
| P/OCF | 8.78 | ||
| P/B | 1.51 | ||
| P/tB | 2.7 | ||
| EV/EBITDA | 11.71 |
EPS(TTM)2.69
EY5.67%
EPS(NY)2.49
Fwd EY5.25%
FCF(TTM)-2.86
FCFYN/A
OCF(TTM)5.4
OCFY11.38%
SpS20.16
BVpS31.37
TBVpS17.53
PEG (NY)0.83
PEG (5Y)7.08
Graham Number43.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 8.29% | ||
| ROCE | 5.33% | ||
| ROIC | 4.58% | ||
| ROICexc | 4.61% | ||
| ROICexgc | 5.42% | ||
| OM | 23.65% | ||
| PM (TTM) | 12.89% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2%
ROA(5y)2.1%
ROE(3y)6.7%
ROE(5y)7.06%
ROIC(3y)3.89%
ROIC(5y)3.61%
ROICexc(3y)3.93%
ROICexc(5y)3.65%
ROICexgc(3y)4.7%
ROICexgc(5y)4.43%
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 Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.99 | ||
| Cap/Depr | 279.52% | ||
| Cap/Sales | 40.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.77 |
F-Score7
WACC5.88%
ROIC/WACC0.78
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)38.83%
EPS 3Y1.4%
EPS 5Y2.49%
EPS Q2Q%8.64%
EPS Next Y21.24%
EPS Next 2Y9.23%
EPS Next 3Y7.5%
EPS Next 5Y8.44%
Revenue 1Y (TTM)15.17%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%16.87%
Revenue Next Year13.64%
Revenue Next 2Y4.44%
Revenue Next 3Y5.15%
Revenue Next 5Y3.84%
EBIT growth 1Y28.78%
EBIT growth 3Y11.95%
EBIT growth 5Y-1.07%
EBIT Next Year100.79%
EBIT Next 3Y29.41%
EBIT Next 5Y21.37%
FCF growth 1Y-2.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y28.6%
OCF growth 3Y30.7%
OCF growth 5Y11.65%
EMERA INC / EMA FAQ
What is the fundamental rating for EMA stock?
ChartMill assigns a fundamental rating of 3 / 10 to EMA.
What is the valuation status for EMA stock?
ChartMill assigns a valuation rating of 2 / 10 to EMERA INC (EMA). This can be considered as Overvalued.
What is the profitability of EMA stock?
EMERA INC (EMA) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for EMA stock?
The Price/Earnings (PE) ratio for EMERA INC (EMA) is 17.62 and the Price/Book (PB) ratio is 1.51.
How financially healthy is EMERA INC?
The financial health rating of EMERA INC (EMA) is 1 / 10.