EMERA INC (EMA) Stock Fundamental Analysis
NYSE:EMA - New York Stock Exchange, Inc. - CA2908761018 - Common Stock - Currency: USD
Taking everything into account, EMA scores 3 out of 10 in our fundamental rating. EMA was compared to 47 industry peers in the Electric Utilities industry. EMA has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, EMA is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year EMA was profitable.
EMA had a positive operating cash flow in the past year.
Each year in the past 5 years EMA has been profitable.
EMA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EMA (2.19%) is worse than 78.72% of its industry peers.
The Return On Equity of EMA (7.00%) is worse than 80.85% of its industry peers.
With a Return On Invested Capital value of 4.32%, EMA perfoms like the industry average, outperforming 57.45% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EMA is significantly below the industry average of 38.35%.
The last Return On Invested Capital (4.32%) for EMA is above the 3 year average (3.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 7% | ||
| ROIC | 4.32% |
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
EMA has a Profit Margin of 11.07%. This is in the lower half of the industry: EMA underperforms 65.96% of its industry peers.
EMA's Profit Margin has declined in the last couple of years.
EMA has a Operating Margin of 22.82%. This is in the better half of the industry: EMA outperforms 61.70% of its industry peers.
EMA's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.82% | ||
| PM (TTM) | 11.07% | ||
| 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
EMA has an Altman-Z score of 0.80. This is a bad value and indicates that EMA is not financially healthy and even has some risk of bankruptcy.
EMA has a Altman-Z score of 0.80. This is comparable to the rest of the industry: EMA outperforms 46.81% of its industry peers.
EMA has a Debt/Equity ratio of 1.50. This is a high value indicating a heavy dependency on external financing.
EMA's Debt to Equity ratio of 1.50 is in line compared to the rest of the industry. EMA outperforms 44.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.8 |
ROIC/WACC0.73
WACC5.92%
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 in the lower half of the industry: EMA underperforms 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 has a Quick ratio (0.54) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.33% over the past year.
The Earnings Per Share has been growing slightly by 2.49% on average over the past years.
EMA shows a decrease in Revenue. In the last year, the revenue decreased by -4.80%.
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)-4.8%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%1.24%
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 5.79% on average per year.
The Revenue is expected to grow by 3.17% on average over the next years.
EPS Next Y11.25%
EPS Next 2Y7.26%
EPS Next 3Y6.57%
EPS Next 5Y5.79%
Revenue Next Year12.54%
Revenue Next 2Y4.38%
Revenue Next 3Y4.92%
Revenue Next 5Y3.17%
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
EMA is valuated rather expensively with a Price/Earnings ratio of 17.73.
EMA's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.87, EMA is valued a bit cheaper.
EMA is valuated rather expensively with a Price/Forward Earnings ratio of 19.50.
EMA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. EMA is more expensive than 68.09% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.34, EMA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.73 | ||
| Fwd PE | 19.5 |
4.2 Price Multiples
EMA's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. EMA is more expensive than 61.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.24 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.58
PEG (5Y)7.12
EPS Next 2Y7.26%
EPS Next 3Y6.57%
5. Dividend
5.1 Amount
EMA has a Yearly Dividend Yield of 4.42%, which is a nice return.
EMA's Dividend Yield is rather good when compared to the industry average which is at 3.48. EMA pays more dividend than 91.49% 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 | 4.42% |
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
70.92% of the earnings are spent on dividend by EMA. This is not a sustainable payout ratio.
The dividend of EMA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP70.92%
EPS Next 2Y7.26%
EPS Next 3Y6.57%
47.86
+0.3 (+0.63%)
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 Cap14.32B
Analysts70.53
Price Target47.96 (0.21%)
Short Float %1.07%
Short Ratio40.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
Yearly Dividend1.53
Dividend Growth(5Y)3.46%
DP70.92%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.4%
Min EPS beat(2)8.91%
Max EPS beat(2)27.9%
EPS beat(4)3
Avg EPS beat(4)7.35%
Min EPS beat(4)-10.21%
Max EPS beat(4)27.9%
EPS beat(8)4
Avg EPS beat(8)0.88%
EPS beat(12)7
Avg EPS beat(12)3.44%
EPS beat(16)8
Avg EPS beat(16)2.35%
Revenue beat(2)1
Avg Revenue beat(2)2.67%
Min Revenue beat(2)-13.96%
Max Revenue beat(2)19.3%
Revenue beat(4)1
Avg Revenue beat(4)-1.21%
Min Revenue beat(4)-13.96%
Max Revenue beat(4)19.3%
Revenue beat(8)1
Avg Revenue beat(8)-4.87%
Revenue beat(12)5
Avg Revenue beat(12)4.62%
Revenue beat(16)7
Avg Revenue beat(16)2.02%
PT rev (1m)1.49%
PT rev (3m)N/A
EPS NQ rev (1m)10.43%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)1.84%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)4.32%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.73 | ||
| Fwd PE | 19.5 | ||
| P/S | 2.51 | ||
| P/FCF | N/A | ||
| P/OCF | 7.11 | ||
| P/B | 1.59 | ||
| P/tB | 2.85 | ||
| EV/EBITDA | 12.24 |
EPS(TTM)2.7
EY5.64%
EPS(NY)2.45
Fwd EY5.13%
FCF(TTM)-1.21
FCFYN/A
OCF(TTM)6.73
OCFY14.06%
SpS19.05
BVpS30.13
TBVpS16.8
PEG (NY)1.58
PEG (5Y)7.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 7% | ||
| ROCE | 5.05% | ||
| ROIC | 4.32% | ||
| ROICexc | 4.35% | ||
| ROICexgc | 5.12% | ||
| OM | 22.82% | ||
| PM (TTM) | 11.07% | ||
| 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%
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 Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.21 | ||
| Cap/Depr | 272.83% | ||
| Cap/Sales | 41.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.8 |
F-Score7
WACC5.92%
ROIC/WACC0.73
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 Y11.25%
EPS Next 2Y7.26%
EPS Next 3Y6.57%
EPS Next 5Y5.79%
Revenue 1Y (TTM)-4.8%
Revenue growth 3Y7.69%
Revenue growth 5Y3.33%
Sales Q2Q%1.24%
Revenue Next Year12.54%
Revenue Next 2Y4.38%
Revenue Next 3Y4.92%
Revenue Next 5Y3.17%
EBIT growth 1Y34.11%
EBIT growth 3Y11.95%
EBIT growth 5Y-1.07%
EBIT Next Year109.46%
EBIT Next 3Y30.88%
EBIT Next 5Y20.01%
FCF growth 1Y74.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y262.88%
OCF growth 3Y30.7%
OCF growth 5Y11.65%