EMERA INC (EMA) Stock Fundamental Analysis
USA - NYSE:EMA - CA2908761018 - Common Stock
46.24 USD
+0.41 (+0.89%)
46.1985 USD
-0.04 (-0.09%)
We assign a fundamental rating of 3 out of 10 to EMA. EMA was compared to 48 industry peers in the Electric Utilities industry. There are concerns on the financial health of EMA while its profitability can be described as average. EMA is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EMA was profitable.
EMA had a positive operating cash flow in the past year.
EMA had positive earnings in each of the past 5 years.
In the past 5 years EMA always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.04%, EMA is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
With a Return On Equity value of 6.60%, EMA is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 4.48%, EMA perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
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 5.43%.
The 3 year average ROIC (3.89%) for EMA is below the current ROIC(4.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 6.6% | ||
| ROIC | 4.48% |
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's Profit Margin of 10.65% is on the low side compared to the rest of the industry. EMA is outperformed by 66.67% of its industry peers.
In the last couple of years the Profit Margin of EMA has declined.
EMA's Operating Margin of 24.00% is fine compared to the rest of the industry. EMA outperforms 62.50% of its industry peers.
EMA's Operating Margin has declined in the last couple of years.
| 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
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.
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 0.73, we must say that EMA is in the distress zone and has some risk of bankruptcy.
EMA has a Altman-Z score of 0.73. This is in the lower half of the industry: EMA underperforms 66.67% 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.
EMA has a Debt to Equity ratio (1.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.73 |
ROIC/WACC0.75
WACC5.96%
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 worse Current ratio (0.72) than 66.67% of its industry peers.
A Quick Ratio of 0.57 indicates that EMA may have some problems paying its short term obligations.
With a Quick ratio value of 0.57, EMA perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
| 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.
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.
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%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 6.35% on average per year.
EMA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.23% yearly.
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
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.
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 17.13, EMA is valued on the expensive side.
EMA's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.38. EMA is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.14, which indicates a rather expensive current valuation of EMA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EMA indicates a slightly more expensive valuation: EMA is more expensive than 60.42% of the companies listed in the same industry.
EMA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 18.14 |
4.2 Price Multiples
EMA's Enterprise Value to EBITDA ratio is in line with the industry average.
| 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)0.81
PEG (5Y)6.88
EPS Next 2Y9.31%
EPS Next 3Y7.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.59%, EMA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.77, EMA is paying slightly less dividend.
EMA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
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
71.12% 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.
DP71.12%
EPS Next 2Y9.31%
EPS Next 3Y7.27%
46.24
+0.41 (+0.89%)
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 Cap13.84B
Analysts70
Price Target48.9 (5.75%)
Short Float %0.85%
Short Ratio21.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
Yearly Dividend1.52
Dividend Growth(5Y)3.46%
DP71.12%
Div Incr YearsN/A
Div Non Decr YearsN/A
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)-3.75%
Revenue beat(12)4
Avg Revenue beat(12)3.92%
Revenue beat(16)7
Avg Revenue beat(16)2.5%
PT rev (1m)1.96%
PT rev (3m)4.12%
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 | 17.13 | ||
| Fwd PE | 18.14 | ||
| P/S | 2.32 | ||
| P/FCF | N/A | ||
| P/OCF | 8.47 | ||
| P/B | 1.44 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | 11.6 |
EPS(TTM)2.7
EY5.84%
EPS(NY)2.55
Fwd EY5.51%
FCF(TTM)-3.08
FCFYN/A
OCF(TTM)5.46
OCFY11.81%
SpS19.95
BVpS32.19
TBVpS17.99
PEG (NY)0.81
PEG (5Y)6.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 6.6% | ||
| ROCE | 5.22% | ||
| ROIC | 4.48% | ||
| ROICexc | 4.51% | ||
| ROICexgc | 5.3% | ||
| 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)3.89%
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 Turnover0.19
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
WACC5.96%
ROIC/WACC0.75
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%1.24%
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%