HAWAIIAN ELECTRIC INDS (HE) Stock Fundamental Analysis
NYSE:HE - New York Stock Exchange, Inc. - US4198701009 - Common Stock - Currency: USD
HE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. While HE seems to be doing ok healthwise, there are quite some concerns on its profitability. HE is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year HE was profitable.
HE had a positive operating cash flow in the past year.
HE had positive earnings in 4 of the past 5 years.
Each year in the past 5 years HE had a positive operating cash flow.
1.2 Ratios
HE has a Return On Assets of -16.44%. This is in the lower half of the industry: HE underperforms 78.26% of its industry peers.
The Return On Equity of HE (-93.59%) is worse than 80.43% of its industry peers.
HE's Return On Invested Capital of 3.13% is on the low side compared to the rest of the industry. HE is outperformed by 69.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HE is significantly below the industry average of 45.26%.
The last Return On Invested Capital (3.13%) for HE is above the 3 year average (1.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -16.44% | ||
| ROE | -93.59% | ||
| ROIC | 3.13% |
ROA(3y)-4.44%
ROA(5y)-2.09%
ROE(3y)-25.02%
ROE(5y)-11.32%
ROIC(3y)1.99%
ROIC(5y)1.95%
1.3 Margins
With a Operating Margin value of 10.15%, HE is not doing good in the industry: 71.74% of the companies in the same industry are doing better.
HE's Operating Margin has declined in the last couple of years.
HE does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.15% | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3Y-17.69%
OM growth 5Y-9.56%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HE is creating some value.
The number of shares outstanding for HE has been increased compared to 1 year ago.
The number of shares outstanding for HE has been increased compared to 5 years ago.
The debt/assets ratio for HE is higher compared to a year ago.
2.2 Solvency
HE has an Altman-Z score of 0.54. This is a bad value and indicates that HE is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.54, HE is not doing good in the industry: 69.57% of the companies in the same industry are doing better.
The Debt to FCF ratio of HE is 38.54, which is on the high side as it means it would take HE, 38.54 years of fcf income to pay off all of its debts.
HE has a better Debt to FCF ratio (38.54) than 82.61% of its industry peers.
HE has a Debt/Equity ratio of 1.76. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of HE (1.76) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 38.54 | ||
| Altman-Z | 0.54 |
ROIC/WACC1.02
WACC3.08%
2.3 Liquidity
A Current Ratio of 1.40 indicates that HE should not have too much problems paying its short term obligations.
HE has a better Current ratio (1.40) than 82.61% of its industry peers.
A Quick Ratio of 1.40 indicates that HE should not have too much problems paying its short term obligations.
HE has a Quick ratio of 1.40. This is amongst the best in the industry. HE outperforms 84.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The earnings per share for HE have decreased strongly by -33.17% in the last year.
Measured over the past years, HE shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.97% on average per year.
Looking at the last year, HE shows a very negative growth in Revenue. The Revenue has decreased by -16.01% in the last year.
HE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.30% yearly.
EPS 1Y (TTM)-33.17%
EPS 3Y-11.55%
EPS 5Y-4.97%
EPS Q2Q%-48.89%
Revenue 1Y (TTM)-16.01%
Revenue growth 3Y4.15%
Revenue growth 5Y2.3%
Sales Q2Q%-17.06%
3.2 Future
Based on estimates for the next years, HE will show a decrease in Earnings Per Share. The EPS will decrease by -4.67% on average per year.
Based on estimates for the next years, HE will show a small growth in Revenue. The Revenue will grow by 1.62% on average per year.
EPS Next Y-32.91%
EPS Next 2Y-16.47%
EPS Next 3Y-10.19%
EPS Next 5Y-4.67%
Revenue Next Year7.43%
Revenue Next 2Y4.55%
Revenue Next 3Y3.71%
Revenue Next 5Y1.62%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.98, the valuation of HE can be described as very cheap.
HE's Price/Earnings ratio is rather cheap when compared to the industry. HE is cheaper than 84.78% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, HE is valued rather cheaply.
The Price/Forward Earnings ratio is 9.81, which indicates a very decent valuation of HE.
84.78% of the companies in the same industry are more expensive than HE, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.76. HE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | 9.81 |
4.2 Price Multiples
84.78% of the companies in the same industry are more expensive than HE, based on the Enterprise Value to EBITDA ratio.
91.30% of the companies in the same industry are more expensive than HE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.51 | ||
| EV/EBITDA | 7.5 |
4.3 Compensation for Growth
HE's earnings are expected to decrease with -10.19% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.47%
EPS Next 3Y-10.19%
5. Dividend
5.1 Amount
No dividends for HE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.61
+0.06 (+0.57%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners72.87%
Inst Owner Change4.53%
Ins Owners0.17%
Ins Owner Change-1.38%
Market Cap1.83B
Analysts78.33
Price Target12.37 (16.59%)
Short Float %4.46%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)-59.93%
DP-0.13%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-27.82%
Min EPS beat(2)-51.9%
Max EPS beat(2)-3.75%
EPS beat(4)0
Avg EPS beat(4)-20.85%
Min EPS beat(4)-51.9%
Max EPS beat(4)-3.75%
EPS beat(8)1
Avg EPS beat(8)-14.2%
EPS beat(12)2
Avg EPS beat(12)-11.51%
EPS beat(16)5
Avg EPS beat(16)-4.44%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.52%
PT rev (3m)13.67%
EPS NQ rev (1m)-19.77%
EPS NQ rev (3m)1.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.77%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)9.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | 9.81 | ||
| P/S | 0.6 | ||
| P/FCF | 22.51 | ||
| P/OCF | 4.44 | ||
| P/B | 1.19 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 7.5 |
EPS(TTM)1.33
EY12.54%
EPS(NY)1.08
Fwd EY10.19%
FCF(TTM)0.47
FCFY4.44%
OCF(TTM)2.39
OCFY22.54%
SpS17.78
BVpS8.93
TBVpS8.93
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -16.44% | ||
| ROE | -93.59% | ||
| ROCE | 3.89% | ||
| ROIC | 3.13% | ||
| ROICexc | 3.4% | ||
| ROICexgc | 3.93% | ||
| OM | 10.15% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM | 2.65% |
ROA(3y)-4.44%
ROA(5y)-2.09%
ROE(3y)-25.02%
ROE(5y)-11.32%
ROIC(3y)1.99%
ROIC(5y)1.95%
ROICexc(3y)2.09%
ROICexc(5y)2.03%
ROICexgc(3y)2.33%
ROICexgc(5y)2.25%
ROCE(3y)2.54%
ROCE(5y)2.47%
ROICexcg growth 3Y8.08%
ROICexcg growth 5Y3.01%
ROICexc growth 3Y6.51%
ROICexc growth 5Y2.51%
OM growth 3Y-17.69%
OM growth 5Y-9.56%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 38.54 | ||
| Debt/EBITDA | 4.77 | ||
| Cap/Depr | 128.04% | ||
| Cap/Sales | 10.8% | ||
| Interest Coverage | 3536.83 | ||
| Cash Conversion | 72.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 0.54 |
F-Score4
WACC3.08%
ROIC/WACC1.02
Cap/Depr(3y)144.45%
Cap/Depr(5y)144.46%
Cap/Sales(3y)11.17%
Cap/Sales(5y)11.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-33.17%
EPS 3Y-11.55%
EPS 5Y-4.97%
EPS Q2Q%-48.89%
EPS Next Y-32.91%
EPS Next 2Y-16.47%
EPS Next 3Y-10.19%
EPS Next 5Y-4.67%
Revenue 1Y (TTM)-16.01%
Revenue growth 3Y4.15%
Revenue growth 5Y2.3%
Sales Q2Q%-17.06%
Revenue Next Year7.43%
Revenue Next 2Y4.55%
Revenue Next 3Y3.71%
Revenue Next 5Y1.62%
EBIT growth 1Y-7.23%
EBIT growth 3Y-14.27%
EBIT growth 5Y-7.48%
EBIT Next Year48.66%
EBIT Next 3Y18.83%
EBIT Next 5Y12.29%
FCF growth 1Y-47.15%
FCF growth 3Y32.77%
FCF growth 5Y21.1%
OCF growth 1Y-24.01%
OCF growth 3Y9.07%
OCF growth 5Y-1%