HAWAIIAN ELECTRIC INDS (HE) Stock Fundamental Analysis
NYSE:HE - New York Stock Exchange, Inc. - US4198701009 - Common Stock - Currency: USD
Taking everything into account, HE scores 3 out of 10 in our fundamental rating. HE was compared to 47 industry peers in the Electric Utilities industry. Both the profitability and financial health of HE have multiple concerns. HE has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HE had positive earnings in the past year.
In the past year HE had a positive cash flow from operations.
HE had positive earnings in 4 of the past 5 years.
In the past 5 years HE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HE (-16.44%) is worse than 93.62% of its industry peers.
With a Return On Equity value of -93.59%, HE is not doing good in the industry: 95.74% of the companies in the same industry are doing better.
HE has a worse Return On Invested Capital (3.13%) than 85.11% of its industry peers.
HE had an Average Return On Invested Capital over the past 3 years of 1.99%. This is significantly below the industry average of 38.54%.
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
HE's Operating Margin of 10.15% is on the low side compared to the rest of the industry. HE is outperformed by 87.23% of its industry peers.
In the last couple of years the Operating Margin of HE has declined.
The Profit Margin and Gross Margin are not available for HE so they could not be analyzed.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HE is still creating some value.
Compared to 1 year ago, HE has more shares outstanding
HE has more shares outstanding than it did 5 years ago.
HE has a worse debt/assets ratio than last year.
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.
HE's Altman-Z score of 0.54 is on the low side compared to the rest of the industry. HE is outperformed by 82.98% of its industry peers.
HE has a debt to FCF ratio of 38.54. This is a negative value and a sign of low solvency as HE would need 38.54 years to pay back of all of its debts.
HE has a better Debt to FCF ratio (38.54) than 72.34% of its industry peers.
A Debt/Equity ratio of 1.76 is on the high side and indicates that HE has dependencies on debt financing.
HE has a worse Debt to Equity ratio (1.76) than 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 38.54 | ||
| Altman-Z | 0.54 |
ROIC/WACC1.03
WACC3.05%
2.3 Liquidity
HE has a Current Ratio of 1.40. This is a normal value and indicates that HE is financially healthy and should not expect problems in meeting its short term obligations.
HE's Current ratio of 1.40 is fine compared to the rest of the industry. HE outperforms 74.47% 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's Quick ratio of 1.40 is fine compared to the rest of the industry. HE outperforms 76.60% 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.
The Earnings Per Share has been decreasing by -4.97% on average over the past years.
Looking at the last year, HE shows a very negative growth in Revenue. The Revenue has decreased by -16.01% in the last year.
Measured over the past years, HE shows a small growth in Revenue. The Revenue has been growing by 2.30% on average per year.
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
The Earnings Per Share is expected to decrease by -4.51% on average over the next years.
The Revenue is expected to grow by 1.62% on average over the next years.
EPS Next Y-32.91%
EPS Next 2Y-16.39%
EPS Next 3Y-10.3%
EPS Next 5Y-4.51%
Revenue Next Year7.43%
Revenue Next 2Y4.55%
Revenue Next 3Y3.72%
Revenue Next 5Y1.62%
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 stable.
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 7.95, the valuation of HE can be described as very cheap.
78.72% of the companies in the same industry are more expensive than HE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HE to the average of the S&P500 Index (27.30), we can say HE is valued rather cheaply.
HE is valuated reasonably with a Price/Forward Earnings ratio of 9.75.
HE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HE is cheaper than 76.60% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, HE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.95 | ||
| Fwd PE | 9.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HE is valued a bit cheaper than the industry average as 76.60% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HE indicates a rather cheap valuation: HE is cheaper than 80.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.43 | ||
| EV/EBITDA | 7.53 |
4.3 Compensation for Growth
A cheap valuation may be justified as HE's earnings are expected to decrease with -10.30% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.39%
EPS Next 3Y-10.3%
5. Dividend
5.1 Amount
No dividends for HE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.57
-0.08 (-0.75%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.51%
Inst Owner Change0.01%
Ins Owners0.15%
Ins Owner Change9.42%
Market Cap1.82B
Analysts78.33
Price Target12.43 (17.6%)
Short Float %4.42%
Short Ratio4.46
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)1.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.1%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.95 | ||
| Fwd PE | 9.75 | ||
| P/S | 0.59 | ||
| P/FCF | 22.43 | ||
| P/OCF | 4.42 | ||
| P/B | 1.18 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 7.53 |
EPS(TTM)1.33
EY12.58%
EPS(NY)1.08
Fwd EY10.25%
FCF(TTM)0.47
FCFY4.46%
OCF(TTM)2.39
OCFY22.63%
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
WACC3.05%
ROIC/WACC1.03
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-16.39%
EPS Next 3Y-10.3%
EPS Next 5Y-4.51%
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 3Y3.72%
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%