HAWAIIAN ELECTRIC INDS (HE)

US4198701009 - Common Stock

11.27  +0.28 (+2.55%)

After market: 11.2 -0.07 (-0.62%)

Fundamental Rating

4

Taking everything into account, HE scores 4 out of 10 in our fundamental rating. HE was compared to 45 industry peers in the Electric Utilities industry. HE may be in some trouble as it scores bad on both profitability and health. HE is cheap, but on the other hand it scores bad on growth.



2

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 each of the past 5 years.
In the past 5 years HE always reported a positive cash flow from operatings.

1.2 Ratios

HE's Return On Assets of 1.16% is on the low side compared to the rest of the industry. HE is outperformed by 88.89% of its industry peers.
With a Return On Equity value of 8.37%, HE perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
HE has a Return On Invested Capital of 1.69%. This is amonst the worse of the industry: HE underperforms 91.11% of its industry peers.
HE had an Average Return On Invested Capital over the past 3 years of 1.90%. This is below the industry average of 4.58%.
Industry RankSector Rank
ROA 1.16%
ROE 8.37%
ROIC 1.69%
ROA(3y)1.4%
ROA(5y)1.42%
ROE(3y)9.77%
ROE(5y)9.41%
ROIC(3y)1.9%
ROIC(5y)1.93%

1.3 Margins

HE has a worse Profit Margin (5.41%) than 77.78% of its industry peers.
In the last couple of years the Profit Margin of HE has declined.
With a Operating Margin value of 9.58%, HE is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
HE's Operating Margin has declined in the last couple of years.
The Gross Margin of HE (9.58%) is worse than 82.22% of its industry peers.
HE's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 9.58%
PM (TTM) 5.41%
GM 9.58%
OM growth 3Y-7.44%
OM growth 5Y-3.85%
PM growth 3Y-10.97%
PM growth 5Y-5.17%
GM growth 3Y-7.44%
GM growth 5Y-3.85%

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2. Health

2.1 Basic Checks

HE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HE has more shares outstanding
Compared to 5 years ago, HE has more shares outstanding
The debt/assets ratio for HE is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 0.41, we must say that HE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.41, HE is not doing good in the industry: 82.22% of the companies in the same industry are doing better.
HE has a debt to FCF ratio of 38.10. This is a negative value and a sign of low solvency as HE would need 38.10 years to pay back of all of its debts.
The Debt to FCF ratio of HE (38.10) is better than 80.00% of its industry peers.
HE has a Debt/Equity ratio of 1.65. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.65, HE is not doing good in the industry: 71.11% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.65
Debt/FCF 38.1
Altman-Z 0.41
ROIC/WACC0.64
WACC2.66%

2.3 Liquidity

A Current Ratio of 1.09 indicates that HE should not have too much problems paying its short term obligations.
The Current ratio of HE (1.09) is better than 64.44% of its industry peers.
HE has a Quick Ratio of 1.09. This is a normal value and indicates that HE is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of HE (1.09) is better than 71.11% of its industry peers.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 1.09

3

3. Growth

3.1 Past

HE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.27%.
The Earnings Per Share has been growing slightly by 2.09% on average over the past years.
Looking at the last year, HE shows a decrease in Revenue. The Revenue has decreased by -1.60% in the last year.
HE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.18% yearly.
EPS 1Y (TTM)-7.27%
EPS 3Y5.85%
EPS 5Y2.09%
EPS growth Q2Q-7.69%
Revenue 1Y (TTM)-1.6%
Revenue growth 3Y12.59%
Revenue growth 5Y5.18%
Revenue growth Q2Q-6.16%

3.2 Future

HE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.81% yearly.
Based on estimates for the next years, HE will show a small growth in Revenue. The Revenue will grow by 1.00% on average per year.
EPS Next Y6.03%
EPS Next 2Y5.63%
EPS Next 3Y4.96%
EPS Next 5Y3.81%
Revenue Next Year1.16%
Revenue Next 2Y1.19%
Revenue Next 3Y1.24%
Revenue Next 5Y1%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 5.52, which indicates a rather cheap valuation of HE.
Based on the Price/Earnings ratio, HE is valued cheaper than 97.78% of the companies in the same industry.
HE is valuated cheaply when we compare the Price/Earnings ratio to 26.42, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 5.21 indicates a rather cheap valuation of HE.
HE's Price/Forward Earnings ratio is rather cheap when compared to the industry. HE is cheaper than 95.56% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.74, HE is valued rather cheaply.
Industry RankSector Rank
PE 5.52
Fwd PE 5.21

4.2 Price Multiples

95.56% of the companies in the same industry are more expensive than HE, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HE indicates a rather cheap valuation: HE is cheaper than 86.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 12.03
EV/EBITDA 5.99

4.3 Compensation for Growth

HE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.92
PEG (5Y)2.65
EPS Next 2Y5.63%
EPS Next 3Y4.96%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 6.52%, HE is a good candidate for dividend investing.
In the last 3 months the price of HE has falen by -22.55%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
HE's Dividend Yield is rather good when compared to the industry average which is at 5.26. HE pays more dividend than 93.33% of the companies in the same industry.
HE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 6.52%

5.2 History

The dividend of HE decreases each year by -3.55%.
HE has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-3.55%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

57.66% of the earnings are spent on dividend by HE. This is a bit on the high side, but may be sustainable.
DP57.66%
EPS Next 2Y5.63%
EPS Next 3Y4.96%

HAWAIIAN ELECTRIC INDS

NYSE:HE (3/28/2024, 4:22:08 PM)

After market: 11.2 -0.07 (-0.62%)

11.27

+0.28 (+2.55%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.24B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 6.52%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 5.52
Fwd PE 5.21
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.92
PEG (5Y)2.65
Profitability
Industry RankSector Rank
ROA 1.16%
ROE 8.37%
ROCE
ROIC
ROICexc
ROICexgc
OM 9.58%
PM (TTM) 5.41%
GM 9.58%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
Industry RankSector Rank
Debt/Equity 1.65
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.09
Quick Ratio 1.09
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-7.27%
EPS 3Y5.85%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.6%
Revenue growth 3Y12.59%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y