TSX:EMA

Stock Analysis Report

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Executive Summary

Emera Incorporated, an energy and services company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity to various customers.


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Emera's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EMA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.1%

EMA

4.6%

CA Electric Utilities

2.4%

CA Market


1 Year Return

-0.6%

EMA

-6.0%

CA Electric Utilities

-12.4%

CA Market

Return vs Industry: EMA exceeded the Canadian Electric Utilities industry which returned -5.3% over the past year.

Return vs Market: EMA exceeded the Canadian Market which returned -12.4% over the past year.


Shareholder returns

EMAIndustryMarket
7 Day4.1%4.6%2.4%
30 Day-2.6%-4.7%-0.9%
90 Day3.5%10.1%17.3%
1 Year3.8%-0.6%-3.0%-6.0%-9.4%-12.4%
3 Year31.5%13.8%17.0%6.2%4.2%-5.7%
5 Year69.4%34.6%53.1%28.9%22.1%3.8%

Price Volatility Vs. Market

How volatile is Emera's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Emera undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EMA (CA$53.87) is trading below our estimate of fair value (CA$107.89)

Significantly Below Fair Value: EMA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EMA is good value based on its PE Ratio (14.9x) compared to the Electric Utilities industry average (18.8x).

PE vs Market: EMA is poor value based on its PE Ratio (14.9x) compared to the Canadian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: EMA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: EMA is good value based on its PB Ratio (1.5x) compared to the XN Electric Utilities industry average (1.8x).


Next Steps

Future Growth

How is Emera forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EMA's earnings are forecast to decline over the next 3 years (-2.8% per year).

Earnings vs Market: EMA's earnings are forecast to decline over the next 3 years (-2.8% per year).

High Growth Earnings: EMA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: EMA's revenue (2.3% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: EMA's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EMA's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

Past Performance

How has Emera performed over the past 5 years?

18.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EMA has a large one-off gain of CA$540.0M impacting its March 31 2010 financial results.

Growing Profit Margin: EMA's current net profit margins (14.7%) are higher than last year (11.5%).


Past Earnings Growth Analysis

Earnings Trend: EMA's earnings have grown by 18.2% per year over the past 5 years.

Accelerating Growth: EMA's earnings growth over the past year (16.5%) is below its 5-year average (18.2% per year).

Earnings vs Industry: EMA earnings growth over the past year (16.5%) exceeded the Electric Utilities industry 3.5%.


Return on Equity

High ROE: EMA's Return on Equity (9.5%) is considered low.


Next Steps

Financial Health

How is Emera's financial position?


Financial Position Analysis

Short Term Liabilities: EMA's short term assets (CA$3.9B) do not cover its short term liabilities (CA$4.6B).

Long Term Liabilities: EMA's short term assets (CA$3.9B) do not cover its long term liabilities (CA$19.5B).


Debt to Equity History and Analysis

Debt Level: EMA's debt to equity ratio (174.4%) is considered high.

Reducing Debt: EMA's debt to equity ratio has increased from 97.1% to 174.4% over the past 5 years.

Debt Coverage: EMA's debt is not well covered by operating cash flow (9.2%).

Interest Coverage: EMA's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Emera current dividend yield, its reliability and sustainability?

4.55%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: EMA's dividend (4.55%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: EMA's dividend (4.55%) is low compared to the top 25% of dividend payers in the Canadian market (6.02%).


Stability and Growth of Payments

Stable Dividend: EMA's dividends per share have been stable in the past 10 years.

Growing Dividend: EMA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.4%), EMA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EMA's dividends in 3 years are forecast to be covered by earnings (86.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Scott Balfour (56yo)

2.33yrs

Tenure

CA$6,724,441

Compensation

Mr. Scott Carlyle Balfour has been Chief Executive Officer, President and Director of Emera Incorporated since March 29, 2018. Mr. Balfour served as Chief Operating Officer of Emera Incorporated since Nove ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD4.95M) is about average for companies of similar size in the Canadian market ($USD6.91M).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Balfour
CEO, President & Director2.33yrsCA$6.72m0.022% CA$2.9m
Gregory Blunden
Chief Financial Officer4.33yrsCA$2.03m0.00047% CA$62.0k
Bruce Marchand
Chief Legal & Compliance Officer5.58yrsCA$1.85m0.0015% CA$193.8k
Nancy Tower
President & CEO of Tampa Electric Company2.58yrsCA$2.75m0.024% CA$3.1m
Robert Bennett
President & CEO of Emera Technologies Inc.3.58yrsCA$2.42m0.0011% CA$139.7k
Scott LaFleur
Acting Manager6.17yrsno datano data
Ken McOnie
VP of Investor Relations & Treasurerno datano datano data
Lisa Merrithew
Vice President of Communications & Corporate Affairsno datano datano data
R. Roberts
Chief Human Resources Officer5.58yrsno data0.00045% CA$59.3k
Richard Janega
Interim President & CEO of Nova Scotia Power and COO of Electric Utilities for Canada & Caribbean2.33yrsCA$961.21k0.0060% CA$787.0k

4.0yrs

Average Tenure

57yo

Average Age

Experienced Management: EMA's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Balfour
CEO, President & Director2.33yrsCA$6.72m0.022% CA$2.9m
John Ramil
Director3.83yrsCA$219.13kno data
Mary Sheppard
Independent Chair of the Board6.17yrsCA$400.00k0.0049% CA$643.3k
Richard Sergel
Independent Director9.83yrsCA$233.84k0.0035% CA$457.5k
Andrea Rosen
Independent Director13.5yrsCA$238.89k0.0059% CA$772.5k
Sylvia Chrominska
Independent Director9.83yrsCA$220.25k0.0010% CA$135.8k
Henry Demone
Independent Director5.83yrsCA$221.25k0.00058% CA$76.5k
Kent Harvey
Independent Director2.67yrsCA$219.52kno data
James Bertram
Independent Director2yrsCA$223.30kno data
B. Loewen
Independent Director7.42yrsCA$221.50k0.0017% CA$225.4k

6.0yrs

Average Tenure

64yo

Average Age

Experienced Board: EMA's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EMA insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.


Top Shareholders

Company Information

Emera Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Emera Incorporated
  • Ticker: EMA
  • Exchange: TSX
  • Founded:
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: CA$13.183b
  • Shares outstanding: 244.72m
  • Website: https://www.emera.com

Number of Employees


Location

  • Emera Incorporated
  • 5151 Terminal Road
  • Halifax
  • Nova Scotia
  • B3J 1A1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EMATSX (The Toronto Stock Exchange)YesCommon StockCACADAug 1992
C61DB (Deutsche Boerse AG)YesCommon StockDEEURAug 1992
EMRA.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDAug 1992
EMA.PRATSX (The Toronto Stock Exchange)CUM PFD 5 YRCACADJun 2010
EMA.PRCTSX (The Toronto Stock Exchange)CU PF 5Y SER CCACADJun 2012
ERRA.FOTCPK (Pink Sheets LLC)CU PF 5Y SER CUSUSDJun 2012
EMA.PRFTSX (The Toronto Stock Exchange)1ST PFD SER FCACADJun 2014
EMA.PRHTSX (The Toronto Stock Exchange)4.9% PFD SER HCACADMay 2018

Biography

Emera Incorporated, an energy and services company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity to various customers. The company is also involved in gas transmission and utility energy services businesses; and the provision of energy marketing, trading, and other energy asset management services. In addition, it transports re-gasified liquefied natural gas to consumers in the northeastern United States through its 145-kilometre pipeline in New Brunswick. As of December 31, 2019, it served approximately 406,000 customers in Florida; 534,000 customers in New Mexico; 523,000 customers in Nova Scotia; 159,000 customers in the state of Maine; and 131,000 customers in the Island of Barbados. Emera Incorporated is headquartered in Halifax, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 23:50
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.