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EMA

EmeraTSX:EMA Stock Report

Market Cap

CA$15.0b

7D

-0.6%

1Y

6.5%

Updated

26 Sep, 2021

Data

Company Financials +
EMA fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance2/6
Financial Health1/6
Dividends4/6

EMA Overview

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

Emera Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Emera
Historical stock prices
Current Share PriceCA$58.04
52 Week HighCA$49.66
52 Week LowCA$60.26
Beta0.23
1 Month Change-2.47%
3 Month Change2.53%
1 Year Change6.52%
3 Year Change44.52%
5 Year Change22.68%
Change since IPO452.76%

Recent News & Updates

Aug 29
A Look At The Intrinsic Value Of Emera Incorporated (TSE:EMA)

A Look At The Intrinsic Value Of Emera Incorporated (TSE:EMA)

Today we will run through one way of estimating the intrinsic value of Emera Incorporated ( TSE:EMA ) by taking the...

Jul 24
The Returns On Capital At Emera (TSE:EMA) Don't Inspire Confidence

The Returns On Capital At Emera (TSE:EMA) Don't Inspire Confidence

There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and...

Jul 05
Emera (TSE:EMA) Use Of Debt Could Be Considered Risky

Emera (TSE:EMA) Use Of Debt Could Be Considered Risky

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

EMACA Electric UtilitiesCA Market
7D-0.6%-1.2%-0.3%
1Y6.5%12.9%30.8%

Return vs Industry: EMA underperformed the Canadian Electric Utilities industry which returned 12.9% over the past year.

Return vs Market: EMA underperformed the Canadian Market which returned 30.8% over the past year.

Price Volatility

Is EMA's price volatile compared to industry and market?
EMA volatility
EMA Beta0.23
Industry Beta0.43
Market Beta1

Stable Share Price: EMA is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: EMA's weekly volatility (1%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1998n/aScott Balfourhttps://www.emera.com

Emera Incorporated, an energy and services company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity to various customers. The company operates through Florida Electric Utility, Canadian Electric Utilities, Other Electric Utilities, Gas Utilities and Infrastructure, and Other segments. It generates electricity through coal-fired, natural gas and/or oil, hydro, wind, solar, petcoke, and biomass-fueled power plants.

Emera Fundamentals Summary

How do Emera's earnings and revenue compare to its market cap?
EMA fundamental statistics
Market CapCA$15.01b
Earnings (TTM)CA$612.90m
Revenue (TTM)CA$5.45b

24.5x

P/E Ratio

2.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EMA income statement (TTM)
RevenueCA$5.45b
Cost of RevenueCA$3.22b
Gross ProfitCA$2.23b
ExpensesCA$1.61b
EarningsCA$612.90m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.37
Gross Margin40.85%
Net Profit Margin11.25%
Debt/Equity Ratio161.9%

How did EMA perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

104%

Payout Ratio

Valuation

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

18.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EMA (CA$58.04) is trading below our estimate of fair value (CA$71.13)

Significantly Below Fair Value: EMA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EMA is poor value based on its PE Ratio (24.5x) compared to the North American Electric Utilities industry average (21.5x).

PE vs Market: EMA is poor value based on its PE Ratio (24.5x) compared to the Canadian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: EMA is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: EMA's PB Ratio (1.8x) is in line with the XN Electric Utilities industry average.


Future Growth

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

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EMA's forecast earnings growth (11.8% per year) is above the savings rate (1.5%).

Earnings vs Market: EMA's earnings (11.8% per year) are forecast to grow slower than the Canadian market (12.1% per year).

High Growth Earnings: EMA's earnings are forecast to grow, but not significantly.

Revenue vs Market: EMA's revenue (4.3% per year) is forecast to grow slower than the Canadian market (6.1% per year).

High Growth Revenue: EMA's revenue (4.3% 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 (9.3%).


Past Performance

How has Emera performed over the past 5 years?

19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EMA has high quality earnings.

Growing Profit Margin: EMA's current net profit margins (11.2%) are lower than last year (14.5%).


Past Earnings Growth Analysis

Earnings Trend: EMA's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: EMA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EMA had negative earnings growth (-26%) over the past year, making it difficult to compare to the Electric Utilities industry average (1.2%).


Return on Equity

High ROE: EMA's Return on Equity (6.9%) is considered low.


Financial Health

How is Emera's financial position?


Financial Position Analysis

Short Term Liabilities: EMA's short term assets (CA$2.1B) do not cover its short term liabilities (CA$3.2B).

Long Term Liabilities: EMA's short term assets (CA$2.1B) do not cover its long term liabilities (CA$18.7B).


Debt to Equity History and Analysis

Debt Level: EMA's debt to equity ratio (161.9%) is considered high.

Reducing Debt: EMA's debt to equity ratio has reduced from 274.5% to 161.9% over the past 5 years.

Debt Coverage: EMA's debt is not well covered by operating cash flow (10%).

Interest Coverage: EMA's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Dividend

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

4.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EMA's dividend (4.39%) is higher than the bottom 25% of dividend payers in the Canadian market (1.66%).

High Dividend: EMA's dividend (4.39%) is low compared to the top 25% of dividend payers in the Canadian market (4.59%).


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 high payout ratio (103.9%), EMA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EMA's dividends in 3 years are forecast to be covered by earnings (83.6% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Scott Balfour (57 yo)

3.5yrs

Tenure

CA$7,788,016

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 ($USD6.13M) is about average for companies of similar size in the Canadian market ($USD6.01M).

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


Leadership Team

Experienced Management: EMA's management team is seasoned and experienced (5.1 years average tenure).


Board Members

Experienced Board: EMA's board of directors are considered experienced (4.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 4.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: Emera Incorporated
  • Ticker: EMA
  • Exchange: TSX
  • Founded: 1998
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: CA$15.010b
  • Shares outstanding: 258.62m
  • Website: https://www.emera.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:07
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.