Executive Summary
Emera Incorporated, an energy and services company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity to various customers. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued established dividend payer.
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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: EMA's weekly volatility (2%) has been stable over the past year.
Market Performance
7 Day Return
1.8%
EMA
0.7%
CA Electric Utilities
-0.5%
CA Market
1 Year Return
-8.6%
EMA
-4.5%
CA Electric Utilities
1.6%
CA Market
Return vs Industry: EMA underperformed the Canadian Electric Utilities industry which returned -4.5% over the past year.
Return vs Market: EMA underperformed the Canadian Market which returned 1.7% over the past year.
Shareholder returns
| EMA | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.8% | 0.7% | -0.5% |
| 30 Day | -2.3% | 1.8% | 2.9% |
| 90 Day | -5.7% | 0.3% | 12.2% |
| 1 Year | -4.6%-8.6% | -1.2%-4.5% | 5.3%1.6% |
| 3 Year | 33.0%15.2% | 28.5%17.4% | 13.1%2.3% |
| 5 Year | 53.2%21.5% | 50.0%28.1% | 66.1%40.5% |
Long-Term 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
1 week ago | Simply Wall St
Here's What To Make Of Emera's (TSE:EMA) Returns On Capital3 weeks ago | Simply Wall St
Here's Why I Think Emera (TSE:EMA) Is An Interesting Stock1 month ago | Simply Wall St
Emera (TSE:EMA) Has Compensated Shareholders With A Respectable 64% Return On Their InvestmentValuation
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$53.12) is trading below our estimate of fair value (CA$124.19)
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 (15.2x) compared to the XN Electric Utilities industry average (19.7x).
PE vs Market: EMA is good value based on its PE Ratio (15.2x) compared to the Canadian market (16.6x).
Price to Earnings Growth Ratio
PEG Ratio: EMA is poor value based on its PEG Ratio (6.5x)
Price to Book Ratio
PB vs Industry: EMA is good value based on its PB Ratio (1.6x) compared to the XN Electric Utilities industry average (1.7x).
Next Steps
Future Growth
How is Emera forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
2.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EMA's forecast earnings growth (2.3% per year) is above the savings rate (1.5%).
Earnings vs Market: EMA's earnings (2.3% per year) are forecast to grow slower than the Canadian market (25.9% per year).
High Growth Earnings: EMA's earnings are forecast to grow, but not significantly.
Revenue vs Market: EMA's revenue (4.8% per year) is forecast to grow slower than the Canadian market (7.9% per year).
High Growth Revenue: EMA's revenue (4.8% 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 (10%).
Next Steps
Past Performance
How has Emera performed over the past 5 years?
21.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EMA has a large one-off gain of CA$536.0M impacting its September 30 2020 financial results.
Growing Profit Margin: EMA's current net profit margins (15.4%) are higher than last year (11.1%).
Past Earnings Growth Analysis
Earnings Trend: EMA's earnings have grown significantly by 21.6% per year over the past 5 years.
Accelerating Growth: EMA's earnings growth over the past year (22.4%) exceeds its 5-year average (21.6% per year).
Earnings vs Industry: EMA earnings growth over the past year (22.4%) exceeded the Electric Utilities industry 4.3%.
Return on Equity
High ROE: EMA's Return on Equity (9.6%) 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$2.3B) do not cover its short term liabilities (CA$4.3B).
Long Term Liabilities: EMA's short term assets (CA$2.3B) do not cover its long term liabilities (CA$18.3B).
Debt to Equity History and Analysis
Debt Level: EMA's debt to equity ratio (167.3%) is considered high.
Reducing Debt: EMA's debt to equity ratio has increased from 107.7% to 167.3% over the past 5 years.
Debt Coverage: EMA's debt is not well covered by operating cash flow (9.3%).
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?
4.80%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: EMA's dividend (4.8%) is higher than the bottom 25% of dividend payers in the Canadian market (1.54%).
High Dividend: EMA's dividend (4.8%) is low compared to the top 25% of dividend payers in the Canadian market (4.99%).
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 (70.1%), 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 (84.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average management tenure
CEO
Scott Balfour (56 yo)
2.83yrs
Tenure
CA$6,724,441
Compensation
Mr. Scott Carlyle Balfour has been Chief Executive Officer, President and Director of Emera Incorporated since March 29, 2018. Mr. Balfour served as Chief Operating Officer of Emera Incorporated since Nove...
CEO Compensation Analysis
Compensation vs Market: Scott's total compensation ($USD5.28M) is about average for companies of similar size in the Canadian market ($USD6.58M).
Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 2.83yrs | CA$6.72m | 0.021% CA$ 2.8m | |
| Chief Financial Officer | 4.83yrs | CA$2.03m | 0.00046% CA$ 61.4k | |
| Chief Legal & Compliance Officer | 9yrs | CA$1.85m | 0.0014% CA$ 191.0k | |
| President & CEO of Emera Technologies Inc. | 4.08yrs | CA$2.42m | 0.0010% CA$ 137.6k | |
| Acting Manager | 6.67yrs | no data | no data | |
| VP of Investor Relations & Treasurer | no data | no data | no data | |
| Vice President of Communications & Corporate Affairs | no data | no data | no data | |
| Chief Human Resources Officer | 6.08yrs | no data | 0.00044% CA$ 58.8k | |
| COO of Electric Utilities | 2.83yrs | CA$961.21k | 0.0058% CA$ 776.0k | |
| Executive Vice President of Project Development & Operations Support | 7.92yrs | no data | 0.0016% CA$ 208.4k | |
| Executive Vice President of Business Development & Strategy | 1.25yrs | no data | 0.00059% CA$ 78.8k | |
| Senior Director of Capital Markets | no data | no data | no data |
4.8yrs
Average Tenure
56yo
Average Age
Experienced Management: EMA's management team is considered experienced (4.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 2.83yrs | CA$6.72m | 0.021% CA$ 2.8m | |
| Director | 4.33yrs | CA$219.13k | no data | |
| Independent Chair of the Board | 6.67yrs | CA$400.00k | 0.0047% CA$ 634.4k | |
| Independent Director | 10.33yrs | CA$233.84k | 0.0034% CA$ 451.4k | |
| Independent Director | 14yrs | CA$238.89k | 0.0057% CA$ 761.3k | |
| Independent Director | 10.33yrs | CA$220.25k | 0.0010% CA$ 134.9k | |
| Independent Director | 6.33yrs | CA$221.25k | 0.00056% CA$ 74.8k | |
| Independent Director | 3.17yrs | CA$219.52k | no data | |
| Independent Director | 2.5yrs | CA$223.30k | no data | |
| Independent Director | 2.5yrs | CA$218.52k | no data | |
| Independent Director | 7.92yrs | CA$221.50k | 0.0017% CA$ 223.0k |
6.3yrs
Average Tenure
64yo
Average Age
Experienced Board: EMA's board of directors are considered experienced (6.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: EMA 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 4.3%.
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$13.356b
- Shares outstanding: 251.43m
- Website: https://www.emera.com
Number of Employees
Location
- Emera Incorporated
- 5151 Terminal Road
- Halifax
- Nova Scotia
- B3J 1A1
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| EMA | TSX (The Toronto Stock Exchange) | Yes | Common Stock | CA | CAD | Aug 1992 |
| C61 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Aug 1992 |
| EMRA.F | OTCPK (Pink Sheets LLC) | Yes | Common Stock | US | USD | Aug 1992 |
| EMA.PRA | TSX (The Toronto Stock Exchange) | CUM PFD 5 YR | CA | CAD | Jun 2010 | |
| EMA.PRC | TSX (The Toronto Stock Exchange) | CU PF 5Y SER C | CA | CAD | Jun 2012 | |
| ERRA.F | OTCPK (Pink Sheets LLC) | CU PF 5Y SER C | US | USD | Jun 2012 | |
| EMIC.F | OTCPK (Pink Sheets LLC) | 1ST PFD SER F | US | CAD | Jun 2014 | |
| EMA.PRH | TSX (The Toronto Stock Exchange) | 4.9% PFD SER H | CA | CAD | May 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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 23:05 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.