TSX:EMA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

CA$14.9b

Last Updated

2021/08/02 22:28 UTC

Data Sources

Company Financials +

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


Snowflake Analysis

Good value average 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 +/- 1% a week.

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


Market Performance


7 Day Return

0.6%

EMA

1.2%

CA Electric Utilities

1.1%

CA Market


1 Year Return

4.4%

EMA

11.7%

CA Electric Utilities

29.1%

CA Market

Return vs Industry: EMA underperformed the Canadian Electric Utilities industry which returned 9.6% over the past year.

Return vs Market: EMA underperformed the Canadian Market which returned 29.1% over the past year.


Shareholder returns

EMAIndustryMarket
7 Day0.6%1.2%1.1%
30 Day3.3%3.7%-0.5%
90 Day3.7%0.8%3.3%
1 Year9.3%4.4%15.5%11.7%33.0%29.1%
3 Year57.0%36.7%25.9%15.2%31.5%18.7%
5 Year51.0%19.4%32.8%14.0%50.7%28.5%

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

Valuation

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

22.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EMA (CA$58.19) is trading below our estimate of fair value (CA$75.16)

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 (21.2x) compared to the North American Electric Utilities industry average (21.5x).

PE vs Market: EMA is poor value based on its PE Ratio (21.2x) compared to the Canadian market (13.6x).


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 is good value based on its PB Ratio (1.8x) compared to the XN Electric Utilities industry average (1.9x).


Future Growth

How is Emera forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EMA's forecast earnings growth (10.1% per year) is above the savings rate (1.5%).

Earnings vs Market: EMA's earnings (10.1% per year) are forecast to grow slower than the Canadian market (14.1% per year).

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

Revenue vs Market: EMA's revenue (4.7% per year) is forecast to grow slower than the Canadian market (5.3% per year).

High Growth Revenue: EMA's revenue (4.7% 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 (9.2%).


Past Performance

How has Emera performed over the past 5 years?

22.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EMA has high quality earnings.

Growing Profit Margin: EMA's current net profit margins (12.5%) are lower than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: EMA's earnings have grown significantly by 22.5% 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 (-21.3%) over the past year, making it difficult to compare to the Electric Utilities industry average (7.8%).


Return on Equity

High ROE: EMA's Return on Equity (7.8%) is considered low.


Financial Health

How is Emera's financial position?


Financial Position Analysis

Short Term Liabilities: EMA's short term assets (CA$2.2B) do not cover its short term liabilities (CA$3.9B).

Long Term Liabilities: EMA's short term assets (CA$2.2B) do not cover its long term liabilities (CA$18.1B).


Debt to Equity History and Analysis

Debt Level: EMA's debt to equity ratio (164%) is considered high.

Reducing Debt: EMA's debt to equity ratio has increased from 113.4% to 164% over the past 5 years.

Debt Coverage: EMA's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: EMA's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Dividend

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

4.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EMA's dividend (4.38%) is higher than the bottom 25% of dividend payers in the Canadian market (1.59%).

High Dividend: EMA's dividend (4.38%) is low compared to the top 25% of dividend payers in the Canadian market (4.57%).


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 (90.9%), 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 (84.9% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Scott Balfour (57 yo)

3.42yrs

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 ($USD6.23M) is about average for companies of similar size in the Canadian market ($USD6.28M).

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 (5.4 years average tenure).


Board Members

Experienced Board: EMA's board of directors are considered experienced (4.9 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 3.9%.


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: 1998
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: CA$14.901b
  • Shares outstanding: 256.07m
  • Website: https://www.emera.com

Number of Employees


Location

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

Listings


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 operates through Flo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/02 22:28
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
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.