DB:C61

Stock Analysis Report

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

Fundamentals

6 star dividend payer with solid track record.


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


Market Performance


7 Day Return

-1.5%

C61

0.6%

DE Electric Utilities

4.4%

DE Market


1 Year Return

54.6%

C61

19.3%

DE Electric Utilities

1.6%

DE Market

Return vs Industry: C61 exceeded the German Electric Utilities industry which returned 19.3% over the past year.

Return vs Market: C61 exceeded the German Market which returned 1.6% over the past year.


Shareholder returns

C61IndustryMarket
7 Day-1.5%0.6%4.4%
30 Day3.1%-0.03%0.8%
90 Day7.7%2.7%2.3%
1 Year62.6%54.6%24.0%19.3%4.8%1.6%
3 Year41.8%22.4%57.2%37.0%18.9%8.6%
5 Year100.4%59.5%51.1%12.8%43.7%24.1%

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

No news available

Valuation

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

23.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: C61 (€39.4) is trading below our estimate of fair value (€51.19)

Significantly Undervalued: C61 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: C61 is poor value based on its PE Ratio (17.5x) compared to the Electric Utilities industry average (11.8x).

PE vs Market: C61 is good value based on its PE Ratio (17.5x) compared to the German market (19.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: C61 is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: C61 is overvalued based on its PB Ratio (1.8x) compared to the XE Electric Utilities industry average (0.9x).


Next Steps

Future Growth

How is Emera forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: C61's forecast earnings growth (3.8% per year) is above the savings rate (0.2%).

Earnings vs Market: C61's earnings (3.8% per year) are forecast to grow slower than the German market (12.6% per year).

High Growth Earnings: C61's earnings are forecast to grow, but not significantly.

Revenue vs Market: C61's revenue (3% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: C61's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: C61's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has Emera performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: C61's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: C61's earnings growth over the past year (258%) exceeds its 5-year average (12.5% per year).

Earnings vs Industry: C61 earnings growth over the past year (258%) exceeded the Electric Utilities industry 2.3%.


Return on Equity

High ROE: C61's Return on Equity (9.6%) is considered low.


Return on Assets

ROA vs Industry: C61 has a higher Return on Assets than the Electric Utilities industry average last year.


Return on Capital Employed

ROCE Improving: C61 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Emera's financial position?


Financial Position Analysis

Short Term Liabilities: C61's short term assets (CA$2.4B) do not cover its short term liabilities (CA$3.9B)

Long Term Liabilities: C61's short term assets (2.4B) do not cover its long term liabilities (18.5B)


Debt to Equity History and Analysis

Debt Level: C61's debt to equity ratio (180.6%) is considered high

Reducing Debt: C61's debt to equity ratio has increased from 105.9% to 180.6% over the past 5 years.

Debt Coverage: C61's debt is not well covered by operating cash flow (10.7%).

Interest Coverage: C61's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

Inventory Level: C61 has a high level of physical assets or inventory.

Debt Coverage by Assets: C61's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

4.32%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Emera before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.3%marketbottom25%1.4%markettop25%3.8%industryaverage4.0%forecastin3Years4.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: C61's dividend (4.32%) is higher than the bottom 25% of dividend payers in the German market (1.45%).

High Dividend: C61's dividend (4.32%) is in the top 25% of dividend payers in the German market (3.85%)

Stable Dividend: C61's dividends per share have been stable in the past 10 years.

Growing Dividend: C61's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.9%), C61's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: C61's dividends in 3 years are forecast to be covered by earnings (82.1% payout ratio).


Next Steps

Management

What is the CEO of Emera's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Scott Balfour (55yo)

1.6yrs

Tenure

CA$6,124,668

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

Compensation vs Earnings: Scott's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.6yrs

Average Tenure

55yo

Average Age

Experienced Management: C61's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

64yo

Average Age

Experienced Board: C61's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: C61 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$1,239,32103 Sep 19
Richard Janega
EntityIndividual
Shares32,000
Max PriceCA$38.73
SellCA$3,696,91405 Jun 19
Robert Bennett
EntityIndividual
Role
Unit CEO
President & CEO of Emera Technologies Inc.
Shares106,975
Max PriceCA$34.56
SellCA$15,96525 Apr 19
Karen Hutt
EntityIndividual
Shares477
Max PriceCA$33.47
SellCA$183,05529 Mar 19
Mark Sidebottom
EntityIndividual
Shares5,475
Max PriceCA$33.43
SellCA$10,91027 Feb 19
Mark Sidebottom
EntityIndividual
Shares350
Max PriceCA$31.17
SellCA$1,946,04703 Jan 19
Christopher G. Huskilson
EntityIndividual
Shares69,000
Max PriceCA$28.22

Ownership Breakdown


Management Team

  • Scott Balfour (55yo)

    CEO, President & Director

    • Tenure: 1.6yrs
    • Compensation: CA$6.12m
  • Nancy Tower

    President & CEO of Tampa Electric Company

    • Tenure: 1.8yrs
    • Compensation: CA$2.63m
  • Greg Blunden (54yo)

    Chief Financial Officer

    • Tenure: 3.6yrs
    • Compensation: CA$2.13m
  • Mike Roberts

    Chief Human Resources Officer

    • Tenure: 4.8yrs
  • Rob Bennett (57yo)

    President & CEO of Emera Technologies Inc.

    • Tenure: 2.8yrs
    • Compensation: CA$2.11m
  • Bob Hanf

    Executive Vice President of Stakeholder Relations & Regulatory Affairs

    • Tenure: 8.8yrs
    • Compensation: CA$1.37m
  • Wayne O'Connor

    Executive Vice President of Business Development & Strategy

    • Tenure: 3.2yrs
    • Compensation: CA$937.98k
  • Bruce Marchand

    Chief Legal Officer & Chief Compliance Officer

    • Tenure: 7.8yrs
    • Compensation: CA$1.69m
  • Scott LaFleur

    Acting Manager

    • Tenure: 5.4yrs
  • Ken McOnie

    VP of Investor Relations & Treasurer

    • Tenure: 0yrs

Board Members

  • John Ramil (63yo)

    Director

    • Tenure: 3.1yrs
    • Compensation: CA$246.47k
  • Jackie Sheppard (63yo)

    Chair of the Board

    • Tenure: 5.4yrs
    • Compensation: CA$400.00k
  • Rick Sergel (69yo)

    Director

    • Tenure: 9.1yrs
    • Compensation: CA$261.43k
  • Donald Pether (71yo)

    Director

    • Tenure: 10.9yrs
    • Compensation: CA$227.38k
  • Andrea Rosen (65yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: CA$234.00k
  • Sylvia Chrominska (68yo)

    Director

    • Tenure: 9.1yrs
    • Compensation: CA$225.50k
  • Henry Demone (65yo)

    Director

    • Tenure: 5.1yrs
    • Compensation: CA$222.63k
  • Kent Harvey (60yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: CA$247.29k
  • Scott Balfour (55yo)

    CEO, President & Director

    • Tenure: 1.6yrs
    • Compensation: CA$6.12m
  • B. Loewen (57yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: CA$223.63k

Company Information

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


Key Information

  • Name: Emera Incorporated
  • Ticker: C61
  • Exchange: DB
  • Founded: 1919
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: CA$13.713b
  • Listing Market Cap: CA$9.410b
  • Shares outstanding: 238.61m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 21:03
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.