Hawaiian Electric (HE): Evaluating Valuation After EV Charging Network Expansion and Tech Upgrades

Hawaiian Electric (HE) is refreshing its public EV charging stations with new branding, upgraded fast-charging equipment, and expanded locations, following recent regulatory backing. These moves highlight the company’s evolving strategy as Hawaii's electric vehicle market experiences rapid growth.

See our latest analysis for Hawaiian Electric Industries.

HE’s EV network upgrade arrives during a period of rebuilding momentum for the stock. Despite a tough stretch marked by a three-year total shareholder return of -70.2%, recent months show a brighter tone, with a share price return of 24.8% year-to-date. The upgrade news reflects management’s push to restore confidence and adapt to Hawaii’s fast-changing energy landscape. This effort may be beginning to shift investor sentiment.

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With shares rebounding but long-term returns still lagging, the key question emerges: does today’s valuation offer a compelling entry point, or are investors already factoring in Hawaiian Electric’s future growth prospects?

Most Popular Narrative: 9.7% Overvalued

Hawaiian Electric’s last close of $11.79 is above the most widely followed narrative fair value of $10.75. This highlights a meaningful valuation gap and raises the stakes for investors tracking recovery momentum.

Recent Hawaii legislation enabling wildfire liability caps, state funding for settlements, and securitization of wildfire safety investments significantly reduces legal and financial risk exposure while supporting large-scale infrastructure upgrades. This is likely to stabilize earnings and improve net margins.

Read the complete narrative.

What is behind this debated estimate? Key future forecasts point to upbeat profit margin recovery and a business model refocus that analysts believe could reshape the company’s earnings story. Which growth and margin shifts are influencing the fair value? Explore the full narrative for the projections driving this call.

Result: Fair Value of $10.75 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing wildfire-related litigation and Hawaii's high infrastructure costs could still challenge Hawaiian Electric’s margin recovery and long-term earnings outlook.

Find out about the key risks to this Hawaiian Electric Industries narrative.

Another View: Multiples Tell a Different Story

Looking beyond fair value estimates, Hawaiian Electric’s price-to-earnings ratio stands at 18.1x. This is not only below the US Electric Utilities industry average of 20.9x and the peer average of 23.6x, but also under the fair ratio of 20.3x. This suggests shares may offer relatively good value compared to similar companies. However, it remains to be seen whether this attractive multiple reflects real opportunity or simply lower future expectations.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Hawaiian Electric Industries Narrative

If you see things differently or want to look deeper into the numbers, take a few minutes to shape your own analysis and perspective. Do it your way

A great starting point for your Hawaiian Electric Industries research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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