Hawaiian Electric Industries (HE): Valuation Update After Regulatory Approval and $500M Capital Raise

Hawaiian Electric Industries (HE) is in the spotlight after the Public Utilities Commission approved its alternative rebasing request. This sets a clear regulatory timeline and maintains flexibility for future rate cases. The company also priced $500 million in senior notes due 2033 to help fund capital projects and manage existing debt.

See our latest analysis for Hawaiian Electric Industries.

Following the regulatory approval and fresh capital raise, Hawaiian Electric Industries has seen some momentum return to its stock, with a share price gain of 17.5% year-to-date and a 16.5% total shareholder return over the past 12 months. Although longer-term investors remain far from breakeven, short bursts of volatility have persisted. The bigger picture for now is a gradual recovery on renewed optimism around regulatory clarity and financial stability.

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With the stock up more than 17 percent year-to-date but still down sharply over longer time frames, investors are left wondering whether Hawaiian Electric Industries is undervalued after the recent gains or if all the good news is already reflected in the price.

Most Popular Narrative: 3.3% Overvalued

Hawaiian Electric Industries closed at $11.10, a shade above the latest consensus fair value estimate of $10.75. This dynamic sets the stage for wide-ranging debate on whether current momentum is sustainable or has already priced in all the positives.

Streamlined focus on the core utility business, after divesting non-core assets such as American Savings Bank and Pacific Current's energy facilities, positions Hawaiian Electric to deploy capital more efficiently toward grid modernization and renewable integration. This approach supports long-term asset growth and revenue generation.

Read the complete narrative.

Curious what numbers lie under this recovery story? Find out which projections for revenue, profit margins, and future earnings drive the fair value behind the headlines. Step inside the financial playbook and discover what the narrative expects next.

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 rising costs could quickly undermine this optimistic outlook if these issues are not well managed in the coming quarters.

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

Another View: Multiples Suggest Attractive Relative Value

While the consensus narrative leans toward Hawaiian Electric Industries being slightly overvalued, a glance at its price-to-sales ratio tells a more optimistic story. At 0.6x, the company trades far below its peers (3.1x) and the industry average (2.9x), as well as the fair ratio estimate of 1.1x. This sizable gap could signal valuation opportunity if fundamentals improve. Does the market see risks others may be missing, or is there hidden upside for patient investors?

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

Build Your Own Hawaiian Electric Industries Narrative

If you have a different view or want to dive into the numbers firsthand, crafting your own narrative takes just a few minutes. Do it your way

A great starting point for your Hawaiian Electric Industries research is our analysis highlighting 2 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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