Emera Incorporated Fundamental Analysis (NYSE: EMA)
Emera Incorporated (NYSE: EMA) shows moderate financial fundamentals with a PE ratio of 22.53, profit margin of 12.14%, and ROE of 8.10%. The company generates $8.6B in annual revenue with strong year-over-year growth of 15.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EMA's fundamental strength across five key dimensions:
Efficiency Score
WeakEMA struggles to generate sufficient returns from assets.
Valuation Score
ModerateEMA shows balanced valuation metrics.
Growth Score
ExcellentEMA delivers strong and consistent growth momentum.
Financial Health Score
WeakEMA carries high financial risk with limited liquidity.
Profitability Score
WeakEMA struggles to sustain strong margins.
Key Financial Metrics
Is EMA Expensive or Cheap?
P/E Ratio
EMA trades at 22.53 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, EMA's PEG of 2.08 indicates potential overvaluation.
Price to Book
The market values Emera Incorporated at 1.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.04 times EBITDA. This is generally considered low.
How Well Does EMA Make Money?
Net Profit Margin
For every $100 in sales, Emera Incorporated keeps $12.14 as profit after all expenses.
Operating Margin
Core operations generate 19.24 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.10 in profit for every $100 of shareholder equity.
ROA
Emera Incorporated generates $2.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Emera Incorporated generates strong operating cash flow of $2.19B, reflecting robust business health.
Free Cash Flow
Emera Incorporated generates weak or negative free cash flow of $-1.12B, restricting financial flexibility.
FCF Per Share
Each share generates $-3.66 in free cash annually.
FCF Yield
EMA converts -5.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.54
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How EMA Stacks Against Its Sector Peers
| Metric | EMA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.53 | 20.43 | Worse (Expensive) |
| ROE | 8.10% | 1037.00% | Weak |
| Net Margin | 12.14% | -667.00% (disorted) | Strong |
| Debt/Equity | 1.54 | 1.68 | Neutral |
| Current Ratio | 0.73 | 1.72 | Weak Liquidity |
| ROA | 2.24% | 4578092.00% | Weak |
EMA outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Emera Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.98%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
-8.25%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
-8.83%
Industry Style: Defensive, Dividend, Income
Declining