Hawaiian Electric Industries, Inc.
Hawaiian Electric Industries, Inc. Fundamental Analysis
Hawaiian Electric Industries, Inc. (HE) shows weak financial fundamentals with a PE ratio of 22.02, profit margin of 4.09%, and ROE of 8.00%. The company generates $3.1B in annual revenue with weak year-over-year growth of -2.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HE's fundamental strength across five key dimensions:
Efficiency Score
WeakHE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHE trades at attractive valuation levels.
Growth Score
WeakHE faces weak or negative growth trends.
Financial Health Score
ModerateHE shows balanced financial health with some risks.
Profitability Score
WeakHE struggles to sustain strong margins.
Key Financial Metrics
Is HE Expensive or Cheap?
P/E Ratio
HE trades at 22.02 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HE's PEG of -3.35 indicates potential undervaluation.
Price to Book
The market values Hawaiian Electric Industries, Inc. at 1.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.85 times EBITDA. This is generally considered low.
How Well Does HE Make Money?
Net Profit Margin
For every $100 in sales, Hawaiian Electric Industries, Inc. keeps $4.09 as profit after all expenses.
Operating Margin
Core operations generate 7.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.00 in profit for every $100 of shareholder equity.
ROA
Hawaiian Electric Industries, Inc. generates $6.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hawaiian Electric Industries, Inc. produces operating cash flow of $391.07M, showing steady but balanced cash generation.
Free Cash Flow
Hawaiian Electric Industries, Inc. generates weak or negative free cash flow of $49.87M, restricting financial flexibility.
FCF Per Share
Each share generates $0.29 in free cash annually.
FCF Yield
HE converts 1.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.90
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How HE Stacks Against Its Sector Peers
| Metric | HE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.02 | 19.75 | Worse (Expensive) |
| ROE | 8.00% | 920.00% | Weak |
| Net Margin | 4.09% | 8803.00% | Weak |
| Debt/Equity | 0.42 | 1.80 | Strong (Low Leverage) |
| Current Ratio | 0.56 | 1.53 | Weak Liquidity |
| ROA | 6.41% | -6162.00% (disorted) | Weak |
HE outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hawaiian Electric Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-3.85%
Industry Style: Defensive, Dividend, Income
DecliningEPS CAGR
-656.22%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
-21.99%
Industry Style: Defensive, Dividend, Income
Declining