Emera Inc (NYSE: EMA)

Sector: Utilities Industry: Utilities - Regulated Electric CIK: 0001127248
Market Cap 15.37 Bn
P/B 1.57
P/E 19.29
P/S 2.49
ROIC (Qtr) 7.72
Div Yield % 0.00
Rev 1y % (Qtr) 15.18
Total Debt (Qtr) 14.96 Bn
Debt/Equity (Qtr) 1.53
Add ratio to table...

About

Investment thesis

Bull case

  • Operating cash flow of 1.66B provides exceptional 2284x coverage of minority interest expenses 724637.68, showing strong core operations.
  • Cash position of 163.77M provides exceptional 226x coverage of minority interest expenses 724637.68, indicating strong liquidity.
  • Tangible assets of 27.63B provide robust 23.43x coverage of other current liabilities 1.18B, indicating strong asset backing.
  • Operating cash flow of 1.66B provides strong 2.69x coverage of inventory 615.94M, indicating efficient inventory management.
  • Strong tangible asset base of 27.63B provides 6.73x coverage of intangibles 4.11B, indicating robust asset quality.

Bear case

  • Operating cash flow of 1.66B barely covers its investment activities of (2.50B), with a coverage ratio of -0.66, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 163.77M against inventory of 615.94M, the 0.27 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 1.66B provides thin coverage of dividend payments of (407.25M) with a -4.06 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • High receivables of 1.53B relative to inventory of 615.94M (2.48 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (842.75M) provides weak coverage of capital expenditures of 2.50B, with a -0.34 ratio suggesting additional external financing needs for growth initiatives.

Breakdown of Revenue (2024)

Breakdown of Revenue (2024)

Peer comparison

Companies in the Utilities - Regulated Electric
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NEE Nextera Energy Inc 191.44 Bn 28.01 6.98 95.62 Bn
2 SO Southern Co 97.42 Bn 30.98 4.46 73.75 Bn
3 AEP American Electric Power Co Inc 64.38 Bn 33.83 4.24 0.00 Bn
4 DUK Duke Energy CORP 56.47 Bn 30.61 3.87 89.65 Bn
5 EXC Exelon Corp 48.53 Bn 17.53 2.00 50.08 Bn
6 ETR Entergy Corp /De/ 45.74 Bn 25.29 3.59 30.45 Bn
7 PEG Public Service Enterprise Group Inc 43.93 Bn 35.35 4.41 23.51 Bn
8 XEL Xcel Energy Inc 41.10 Bn 37.21 3.75 35.52 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.69 1.01
EV to Cash from Ops. EV/CFO 13.27 12.45
EV to Debt EV to Debt 1.47 171.92
EV to EBIT EV/EBIT 14.41 19.12
EV to EBITDA EV/EBITDA 9.51 15.67
EV to Free Cash Flow [EV/FCF] EV/FCF -26.07 -28.25
EV to Market Cap EV to Market Cap 1.43 1.84
EV to Revenue EV/Rev 3.55 4.72
Price to Book Value [P/B] P/B 1.57 2.60
Price to Earnings [P/E] P/E 19.29 18.53
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.25 1.94
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 62.23
Dividend per Basic Share Div per Share (Qtr) 0.00 2.02
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -218.37
Interest Coverage Int. cover (Qtr) 2.08 2.83
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -9.90 -68.90
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -14.34 73.92
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.05
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 43.39 15.47
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 26.22 13.33
EBIT Growth (1y) % EBIT 1y % (Qtr) 17.95 15.81
EBT Growth (1y) % EBT 1y % (Qtr) 35.88 19.29
EPS Growth (1y) % EPS 1y % (Qtr) 63.51 21.26
FCF Growth (1y) % FCF 1y % (Qtr) -60.08 -35.52
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 17.76 11.97
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.14 0.22
Cash Payout Ratio Cash Payout (Qtr) 0.10 0.11
Cash Ratio Cash Ratio (Qtr) 0.04 0.98
Current Ratio Curr Ratio (Qtr) 0.64 2.72
Debt to Equity Ratio Debt/Equity (Qtr) 1.53 1.45
Interest Cover Ratio Int Coverage (Qtr) 2.08 2.83
Times Interest Earned Times Interest Earned (Qtr) 2.08 2.83
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 39.30 37.94
EBIT Margin % EBIT Margin % (Qtr) 34.03 316.94
EBT Margin % EBT Margin % (Qtr) 12.80 14.36
Gross Margin % Gross Margin % (Qtr) 43.80 41.20
Net Profit Margin % Net Margin % (Qtr) 12.90 12.57