Hawaiian Electric (HE) AI Stock Analysis

• Market Cap: $1.84B
• Dividend Yield: N/A
• Average Volume (3M): 2.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: -7.58%
• EPS Growth: -819.97%
• Country: US
• Employees: 2,587
• Sector: Utilities
• Sector Strength: 83
• Industry: Diversified Utilities
• EPS (TTM): 0.23
• Shares Outstanding: 172,494,260
• 10 Day Avg. Volume: 2,116,825
• 30 Day Avg. Volume: 2,032,609
• PEG Ratio: 0.15
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.28
• Enterprise Value/Market Cap: 2.38
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: -2.57
• Enterprise Value/Ebitda: -1.31
• 1Y Price Target: $12.13
• Price Target Upside: 13.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Hawaiian Electric's overall score reflects substantial financial challenges, with declining revenues and net losses impacting its financial health. While technical indicators are neutral, and valuation metrics are weak due to unprofitability, the company is making strides in financial stabilization through strategic asset sales and debt reduction. The earnings call and corporate events highlight positive steps towards recovery, but significant risks and challenges persist.

Positive Factors

Court Rulings

Shares of HE have risen approximately 20% on the story's improving backdrop following a favorable ruling by the Hawaii Supreme Court.

Credit Metrics

Management is confident on improving credit metrics, with expectations for FFO/Debt to return to approximately 15%-17% sooner than forecasted, and then climbing towards pre-wildfire levels.

Financial Stability

Strong access to capital markets and significantly higher liquidity enhance financial stability.

Negative Factors

Legislation Uncertainty

The HI legislature failed to provide clarity on wildfire liability cap and potential fund creation—process moves to the PUC.

Shareholder Risks

Potential shareholder contributions to a wildfire fund, likely settlement financing via additional equity, ongoing material underearning issues, and potential future wildfires present offsetting risks and limit upside.

Valuation Concerns

The sale of a 90.1% stake in American Savings Bank was completed at a significant discount compared to its tangible book value.

Hawaiian Electric Business Overview & Revenue Model

Company Description

Hawaiian Electric (HE) is the largest supplier of electricity in the state of Hawaii, serving over 95% of Hawaii's population across the islands of Oahu, Maui, Hawaii Island, Lanai, and Molokai. The company operates in the electric utility sector and is primarily engaged in the generation, transmission, and distribution of electricity. Hawaiian Electric is committed to increasing renewable energy sources and reducing dependency on imported oil, aligning with Hawaii's aggressive clean energy goals.

How the Company Makes Money

Hawaiian Electric makes money primarily through the sale of electricity to residential, commercial, and industrial customers across its service areas. The company's revenue model is based on regulated utility rates, which are approved by the Hawaii Public Utilities Commission. These rates are designed to cover the costs of providing electric service, including fuel, infrastructure maintenance, and operational expenses, while allowing for a reasonable rate of return on investment. Hawaiian Electric also generates income from investments in renewable energy projects, which are increasingly important as the company transitions to more sustainable energy sources. Additionally, partnerships with renewable energy developers and programs that encourage energy efficiency and conservation contribute to Hawaiian Electric's revenue streams.

Hawaiian Electric Financial Statement Overview

Summary

Hawaiian Electric faces substantial financial challenges. The company is grappling with declining revenues and significant net losses, impacting profitability and equity returns. While the cash flow generation remains positive, the balance sheet shows signs of stress with declining equity, raising concerns over financial sustainability in the long term. Addressing operational inefficiencies and stabilizing revenues are crucial for future recovery.

Income Statement

Hawaiian Electric's income statement shows a concerning decline in profitability, with a negative net income and EBIT in the most recent year, indicating significant operational challenges. The gross profit margin is essentially wiped out due to the negative EBIT, suggesting high operational costs or extraordinary expenses. The revenue has also decreased compared to the previous year, highlighting a downturn in top-line performance.

Balance Sheet

The balance sheet of Hawaiian Electric reveals a moderate level of financial stability with a debt-to-equity ratio that remains manageable. However, the company's equity ratio indicates a reliance on equity financing. The decline in stockholders' equity is a concern, and the return on equity has turned negative due to the net losses, which poses a risk to long-term financial health.

Cash Flow

The cash flow statement indicates a strong operational cash flow, but the free cash flow growth is limited. The operating cash flow to net income ratio is unusually high due to the negative net income, suggesting that despite profitability issues, the company is still generating cash at an operational level. However, the free cash flow to net income is also skewed by the reported net losses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.22B	3.68B	3.74B	2.85B	2.58B
	Gross Profit
-1.71B	352.60M	381.07M	386.07M	311.49M
	EBIT
-1.71B	352.60M	381.07M	122.75M	311.49M
	EBITDA
-1.39B	636.23M	660.08M	648.13M	564.44M
	Net Income Common Stockholders
-1.42B	201.13M	243.03M	248.06M	199.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
750.53M	1.82B	1.63B	2.88B	2.31B
	Total Assets
8.93B	17.24B	16.28B	15.82B	15.00B
	Total Debt
3.33B	4.04B	3.43B	2.60B	2.50B
	Net Debt
2.58B	3.36B	3.23B	2.30B	2.16B
	Total Liabilities
7.42B	14.86B	14.08B	13.43B	12.67B
	Stockholders Equity
1.51B	2.34B	2.20B	2.39B	2.34B
Cash Flow		Free Cash Flow
136.25M	103.17M	110.44M	61.15M	45.51M
	Operating Cash Flow
465.73M	551.47M	454.48M	375.67M	429.41M
	Investing Cash Flow
-317.63M	-257.40M	-1.13B	-1.18B	-1.41B
	Financing Cash Flow
-72.03M	195.57M	567.67M	756.40M	1.12B

Hawaiian Electric Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HE, the sentiment is Positive. The current price of 10.69 is above the 20-day moving average (MA) of 10.43, above the 50-day MA of 10.54, and above the 200-day MA of 10.59, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 55.05 is Neutral, neither overbought nor oversold. The STOCH value of 54.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HE.

Hawaiian Electric Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGEE	75 Outperform	$3.42B	26.22	10.62%	1.92%	6.03%	6.15%
OTTR	73 Outperform	$3.34B	11.38	18.38%	2.41%	-2.68%	-3.73%
NWE	68 Neutral	$3.44B	14.59	7.94%	4.65%	4.31%	19.33%
AVA	67 Neutral	$3.15B	16.59	7.25%	4.92%	3.14%	-2.66%
Sector *	63 Neutral	$8.57B	10.13	4.66%	4.38%	3.79%	-12.91%
UTL	63 Neutral	$894.78M	18.54	9.07%	3.17%	-5.57%	-2.26%
HE	49 Neutral	$1.84B	―	-67.93%	―	-7.58%	-819.97%

Hawaiian Electric Corporate Events

Hawaiian Electric Shareholders Approve Key Proposals at Meeting

On May 12, 2025, Hawaiian Electric Industries, Inc. held its Annual Meeting of Shareholders where all nominees to the Board of Directors were elected without opposition. Shareholders approved executive compensation, amended articles to increase authorized shares, and ratified Deloitte & Touche, LLP as the independent accounting firm for 2025. Additionally, HEI, as the sole shareholder of Hawaiian Electric Company, fixed the number of directors at five, elected new directors, and ratified Deloitte & Touche, LLP as the accounting firm for Hawaiian Electric for 2025.

The most recent analyst rating on (HE) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Hawaiian Electric stock, see the HE Stock Forecast page.

Spark’s Take on HE Stock

According to Spark, TipRanks’ AI Analyst, HE is a Neutral.

Hawaiian Electric’s stock score reflects its financial struggles, with significant net losses and declining equity impacting its financial health. While the company has made progress in addressing legal challenges and improving liquidity, profitability remains a concern. Technical indicators show moderate stability, but valuation metrics are weak due to the absence of income and negative earnings.

To see Spark’s full report on HE stock, click here.

Hawaiian Electric Releases 2024 Statistical Supplement

Hawaiian Electric Industries (HEI) has released its unaudited 2024 Statistical Supplement, which includes selected financial information for HEI, Hawaiian Electric, and American Savings Bank. The company will post this supplement on its website under the Investor Relations section, and encourages investors to monitor this section for additional disclosures. This release emphasizes the importance of HEI’s website as a primary source for investor information, alongside press releases, SEC filings, and public conference calls.

Hawaiian Electric to Repurchase Debt with Share Sale Proceeds

On March 5, 2025, Hawaiian Electric Industries, Inc. announced its decision to use approximately $383.7 million from the sale of shares in American Savings Bank to repurchase a portion of its outstanding senior notes. This strategic move aims to strengthen the company’s financial position by reducing debt, potentially impacting its operations and market standing positively. The offer to purchase the notes is subject to specific conditions and must be accepted by holders by April 2, 2025.