Hawaiian Electric (HE) AI Stock Analysis

• Market Cap: $2.50B
• Dividend Yield: N/A
• Average Volume (3M): 2.61M
• Price to Earnings (P/E): 16.8
• Beta (1Y): <0.01
• Revenue Growth: -16.62%
• EPS Growth: N/A
• Country: US
• Employees: 2,587
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.24
• Shares Outstanding: 172,620,480
• 10 Day Avg. Volume: 2,337,419
• 30 Day Avg. Volume: 2,607,238
• PEG Ratio: -0.16
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 42.56
• Enterprise Value/Market Cap: 1.79
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 19.02
• Enterprise Value/Ebitda: 7.92
• 1Y Price Target: $13.25
• Price Target Upside: -8.68% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.05
• Revenue Forecast (FY): $3.79B

• Rating: 51 Neutral
• Price Target: $15.00 ▲(3.38% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held down primarily by weak financial performance quality (earnings volatility and balance-sheet strain despite improving cash flow). Technicals are neutral-to-soft near term, while valuation is reasonable. Earnings-call factors provide some support due to profitability and legal progress, but financing and execution risks remain meaningful.

Positive Factors

Return to Profitability

A material GAAP turnaround to profitability improves persistent cash generation credibility and reduces one-off earnings volatility risk. Sustained positive net income supports regulatory credibility, access to capital and potential restoration of retained earnings, strengthening fundamentals over months.

Strong liquidity and capital-market access

Substantial utility cash plus committed credit lines, recent debt issuance and ATM capacity materially increase near-to-medium term funding flexibility. This liquidity cushion and market access support large CapEx and settlement timing risk, lowering immediate refinancing pressure for several quarters.

Progress on wildfire safety & regulatory pathways

Regulatory approvals and active rulemaking create structural pathways to cap liability and enable a wildfire fund and securitization. Those mechanisms can reduce future cash volatility, enable lower-cost financing for resilience CapEx and improve long-term cost recovery visibility.

Negative Factors

Elevated multi-year capital expenditures

A sustained high CapEx profile requires repeated external financing and execution scale-up, pressuring cash flow and placing reliance on rate recovery. If low-cost securitization or favorable regulatory outcomes are delayed, funding needs could strain liquidity and raise customer affordability concerns.

Balance-sheet strain and elevated leverage

Marked leverage deterioration reduces financial flexibility and increases interest burden, constraining the company's ability to absorb shocks or opportunistically fund projects. Even with 2025 improvement, legacy 2024 weakness leaves the balance sheet more vulnerable to funding volatility.

Dependence on external financing for settlements

Relying on market financing and convertibles for large settlement payments exposes the company to market windows, potential dilution, and higher funding costs. Limited holding-company cash reduces flexibility, making execution contingent on capital markets and increasing financing and timing risk.

Hawaiian Electric Business Overview & Revenue Model

Company Description

Hawaiian Electric Industries, Inc., together with its subsidiaries, engages in the electric utility, banking, and renewable/sustainable infrastructure investment businesses in the state of Hawaii. It operates in three segments: Electric Utility, Bank, and Other. The Electric Utility segment engages in the production, purchase, transmission, distribution, and sale of electricity in the islands of Oahu, Hawaii, Maui, Lanai, and Molokai. Its renewable energy sources and potential sources include wind, solar, photovoltaic, geothermal, wave, hydroelectric, municipal waste, and other biofuels. This segment serves suburban communities, resorts, the United States armed forces installations, and agricultural operations. The Bank segment operates a community bank that offers banking and other financial services to consumers and businesses, including savings and checking accounts; and loans comprising residential and commercial real estate, residential mortgage, construction and development, multifamily residential and commercial real estate, consumer, and commercial loans. This segment operates 42 branches, including 29 branches in Oahu, 6 branches in Maui, 4 branches in Hawaii, 2 branches in Kauai, and 1 branch in Molokai. The Other segment invests in non-regulated renewable energy and sustainable infrastructure in the State of Hawaii. Hawaiian Electric Industries Inc. was incorporated in 1891 and is headquartered in Honolulu, Hawaii.

How the Company Makes Money

Hawaiian Electric makes most of its money through its regulated electric utility operations. The utility earns revenue by selling electricity to residential, commercial, and industrial customers in its service territories, with rates and allowed returns generally set through regulation by the Hawaii Public Utilities Commission. Customer bills are typically composed of (1) base rates designed to recover utility operating costs, depreciation, taxes, and an allowed return on invested capital (rate base), and (2) pass-through components that recover fuel and purchased power costs, meaning fuel price and power procurement costs are largely flowed through to customers subject to regulatory mechanisms. In addition to energy sales, Hawaiian Electric generates revenue from delivering electricity over its transmission and distribution network (grid services embedded in regulated rates) and from infrastructure investments (e.g., grid upgrades, resilience and safety-related spending, interconnection capacity, and technology systems) that can expand rate base over time when approved for cost recovery. The company also purchases energy from independent power producers and other suppliers under power purchase arrangements and recovers those costs through regulated charges; while these purchases are expenses rather than profit centers, utility earnings can be influenced by how efficiently operations are managed relative to authorized cost recovery and by regulatory outcomes. Material factors affecting earnings include regulatory rate decisions, capital spending approvals and timing, fuel and purchased power adjustment mechanisms, customer demand trends, renewable integration requirements, and wildfire-related costs and liabilities where applicable; if specific partnership details are required beyond general use of independent power producers and contracted resources, null.

Hawaiian Electric Financial Statement Overview

Summary

Financial quality is mixed: earnings were highly volatile with a very large loss in 2024 followed by a return to profitability in 2025, while leverage and equity metrics deteriorated materially in 2024. Cash flow is the bright spot with consistently positive operating cash flow and positive free cash flow in 2025, but overall stability remains a concern.

Income Statement

Results are highly volatile. After solid profitability in 2020–2023 (net margin generally ~6–9%), the company posted a very large loss in 2024 (net margin about -44%), before returning to profitability in 2025 (net margin ~4%) alongside ~11.5% revenue growth. The rebound is a clear positive, but the sharp swing from strong profits to a major loss and then partial recovery suggests elevated earnings risk and reduced margin stability.

Balance Sheet

Leverage and equity strength show meaningful strain. In 2024, debt was high relative to equity (debt-to-equity ~2.2x) and returns to shareholders were deeply negative due to the large loss (return on equity around -94%). While earlier years were more typical for a utility (debt-to-equity roughly ~1.1–1.5x and return on equity ~8–11%), the 2024 deterioration is significant and raises balance-sheet risk, even with profitability improving in 2025.

Cash Flow

Cash generation is comparatively steadier than earnings. Operating cash flow remained positive each year, including 2024 despite the net loss, and 2025 showed solid operating cash flow with positive free cash flow. That said, free cash flow is uneven (notably near breakeven/negative in 2022) and recent free cash flow represents only a modest portion of net income (around ~22% in 2025), indicating that cash conversion and funding capacity can fluctuate.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.09B	3.22B	3.29B	3.42B	2.85B
Gross Profit	235.32M	-1.71B	627.05M	628.69M	676.91M
EBITDA	539.42M	-1.39B	561.31M	553.65M	670.62M
Net Income	126.28M	-1.42B	199.24M	241.14M	246.17M
Balance Sheet
Total Assets	8.92B	8.93B	17.24B	16.65B	16.07B
Cash, Cash Equivalents and Short-Term Investments	980.75M	1.24B	259.12M	206.10M	326.76M
Total Debt	2.96B	3.33B	3.24B	3.43B	2.60B
Total Liabilities	7.32B	7.42B	14.86B	14.42B	13.64B
Stockholders Equity	1.61B	1.51B	2.38B	2.24B	2.43B
Cash Flow
Free Cash Flow	49.87M	136.25M	108.74M	-1.53M	61.15M
Operating Cash Flow	391.07M	465.73M	551.47M	327.93M	375.67M
Investing Cash Flow	-322.18M	-317.63M	-257.40M	-324.08M	-1.18B
Financing Cash Flow	-331.00M	-72.03M	195.57M	-19.86M	756.40M

Hawaiian Electric Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.51
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HE, the sentiment is Neutral. The current price of 14.51 is below the 20-day moving average (MA) of 15.30, below the 50-day MA of 15.31, and above the 200-day MA of 12.36, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 38.70 is Neutral, neither overbought nor oversold. The STOCH value of 23.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HE.

Hawaiian Electric Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OTTR	72 Outperform	$3.66B	12.26	16.10%	2.54%	-3.18%	-8.62%
MGEE	66 Neutral	$2.65B	21.08	10.59%	2.36%	8.26%	12.47%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
NWE	64 Neutral	$4.14B	22.16	―	4.09%	4.90%	-4.42%
UTL	62 Neutral	$932.65M	16.98	8.83%	3.73%	1.03%	-0.78%
AVA	54 Neutral	$3.26B	16.17	7.25%	5.10%	2.14%	-6.51%
HE	51 Neutral	$2.50B	16.81	8.00%	―	-16.62%	―

Hawaiian Electric Corporate Events

Hawaiian Electric Gains Preliminary Approval for Wildfire Settlements

On December 31, 2025, Hawaiian Electric Industries and Hawaiian Electric Company agreed to a $100 million derivative settlement funded entirely by insurers, resolving multiple stockholder derivative suits tied to alleged governance and wildfire risk oversight failures surrounding the August 2023 Maui fires. The settlement, which includes no admission of liability and provides full releases to defendants, remains subject to board approvals, final court approval and dismissal orders, and a May 28, 2026 fairness hearing, while $47.75 million of the proceeds has been earmarked to fund a related securities class action settlement that received preliminary approval on March 3, 2026.

On March 9, 2026, the U.S. District Court for the District of Hawaii granted preliminary approval of the derivative settlement and set deadlines for stockholder objections by May 7, 2026, with additional notice to be provided via publication and posting on the company’s investor relations website. The coordinated resolution helps cap Hawaiian Electric’s wildfire-related legal overhang, delineates insurance-funded cash flows for derivative and securities claims, and offers greater visibility to shareholders and creditors on the company’s evolving litigation exposure and governance risk profile.

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.

Hawaiian Electric Updates Tax Disclosure for Foreign Shareholders

On September 19, 2024, Hawaiian Electric Industries entered into an at-the-market equity distribution agreement allowing it to sell up to $250 million of common stock from time to time under an existing automatic shelf registration. The company has now filed an update to its U.S. federal income tax disclosure for non-U.S. holders of this stock, replacing the prior description and detailing how potential dividends, returns of capital, and dispositions may be treated for tax purposes.

The revised tax discussion, filed as part of a current report, outlines key considerations for foreign investors, including withholding rates on dividends, treatment of gains, and the implications if the company is or becomes a U.S. real property holding corporation. While characterized as informational rather than tax advice, the update clarifies the federal tax framework for non-U.S. shareholders participating in the at-the-market offering and may influence how international investors assess the after-tax return profile of the company’s equity.

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.