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Hawaiian Electric (HE)
NYSE:HE
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Hawaiian Electric
(NYSE:HE)
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Rating:52Neutral
Price Target:
$14.00
▼(-2.17% Downside)
Hawaiian Electric's overall stock score reflects significant financial challenges, including declining revenues and high leverage. Technical indicators suggest bearish momentum, while valuation is moderate. The earnings call highlighted both progress and challenges, with uncertainty in regulatory outcomes adding complexity.
Positive Factors
Renewable Energy Transition
The shift to renewable energy aligns with Hawaii's clean energy goals, potentially reducing long-term operational costs and enhancing sustainability.
Improved Liquidity
Enhanced liquidity and financial flexibility can support strategic investments and operational resilience, strengthening the company's financial position.
Wildfire Safety Strategy
Improved wildfire safety measures reduce operational risks and potential liabilities, enhancing long-term stability and community trust.
Negative Factors
Declining Revenue
Consistent revenue decline indicates challenges in maintaining market share and pricing power, potentially impacting future profitability.
High Leverage
High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities.
Uncertain Regulatory Outcomes
Regulatory uncertainties can impact financial planning and operational strategies, posing risks to revenue stability and cost management.
Hawaiian Electric (HE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.55B
Dividend YieldN/A
Average Volume (3M)4.69M
Price to Earnings (P/E)18.9
Beta (1Y)-0.08
Revenue Growth-16.62%
EPS GrowthN/A
CountryUS
Employees2,587
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.19
Shares Outstanding172,620,480
10 Day Avg. Volume3,445,942
30 Day Avg. Volume4,692,758
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.82
Price to Sales (P/S)0.38
P/FCF Ratio9.06
Enterprise Value/Market Cap1.53
Enterprise Value/Revenue1.41
Enterprise Value/Gross Profit16.96
Enterprise Value/Ebitda6.91
Forecast
1Y Price Target
$11.00Price Target Upside-23.13% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Hawaiian Electric Business Overview & Revenue Model
Company DescriptionHawaiian 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 MoneyHawaiian Electric generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers. The company's revenue model is based on regulated rates set by the Hawaii Public Utilities Commission, which allows HE to earn a return on its investments in infrastructure and energy generation. Key revenue streams include electricity sales, demand charges, and ancillary services related to grid management. Additionally, HE benefits from partnerships with renewable energy developers and government incentives aimed at promoting clean energy projects, which can enhance its revenue opportunities and align with state energy policies.
Hawaiian Electric Earnings Call Summary
Earnings Call Date:Nov 07, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 17, 2026
Earnings Call Sentiment Neutral
The call presented a balanced outlook with significant progress in financial stability and wildfire safety measures, but also highlighted challenges such as decreased utility core net income and increased costs. The uncertainty in legislative and regulatory outcomes adds complexity to future planning.Q3-2025 Updates
Positive Updates
Successful Debt Issuance and Improved Liquidity
HEI improved its liquidity and financial flexibility through a successful $500 million unsecured debt issuance at Hawaiian Electric and increased credit facility capacity by a combined $225 million.
Progress on Wildfire Safety Strategy
Significant advancements in wildfire safety measures, including the deployment of weather stations and AI-assisted high-definition video cameras, and hiring an in-house meteorologist.
Tort Litigation Settlement Advancements
Progress towards the final court approval of the Maui wildfire tort litigation settlement agreement, with a hearing expected on January 8, 2026.
Utility Operational Risk Profile Strengthened
Enhanced utility operational risk profile with improved measures since the 2023 Maui wildfires.
Negative Updates
Decreased Utility Core Net Income
Utility core net income for the quarter was $39.6 million, down from $43.7 million in the third quarter of 2024, due to lower tax benefits, higher legal and consulting costs, and increased wildfire mitigation program expenses.
Increased Legal and Consulting Costs
Higher legal and consulting costs were incurred, which were deferred in 2024, impacting the financial results negatively.
Uncertain Legislative and Regulatory Outcomes
Pending outcomes related to the rate rebasing process and wildfire fund report, with uncertain impacts on future financials and regulatory approvals.
Company Guidance
During the HEI Third Quarter 2025 Earnings Conference Call, several key metrics and strategic updates were discussed. HEI reported a net income of $30.7 million, or $0.18 per share, including $4.5 million in pretax Maui wildfire-related expenses. Excluding these non-core items, consolidated core net income was $32.8 million, or $0.19 per share. Utility core net income was $39.6 million, a decrease from $43.7 million in the third quarter of 2024, mainly due to lower tax benefits and higher legal and consulting costs. The company improved its liquidity and financial flexibility with a $500 million unsecured debt offering and increased credit facility capacity. CapEx is projected to increase significantly, with 2025 CapEx expected to be approximately $400 million, and 2026 CapEx projected at $550 million to $700 million. The call also highlighted progress on initiatives such as the wildfire safety strategy and the Maui wildfire tort litigation settlement, with expectations for the first settlement payment no sooner than early 2026.Hawaiian Electric Financial Statement Overview
Summary
Hawaiian Electric faces significant financial challenges with declining revenues, low profitability, and high leverage. The income statement shows declining revenue and negative profit margins, while the balance sheet reveals high debt levels. Cash flow analysis indicates moderate cash generation but declining free cash flow growth.Income Statement
Hawaiian Electric's income statement shows declining revenue with a negative revenue growth rate of -5.07% TTM. The gross profit margin is low at 1.78%, and the net profit margin is negative at -4.05%, indicating challenges in profitability. EBIT and EBITDA margins are also low, reflecting operational inefficiencies.Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 1.64 TTM, suggesting significant leverage. Return on equity is negative at -7.61%, indicating poor returns for shareholders. The equity ratio is not provided, but the high leverage poses a risk to financial stability.Cash Flow
Cash flow analysis shows a decline in free cash flow growth by -12.90% TTM. The operating cash flow to net income ratio is 0.36, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.40, suggesting some cash flow challenges.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.77B | 3.22B | 3.29B | 3.42B | 2.85B | 2.58B |
| Gross Profit | 230.56M | -1.71B | 627.05M | 628.69M | 676.91M | 568.70M |
| EBITDA | 566.27M | -1.39B | 561.31M | 553.65M | 670.62M | 599.06M |
| Net Income | 17.15M | -1.42B | 199.24M | 241.14M | 246.17M | 197.82M |
Balance Sheet | ||||||
| Total Assets | 8.81B | 8.93B | 17.24B | 16.65B | 16.07B | 15.24B |
| Cash, Cash Equivalents and Short-Term Investments | 1.03B | 1.24B | 259.12M | 206.10M | 326.76M | 376.08M |
| Total Debt | 2.99B | 3.33B | 3.24B | 3.43B | 2.60B | 2.50B |
| Total Liabilities | 7.22B | 7.42B | 14.86B | 14.42B | 13.64B | 12.87B |
| Stockholders Equity | 1.60B | 1.51B | 2.38B | 2.24B | 2.43B | 2.37B |
Cash Flow | ||||||
| Free Cash Flow | 80.18M | 136.25M | 108.74M | -1.53M | 61.15M | 45.51M |
| Operating Cash Flow | 421.24M | 465.73M | 551.47M | 327.93M | 375.67M | 429.41M |
| Investing Cash Flow | 45.02M | -317.63M | -257.40M | -324.08M | -1.18B | -1.41B |
| Financing Cash Flow | -260.11M | -72.03M | 195.57M | -19.86M | 756.40M | 1.12B |
Hawaiian Electric Technical Analysis
Positive
14.31
Price Trends
11.95
Positive
11.84
Positive
11.23
Positive
Market Momentum
0.64
Negative
69.23
Neutral
84.19
Negative
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 14.31 is above the 20-day moving average (MA) of 12.55, above the 50-day MA of 11.95, and above the 200-day MA of 11.23, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 69.23 is Neutral, neither overbought nor oversold. The STOCH value of 84.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HE.
Hawaiian Electric Risk Analysis
Hawaiian Electric disclosed 27 risk factors in its most recent earnings report. Hawaiian Electric reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hawaiian Electric Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.17B | 16.55 | 7.31% | 5.10% | 2.14% | -6.51% | |
77 Outperform | $3.59B | 12.92 | 16.10% | 2.54% | -3.18% | -8.62% | |
74 Outperform | $4.05B | 18.69 | 7.62% | 4.09% | 4.90% | -4.42% | |
69 Neutral | $877.29M | 16.92 | 8.51% | 3.73% | 1.03% | -0.78% | |
67 Neutral | $2.87B | 21.28 | 10.80% | 2.36% | 8.26% | 12.47% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
52 Neutral | $2.55B | 18.85 | 7.14% | ― | -16.62% | ― |
* Utilities Sector Average
HE
Hawaiian Electric
13.77
5.38
64.12%
AVA
Avista
39.22
5.06
14.80%
MGEE
MGE Energy
78.98
-10.24
-11.48%
NWE
Northwestern
66.38
16.44
32.92%
OTTR
Otter Tail
85.24
9.85
13.07%
UTL
Unitil
49.12
-2.51
-4.86%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.