Hawaiian Electric (HE)
NYSE:HE
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Hawaiian Electric
(NYSE:HE)
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Rating:51Neutral
Price Target:
$15.00
▼(-3.41% Downside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Hawaiian Electric (HE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.68B
Dividend YieldN/A
Average Volume (3M)2.45M
Price to Earnings (P/E)16.8
Beta (1Y)0.03
Revenue Growth-16.62%
EPS GrowthN/A
CountryUS
Employees2,587
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.24
Shares Outstanding172,620,480
10 Day Avg. Volume1,420,547
30 Day Avg. Volume2,454,966
Financial Highlights & Ratios
PEG Ratio-0.16
Price to Book (P/B)1.32
Price to Sales (P/S)0.69
P/FCF Ratio42.56
Enterprise Value/Market Cap1.74
Enterprise Value/Revenue1.51
Enterprise Value/Gross Profit19.80
Enterprise Value/Ebitda8.25
Forecast
1Y Price Target
$13.25Price Target Upside-14.68% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)1.09
Revenue Forecast (FY)$3.59B
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, B...
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 r...
Hawaiian Electric Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 08, 2026
Earnings Call Sentiment Positive
The call highlighted meaningful progress: a material GAAP turnaround to profitability, improved consolidated core results, significant legal victories advancing the Maui wildfire settlement, robust liquidity actions, and continued progress on wildfire mitigation and clean energy goals. Counterbalancing these positives are execution and timing risks related to final settlement approvals, an elevated multi-year CapEx profile that requires substantial external financing, modest utility core income decline driven by higher O&M/interest/depreciation, and dependence on capital markets for funding. On balance, the favorable legal rulings, return to profitability, improved consolidated core income, and strengthened liquidity position outweigh the outstanding financing and execution risks, but successful execution of financing and regulatory actions will be important for sustaining momentum.Positive Updates
Return to Profitability
GAAP net income of $123.1M for FY2025 (EPS $0.71) compared to a net loss of approximately $1.4B in FY2024 — a material turnaround driven by settlement progress and insurance recoveries.
Negative Updates
Ongoing Settlement Timing Risk and Appeal Uncertainty
Final settlement payments remain contingent on resolution of outstanding appeals; the first $479M payment is expected only after appeals are resolved, currently targeted for H2 2026 — timing and final approval risk remains a near-term uncertainty.
Read all updates
Q4-2025 Updates
Positive
Negative
Return to Profitability
GAAP net income of $123.1M for FY2025 (EPS $0.71) compared to a net loss of approximately $1.4B in FY2024 — a material turnaround driven by settlement progress and insurance recoveries.
Read all positive updates
Company Guidance
Management guided that outstanding appeals must be resolved before making the first $479 million settlement payment, which is now expected in H2 2026, and said settlement financings will be via debt and/or convertible debt (leaning toward convertible) with later payments funded by a mix of debt and equity; they will submit a joint PBR rebasing proposal with UluPono by March 6, 2026 and expect the PUC’s Phase 6 schedule thereafter, while the PUC rule‑making to establish a liability cap is expected to take roughly 18–24 months with a wildfire fund to follow. They forecast 2026 CapEx of $550–700 million, rising to $600–800 million in 2027 and $600–850 million in 2028, plan to seek securitization for wildfire safety and resilience CapEx, and highlighted liquidity and balance‑sheet metrics: unrestricted cash of ~$16 million at the holding company and ~$486 million at the utility, ~ $530 million combined holding‑co ATM/credit capacity, ~ $540 million utility AR/credit capacity, a $500 million utility debt issuance last year and a $600 million revolver upsize; additional datapoints noted were a $10 million quarterly dividend to HEI for Q4 2025, 2025 RPS of 37% (on track to 40% by 2030), 2025 GAAP net income of $123.1 million ($0.71/share) and consolidated core net income of $149.3 million ($0.86/share), plus $16.5 million pretax Maui wildfire‑related expenses (≈$12.6 million at the utility) and $12.4 million of Pacific Current strategic‑review losses.Hawaiian Electric Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
35
Negative
Cash Flow
58
Neutral
| 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
Positive
15.53
Price Trends
15.48
Positive
13.97
Positive
12.67
Positive
Market Momentum
0.04
Negative
58.66
Neutral
87.72
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 15.53 is above the 20-day moving average (MA) of 14.80, above the 50-day MA of 15.48, and above the 200-day MA of 12.67, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.66 is Neutral, neither overbought nor oversold. The STOCH value of 87.72 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 31 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $3.81B | 12.26 | 16.10% | 2.54% | -3.18% | -8.62% | |
66 Neutral | $2.92B | 21.08 | 10.59% | 2.36% | 8.26% | 12.47% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
63 Neutral | $971.50M | 16.98 | 8.83% | 3.73% | 1.03% | -0.78% | |
59 Neutral | $4.33B | 22.16 | ― | 4.09% | 4.90% | -4.42% | |
54 Neutral | $3.43B | 16.17 | 7.25% | 5.10% | 2.14% | -6.51% | |
51 Neutral | $2.68B | 16.81 | 8.00% | ― | -16.62% | ― |
* Utilities Sector Average
HE
Hawaiian Electric
15.53
5.76
58.96%
AVA
Avista
41.72
3.93
10.40%
MGEE
MGE Energy
79.80
-7.32
-8.40%
NWE
Northwestern
70.53
17.24
32.35%
OTTR
Otter Tail
90.70
14.73
19.39%
UTL
Unitil
54.02
0.05
0.08%
Hawaiian Electric Corporate Events
Legal Proceedings
Hawaiian Electric Gains Preliminary Approval for Wildfire Settlements
Positive
Mar 16, 2026
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 ri...
Private Placements and FinancingRegulatory Filings and Compliance
Hawaiian Electric Updates Tax Disclosure for Foreign Shareholders
Neutral
Mar 2, 2026
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 ha...
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.