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Hawaiian Electric
(NYSE:HE)
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Rating:52Neutral
Price Target:
$13.50
▲(0.00% Upside)
Action:Reiterated
Date:08/01/26
Overall score reflects a recovering but still constrained fundamental profile: profitability has returned and cash from operations is positive, but margins remain compressed, leverage is elevated, and free cash flow is thin/volatile. Technicals are a notable headwind with the stock trading below multiple key moving averages. Valuation is moderate (P/E ~17.8) and the latest earnings call and events add cautious optimism (settlement and regulatory progress) but are balanced by significant near-term cost and regulatory recovery uncertainties.
Positive Factors
Regulatory Cost Recovery
A formal rebasing request that proposes ~5.3% consolidated base-rate relief (about $170M) and PIM incentives creates a durable path to recover elevated costs and earn regulated returns. If approved, it strengthens revenue stability and the utility’s ability to fund capex and storm-related expenses over coming rate cycles.
Negative Factors
Elevated Leverage
Debt-to-equity near ~1.8 materially constrains financial flexibility for a utility facing large near-term cash needs (settlement payments, capex). Higher leverage raises interest expense and limits the company’s ability to absorb further shocks or fund investments without additional equity or rate relief, pressuring strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulatory Cost Recovery
A formal rebasing request that proposes ~5.3% consolidated base-rate relief (about $170M) and PIM incentives creates a durable path to recover elevated costs and earn regulated returns. If approved, it strengthens revenue stability and the utility’s ability to fund capex and storm-related expenses over coming rate cycles.
Read all positive factors
Hawaiian Electric (HE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.28B
Dividend YieldN/A
Average Volume (3M)1.70M
Price to Earnings (P/E)17.5
Beta (1Y)0.35
Revenue Growth-8.57%
EPS GrowthN/A
CountryUS
Employees2,587
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.74
Shares Outstanding172,635,620
10 Day Avg. Volume1,573,382
30 Day Avg. Volume1,704,075
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$12.38Price Target Upside-8.33% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)0.93
Revenue Forecast (FY)$3.14B
Hawaiian Electric Business Overview & Revenue Model
Company Description
Hawaiian Electric Industries, Inc. (HE) operates as a diversified holding company primarily focused on three key areas within the state of Hawaii: electric utility services, banking, and investments in renewable and sustainable infrastructure. The...
How the Company Makes Money
Hawaiian Electric primarily makes money by providing regulated electric utility service and recovering its costs plus an allowed return through customer electricity rates approved by the Hawaiʻi Public Utilities Commission (PUC). Its main revenue ...
Hawaiian Electric Earnings Call Summary
Earnings Call Date:May 08, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 07, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but balanced picture. Material positive milestones were communicated: the Maui wildfire tort settlement was finalized and the first $479M payment was made, the Waial repowering project received PUC approval with $908M EPRM recovery, liquidity remains strong (nearly $1B), and rating agencies have responded with upgrades/positive outlooks. Offsetting these positives are meaningful near-term and ongoing cost pressures: core earnings declined (~22% consolidated core net income; utility core down ~28%), significant storm-related O&M and an expected O&M increase that will outpace inflation, exposure to rising fuel costs that will produce a maximum penalty under the FCRS and working capital strain, and an anticipated ~$247M recovery gap for Waial to be addressed in a future rate case. Management’s regulatory and financing plans (rate rebasing proposal, targeted recovery mechanisms, opportunistic financing of future settlement payments) provide clear paths to address many of the challenges, leaving the overall tone cautious but constructive.Positive Updates
Maui Wildfire Settlement Finalized and First Payment Made
Final conditions satisfied April 10, 2026; first of four annual $479 million settlement payments made on April 10 using funds set aside in a special-purpose vehicle. Settlement removes major litigation overhang and enables progress on recovery.
Negative Updates
Decline in Consolidated Core Earnings and EPS
Consolidated core net income fell to $31.0M (Q1 2026) from $39.8M (Q1 2025), a decline of ~22%; consolidated core EPS down from $0.23 to $0.18 (~-21.7%), reflecting transitional year cost pressures.
Read all updates
Q1-2026 Updates
Positive
Negative
Maui Wildfire Settlement Finalized and First Payment Made
Final conditions satisfied April 10, 2026; first of four annual $479 million settlement payments made on April 10 using funds set aside in a special-purpose vehicle. Settlement removes major litigation overhang and enables progress on recovery.
Read all positive updates
Company Guidance
The company provided detailed near‑term financial and regulatory guidance: Q1 2026 net income was $30.5 million ($0.18/share) with consolidated core net income of $31 million ($0.18 EPS) versus $39.8 million ($0.23) a year ago, utility core net income $35.7 million (down from $49.7M) and holding‑company core net loss $4.8 million (improved from $9.9M); Maui wildfire‑related expenses were < $1M (vs ~$4.5M prior). Management confirmed the March 6 rebasing request to raise consolidated base rates ~5.3% (about $170 million total: ~$145M in 2027 and ~$25M in 2028), which they say would increase the average customer bill $8–$12 in 2027 and $2–$3 in 2028, and include 200 basis points of PIMs (150 bps reward / 50 bps penalty) while delivering >$100 million of revenue‑requirement reductions by period end. They made the first of four $479 million annual Maui settlement payments on April 10 (next payments expected April 2028 and 2029) and expect to fund the 2nd with debt/convertible debt while targeting investment‑grade metrics; Moody’s upgraded the utility to Ba1 and the holding company to Ba2. CapEx guidance was raised (baseline ~$350–$400M/year), Waial EPRM recovery approved at $908M (original $847M plus inflation) with ~$157M Waial CapEx in 2026 (vs prior ~$90M) and ~$247M of incremental costs to seek in a future rate case; AFUDC accrual uses a ~7.37% WACC and Waial turbines will enter service in staged pairs (first 2029, then 2031, 2033). They warned 2026 O&M will significantly outpace inflation (higher insurance, storm response—35 days emergency response and ~ $2B storm damages—vegetation, overhauls, IT, labor), expect to realize the maximum penalty under the fuel cost risk‑sharing mechanism given recent oil price spikes, noted fuel pass‑through lag of ~1–2 months (fuel inventory ~1 month, DSO 20–25 days), and referenced historical bad‑debt peaks of ~51 bps (typical 10–20 bps).Hawaiian Electric Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
48
Neutral
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.09B | 3.09B | 3.22B | 3.29B | 3.42B | 2.85B |
| Gross Profit | 226.28M | 235.32M | -1.71B | 627.05M | 628.69M | 676.91M |
| EBITDA | 556.69M | 539.42M | -1.39B | 561.31M | 553.65M | 670.62M |
| Net Income | 129.59M | 126.28M | -1.42B | 199.24M | 241.14M | 246.17M |
Balance Sheet | ||||||
| Total Assets | 8.91B | 8.92B | 8.93B | 17.24B | 16.65B | 16.07B |
| Cash, Cash Equivalents and Short-Term Investments | 452.84M | 980.75M | 1.24B | 259.12M | 206.10M | 326.76M |
| Total Debt | 2.95B | 2.96B | 3.33B | 3.24B | 3.43B | 2.60B |
| Total Liabilities | 7.28B | 7.32B | 7.42B | 14.86B | 14.42B | 13.64B |
| Stockholders Equity | 1.64B | 1.61B | 1.51B | 2.38B | 2.24B | 2.43B |
Cash Flow | ||||||
| Free Cash Flow | 44.24M | 49.87M | 136.25M | 108.74M | -1.53M | 61.15M |
| Operating Cash Flow | 402.44M | 391.07M | 465.73M | 551.47M | 327.93M | 375.67M |
| Investing Cash Flow | -345.59M | -322.18M | -317.63M | -257.40M | -324.08M | -1.18B |
| Financing Cash Flow | -236.85M | -331.00M | -72.03M | 195.57M | -19.86M | 756.40M |
Hawaiian Electric Technical Analysis
Negative
13.50
Price Trends
13.40
Negative
14.13
Negative
13.71
Negative
Market Momentum
>-0.01
Negative
50.07
Neutral
37.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HE, the sentiment is Negative. The current price of 13.5 is above the 20-day moving average (MA) of 13.40, above the 50-day MA of 13.40, and below the 200-day MA of 13.71, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.07 is Neutral, neither overbought nor oversold. The STOCH value of 37.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $3.75B | 13.20 | 15.21% | 2.39% | -0.54% | -5.27% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $3.00B | 20.39 | 10.94% | 2.31% | 8.91% | 10.48% | |
64 Neutral | $3.39B | 16.05 | 7.65% | 4.67% | -1.47% | 7.23% | |
63 Neutral | $980.50M | 17.06 | 9.41% | 3.33% | 19.55% | 6.74% | |
60 Neutral | $4.29B | 24.64 | 5.80% | 3.65% | 10.69% | -24.15% | |
52 Neutral | $2.28B | 17.46 | 8.09% | ― | -8.57% | ― |
* Utilities Sector Average
HE
Hawaiian Electric
12.92
2.19
20.41%
AVA
Avista
40.45
4.29
11.87%
MGEE
MGE Energy
79.53
-2.49
-3.03%
NWE
Northwestern
68.74
17.35
33.77%
OTTR
Otter Tail
88.42
15.04
20.50%
UTL
Unitil
53.94
4.02
8.04%
Hawaiian Electric Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Hawaiian Electric Signs Long-Term Renewable Power Agreement
Positive
Jul 31, 2026
On July 27, 2026, Hawaiian Electric and Kalaeloa Partners L.P. entered into a new 30‑year power purchase agreement for 208 megawatts of firm, dispatchable generation that will be repowered to qualify as renewable energy under Hawaii’s ...
Executive/Board ChangesShareholder Meetings
Hawaiian Electric Shareholders Back Board, Pay and Auditor
Positive
Jun 15, 2026
At its June 11, 2026 annual meeting, Hawaiian Electric Industries shareholders elected all nominated directors to the board, approved on an advisory basis the compensation of named executive officers, and ratified Deloitte Touche as the independe...
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.