Education
About Us
Working with TipRanks
Follow Us
Hawaiian Electric Industries, Inc. (HE)
:HE
Top Page
Hawaiian Electric
(NYSE:HE)
Rating:49Neutral
Price Target:
$10.50
▼(-2.42%Downside)
Positive Factors
Financial Stability
Strong access to capital markets and significantly higher liquidity enhance financial stability.
Legal Rulings
Shares of HE have risen approximately 20% on the story's improving backdrop following a favorable ruling by the Hawaii Supreme Court.
Negative Factors
Financial 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.
Legislative Uncertainty
The HI legislature failed to provide clarity on wildfire liability cap and potential fund creation—process moves to the PUC.
Hawaiian Electric (HE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.86B
Dividend YieldN/A
Average Volume (3M)1.70M
Price to Earnings (P/E)―
Beta (1Y)0.58
Revenue Growth-7.58%
EPS Growth-819.97%
CountryUS
Employees2,587
SectorUtilities
Sector Strength67
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.23
Shares Outstanding172,494,260
10 Day Avg. Volume2,195,282
30 Day Avg. Volume1,699,330
Financial Highlights & Ratios
PEG Ratio-8.48
Price to Book (P/B)2.08
Price to Sales (P/S)0.00
P/FCF Ratio41.47
Enterprise Value/Market Cap4.21
Enterprise Value/Revenue0.59
Enterprise Value/Gross Profit-4.54
Enterprise Value/Ebitda-1.44
Forecast
1Y Price Target
$12.50Price Target Upside16.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Hawaiian Electric Business Overview & Revenue Model
Company DescriptionHawaiian Electric (HE) is a leading utility company based in Hawaii, providing electricity services to over 95% of the state’s population across Oahu, Maui, Hawaii Island, Lanai, and Molokai. The company operates across several sectors, including power generation, transmission, and distribution. Hawaiian Electric is committed to delivering reliable and clean energy solutions, playing a crucial role in Hawaii's transition towards renewable energy sources and sustainability goals.
How the Company Makes MoneyHawaiian Electric makes money primarily through the sale of electricity to residential, commercial, and industrial customers within its service territories. The company generates revenue by charging customers for the electricity they consume, which is measured in kilowatt-hours (kWh). Rates are regulated by the Hawaii Public Utilities Commission, ensuring that prices reflect the cost of fuel, maintenance, infrastructure, and investment in renewable energy projects. Additionally, Hawaiian Electric benefits from various governmental and regulatory incentives aimed at promoting clean energy initiatives. The company also engages in partnerships and collaborations to integrate renewable energy sources such as solar, wind, and battery storage into its grid, creating additional revenue opportunities and supporting the state's clean energy mandates.
Hawaiian Electric Earnings Call Summary
Earnings Call Date:May 09, 2025
(Q1-2025)
| % Change Since: 2.57%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant progress in resolving the Maui wildfire litigation and strengthening financial flexibility through asset sales and debt reduction. Legislative support for wildfire mitigation and the reinstatement of the utility dividend were positive developments. However, ongoing wildfire-related expenses and losses from asset sales presented challenges.Q1-2025 Updates
Positive Updates
Financial Progress and Settlement Resolution
HEI made significant progress in resolving the Maui wildfire tort litigation, with the Hawaii State Supreme Court issuing a supportive decision. The company expects to complete the remaining administrative steps early next year, leading to the first $479 million payment.
Stronger Financial Position
HEI's balance sheet and liquidity improved with the sale of American Savings Bank and divestiture of Pacific Current assets. The holding company retired approximately $384 million of debt, enhancing financial flexibility.
Legislative Support for Wildfire Mitigation
The Hawaii state legislature passed Senate Bill 897, which directs the Public Utilities Commission to establish a liability cap on economic damages from future wildfires and authorizes securitization for wildfire safety improvements.
Utility Dividend Reinstatement
Hawaiian Electric's Board of Directors approved a $10 million quarterly dividend, reinstating it after a temporary suspension.
Core Net Income Growth
Utility core net income for the quarter was $49.7 million, up from $44.2 million in the first quarter of 2024, driven by better heat rate performance and lower bad debt expense.
Negative Updates
Maui Wildfire Related Expenses
The quarter included $4.5 million of pretax Maui wildfire-related expenses, with $2.5 million recorded at the utility, affecting overall financial performance.
Loss on Asset Sale
A $13.2 million pretax loss on the sale of Pacific Current's largest asset, the Hamakua power plant, was recorded.
Higher Insurance Costs
The utility faced higher insurance costs, which partially offset gains from improved heat rate performance and other financial benefits.
Company Guidance
In the HEI First Quarter 2025 Earnings Conference Call, the company highlighted several key metrics and strategic actions aimed at strengthening its financial position and operational focus. HEI reported a first-quarter net income of $26.7 million or $0.15 per share, with a core net income of $39.8 million or $0.23 per share, excluding certain losses and wildfire expenses. The company has made significant progress in resolving the Maui wildfire tort litigation, with a Supreme Court decision supporting the settlement process. HEI plans to make its first $479 million settlement payment in early 2026 and has contributed $75 million to the $1.99 billion One 'Ohana initiative for wildfire relief. The company is also focused on a simpler business model by divesting non-core assets and enhancing financial flexibility, evidenced by a $384 million debt reduction following the sale of American Savings Bank. HEI's liquidity remains strong, with $492 million in holding company cash and $130 million at the utility level. The company anticipates financing future settlement payments with a combination of debt and equity while pursuing investments in utility infrastructure to support its clean energy goals and improve safety and reliability.Hawaiian Electric Financial Statement Overview
Summary
Hawaiian Electric's financial performance is concerning due to declining revenues and negative profit margins, indicating significant profitability issues. The balance sheet reveals high leverage, posing financial risks, although positive operating cash flows provide some relief.Income Statement
Hawaiian Electric's income statement reveals significant financial distress. The company has experienced declining revenues with a negative revenue growth rate in the TTM period. Both gross and net profit margins are negative, indicating a loss-making period. Negative EBIT and EBITDA margins further highlight profitability issues, underscoring severe operational challenges.20
Very Negative
Balance Sheet
The balance sheet shows a moderate level of financial stability with a Debt-to-Equity ratio that indicates higher leverage, which is a potential risk. The Equity Ratio is relatively low, suggesting limited equity cushion against liabilities. The Return on Equity is negative due to net losses, demonstrating inefficiencies in generating shareholder returns.45
Neutral
Cash Flow
Cash flow analysis indicates a mildly positive scenario with a positive operating cash flow. However, the Free Cash Flow is minimal, showing limited cash available after capital expenditures. The Operating Cash Flow to Net Income Ratio suggests some operational cash generation despite net losses, but the Free Cash Flow to Net Income Ratio indicates challenges in converting income into free cash flow.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.07B | 3.22B | 3.29B | 3.74B | 2.85B | 2.58B |
| Gross Profit | -1.72B | -1.71B | 274.99M | 381.07M | 386.07M | 311.49M |
| EBITDA | -1.40B | -1.39B | 572.83M | 660.08M | 648.13M | 564.44M |
| Net Income | -1.44B | -1.42B | 201.13M | 243.03M | 248.06M | 199.71M |
Balance Sheet | ||||||
| Total Assets | 8.77B | 8.93B | 17.24B | 16.28B | 15.82B | 15.00B |
| Cash, Cash Equivalents and Short-Term Investments | 629.34M | 750.53M | 1.82B | 1.63B | 2.88B | 2.31B |
| Total Debt | 983.99M | 3.33B | 4.04B | 3.43B | 2.60B | 2.50B |
| Total Liabilities | 7.23B | 7.42B | 14.86B | 14.08B | 13.43B | 12.67B |
| Stockholders Equity | 1.51B | 1.51B | 2.34B | 2.20B | 2.39B | 2.34B |
Cash Flow | ||||||
| Free Cash Flow | 105.07M | 136.25M | 103.17M | 110.44M | 61.15M | 45.51M |
| Operating Cash Flow | 420.13M | 465.73M | 551.47M | 454.48M | 375.67M | 429.41M |
| Investing Cash Flow | -396.19M | -317.63M | -257.40M | -1.13B | -1.18B | -1.41B |
| Financing Cash Flow | 190.26M | -72.03M | 195.57M | 567.67M | 756.40M | 1.12B |
Hawaiian Electric Technical Analysis
Positive
10.76
Price Trends
10.56
Positive
10.60
Positive
10.25
Positive
Market Momentum
0.08
Negative
52.29
Neutral
56.95
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 10.76 is above the 20-day moving average (MA) of 10.61, above the 50-day MA of 10.56, and above the 200-day MA of 10.25, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 52.29 is Neutral, neither overbought nor oversold. The STOCH value of 56.95 is Neutral, 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
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.30B | 11.23 | 18.38% | 2.63% | -2.68% | -3.73% | |
75 Outperform | $3.30B | 11.23 | 18.38% | 2.63% | -2.68% | -3.73% | |
67 Neutral | $16.50B | 17.04 | 4.45% | 3.54% | 4.76% | 6.13% | |
65 Neutral | $3.22B | 24.96 | 10.62% | 2.00% | 6.03% | 6.15% | |
65 Neutral | $3.22B | 24.96 | 10.62% | 2.00% | 6.03% | 6.15% | |
64 Neutral | $3.19B | 13.52 | 8.27% | 5.03% | 4.31% | 19.33% | |
64 Neutral | $3.19B | 13.52 | 8.27% | 5.03% | 4.31% | 19.33% | |
62 Neutral | $3.09B | 16.34 | 7.25% | 5.11% | 3.14% | -2.66% | |
62 Neutral | $3.09B | 16.34 | 7.25% | 5.11% | 3.14% | -2.66% | |
61 Neutral | $841.79M | 17.65 | 9.07% | 3.43% | -5.57% | -2.26% | |
61 Neutral | $841.79M | 17.65 | 9.07% | 3.43% | -5.57% | -2.26% | |
49 Neutral | $1.86B | ― | -67.93% | ― | -7.58% | -819.97% |
* Utilities Sector Average
Performance Comparison
HE
Hawaiian Electric
10.76
2.19
25.55%
AVA
Avista
38.15
5.90
18.29%
AVA
Avista
38.15
5.90
18.29%
MGEE
MGE Energy
88.17
13.73
18.44%
MGEE
MGE Energy
88.17
13.73
18.44%
NWE
Northwestern
51.97
5.62
12.13%
NWE
Northwestern
51.97
5.62
12.13%
OTTR
Otter Tail
78.83
-3.20
-3.90%
OTTR
Otter Tail
78.83
-3.20
-3.90%
UTL
Unitil
51.77
1.56
3.11%
Hawaiian Electric Corporate Events
Executive/Board ChangesShareholder Meetings
Hawaiian Electric Shareholders Approve Key Proposals at Meeting
Neutral
May 14, 2025
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.
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.