Hawaiian Electric (HE) AI Stock Analysis

• Market Cap: $1.81B
• Dividend Yield: N/A
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.56
• Revenue Growth: -7.58%
• EPS Growth: -819.97%
• Country: US
• Employees: 2,587
• Sector: Utilities
• Sector Strength: 83
• Industry: Diversified Utilities
• EPS (TTM): 0.23
• Shares Outstanding: 172,494,260
• 10 Day Avg. Volume: 1,528,413
• 30 Day Avg. Volume: 1,675,901
• PEG Ratio: -8.48
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 41.47
• Enterprise Value/Market Cap: 4.32
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: -4.54
• Enterprise Value/Ebitda: -1.44
• 1Y Price Target: $12.58
• Price Target Upside: 19.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: $10.50 ▲(0.10%Upside)

Hawaiian Electric's overall stock score reflects financial distress and valuation challenges, slightly mitigated by strategic financial improvements highlighted in the earnings call. Technical indicators provide a neutral stance, neither strongly supporting nor detracting from the score.

Positive Factors

Financial Position

Improved balance sheet with proceeds from the American Savings Bank sale directed towards debt reduction.

Legal Rulings

Shares of HE have risen approximately 20% on the story's improving backdrop following a favorable ruling by the Hawaii Supreme Court.

Legislative Support

Potential legislative support for wildfire insurance fund and securitization could lead to credit rating improvements.

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

Crucial legislation establishing a wildfire fund, securitization, and a liability cap remains a gating item, preventing a more constructive outlook as many questions linger.

Sale of Assets

The sale of a 90.1% stake in American Savings Bank was completed at a significant discount compared to its tangible book value.

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 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 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.

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.

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.

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
	EBIT
-1.72B	-1.71B	274.99M	381.07M	122.75M	311.49M
	EBITDA
-1.40B	-1.39B	572.83M	660.08M	648.13M	564.44M
	Net Income Common Stockholders
-1.44B	-1.42B	201.13M	243.03M	248.06M	199.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
629.34M	750.53M	1.82B	1.63B	2.88B	2.31B
	Total Assets
8.77B	8.93B	17.24B	16.28B	15.82B	15.00B
	Total Debt
983.99M	3.33B	4.04B	3.43B	2.60B	2.50B
	Net Debt
354.65M	2.58B	3.36B	3.23B	2.30B	2.16B
	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

• Technical Analysis Sentiment: Negative
• Last Price: 10.49
• 50DMA: Positive
• 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 Negative. The current price of 10.49 is below the 20-day moving average (MA) of 10.63, above the 50-day MA of 10.40, and above the 200-day MA of 10.30, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 48.12 is Neutral, neither overbought nor oversold. The STOCH value of 75.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HE.

Hawaiian Electric Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OTTR	74 Outperform	$3.25B	11.05	18.38%	2.71%	-2.68%	-3.73%
NWE	68 Neutral	$3.17B	13.43	8.27%	5.11%	4.31%	19.33%
AVA	67 Neutral	$3.01B	15.89	7.25%	5.25%	3.14%	-2.66%
Sector *	64 Neutral	$8.58B	10.36	4.24%	4.64%	4.07%	-13.04%
UTL	63 Neutral	$849.11M	17.81	9.07%	3.45%	-5.57%	-2.26%
MGEE	62 Neutral	$3.21B	24.89	10.62%	2.05%	6.03%	6.15%
HE	52 Neutral	$1.81B	―	-67.93%	―	-7.58%	-819.97%

Hawaiian Electric Corporate Events

Hawaiian Electric Shareholders Approve Key Proposals at Meeting

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.

Hawaiian Electric Releases 2024 Statistical Supplement

Hawaiian Electric Industries (HEI) has released its unaudited 2024 Statistical Supplement, which includes selected financial information for HEI, Hawaiian Electric, and American Savings Bank. The company will post this supplement on its website under the Investor Relations section, and encourages investors to monitor this section for additional disclosures. This release emphasizes the importance of HEI’s website as a primary source for investor information, alongside press releases, SEC filings, and public conference calls.