Hawaiian Electric (HE) AI Stock Analysis

• Market Cap: $1.95B
• Dividend Yield: N/A
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 14.9
• Beta (1Y): -0.11
• Revenue Growth: -16.62%
• EPS Growth: N/A
• Country: US
• Employees: 2,587
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.19
• Shares Outstanding: 172,620,480
• 10 Day Avg. Volume: 1,832,017
• 30 Day Avg. Volume: 1,748,927
• PEG Ratio: <0.01
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 9.06
• Enterprise Value/Market Cap: 2.00
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 16.96
• Enterprise Value/Ebitda: 6.91
• 1Y Price Target: $11.00
• Price Target Upside: -2.83% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $11.50 ▲(1.59% Upside)

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 Business Overview & Revenue Model

Company Description

Hawaiian Electric (HE) is a utility company based in Hawaii, primarily engaged in the generation, transmission, and distribution of electricity. Serving over 400,000 customers across the islands of Oahu, Maui, and Hawaii Island, HE plays a crucial role in providing reliable and sustainable energy solutions. The company is focused on transitioning to renewable energy sources, including solar and wind, alongside its traditional fossil fuel generation facilities, thereby contributing to Hawaii's ambitious clean energy goals.

How the Company Makes Money

Hawaiian 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 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	16.28B	16.07B	15.24B
Cash, Cash Equivalents and Short-Term Investments	548.24M	750.53M	244.09M	1.63B	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	14.08B	13.64B	12.87B
Stockholders Equity	1.56B	1.51B	2.34B	2.20B	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

• Technical Analysis Sentiment: Negative
• Last Price: 11.32
• 50DMA: Negative
• 100DMA: Negative
• 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 11.32 is below the 20-day moving average (MA) of 11.51, below the 50-day MA of 11.44, and above the 200-day MA of 11.04, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 40.67 is Neutral, neither overbought nor oversold. The STOCH value of 39.39 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
NWE	78 Outperform	$4.17B	19.24	7.62%	4.38%	4.90%	-4.42%
AVA	77 Outperform	$3.31B	17.28	7.31%	4.82%	2.14%	-6.51%
OTTR	72 Outperform	$3.40B	12.24	16.10%	2.58%	-3.18%	-8.62%
UTL	69 Neutral	$873.17M	16.84	8.51%	3.60%	1.03%	-0.78%
MGEE	67 Neutral	$2.93B	21.74	10.80%	2.31%	8.26%	12.47%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
HE	52 Neutral	$1.95B	14.91	7.14%	―	-16.62%	―

Hawaiian Electric Corporate Events

Hawaiian Electric (HEI) Earnings Call Highlights Progress and Challenges

Hawaiian Electric Industries, Inc. (HEI) recently conducted its earnings call, presenting a balanced outlook that highlighted significant progress in financial stability and wildfire safety measures. However, the call also underscored challenges, including a decrease in utility core net income and increased costs. The uncertainty in legislative and regulatory outcomes adds complexity to the company’s future planning.

Hawaiian Electric Industries Reports Q3 2025 Earnings

Hawaiian Electric Industries, Inc. (HEI) is a prominent utility company in Hawaii, supplying power to approximately 95% of the state’s population and focusing on decarbonization and grid modernization to enhance resilience and safety.

Hawaiian Electric Issues $500M Senior Notes

On September 18, 2025, Hawaiian Electric announced the issuance of $500 million in 6.000% Senior Notes due in 2033. The proceeds will be used for capital expenditures and debt repayment, with covenants limiting asset liens and major structural changes.

The most recent analyst rating on (HE) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Hawaiian Electric stock, see the HE Stock Forecast page.

Hawaiian Electric Prices $500M Senior Notes Offering

On September 11, 2025, Hawaiian Electric Industries announced the pricing of $500 million in 6.000% Senior Notes due in 2033. The proceeds from this offering will be used to finance capital expenditures and repay existing debts, with the offering expected to close on September 18, 2025.

The most recent analyst rating on (HE) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Hawaiian Electric stock, see the HE Stock Forecast page.

Hawaiian Electric Amends Credit Facilities, Boosts Commitments

On September 5, 2025, Hawaiian Electric Industries, Inc. and Hawaiian Electric Company, Inc. amended their senior unsecured revolving credit facilities, increasing their available commitments to $300 million each. Additionally, Hawaiian Electric and its subsidiaries announced the redemption of all outstanding series of cumulative preferred stock, expected to occur on October 15, 2025, using cash on hand to fund these redemptions.

The most recent analyst rating on (HE) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Hawaiian Electric stock, see the HE Stock Forecast page.

Hawaiian Electric Industries Earnings Call Highlights Progress and Challenges

Hawaiian Electric Industries, Inc. (HEI) recently held its earnings call, revealing a sentiment of cautious optimism. The company highlighted significant legislative and financial progress, including legislative support and credit rating upgrades. Despite challenges such as wildfire-related expenses impacting financials and a slight decrease in utility core net income, the overall outlook suggests a stronger future for HEI.