Hawaiian Electric (HE) AI Stock Analysis

• Market Cap: $2.84B
• Dividend Yield: N/A
• Average Volume (3M): 3.20M
• Price to Earnings (P/E): 21.7
• Beta (1Y): -0.05
• 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: 3,138,103
• 30 Day Avg. Volume: 3,197,536
• 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: 1.69
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 20.87
• Enterprise Value/Ebitda: 8.50
• 1Y Price Target: $12.75
• Price Target Upside: -19.71% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $15.50 ▼(-2.39% Downside)

The score is held back primarily by weak financial performance (declining revenue, negative net margin, high leverage, and weakening free cash flow). Technicals are a clear positive with strong momentum above major moving averages, while valuation is only moderate (P/E ~19.8 and no provided dividend yield). The earnings call adds modest support from improved liquidity and wildfire-safety progress, but ongoing cost pressure and regulatory uncertainty limit upside.

Positive Factors

Regulated rate-base business

Hawaiian Electric's revenue model is rate-regulated, allowing recovery of invested capital and an allowed return. This provides durable, predictable cash flow and supports long-term infrastructure investment planning despite operational volatility, stabilizing revenue over multi-year cycles.

Improved liquidity position

The $500M unsecured issuance and expanded credit facilities materially bolster liquidity and financial flexibility. This reduces near-term refinancing risk, supports settlement timing and elevated CapEx, and provides a buffer against cash-flow volatility while executing long-term grid investments.

Wildfire safety and operational upgrades

Investments in weather monitoring, AI cameras and specialist staff materially strengthen operational risk management. These structural upgrades lower wildfire ignition risk, improve situational awareness, reduce outage frequency and potential liability over years, improving long-term reliability and cost trajectory.

Negative Factors

High leverage

A 1.64 debt-to-equity ratio indicates elevated leverage for the utility, constraining financial flexibility. High debt amplifies interest expense sensitivity and limits capacity to absorb shocks or fund rising CapEx without higher borrowing, increasing long-term funding and regulatory risk.

Declining revenue and negative margins

Falling revenue and persistent negative net margins reflect structural profitability challenges and potential cost-recovery lags. Over months, weak margins impair internal cash generation, constrain reinvestment, and heighten reliance on financing or regulatory rate adjustments to restore sustainable returns.

Weak free cash flow vs rising CapEx

Shrinking free cash flow alongside a planned sharp increase in CapEx creates structural funding pressure. Sustained negative FCF trends make financing large grid investments and settlement obligations harder, likely increasing leverage or rate-setting dependence and elevating long-term execution risk.

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 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

Weak profitability and growth: revenue declined (-5.07% TTM), margins are very low (gross margin 1.78%) and net margin is negative (-4.05%). Leverage is elevated (debt-to-equity 1.64) with negative ROE (-7.61%), while free cash flow is contracting (-12.90% TTM), indicating financial strain despite moderate cash generation versus net income.

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	16.65B	16.07B	15.24B
Cash, Cash Equivalents and Short-Term Investments	1.03B	1.24B	259.12M	206.10M	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	14.42B	13.64B	12.87B
Stockholders Equity	1.60B	1.51B	2.38B	2.24B	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: Positive
• Last Price: 15.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 15.88 is above the 20-day moving average (MA) of 14.81, above the 50-day MA of 13.06, and above the 200-day MA of 11.61, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 71.15 is Negative, neither overbought nor oversold. The STOCH value of 64.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HE.

Hawaiian Electric Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVA	77 Outperform	$3.43B	17.97	7.31%	5.10%	2.14%	-6.51%
OTTR	77 Outperform	$3.69B	13.42	16.10%	2.54%	-3.18%	-8.62%
NWE	74 Outperform	$4.23B	19.62	7.62%	4.09%	4.90%	-4.42%
UTL	70 Outperform	$917.77M	17.49	8.51%	3.73%	1.03%	-0.78%
MGEE	69 Neutral	$2.93B	21.48	10.80%	2.36%	8.26%	12.47%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
HE	59 Neutral	$2.84B	21.70	7.14%	―	-16.62%	―