Hawaiian Electric (HE) AI Stock Analysis

• Market Cap: $1.97B
• Dividend Yield: N/A
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -11.75%
• EPS Growth: 96.86%
• Country: US
• Employees: 2,587
• Sector: Utilities
• Sector Strength: 76
• Industry: Diversified Utilities
• EPS (TTM): 0.20
• Shares Outstanding: 172,611,850
• 10 Day Avg. Volume: 2,057,264
• 30 Day Avg. Volume: 1,730,880
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.93
• Enterprise Value/Revenue: 1.30
• Enterprise Value/Gross Profit: 73.16
• Enterprise Value/Ebitda: 10.63
• 1Y Price Target: $11.67
• Price Target Upside: 1.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: $12.00 ▲(4.80% Upside)

Hawaiian Electric's overall stock score reflects significant financial challenges, including high leverage and declining profitability. However, positive technical indicators and legislative support for wildfire safety provide some optimism. The company's valuation remains a concern due to negative earnings, and while the earnings call highlighted improvements in liquidity and credit ratings, financial challenges persist.

Positive Factors

Court Rulings

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

Debt Management

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

Financial Stability

Strong access to capital markets and significantly higher liquidity enhance financial stability.

Negative Factors

Legislative Challenges

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

Liability Concerns

The HI legislature failed to provide clarity on wildfire liability cap and potential fund creation—process moves to the PUC.

Underearning Issues

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.

Hawaiian Electric Business Overview & Revenue Model

Company Description

Hawaiian Electric (HE) is the largest electric utility in Hawaii, providing electricity to approximately 95% of the state's population. The company operates primarily in the electric power generation, transmission, and distribution sectors, serving residential, commercial, and industrial customers across the islands of Oahu, Maui, and Hawaii Island. HE is committed to integrating renewable energy sources into its power generation mix, aiming to transition towards a sustainable and resilient energy future for the state.

How the Company Makes Money

Hawaiian Electric generates revenue primarily through the sale of electricity to its customers. The company's revenue model is based on a regulated utility framework, where it earns money by charging customers for the electricity they consume, as well as for the infrastructure investments it makes in power generation and distribution. Key revenue streams include residential and commercial electricity sales, which are influenced by the rates set by the Public Utilities Commission of Hawaii. Additionally, Hawaiian Electric can earn returns on its investments in renewable energy projects and energy efficiency programs. Significant partnerships with local and federal agencies, as well as collaborations with renewable energy developers, contribute to its earnings by facilitating the transition to cleaner energy sources and enabling access to funding and incentives for sustainable initiatives.

Hawaiian Electric Financial Statement Overview

Summary

Hawaiian Electric faces significant financial challenges, with declining revenues and profitability pressures. High leverage poses a risk to financial stability, although recent improvements in free cash flow are encouraging. The company needs to focus on improving operational efficiency and reducing debt to enhance its financial health.

Income Statement

Hawaiian Electric's income statement shows significant challenges. The TTM data reveals a negative net profit margin of -4.05%, indicating losses. Revenue has declined by 4.92% in the TTM period, following a previous annual decline. Gross profit margins have also deteriorated over time, reflecting cost pressures or pricing challenges. The company needs to address these issues to improve profitability.

Balance Sheet

The balance sheet indicates high leverage with a debt-to-equity ratio of 1.64 in the TTM period, which is a concern for financial stability. Return on equity is negative, reflecting recent losses. However, the equity ratio remains reasonable at 18.84%, suggesting some level of asset backing. The company must manage its debt levels to reduce financial risk.

Cash Flow

Cash flow analysis shows a strong free cash flow growth of 99.60% in the TTM period, which is a positive sign. The operating cash flow to net income ratio is 0.36, indicating some cash flow generation despite net losses. The company should focus on maintaining positive cash flows to support operations and debt obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.92B	3.22B	3.29B	3.74B	2.85B	2.58B
Gross Profit	51.96M	-1.71B	274.99M	381.07M	386.07M	311.49M
EBITDA	357.66M	-1.39B	572.83M	660.08M	648.13M	564.44M
Net Income	-118.00M	-1.42B	201.13M	243.03M	248.06M	199.71M
Balance Sheet
Total Assets	8.32B	8.93B	17.24B	16.28B	15.82B	15.00B
Cash, Cash Equivalents and Short-Term Investments	154.28M	750.53M	244.09M	1.63B	305.55M	2.31B
Total Debt	2.57B	3.33B	4.04B	3.43B	2.60B	2.50B
Total Liabilities	6.76B	7.42B	14.86B	14.08B	13.43B	12.67B
Stockholders Equity	1.57B	1.51B	2.34B	2.20B	2.39B	2.34B
Cash Flow
Free Cash Flow	209.73M	136.25M	103.17M	110.44M	61.15M	45.51M
Operating Cash Flow	517.88M	465.73M	551.47M	454.48M	375.67M	429.41M
Investing Cash Flow	70.00M	-317.63M	-257.40M	-1.13B	-1.18B	-1.41B
Financing Cash Flow	316.64M	154.71M	195.57M	567.67M	756.40M	1.12B

Hawaiian Electric Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 11.45 is above the 20-day moving average (MA) of 11.04, above the 50-day MA of 10.81, and above the 200-day MA of 10.38, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 63.93 is Neutral, neither overbought nor oversold. The STOCH value of 86.84 is Negative, 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
OTTR	79 Outperform	$3.45B	12.10	17.13%	2.42%	-3.69%	-8.25%
NWE	76 Outperform	$3.37B	14.95	7.93%	4.49%	3.78%	7.48%
AVA	72 Outperform	$3.02B	16.72	6.91%	5.24%	2.41%	-9.85%
MGEE	69 Neutral	$3.07B	23.37	10.75%	2.16%	8.47%	12.76%
Sector *	67 Neutral	$17.63B	18.14	8.12%	3.57%	7.33%	12.21%
UTL	62 Neutral	$784.47M	16.53	9.04%	3.78%	-2.78%	-3.07%
HE	58 Neutral	$1.97B	―	-1.53%	―	-11.75%	96.86%

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.