Emera (EMA) AI Stock Analysis

• Market Cap: C$18.15B
• Dividend Yield: 6.46%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.53
• Revenue Growth: 8.17%
• EPS Growth: 31.60%
• Country: CA
• Employees: 7,605
• Sector: Utilities
• Sector Strength: 77
• Industry: Regulated Electric
• EPS (TTM): 1.28
• Shares Outstanding: 297,900,000
• 10 Day Avg. Volume: 759,248
• 30 Day Avg. Volume: 1,110,964
• PEG Ratio: 0.17
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.16
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$64.38
• Price Target Upside: 5.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: C$68.00 ▲(11.62%Upside)

Emera's strong financial performance, efficient operations, and positive corporate developments drive a favorable stock score. The high dividend yield and strategic initiatives further support the stock's attractiveness, although valuation concerns and regulatory challenges need attention.

Positive Factors

Earnings Growth

Earnings per share is poised to grow significantly, largely due to new Tampa Electric rates.

Market Sentiment

The upcoming sale of New Mexico Gas is expected to ease credit rating scrutiny and improve market sentiment.

Negative Factors

Earnings Quality

Investor feedback indicated that the earnings beat was not seen as high quality, driven by tax benefits.

Emera Business Overview & Revenue Model

Company Description

Emera Incorporated, an energy and services company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity to various customers. The company operates through Florida Electric Utility, Canadian Electric Utilities, Other Electric Utilities, Gas Utilities and Infrastructure, and Other segments. It generates electricity through coal-fired, natural gas and/or oil, hydro, wind, solar, petroleum coke, and biomass-fueled power plants. The company is also involved in the purchase, transmission, distribution, and sale of natural gas; and the provision of energy marketing, trading, and other energy asset management services. In addition, it transports re-gasified liquefied natural gas from Saint John, New Brunswick to consumers in the northeastern United States through its 145-kilometer pipeline. As of December 31, 2021, the company's electric utilities served approximately 810,600 customers in West Central Florida; 536,000 customers in Nova Scotia; 132,000 customers in the island of Barbados; 19,000 customers in the Grand Bahama Island; and 35,700 customers in the island of Dominica, as well as gas utilities and infrastructure served approximately 445,000 customers across Florida and 542,000 customers in New Mexico. It also provides insurance and reinsurance services to Emera and its affiliates, as well as offers financing services. The company was incorporated in 1998 and is headquartered in Halifax, Canada.

How the Company Makes Money

Emera Inc. generates revenue through its regulated utilities operations, which include electricity and natural gas distribution, transmission, and generation. A significant portion of its income comes from regulated electric utilities in Nova Scotia, New Brunswick, Florida, and the Caribbean, where it services millions of customers. The company earns money by charging customers for the energy they consume, as well as through fixed charges associated with maintaining its distribution and transmission infrastructure. Additionally, Emera benefits from investments in renewable energy projects and partnerships with other energy providers, which help to diversify its energy portfolio and meet regulatory requirements for sustainable energy usage. The company's earnings are also influenced by regulatory frameworks and rate cases, which determine the rates it can charge customers.

Emera Financial Statement Overview

Summary

Emera demonstrates solid revenue growth and operational efficiency, but there is room for improvement in net profit margins. The balance sheet shows moderate leverage, and while cash flow from operations is strong, negative free cash flow suggests pressure from capital expenditures.

Income Statement

Emera shows a solid growth trajectory in its revenue with a TTM growth of 9.28% compared to the previous annual period. The gross profit margin for TTM stands at 32.26%, reflecting efficient cost management. However, the net profit margin is relatively moderate at 11.99%, indicating room for improvement in profitability. EBIT and EBITDA margins are strong at 19.92% and 36.42% respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio is 1.46, which is typical for the industry but suggests moderate leverage risk. The return on equity (ROE) for the TTM is 6.87%, indicating moderate profitability for shareholders. The equity ratio of 31.48% shows a healthy proportion of company assets financed by equity, supporting financial stability.

Cash Flow

Operating cash flow is strong with a notable operating cash flow to net income ratio of 2.94, indicating good cash generation from core operations. However, free cash flow remains negative, although the free cash flow to net income ratio improved slightly. The cash flow situation suggests capital expenditure pressures affecting free cash flow, requiring attention.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.87B	7.20B	7.56B	7.59B	5.76B	5.51B
	Gross Profit
2.54B	2.89B	3.28B	3.02B	2.16B	2.37B
	EBIT
1.57B	1.08B	1.79B	1.63B	930.00M	1.94B
	EBITDA
2.87B	2.55B	3.16B	2.69B	1.85B	2.08B
	Net Income Common Stockholders
943.00M	567.00M	1.04B	1.01B	560.00M	983.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
308.00M	196.00M	588.00M	310.00M	394.00M	220.00M
	Total Assets
43.62B	42.95B	39.48B	39.74B	34.24B	31.23B
	Total Debt
20.08B	19.81B	19.86B	19.04B	16.40B	15.35B
	Net Debt
19.77B	19.61B	19.27B	18.73B	16.01B	15.13B
	Total Liabilities
29.87B	29.66B	27.39B	28.30B	24.09B	22.00B
	Stockholders Equity
13.73B	13.28B	12.07B	11.43B	10.12B	9.20B
Cash Flow		Free Cash Flow
-498.00M	-505.00M	-696.00M	-1.68B	-1.17B	-986.00M
	Operating Cash Flow
2.78B	2.65B	2.24B	913.00M	1.19B	1.64B
	Investing Cash Flow
-2.32B	-2.22B	-2.92B	-2.57B	-2.33B	-1.22B
	Financing Cash Flow
-407.00M	-818.00M	939.00M	1.55B	1.31B	-372.00M

Emera Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 60.92
• 50DMA: Negative
• 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 TSE:EMA, the sentiment is Neutral. The current price of 60.92 is below the 20-day moving average (MA) of 61.56, below the 50-day MA of 60.99, and above the 200-day MA of 55.61, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 57.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:EMA.

Emera Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMA	72 Outperform	C$18.15B	20.69	7.12%	6.46%	8.17%	31.60%
Sector *	64 Neutral	$8.52B	10.34	4.25%	5.88%	4.06%	-12.76%
BEP		$16.85B	―	-5.97%	5.86%	―	―
CPX	75 Outperform	C$8.72B	12.15	15.24%	4.64%	-27.55%	-12.05%
CU	72 Outperform	C$7.73B	25.76	6.76%	4.86%	-0.53%	-31.77%
H	68 Neutral	C$29.21B	23.95	10.15%	3.73%	9.95%	11.34%
FTS		$23.54B	19.95	7.46%	3.80%	―	―

Emera Corporate Events

Emera Inc. Elects Board of Directors with Strong Shareholder Support

Emera Inc. announced the election of its Board of Directors at the Annual Meeting of Shareholders held on May 22, 2025. All 12 nominees listed in the company’s Management Information Circular were elected, highlighting strong shareholder support. This election reinforces Emera’s leadership stability and strategic direction in the energy sector, potentially impacting its operations and stakeholder confidence positively.

The most recent analyst rating on (TSE:EMA) stock is a Buy with a C$55.00 price target. To see the full list of analyst forecasts on Emera stock, see the TSE:EMA Stock Forecast page.

Emera to Begin Trading on NYSE, Marking a Major Milestone

Emera Inc. has announced its approval to list its common shares on the New York Stock Exchange (NYSE), with trading expected to commence on or around May 28, 2025, under the ticker symbol ‘EMA’. This strategic move is seen as a significant milestone for Emera, enhancing its access to global capital and reinforcing its commitment to long-term shareholder value. The listing on the NYSE is expected to strengthen Emera’s market position and provide broader exposure to world-class investors, complementing its existing listing on the Toronto Stock Exchange.

The most recent analyst rating on (TSE:EMA) stock is a Buy with a C$55.00 price target. To see the full list of analyst forecasts on Emera stock, see the TSE:EMA Stock Forecast page.

Emera Reports Strong Q1 2025 Financial Results with Significant Earnings Growth

Emera reported a strong financial performance in the first quarter of 2025, with a significant increase in both adjusted and reported earnings per share compared to the same period in 2024. The company’s robust results were driven by higher earnings from its subsidiaries, favorable weather conditions, and the impact of a weaker Canadian dollar. Emera is on track to invest $3.4 billion in 2025, with a focus on enhancing infrastructure and supporting market growth, which is expected to deliver long-term value for both customers and shareholders.