Emera (EMA) AI Stock Analysis

• Market Cap: $21.63B
• Dividend Yield: 4.33%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.29
• Revenue Growth: 14.10%
• EPS Growth: 65.76%
• Country: CA
• Employees: 7,605
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.55
• Shares Outstanding: 303,000,000
• 10 Day Avg. Volume: 876,285
• 30 Day Avg. Volume: 1,131,278
• PEG Ratio: 0.19
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 2.44
• P/FCF Ratio: -11.70
• Enterprise Value/Market Cap: 1.98
• Enterprise Value/Revenue: 5.15
• Enterprise Value/Gross Profit: 20.97
• Enterprise Value/Ebitda: 15.00
• 1Y Price Target: $72.01
• Price Target Upside: 1.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 3.55
• Revenue Forecast (FY): $8.28B

• Rating: 65 Neutral
• Price Target: C$75.00 ▲(5.56% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held back primarily by financial fundamentals—especially consistently negative free cash flow and elevated leverage—despite solid utility profitability. Offsetting this, technicals are constructive with a sustained uptrend, and the latest earnings call reinforced a positive growth and capital investment outlook with ongoing dividend growth; valuation is reasonable with a strong yield but a mid-range P/E.

Positive Factors

Rate-base growth & capital plan

A large, multi-year capital plan that grows the regulated rate base (7%–8% profile) is a durable earnings driver for a regulated utility. As long as regulators allow recovery, rising rate base supports predictable cash returns and long-term EPS growth, underpinning investment visibility.

Improved profitability and EPS momentum

Sustained improvement to adjusted net income and double-digit EPS growth indicate better operating performance and rate recovery execution. Stronger earnings enhance free cash flow potential over time, support reinvestment and dividend continuity, and improve resilience to cyclical cost pressures.

Stronger cash generation & credit metrics

Meaningful improvement in operating cash flow and a 150bp credit-metric gain strengthen financing optionality. Better credit metrics reduce refinancing risk and borrowing costs, making it easier to fund the capital plan and preserving access to capital for sustained infrastructure investment.

Negative Factors

Persistent negative free cash flow

Consistent negative free cash flow over several years signals structural funding needs: capital spending and working-capital requirements outstrip operating cash. That forces reliance on external financing or asset sales, raising execution and refinancing risk across the multi‑year capex program.

Elevated leverage

A debt-heavy balance sheet (debt/equity ~1.5–1.7) increases sensitivity to interest rates and limits financial flexibility. For a regulated utility, this restricts buffer for cost shocks or larger-than-expected capital needs and can pressure credit ratings and the cost of capital if weak cash conversion persists.

Weak revenue trend and margin compression

A decline in revenue and compressed margins reflect cost pressures and potentially less favorable rate or cost-recovery dynamics. That weakens earnings resiliency, reduces incremental returns on new rate-base additions, and raises the bar for achieving continued EPS growth without favorable regulatory outcomes.

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 generates revenue through several key channels, primarily focused on regulated utility operations, which provide stable and predictable cash flows. The company earns money by charging customers for electricity and natural gas services, which include residential, commercial, and industrial users. Revenue is also derived from long-term contracts for renewable energy projects and transmission services. Significant partnerships with local governments and regulatory bodies ensure compliance and facilitate infrastructure investments. Emera's diversified portfolio, including investments in renewable energy sources such as wind and solar, positions the company to capitalize on the growing demand for clean energy, further enhancing its revenue streams.

Emera Financial Statement Overview

Summary

Profitability is solid for a regulated utility and earnings rebounded in 2025, but revenue growth has been weak and margins compressed. Balance sheet leverage is elevated (debt-to-equity ~1.5–1.7), and the biggest concern is persistently negative free cash flow (2020–2025), indicating ongoing reliance on external funding.

Income Statement

Profitability is solid for a regulated utility, with net margins generally in the high single-digits to mid-teens and EBITDA margins consistently in the mid-30% range (2021–2025). Net income rebounded strongly in 2025 versus 2024, but revenue growth has been weak/negative in most years and 2025 revenue declined vs. 2024. A key watch-out is margin compression in 2025 (notably gross margin down versus 2023–2024), suggesting higher costs or less favorable rate/cost recovery dynamics.

Balance Sheet

Leverage is meaningfully elevated, with debt-to-equity consistently around ~1.5–1.7 from 2020–2025, which is common in the sector but still increases sensitivity to interest rates and refinancing conditions. Equity has grown over time, supporting asset growth, and return on equity improved in 2025 versus 2024, indicating better earnings efficiency. Overall, the balance sheet is serviceable for a regulated utility, but the debt load is the main constraint on financial flexibility.

Cash Flow

Operating cash generation is positive but uneven, and free cash flow is negative every year shown (2020–2025), including a notably large shortfall in 2025. In several years, free cash flow did not cover net income (negative free cash flow relative to profits), implying heavy capital spending and/or working-capital needs that require external funding. While free cash flow improved versus the prior year in some periods, the persistent deficit remains the primary financial risk signal in the statements provided.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.31B	7.20B	7.56B	7.59B	5.76B
Gross Profit	2.04B	2.90B	3.28B	3.03B	2.17B
EBITDA	2.85B	2.50B	2.89B	2.69B	1.85B
Net Income	1.09B	567.00M	1.04B	1.01B	560.00M
Balance Sheet
Total Assets	44.82B	42.95B	39.48B	39.74B	34.24B
Cash, Cash Equivalents and Short-Term Investments	365.00M	196.00M	588.00M	310.00M	394.00M
Total Debt	21.64B	19.81B	19.86B	19.04B	16.40B
Total Liabilities	31.42B	29.66B	27.39B	28.30B	24.09B
Stockholders Equity	13.38B	13.28B	12.07B	11.43B	10.12B
Cash Flow
Free Cash Flow	-1.73B	-505.00M	-696.00M	-1.68B	-1.17B
Operating Cash Flow	1.80B	2.65B	2.24B	913.00M	1.19B
Investing Cash Flow	-3.48B	-2.22B	-2.92B	-2.57B	-2.33B
Financing Cash Flow	1.84B	-818.00M	939.00M	1.55B	1.31B

Emera Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 71.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 71.05 is above the 20-day moving average (MA) of 69.28, above the 50-day MA of 67.94, and above the 200-day MA of 64.58, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 63.66 is Neutral, neither overbought nor oversold. The STOCH value of 59.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EMA.

Emera Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
H	67 Neutral	C$34.75B	24.47	10.58%	2.43%	5.98%	14.79%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
EMA	65 Neutral	$21.63B	18.58	8.83%	4.33%	14.10%	65.76%
FTS	64 Neutral	C$39.73B	19.97	7.58%	3.50%	5.21%	4.27%
CU	58 Neutral	C$13.12B	97.60	8.84%	4.33%	-0.94%	25.64%
ACO.X	54 Neutral	C$6.64B	42.21	9.32%	3.62%	7.75%	11.25%
AQN	54 Neutral	C$7.30B	26.51	2.04%	4.32%	-4.72%	96.98%

Emera Corporate Events

Emera Hits Record 2025 Earnings, Extends Long-Term Growth Target to 2030

Emera reported a record 2025 performance, delivering adjusted earnings per share of $3.49, up 19% year over year, and surpassing $1 billion in annual adjusted net income for the first time, supported by strong contributions from Tampa Electric, Emera Energy Services and New Mexico Gas. The company executed its largest-ever annual capital program of $3.6 billion, driving 8% rate base growth, and extended its average adjusted EPS growth target of 5%-7% through 2030, signaling continued commitment to long-term regulated growth despite weaker fourth-quarter results and ongoing portfolio repositioning.

While full-year results were robust, fourth-quarter 2025 adjusted net income declined to $167 million from $246 million a year earlier, reflecting lower earnings at Nova Scotia Power and New Mexico Gas, reduced tax recoveries and adverse weather at Tampa Electric, partly offset by stronger Emera Energy Services performance. Currency movements provided a modest full-year boost to earnings, and reported net income rose sharply to $1.014 billion due to improved mark-to-market results and prior-year one-time items, underlining the company’s sensitivity to U.S. dollar exposure and the impact of strategic asset sales and charges on headline figures.

The most recent analyst rating on (TSE:EMA) stock is a Hold with a C$68.00 price target. To see the full list of analyst forecasts on Emera stock, see the TSE:EMA Stock Forecast page.

Emera Renews C$600 Million At-The-Market Equity Program

Emera Incorporated has renewed its at-the-market equity program, allowing it to issue up to C$600 million in common shares to the public. This program provides Emera with increased financial flexibility and will be effective until January 2029. The proceeds from this program, if utilized, are intended for general corporate purposes, potentially impacting the company’s operational capacity and market positioning.

The most recent analyst rating on (TSE:EMA) stock is a Buy with a C$76.00 price target. To see the full list of analyst forecasts on Emera stock, see the TSE:EMA Stock Forecast page.