Emera (EMA) AI Stock Analysis

• Market Cap: C$19.62B
• Dividend Yield: 4.41%
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.30
• Revenue Growth: 14.10%
• EPS Growth: 65.76%
• Country: CA
• Employees: 7,605
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.88
• Shares Outstanding: 301,745,500
• 10 Day Avg. Volume: 928,494
• 30 Day Avg. Volume: 1,233,478
• PEG Ratio: -0.53
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 2.16
• P/FCF Ratio: -30.75
• 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$71.14
• Price Target Upside: 9.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 3.54
• Revenue Forecast (FY): C$8.41B

• Rating: 69 Neutral
• Price Target: C$72.00 ▲(10.38% Upside)

Emera's overall stock score reflects strong earnings growth and strategic investments, which are offset by technical bearish signals and cash flow challenges. The company's valuation remains attractive, supported by a solid dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business operations, supporting long-term financial stability and expansion.

Strategic Investments

Significant capital investments reflect a commitment to growth and modernization, positioning Emera to capitalize on future energy demands and regulatory trends.

Dividend Growth

Consistent dividend growth demonstrates financial health and shareholder value, enhancing investor confidence and long-term appeal.

Negative Factors

Cash Flow Challenges

Negative free cash flow and declining growth could strain liquidity, limiting the company's ability to fund operations and investments without external financing.

Debt Levels

High debt levels can increase financial risk, potentially impacting the company's ability to invest in growth opportunities or weather economic downturns.

Challenges in Canadian Electric Utilities

Decreased contributions from Canadian utilities highlight operational challenges that could affect profitability and require strategic adjustments to mitigate impacts.

Emera Business Overview & Revenue Model

Company Description

Emera Inc. (EMA) is a Canadian energy and services company headquartered in Halifax, Nova Scotia. It operates primarily in the utility sector, focusing on electricity generation, transmission, and distribution. Emera's operations span across various regions, including Canada, the United States, and the Caribbean, providing services through its subsidiaries. The company is involved in renewable energy projects, natural gas distribution, and electricity transmission services, making it a prominent player in the energy transition towards sustainable resources.

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

Emera shows strong revenue growth and operational efficiency with healthy gross and EBIT margins. However, challenges in cash flow management and moderate leverage slightly dampen the overall financial performance.

Income Statement

Emera's income statement shows a solid performance with a consistent increase in total revenue, evidenced by a 3.7% growth in the TTM period. The company maintains healthy gross and EBIT margins at 44.5% and 24.7% respectively, indicating strong operational efficiency. However, the net profit margin is relatively moderate at 11.5%, suggesting room for improvement in cost management or other non-operational expenses.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.53, which is manageable but indicates a reliance on debt financing. The return on equity is modest at 7.2%, suggesting moderate profitability relative to shareholder equity. The equity ratio stands at 30.7%, indicating a balanced capital structure but highlighting potential risks if debt levels increase.

Cash Flow

Cash flow analysis reveals challenges, with a negative free cash flow and a declining free cash flow growth rate of -4.9% in the TTM period. The operating cash flow to net income ratio is 0.38, suggesting that cash generation from operations is not fully covering net income, which could impact liquidity if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.53B	7.20B	7.56B	7.59B	5.76B	5.51B
Gross Profit	3.75B	2.90B	3.28B	3.03B	2.17B	2.38B
EBITDA	3.11B	2.50B	2.89B	2.69B	1.85B	2.08B
Net Income	1.18B	567.00M	1.04B	1.01B	560.00M	983.00M
Balance Sheet
Total Assets	43.80B	42.95B	39.48B	39.74B	34.24B	31.23B
Cash, Cash Equivalents and Short-Term Investments	212.00M	196.00M	588.00M	310.00M	394.00M	220.00M
Total Debt	20.64B	19.81B	19.86B	19.04B	16.40B	15.35B
Total Liabilities	30.32B	29.66B	27.39B	28.30B	24.09B	22.00B
Stockholders Equity	13.47B	13.28B	12.07B	11.43B	10.12B	9.20B
Cash Flow
Free Cash Flow	-1.21B	-505.00M	-696.00M	-1.68B	-1.17B	-986.00M
Operating Cash Flow	2.28B	2.65B	2.24B	913.00M	1.19B	1.64B
Investing Cash Flow	-3.45B	-2.22B	-2.92B	-2.57B	-2.33B	-1.22B
Financing Cash Flow	1.12B	-818.00M	939.00M	1.55B	1.31B	-372.00M

Emera Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 65.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EMA, the sentiment is Negative. The current price of 65.23 is below the 20-day moving average (MA) of 67.09, below the 50-day MA of 67.18, and above the 200-day MA of 62.40, indicating a neutral trend. The MACD of -0.52 indicates Positive momentum. The RSI at 36.81 is Neutral, neither overbought nor oversold. The STOCH value of 9.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:EMA.

Emera Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
H	74 Outperform	C$30.98B	24.70	10.58%	2.49%	5.98%	14.79%
EMA	69 Neutral	C$19.62B	17.61	8.83%	4.41%	14.10%	65.76%
CU	67 Neutral	C$10.72B	24.01	8.84%	4.44%	-0.94%	25.64%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CPX	64 Neutral	C$10.87B	24.81	9.40%	4.19%	-2.99%	-32.11%
FTS	61 Neutral	$34.93B	20.54	7.42%	3.54%	5.21%	4.27%
BEP.UN	56 Neutral	$26.51B	―	-5.58%	5.36%	14.78%	-9.37%

Emera Corporate Events

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.

Emera Reports Strong Q3 Earnings and Announces $20 Billion Capital Plan

Emera Inc. reported a 9% improvement in adjusted earnings per share for the third quarter of 2025 and unveiled a $20 billion five-year capital plan. The plan emphasizes investments in Florida, aiming to enhance customer reliability and support ongoing growth through grid modernization and technological innovation. The company also completed the Peoples Gas rate case process, providing regulatory clarity through 2028. Emera’s financial results showed increased earnings at Tampa Electric, despite lower earnings at Nova Scotia Power and New Mexico Gas Company, and higher corporate costs. The capital plan is expected to extend the company’s 7-8% rate base growth guidance through 2030, with a focus on strengthening electric transmission, distribution, and gas infrastructure systems.

Emera Reports Strong Q3 2025 Results and Announces $20 Billion Capital Plan

Emera Inc. reported a 9% increase in adjusted earnings per share for the third quarter of 2025, driven by strong performance at Tampa Electric. The company unveiled a $20 billion capital plan for 2026-2030, with 80% of investments directed towards Florida, focusing on reliability and grid modernization. This plan aims to support a 7-8% rate base growth through 2030. The financial results showed improved earnings, despite challenges such as lower earnings at Nova Scotia Power and New Mexico Gas Company, and higher corporate costs. The capital plan is expected to enhance customer reliability and support growth, with a significant portion allocated to strengthening electric transmission and distribution systems.