Emera (EMA) AI Stock Analysis

• Market Cap: $20.68B
• Dividend Yield: 5.03%
• Average Volume (3M): 1.27M
• 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): 0.88
• Shares Outstanding: 300,700,000
• 10 Day Avg. Volume: 1,478,830
• 30 Day Avg. Volume: 1,269,889
• 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: 2.03
• Enterprise Value/Revenue: 5.09
• Enterprise Value/Gross Profit: 11.45
• Enterprise Value/Ebitda: 12.86
• 1Y Price Target: $70.76
• Price Target Upside: 4.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 3.54
• Revenue Forecast (FY): $8.41B

• Rating: 73 Outperform
• Price Target: C$75.00 ▲(10.28% Upside)

Emera's strong earnings growth and strategic investments are the primary drivers of its stock score. While technical indicators and valuation are supportive, high leverage and cash flow challenges present risks. The positive earnings call sentiment further boosts confidence in future performance.

Positive Factors

Revenue Growth

Consistent revenue growth demonstrates expanding market reach and product adoption, supporting long-term financial stability.

Capital Investment

Significant capital investments indicate a commitment to infrastructure growth and modernization, enhancing future operational capabilities.

Regulatory Success

Regulatory approvals ensure stable revenue streams and support strategic growth initiatives, strengthening market position.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting long-term financial health and investment capacity.

Cash Flow Challenges

Persistent cash flow issues may constrain the company's ability to fund operations and investments, affecting growth potential.

Challenges in Canadian Electric Utilities

Decreased contributions from Canadian utilities highlight operational challenges that could affect overall profitability and market competitiveness.

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

Emera shows strong revenue growth and operational efficiency, but high leverage and negative free cash flow pose risks. The income statement is solid, but the balance sheet's high debt-to-equity ratio and cash flow challenges need attention.

Income Statement

Emera's income statement reflects a solid performance with a TTM (Trailing-Twelve-Months) revenue growth rate of 4.59%, indicating a positive trajectory. The gross profit margin of 32.26% and net profit margin of 11.99% are healthy, though slightly below the previous year's figures. The EBIT margin of 23.68% and EBITDA margin of 36.41% demonstrate strong operational efficiency. However, the decline in gross profit margin from 40.19% in the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.46, which is a concern for leverage and financial stability. However, the return on equity (ROE) of 7.26% is reasonable, indicating effective use of equity to generate profits. The equity ratio of 30.91% suggests a moderate level of equity financing relative to total assets. Overall, while the company is managing its equity well, the high leverage poses a risk.

Cash Flow

Emera's cash flow statement reveals challenges with free cash flow, which is negative at -$1.27 billion, though it has improved significantly from the previous period. The operating cash flow to net income ratio of 0.64 indicates that operating cash flow is covering net income adequately. However, the negative free cash flow to net income ratio of -0.18 highlights ongoing cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.23B	7.20B	7.56B	7.59B	5.76B	5.51B
Gross Profit	3.66B	2.90B	3.28B	3.03B	2.17B	2.38B
EBITDA	3.26B	2.50B	2.89B	2.69B	1.85B	2.08B
Net Income	950.00M	567.00M	1.04B	1.01B	560.00M	983.00M
Balance Sheet
Total Assets	42.53B	42.95B	39.48B	39.74B	34.24B	31.23B
Cash, Cash Equivalents and Short-Term Investments	200.00M	196.00M	588.00M	310.00M	394.00M	220.00M
Total Debt	20.16B	19.81B	19.86B	19.04B	16.40B	15.35B
Total Liabilities	29.37B	29.66B	27.39B	28.30B	24.09B	22.00B
Stockholders Equity	13.15B	13.28B	12.07B	11.43B	10.12B	9.20B
Cash Flow
Free Cash Flow	-1.27B	-505.00M	-696.00M	-1.68B	-1.17B	-986.00M
Operating Cash Flow	2.25B	2.65B	2.24B	913.00M	1.19B	1.64B
Investing Cash Flow	-3.48B	-2.22B	-2.92B	-2.57B	-2.33B	-1.22B
Financing Cash Flow	1.06B	-818.00M	939.00M	1.55B	1.31B	-372.00M

Emera Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.01
• 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 68.01 is above the 20-day moving average (MA) of 67.39, above the 50-day MA of 66.30, and above the 200-day MA of 61.41, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 56.12 is Neutral, neither overbought nor oversold. The STOCH value of 77.95 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
FTS	76 Outperform	$37.03B	21.77	7.42%	3.43%	5.21%	4.27%
H	75 Outperform	C$30.98B	24.70	10.58%	2.42%	5.98%	14.79%
EMA	73 Outperform	$20.68B	18.63	8.83%	5.03%	14.10%	65.76%
CU	67 Neutral	C$10.72B	24.01	8.84%	4.35%	-0.94%	25.64%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CPX	61 Neutral	C$10.87B	24.81	9.40%	3.73%	-2.99%	-32.11%
BEP.UN	58 Neutral	$26.91B	―	-5.58%	4.79%	14.78%	-9.37%

Emera Corporate Events

Emera Reports Strong Q3 2025 and Unveils Ambitious Capital Plan

Emera Incorporated is a North American energy services provider headquartered in Halifax, Nova Scotia, focusing on regulated electric and natural gas utilities across Canada, the United States, and the Caribbean.

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.

The most recent analyst rating on (TSE:EMA) stock is a Hold with a C$69.00 price target. To see the full list of analyst forecasts on Emera stock, see the TSE:EMA Stock Forecast page.

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.

The most recent analyst rating on (TSE:EMA) stock is a Hold with a C$69.00 price target. To see the full list of analyst forecasts on Emera stock, see the TSE:EMA Stock Forecast page.

Emera Completes $750 Million Notes Offering for Strategic Flexibility

On October 3, 2025, Emera Incorporated announced the completion of a US$750 million offering of 6.25% fixed-to-fixed reset rate junior subordinated notes due 2056, issued by its wholly-owned subsidiary EUSHI Finance, Inc. The notes, guaranteed by Emera and Emera US Holdings Inc., were sold through a consortium of underwriters including Wells Fargo and J.P. Morgan. The proceeds from this offering are intended for general corporate purposes, including debt repayment, which could enhance Emera’s financial flexibility and support its strategic initiatives.

The most recent analyst rating on (TSE:EMA) stock is a Hold with a C$64.00 price target. To see the full list of analyst forecasts on Emera stock, see the TSE:EMA Stock Forecast page.

Emera Appoints New CFO Amidst Strategic Growth Plans

Emera Inc. has announced the appointment of Jared Green as its new Chief Financial Officer, effective around December 15, 2025. Green, who brings extensive experience from his previous roles at TriSummit Utilities and AltaGas Ltd, will oversee Finance, Investor Relations, Treasury, and Commercial Investments. This leadership change comes as Emera is executing a robust capital plan and aims to continue its growth trajectory. The outgoing CFO, Greg Blunden, will transition to a new role as Executive Vice President, Finance, Emera USA, ensuring a smooth handover and continuing to influence the company’s U.S. operations.

The most recent analyst rating on (TSE:EMA) stock is a Buy with a C$74.00 price target. To see the full list of analyst forecasts on Emera stock, see the TSE:EMA Stock Forecast page.

Emera Reports Strong Q2 2025 Financial Growth

Emera Incorporated is a prominent North American energy services provider based in Halifax, Nova Scotia, with a focus on regulated electric and natural gas utilities, serving approximately 2.6 million customers across the United States, Canada, and the Caribbean.

Emera Reports Strong Q2 2025 Financial Growth Driven by Florida Operations

Emera Inc. reported a significant increase in its second quarter 2025 financial results, with a 49% growth in adjusted earnings per share compared to the previous year. The company attributed this growth to strong performance in its Florida operations and strategic investments in infrastructure to enhance reliability and support economic growth. Despite some challenges, such as the sale of its equity interest in the Labrador Island Link, Emera remains committed to its growth targets, expecting a 7% to 8% rate base growth through 2029.

The most recent analyst rating on (TSE:EMA) stock is a Buy with a C$60.00 price target. To see the full list of analyst forecasts on Emera stock, see the TSE:EMA Stock Forecast page.