Emera EMA.TO
Emera Incorporated is a Canadian utility company operating in the generation, transmission, and distribution of electricity and natural gas, with regulated assets primarily in Florida, Nova Scotia, and New Brunswick. Emera shows fragile financial health with a Net Debt/EBITDA of 6.38 and negative cash conversion (-42.14), while earnings growth falls 24.40%. The dividend, with a net yield of 4.34%, is compromised by a payout of 92.78%.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Emera Incorporated is a Canadian utility company operating in the generation, transmission, and distribution of electricity and natural gas, with regulated assets primarily in Florida, Nova Scotia, and New Brunswick. Emera shows fragile financial health with a Net Debt/EBITDA of 6.38 and negative cash conversion (-42.14), while earnings growth falls 24.40%. The dividend, with a net yield of 4.34%, is compromised by a payout of 92.78%.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.0 |
| Quality / Moat | 3.2 |
| Valuation | 4.4 |
| Growth | 2.7 |
| Dividend | 6.1 |
| Momentum | 5.9 |
| Risk & Context | 8.3 |
OVERALL SCORE: 5.4/10
Context and risks
The rise in 10-year Treasury yields (5.17%) is a headwind for a utility with Net Debt/EBITDA of 6.38, as it makes refinancing its high debt more expensive. The fall in gold does not directly affect it.
News considered in the analysis
- Emera (EMA) Closes the Book on New Mexico, But Earnings Still Flinch — La venta de NMGC se cierra, pero los beneficios siguen débiles, reflejando la presión sobre el crecimiento.
- Emera’s (EMA) Big Growth Promise Meets A Rockier Quarter — El trimestre más débil de lo esperado cuestiona la promesa de crecimiento de la compañía.
- Bernhard closes acquisition of natural gas utility NMGC from Emera — Cierre de la venta de NMGC, ya anunciado y descontado; reduce el perfil de riesgo pero también el tamaño.
- Emera (TSX:EMA), Why Is It Back In Focus? — Artículo de análisis sin información nueva material.
- Emera Q2 Earnings Call Highlights — Los aspectos destacados de la llamada de resultados del segundo trimestre probablemente reflejan los débiles resultados.
Verdict: Hold, with caution. High debt and weak growth make the dividend vulnerable in a rising rate environment.
Main risk: Extreme leverage (Net Debt/EBITDA of 6.38) in a rising interest rate environment, which increases the cost of debt service and pressures the ability to maintain the dividend.
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