Emera (EMA.TO)
Utilities · TSX · Canada
Fundamentals
Valuation and ratings
Emera trades at C$76.73, which is 46% above the C$41.76 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 47 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 23.1 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Emera
Emera Incorporated, an energy and services company, invests in generation, transmission, and distribution of electricity in the United States, Canada, Barbados, and the Bahamas. The company operates through Florida Electric Utility, Canadian Electric Utilities, Gas Utilities and Infrastructure, Other Electric Utilities, and Other segments. It is involved in the purchase, transmission, distribution, and sale of natural gas; and physical energy marketing, trading, and other energy asset management activities. The company was incorporated in 1998 and is headquartered in Halifax, Canada.
EMA.TO passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Emera (EMA.TO) undervalued?
Against our discounted cash flow estimate of C$41.76, EMA.TO at C$76.73 is 46% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is EMA.TO's P/E ratio?
EMA.TO trades at 23.1 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.