Emera Inc (EMA) Stock Analysis
Verdict: AVOID
Emera's stable utility operations and 5.95% dividend yield attract income investors, but high debt and negative free cash flow pose interest rate and capital expenditure risks.
Investment score: 34/100
Analysis as of
Is Emera Inc stock worth reviewing? AI model thesis
Emera Inc., a utility company, faces significant financial challenges due to high debt and persistently negative free cash flow, despite its stable operational segment and attractive dividend yield. The stock's current price trades below its 52-week low, indicating severe bearish momentum.
7-factor investment score
- Valuation: 40/100 (weight 20%)
- Financial Health: 20/100 (weight 15%)
- Technical Momentum: 10/100 (weight 15%)
- Earnings Quality: 45/100 (weight 15%)
- Insider Sentiment: 50/100 (weight 10%)
- Analyst Consensus: 50/100 (weight 10%)
- Risk-Adjusted Return: 30/100 (weight 15%)
Emera Inc opportunities and risks
What speaks for EMA
- Stable Regulated Business
What speaks against EMA
- High and Increasing Debt Levels with Negative Free Cash Flow
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| EMA | 21.8x | 2.6x | 14.8x | 13.5% | 12.9% | -5.5% |
| FTS.TO | 22.2x | 3.1x | 12.4x | 28.2% | 14.7% | -4.9% |
| H.TO | 22.6x | 3.4x | 15.1x | 27.3% | 14.9% | -0.8% |
| EMA.TO | 21.8x | 2.6x | 14.8x | 13.5% | 12.9% | -5.5% |
| Peer median | 22.2x | 3.1x | 14.8x | 27.3% | 14.7% | -4.9% |
Frequently asked questions about Emera Inc (EMA)
Is EMA stock a good investment?
The cached TradeMates AI model rates Emera Inc as AVOID with an investment score of 34/100. Emera Inc., a utility company, faces significant financial challenges due to high debt and persistently negative free cash flow, despite its stable operational segment and attractive dividend yield. The stock's current price trades below its 52-week low, indicating severe bearish momentum. This is algorithmic model output, not personal investment advice.
Is EMA stock a buy?
The TradeMates model verdict for EMA is AVOID with an investment score of 34/100. Treat this as a model signal to review, not a personal buy recommendation.