Emera Incorporated Common Shares (EMA)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Emera is the sort of regulated utility Graham would have understood: it owns wires and pipes, earns regulated returns, and carries a low beta of 0.43. The 4.29% dividend yield is attractive, and at the 2026-10-13 close of $45.68, the shares sit roughly 6.14% below the FairStock Graham Number of $48.67. But a regulated monopoly is only as strong as its balance sheet and returns. FairStock calculations show a P/E of 20.30, P/B of 1.51, ROE of 7.56%, and ROCE of 2.91% - mediocre for a capital-intensive utility. More troubling, trailing free cash flow is -$1.2B, a -7.3% FCF yield, while debt-to-equity is 1.54 and Altman Z-Score is 0.38. The Piotroski F-Score of 4/9 signals only average financial momentum. In the second quarter of 2026, revenue was $2.0B and net income was $124.0M, a 6.17% margin. The provided growth figures show revenue growth of 5.12% and profit growth of -3.16%, so the company is expanding sales but not profits. That is not a failing business, but it is not compounding shareholder value at high rates. The moat comes from regulation, not from pricing power or excess returns. At 10.74 times EV/EBITDA, the price is not demanding, but with negative free cash flow and high leverage, I want a wider margin of safety than 6%. I would watch for free cash flow improvement and debt reduction before calling it a bargain.

In plain English: Emera is a regulated electric and gas utility serving Canada, the United States, and the Caribbean. The business is steady, but recent figures show modest revenue growth, lower profit, a lot of debt, and more cash going out than coming in after spending on the business. At the recent price, the shares look roughly fair to slightly cheap compared with their accounting value, but not a clear bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer