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Hawaiian Electric
(NYSE:HE)
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Rating:53Neutral
Price Target:
$9.50
▼(-17.32% Downside)
Action:Reiterated
Date:09/22/26
The score is held back primarily by weak cash-flow conversion (negative free cash flow) and strong technical weakness (price below all key moving averages with negative momentum). These risks are partially offset by improving profitability and balance-sheet metrics in the latest period, a low P/E valuation, and earnings-call progress on regulatory recovery/financing plans and liquidity.
Positive Factors
Regulated utility franchise
Hawaiian Electric provides essential electricity generation, transmission and distribution across established island service territories. Its regulated model links approved rates to prudent costs and invested capital, supporting recurring demand and a durable operating position over the next several quarters.
Negative Factors
Negative free cash flow
Negative free cash flow indicates that capital spending and working-capital demands exceed internally generated cash despite positive operating cash flow. This reduces funding flexibility and may increase reliance on financing while the company pursues wildfire, resilience and grid investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated utility franchise
Hawaiian Electric provides essential electricity generation, transmission and distribution across established island service territories. Its regulated model links approved rates to prudent costs and invested capital, supporting recurring demand and a durable operating position over the next several quarters.
Read all positive factors
Hawaiian Electric (HE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.54B
Dividend Yield11.89%
Average Volume (3M)2.63M
Price to Earnings (P/E)6.8
Beta (1Y)0.46
Revenue Growth1.69%
EPS GrowthN/A
CountryUS
Employees2,667
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)1.30
Shares Outstanding172,728,000
10 Day Avg. Volume3,257,052
30 Day Avg. Volume2,628,339
Financial Highlights & Ratios
PEG Ratio-0.16
Price to Book (P/B)1.32
Price to Sales (P/S)0.69
P/FCF Ratio42.56
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$9.25Price Target Upside-19.50% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)0.69
Revenue Forecast (FY)$3.13B
Hawaiian Electric Business Overview & Revenue Model
Company Description
Hawaiian Electric Industries, Inc. (HE) operates as a diversified holding company primarily focused on three key areas within the state of Hawaii: electric utility services, banking, and investments in renewable and sustainable infrastructure. The...
How the Company Makes Money
Hawaiian Electric primarily makes money through regulated utility operations. Its principal revenue stream is retail electricity sales to residential, commercial, industrial, and governmental customers within its franchised service areas. As a reg...
Hawaiian Electric Earnings Call Summary
Earnings Call Date:Aug 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 06, 2026
Earnings Call Sentiment Positive
The call conveyed a mix of significant strategic and regulatory progress (WMP approval, securitization plans, major RFPs, credit rating upgrades, solid liquidity, and a clear investment pipeline) alongside near-term financial headwinds (material declines in core net income and EPS, rising O&M and insurance costs, higher interest expense, and reduced regulatory incentive payouts). Management emphasized execution, affordability measures, and regulatory remedies (rate rebasing, Phase Six proposals) to address structural cost pressures. While core operating earnings are under pressure this year, the risk-reduction progress, regulatory approvals, and financing plans provide constructive momentum.Positive Updates
Wildfire Mitigation Plan (WMP) Approval and Recovery Path
PUC approved recovery of approximately $350 million of WMP spending (roughly $270M capital and $80M O&M) through the EPRM; company plans to seek securitization under Act 258 to recover WMP costs at lower customer cost and will file an application for a financing order this year. PUC also approved recovery of up to $11.5M of 2025 WMP-related O&M and $3.9M of annual ongoing WMP O&M from 2028 onward.
Negative Updates
Core Earnings Decline (Consolidated)
Excluding non-core items (wildfire settlement remeasurement and Pacific Current asset sale losses), consolidated core net income fell to $22.5M (core EPS $0.13) in Q2 2026 from $35.4M ($0.20) in Q2 2025 — a decline of $12.9M or approximately -36.4% in core net income and -35% in core EPS year-over-year.
Read all updates
Q2-2026 Updates
Positive
Negative
Wildfire Mitigation Plan (WMP) Approval and Recovery Path
PUC approved recovery of approximately $350 million of WMP spending (roughly $270M capital and $80M O&M) through the EPRM; company plans to seek securitization under Act 258 to recover WMP costs at lower customer cost and will file an application for a financing order this year. PUC also approved recovery of up to $11.5M of 2025 WMP-related O&M and $3.9M of annual ongoing WMP O&M from 2028 onward.
Read all positive updates
Company Guidance
Management guided that it will seek recovery of approximately $350 million of Wildfire Mitigation Plan (WMP) spending—about $270 million of capital and $80 million of O&M—preferably via securitization (with up to $11.5 million of 2025 WMP O&M already approved for recovery and $3.9 million of annual ongoing WMP O&M approved from 2028+), and plans to file the financing‑order application later this year while targeting investment‑grade credit metrics (S&P upgraded HEI/Hawaiian Electric to BB‑ minus in July; Moody’s upgraded one notch in April). They proposed a $170 million total base rate increase phased over two years (with $125 million to take effect in 2027), requested an interim decision by December 18, 2026 to implement the first phase on January 1, 2027, and expect a final rebasing order in mid‑ to late‑April 2027 covering a five‑year plan through roughly 2032. The IGP RFP seeks nearly 1,650 GWh of variable renewables, 465 MW of grid‑forming resources and 111 MW of firm capacity (and requested consideration of up to 500 MW additional firm generation subject to a demonstrated need); Stage 3 approvals now total 166 MW of solar and 670 MWh of battery storage, and the company targets roughly 1.2 GW of private rooftop solar by 2030. They identified over $1.3 billion of interconnection investments through 2035, nearly $60 million of distribution upgrades over the next ten years, and $190 million over five years for the PUC‑approved Climate Adaptation Program. Financially, Q2 net income was $123.2 million ($0.71/share), the wildfire settlement liability was remeasured from $1.44 billion to $1.3 billion (reducing expenses by ~$153.9 million and $136.2 million pre‑tax net of accretion recognized), $8.5 million of insurance recoveries were recognized, consolidated core net income and EPS were $22.5 million and $0.13 (vs. $35.4M/$0.20 LY), utility core net income was $32.6 million (vs. $42.5M), consolidated liquidity is about $1.3 billion with unrestricted cash of $52 million at the holding company and $186 million at the utility and roughly $550 million of additional facility/ATM/AR capacity available to each.Hawaiian Electric Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.28B | 3.09B | 3.22B | 3.29B | 3.42B | 2.85B |
| Gross Profit | 376.75M | 235.32M | -1.71B | 627.05M | 628.69M | 676.91M |
| EBITDA | 1.01B | 539.42M | -1.39B | 561.31M | 553.65M | 670.62M |
| Net Income | 226.23M | 126.28M | -1.42B | 199.24M | 241.14M | 246.17M |
Balance Sheet | ||||||
| Total Assets | 8.40B | 8.92B | 8.93B | 17.24B | 16.65B | 16.07B |
| Cash, Cash Equivalents and Short-Term Investments | 238.73M | 980.75M | 1.24B | 259.12M | 206.10M | 326.76M |
| Total Debt | 2.82B | 2.96B | 3.33B | 3.24B | 3.43B | 2.60B |
| Total Liabilities | 6.64B | 7.32B | 7.42B | 14.86B | 14.42B | 13.64B |
| Stockholders Equity | 1.76B | 1.61B | 1.51B | 2.38B | 2.24B | 2.43B |
Cash Flow | ||||||
| Free Cash Flow | -565.51M | 49.87M | 136.25M | 108.74M | -1.53M | 61.15M |
| Operating Cash Flow | -143.71M | 391.07M | 465.73M | 551.47M | 327.93M | 375.67M |
| Investing Cash Flow | -409.75M | -322.18M | -317.63M | -257.40M | -324.08M | -1.18B |
| Financing Cash Flow | 155.53M | -331.00M | -72.03M | 195.57M | -19.86M | 756.40M |
Hawaiian Electric Technical Analysis
Negative
11.49
Price Trends
11.31
Negative
12.38
Negative
13.58
Negative
Market Momentum
-0.68
Positive
17.29
Positive
15.64
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HE, the sentiment is Negative. The current price of 11.49 is above the 20-day moving average (MA) of 9.98, above the 50-day MA of 11.31, and below the 200-day MA of 13.58, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 17.29 is Positive, neither overbought nor oversold. The STOCH value of 15.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HE.
Hawaiian Electric Risk Analysis
Hawaiian Electric disclosed 31 risk factors in its most recent earnings report. Hawaiian Electric reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hawaiian Electric Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
62 Neutral | $4.21B | 24.57 | 5.92% | 3.90% | 10.69% | -24.15% | |
61 Neutral | $5.25B | 19.51 | 6.30% | 4.81% | 2.95% | -17.06% | |
60 Neutral | $7.56B | 21.44 | 9.36% | 2.67% | -1.11% | 8.18% | |
59 Neutral | $26.98B | 8.79 | 9.62% | 1.64% | 5.66% | 28.27% | |
56 Neutral | $11.28B | 17.69 | 9.04% | 3.85% | 5.69% | 6.83% | |
53 Neutral | $1.54B | 6.83 | 13.70% | 11.89% | 1.69% | ― |
* Utilities Sector Average
HE
Hawaiian Electric
8.93
-2.18
-19.62%
IDA
IdaCorp
131.86
3.31
2.57%
NWE
Northwestern
68.53
13.66
24.90%
PCG
PG&E
12.17
-3.26
-21.12%
PNW
Pinnacle West Capital
94.63
10.02
11.84%
POR
Portland GE
44.76
3.74
9.13%
Hawaiian Electric Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Hawaiian Electric boosts liquidity with American Savings stake sale
Positive
Sep 21, 2026
On September 16, 2026, Hawaiian Electric Industries monetized 30% of its 9.9% stake in American Savings Bank during the bank’s initial public offering, selling about 2.0 million shares for net proceeds of $29.5 million. On September 21, 2026...
Business Operations and StrategyRegulatory Filings and Compliance
Hawaiian Electric Signs Long-Term Renewable Power Agreement
Positive
Jul 31, 2026
On July 27, 2026, Hawaiian Electric and Kalaeloa Partners L.P. entered into a new 30‑year power purchase agreement for 208 megawatts of firm, dispatchable generation that will be repowered to qualify as renewable energy under Hawaii’s ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.