Want to see TSE:EMA full AI Analyst Report?
Top Page
Emera
(TSX:EMA)
Select Model
Select Model
Rating:56Neutral
Price Target:
C$73.00
▲(4.54% Upside)
Action:Reiterated
Date:08/10/26
The score is held back primarily by weak cash-flow quality (recurring negative free cash flow) alongside elevated and rising leverage, despite steady profitability. The earnings call provides a moderate offset with reaffirmed multi-year EPS growth targets and a clearer path to balance-sheet improvement via the New Mexico Gas sale and improving credit metrics. Technical signals remain bearish (below major moving averages with negative MACD), while valuation is supported by the ~4.1% dividend yield but tempered by a ~22x P/E.
Positive Factors
Rate-base growth and regulated infrastructure investment
Sustained investment in regulated electric, gas and transmission infrastructure can expand Emera’s rate base and support earnings growth. Regulated cost recovery and allowed returns provide a durable framework for monetizing approved capital projects.
Negative Factors
Persistent negative free cash flow
Ongoing capital spending and dividends exceed internally generated cash, leaving Emera reliant on debt or equity financing. This weakens funding flexibility and can raise refinancing or dilution risk while the company pursues its large investment program.
Read all positive and negative factors
Positive Factors
Negative Factors
Rate-base growth and regulated infrastructure investment
Sustained investment in regulated electric, gas and transmission infrastructure can expand Emera’s rate base and support earnings growth. Regulated cost recovery and allowed returns provide a durable framework for monetizing approved capital projects.
Read all positive factors
Emera (EMA) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$21.42B
Dividend Yield4.18%
Average Volume (3M)1.24M
Price to Earnings (P/E)22.1
Beta (1Y)0.18
Revenue Growth10.83%
EPS Growth7.87%
CountryCA
Employees7,812
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)3.17
Shares Outstanding307,200,000
10 Day Avg. Volume1,234,153
30 Day Avg. Volume1,238,647
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)1.51
Price to Sales (P/S)2.44
P/FCF Ratio-11.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$77.67Price Target Upside11.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)3.73
Revenue Forecast (FY)C$8.87B
Emera Business Overview & Revenue Model
Company Description
Emera Incorporated operates as an energy and services enterprise, primarily involved in the generation, transmission, and distribution of electricity, alongside the purchase, transport, distribution, and sale of natural gas through its diverse sub...
How the Company Makes Money
Emera primarily makes money through regulated utility operations. The largest portion of its revenue is earned by selling electricity and natural gas to residential, commercial, and industrial customers served by its regulated utilities. In these ...
Emera 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 highlighted meaningful strategic progress: approval and near-term close of the New Mexico Gas sale (USD 650M–700M expected), completed divestiture of Grand Bahama Power, an improving credit story with Moody's outlook moved to stable, solid YTD adjusted earnings ($627M) and an 8% increase in operating cash flow (ex working capital). Management emphasized active deployment of capital (>$1.7B in H1, ~$4B plan for 2026) and attractive growth opportunities (Florida population/economic growth, data-center prospects, Atlantic Canada transmission projects). Offsetting items included a Q2 EPS decline of $0.10 year-over-year, higher depreciation/O&M/interest costs across several segments, regulatory timing impacts in Canada and share-count and FX headwinds that reduced EPS modestly. On balance, the positives around balance sheet strengthening, strong capital execution, and stable-to-improving credit metrics modestly outweigh near-term cost and timing pressures.Positive Updates
New Mexico Gas Sale Approved and Proceeds
New Mexico Public Regulation Commission approved sale to Bernhard Capital Partners; expected after-tax proceeds of approximately USD 650 million to USD 700 million to be reflected in Q3 results; proceeds earmarked to reduce holding company debt and enhance financial flexibility.
Negative Updates
Quarterly EPS Decline Year-over-Year
Second quarter adjusted EPS of $0.69 represented a $0.10 decrease versus the same quarter last year, signaling near-term pressure despite year-to-date consistency.
Read all updates
Q2-2026 Updates
Positive
Negative
New Mexico Gas Sale Approved and Proceeds
New Mexico Public Regulation Commission approved sale to Bernhard Capital Partners; expected after-tax proceeds of approximately USD 650 million to USD 700 million to be reflected in Q3 results; proceeds earmarked to reduce holding company debt and enhance financial flexibility.
Read all positive updates
Company Guidance
Management reiterated that Emera remains on track to deliver compound annual adjusted EPS growth above its 5%–7% target through 2026 and to remain in that range through 2030, reporting Q2 adjusted EPS of $0.69 (Q2 adjusted earnings $212M) and YTD adjusted EPS of $2.06 (YTD adjusted earnings $627M). They expect after‑tax proceeds from the New Mexico Gas sale of approximately US$650–700M to be reflected in Q3, to be used to reduce holding company debt and to contribute roughly 50 basis points to Moody’s CFO‑to‑debt metric, helping achieve the 12% CFO/debt target in 2026 (management aims for a mid‑ to high‑12s cushion). Capital deployment remains on plan with >$1.7B invested in H1 and a largest‑ever ~$4B 2026 capital program, aligned with targeted 7%–8% annual rate‑base growth through 2030; an updated capital plan will be provided on the Q3 call. Other quantifiable guidance and impacts noted include an ~8% increase in operating cash flow (ex‑working capital) YTD, Tampa Electric’s ~11%–12% residential rate reduction effective Aug 1 (storm surcharge removal), expected completion of the Nova Scotia–New Brunswick intertie in late 2028, securitization of retiring thermal assets targeted by year‑end, a US$300M upsized hybrid issuance, and that ~2.7M shares issued under the ATM reduced YTD EPS by about $0.05.Emera Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
56
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.09B | 8.31B | 7.20B | 7.56B | 7.59B | 5.76B |
| Gross Profit | 1.09B | 2.04B | 2.90B | 3.28B | 3.03B | 2.17B |
| EBITDA | 2.90B | 3.50B | 2.50B | 2.89B | 2.69B | 1.85B |
| Net Income | 1.04B | 1.09B | 567.00M | 1.04B | 1.01B | 560.00M |
Balance Sheet | ||||||
| Total Assets | 46.56B | 44.82B | 42.95B | 39.48B | 39.74B | 34.24B |
| Cash, Cash Equivalents and Short-Term Investments | 407.00M | 365.00M | 196.00M | 588.00M | 310.00M | 394.00M |
| Total Debt | 22.12B | 21.64B | 19.81B | 19.86B | 19.04B | 16.40B |
| Total Liabilities | 32.18B | 31.42B | 29.66B | 27.39B | 28.30B | 24.09B |
| Stockholders Equity | 14.37B | 13.38B | 13.28B | 12.07B | 11.43B | 10.12B |
Cash Flow | ||||||
| Free Cash Flow | -1.16B | -1.73B | -505.00M | -696.00M | -1.68B | -1.17B |
| Operating Cash Flow | 2.40B | 1.80B | 2.65B | 2.24B | 913.00M | 1.19B |
| Investing Cash Flow | -3.34B | -3.48B | -2.22B | -2.92B | -2.57B | -2.33B |
| Financing Cash Flow | 1.06B | 1.84B | -818.00M | 939.00M | 1.55B | 1.31B |
Emera Technical Analysis
Neutral
69.83
Price Trends
72.98
Negative
72.23
Negative
69.81
Positive
Market Momentum
-0.95
Negative
42.40
Neutral
52.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EMA, the sentiment is Neutral. The current price of 69.83 is below the 20-day moving average (MA) of 70.30, below the 50-day MA of 72.98, and above the 200-day MA of 69.81, indicating a neutral trend. The MACD of -0.95 indicates Negative momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 52.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:EMA.
Emera 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% | |
64 Neutral | C$31.87B | 22.62 | 11.08% | 2.57% | 8.63% | 12.60% | |
63 Neutral | C$39.07B | 22.49 | 7.43% | 3.34% | 3.84% | 0.11% | |
62 Neutral | C$7.35B | 45.35 | 3.90% | 2.81% | 4.81% | -58.62% | |
59 Neutral | C$13.86B | 319.81 | 1.88% | 3.60% | 1.16% | -89.49% | |
56 Neutral | C$21.42B | 22.09 | 7.51% | 4.18% | 10.83% | 7.87% | |
49 Neutral | C$6.04B | 31.21 | 3.20% | 4.58% | 5.62% | ― |
* Utilities Sector Average
TSE:EMA
Emera
70.02
7.92
12.75%
TSE:ACO.X
ATCO Ltd Cl I NV
73.46
26.26
55.64%
TSE:CU
Canadian Utilities A
51.17
14.59
39.87%
TSE:H
Hydro One
53.38
5.02
10.38%
TSE:AQN
Algonquin Power & Utilities
7.83
0.40
5.34%
TSE:FTS
Fortis
76.69
11.05
16.83%
Emera Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Emera posts mixed Q2 2026 results but reaffirms long‑term earnings growth outlook
Positive
Aug 7, 2026
Emera reported second‑quarter 2026 adjusted earnings of $0.69 per share and reported earnings of $0.34 per share, with adjusted net income declining year over year amid higher interest costs, foreign‑exchange losses and the impact of d...
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.