TSE:EMA
Emera Inc (EMA.TO)
Financials 
Technical Analysis 
Utilities are out of favour and he owns none now, but he has owned and liked EMA in the past. Yields above 6% which can grow further. Problem is that if rates stay high for longer, shares will decline, though the yield would climb to 7%. He is watching utilities and he will eventually peck away at utilities.
Return on capital predictable, but replacement cost of assets very high. Good for defensive investors, but not going to appreciate capital at high rate. Lots of capital required to grow business creates situation of low returns. Politicians and consumers putting pressure on margins of business. Falling interest rates good for the business (high debt load in business). Overall, better options for investors out there.
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Premium contentEmera Inc. is a geographically diverse energy and services company headquartered in Halifax, Nova Scotia, with approximately $38 billion in assets and 2022 revenues of more than $7.5 billion. The company primarily invests in regulated electricity generation and electricity and gas transmission and distribution with a strategic focus on transformation from high carbon to low carbon energy sources. Emera has investments in Canada, the United States and in three Caribbean countries. Emera’s common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A, EMA.PR.B, EMA.PR.C, EMA.PR.E, EMA.PR.F, EMA.PR.H, EMA.PR.J and EMA.PR.L. Depositary receipts representing common shares of Emera are listed on the Barbados Stock Exchange under the symbol EMABDR and on The Bahamas International Securities Exchange under the symbol EMAB. Additional information can be accessed at www.emera.com or at www.sedarplus.ca. Social media mentions are up 500% in the past 24h.
Editor's Note: The question was on utilities and her response included Fortis and Emera. Utilities are lower volatility in the long term and come with a nice yield. There is more growth ahead that we haven't seen for the past 5 to 10 years. Rising rates give a better ROE. She likes Fortis and Emera with Emera showing a little more growth and a yield of 6%.
It is a different company now with more assets in the U.S. than in Canada. In Florida they can ask for higher rates just based on its population growth. They are targeting 7% rate-based growth and 4 to 5% dividend growth. It is defensive in nature and there is a big opportunity because of its very low valuation. Buy 8 Hold 6 Sell 2
(Analysts’ price target is $53.93)
Rebecca TeltscherPremium contentEmera Inc. is a geographically diverse energy and services company headquartered in Halifax, Nova Scotia, with approximately $38 billion in assets and 2022 revenues of more than $7.5 billion. The company primarily invests in regulated electricity generation and electricity and gas transmission and distribution with a strategic focus on transformation from high carbon to low carbon energy sources. Emera has investments in Canada, the United States and in three Caribbean countries. Emera’s common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A, EMA.PR.B, EMA.PR.C, EMA.PR.E, EMA.PR.F, EMA.PR.H, EMA.PR.J and EMA.PR.L. Depositary receipts representing common shares of Emera are listed on the Barbados Stock Exchange under the symbol EMABDR and on The Bahamas International Securities Exchange under the symbol EMAB. Additional information can be accessed at www.emera.com or at www.sedarplus.ca. Social media mentions are up 50% in the past 24h.
Premium content
Premium contentEMA is Nova Scotia's largest utility, operating across Canada and the north east US. Operating income has grown over 11% annually for the past five years and EPS has grown by 40%. It trades at 1.3x book and pays a good dividend, backed by a payout ratio under 60% of cash flow. We recommend placing a stop at $42, looking to achieve $57 -- upside potential of 16%. Yield 5.6%
(Analysts’ price target is $57.00)All utilities have seen share prices fall since the spring, being bond proxies given rising interest rates. People are buying bonds, and selling utilities. Now is a good entry point at 15x PE, and pays over a 6% dividend yield, which has grown 17 straight years. Low risk, because 95% of their business are regulated and there's little cyclicality (recession-resilient).
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Emera Inc. is a geographically diverse energy and services company headquartered in Halifax, Nova Scotia, with approximately $38 billion in assets and 2022 revenues of more than $7.5 billion. The company primarily invests in regulated electricity generation and electricity and gas transmission and distribution with a strategic focus on transformation from high carbon to low carbon energy sources. Emera has investments in Canada, the United States and in three Caribbean countries. Emera’s common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A, EMA.PR.B, EMA.PR.C, EMA.PR.E, EMA.PR.F, EMA.PR.H, EMA.PR.J and EMA.PR.L. Depositary receipts representing common shares of Emera are listed on the Barbados Stock Exchange under the symbol EMABDR and on The Bahamas International Securities Exchange under the symbol EMAB. Additional information can be accessed at www.emera.com or at www.sedarplus.ca. Social media mentions are up 33% in the past 24h.