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TSE:EMA

Emera Inc (EMA.TO)

72.75
-0.08 (0.11%)
as of Jun 11, 2026, 8:00:00 pm Market Open.
736 watching
0
Investor Insights
star iconJun 11, 2026, 12:00 am

This summary was created by AI, based on 10 opinions in the last 12 months.

Emera Inc (EMA-T) is recognized as a solid utility company with strong operational footprints in both Canada and the US, particularly in regions like Nova Scotia and Florida. Analysts appreciate its consistent dividend growth and the favorable regulatory environment in areas of operation. Despite concerns regarding past leverage and payout ratios, current reviews indicate a more stable financial standing, with prospects for growth driven by an increasing customer base and potential solar project expansions in Florida. The stock has seen significant price appreciation but is at all-time highs, making it a bit challenging to enter at current levels. Still, the general sentiment leans towards holding or cautiously accumulating shares due to its reliable income generation capabilities and promising long-term growth.

consensus icon
Consensus
Agree
valuation icon
Valuation
Fair Value
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Similar
NEE,NEE
HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EMA will experience lower earnings this year, with a recovery in 2024. Growth is relatively low, but this is common for the industry. The Q1 was fine and exceeded expectations. We see nothing overly wrong with the company. Payout ratio is about 73%, so there is not huge room for dividend increases, but this may change next year. We think it is mostly a sector and higher-interest-rates rate problem. The stock is up 4% this year, more or les inline with the TSX's return. 
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COMMENT

The big question is: What will happen to interest rates? These stocks are sensitive to them. Rates have to rise above inflation in order to slow the latter. We are not there yet. If inflation takes off (50/50 chance), then Emera won't do well. This is worth $39. 

BUY

Weak finish last year due to regulatory problems in Nova Scotia, plus Florida storm damage. All utilities had a downdraft in Sept/Oct last year. Likes it here, buying at these levels. Electricity demand will continue, and distribution infrastructure will increase as a multi-decade story.

PAST TOP PICK
(A Top Pick Aug 31/22, Down 10%) All utilities have pulled back since mid-2022. Emera has exposure to Florida, which suffered outages due to strong weather. Don't hold this now. Utilities are weak in the first months of a year.
COMMENT
A great company. Interest rates have climbed a lot, but will slow and stay around 5%. So, utilities will have a tougher go. Good company as is Fortis and Hydro One, but the big question is do you want exposure to utilities. EMA's dividend is safe, but a caveat is a cap on rates by governments which would limit upside.
BUY ON WEAKNESS
The Nova Scotia rate settlement looks better than feared. If regulators approve it, he'll boost EMA's ROE assumptions. Even without approval, this stock looks reasonable at 16x 2023 earnings, 5.5% EPS growth and a nice 5.3% dividend. You don't have to buy today, but wait for a pullback. Overall, it's attractive vs. the market.
BUY
He likes utilities in this time of aggressive rate hikes. Utilities (and REITs) offer safety and defence heading into 2023. A long-term hold.
DON'T BUY
Utilities tend to do well prior to economic weakness. Not performing well. Over the next 2 years, don't put a lot into utilities, won't outperform as the macro improves. Regulatory risk will affect margins. Rising rates make the static dividend less attractive. Yield is 5.4%.
WEAK BUY
Not entirely in renewables. See his Top Picks. Reasonably valued, 1.5x price to book. History of pretty consistent dividend increases, expects that to continue. Bit sensitive to interest rates. Wouldn't begrudge anyone buying it. Not concerned about Nova Scotia tax increase. Yield is 5.5%.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Feb 25/21, Up 15.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with EMA has triggered its stop at $58. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 19%, when combined with the previous recommendation to cover half the position.
TOP PICK
Seasonality is September 13 - October 27. Utility sector has done extremely well in 2022. Over 95% regulated contracts. Sometimes boring is good. Should continue to perform well relative to the market, especially if we see more volatility in September and October. Yield is 4.35%. (Analysts’ price target is $65.00)
WEAK BUY
50% of revenues come from Florida. Growth profile is fairly solid. Very defensive, which he likes right now. He prefers AQN, with a more diversified footprint. Also BIP.UN, with diversification, global platform, and more attractive valuation. But nothing wrong with this name.
BUY
Allan Tong’s Discover Picks Rising rates will add to their debt service costs, though all utilities carry a lot of debt. Emera’s debt-to-capital of 61%. is in-line with the sector. The company can charge more to their customers. Over the past year, EMA has gradually climbed from $55 to $64 a share and given a little back in late April and May. However, its PE stands at nearly 27x, slightly lower than 2021’s 34.93x but far more than 15.5x in 2020. Read 3 dividend stocks to fight inflation for our full analysis.
BUY
The dividend is the attraction here. They have a track record of raising that. They have a leveraged balance sheet, like utilities do, so rising rates will raise their debt service costs. but inflation will allow Emera to charge more to customers. There's usually a lag between inflation and rate increases, though. The dividend is solid. A good stock for an RRSP.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Feb 25/21, Up 23%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with EMA is progressing well and has achieved our $62 objective. To remain disciplined, we recommend covering half the position and trailing up the stop (from $52) to $58.
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