# Emera (EMA.TO)

Canonical: https://gigainvestors.com/s/EMA.TO

Analysis as of: 2026-10-16T07:35:12.943Z. Financial observations: FY1996–FY2026.

Listing currency: CAD. Reporting currency: CAD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: CAD 66.79 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 5 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.15×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.23×

- FY2018: 0.21×

- FY2019: 0.22×

- FY2020: 0.21×

- FY2021: 0.16×

- FY2022: 0.21×

- FY2023: 0.24×

- FY2024: 0.15×

- FY2025: 0.19×

- LTM to Jun 2026: 0.16×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 27.0pp below the typical margin (limit 4pp)

- ROIC, median of available years: 5.3%

- ROIC, second-lowest year: 4.0%

- Typical minus recent gross margin: 27.0 pp

- Typical gross margin (annual median): 40.5%

- Recent gross margin (lower of latest and 3-year median): 13.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 40.9%

- ROIC including acquisitions, ten-year median: 0.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 5.8%

- FY2018: 7.0%

- FY2019: 6.8%

- FY2020: 4.6%

- FY2021: 4.6%

- FY2022: 5.7%

- FY2023: 6.3%

- FY2024: 4.0%

- FY2025: 5.0%

- LTM to Jun 2026: 4.0%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: -0.05×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CAD -228M

- Net income, five-year total: CAD 4.3B

- Return on incremental invested capital: 6.8%

- Working capital / revenue, annual change: 0.0 pp

- Working capital / revenue, change between three-year averages: 0.1 pp

- Working capital / revenue, final three-year average: 5.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -0.13×

- FY2022: 1.00×

- FY2023: -0.80×

- FY2024: -2.50×

- FY2025: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 5.8% vs 5.0%

- Per-share earnings: 1.27 to 3.63 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 7.2%

- Ordinary dilution, 5-year annual growth: 3.4%

- Market cap gain: CAD 11B

- Cumulative retained earnings: CAD 538M

- Diluted shares, 10-year annual growth: 7.2%

- Diluted shares, 5-year annual growth: 3.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 14.0%

- Per-share value change: CAD 2.36

- Per-share value, starting three-year median: CAD 1.27

- Per-share value, ending three-year median: CAD 3.63

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: CAD 6.6B

- Cumulative net income, 10 years: CAD 7.3B

- ROIC, first three-year median: 5.8%

- ROIC, last three-year median: 5.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: CAD 1.20

- FY2017: CAD 1.27

- FY2018: CAD 3.15

- FY2019: CAD 2.89

- FY2020: CAD 3.87

- FY2021: CAD 2.13

- FY2022: CAD 3.76

- FY2023: CAD 3.76

- FY2024: CAD 1.92

- FY2025: CAD 3.63

### accounting: pass

- Sloan accruals: -1.6%

- Receivables to sales index (DSRI): 1.42×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.65×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.42×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.7%

- FY2017: -3.1%

- FY2018: -2.9%

- FY2019: -2.6%

- FY2020: -2.1%

- FY2021: -1.8%

- FY2022: 0.2%

- FY2023: -3.0%

- FY2024: -4.8%

- FY2025: -1.6%

## Holders

## Price story

Up 47% since Oct 2023 · sales -2.6%

Story as of 2026-10-16T10:00:04.119Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales -2.6%; source https://www.sec.gov/Archives/edgar/data/1127248/000119312526062876/d845370d40f.htm; observed 2026-02-23.

- FY2017: CAD 6.2B 

- FY2018: CAD 6.5B 

- FY2019: CAD 6.1B 

- FY2020: CAD 5.5B 

- FY2021: CAD 5.8B 

- FY2022: CAD 7.6B 

- FY2023: CAD 7.6B 

- FY2024: CAD 7.2B 

- FY2025: CAD 8.3B 

- FY2026: CAD 8.1B 

### Gross margin · FY2026

gross margin 13.5%; source https://www.sec.gov/Archives/edgar/data/1127248/000119312526062876/d845370d40f.htm; observed 2026-02-23.

- FY2017: 41.8% 

- FY2018: 40.7% 

- FY2019: 42.9% 

- FY2020: 43.2% 

- FY2021: 37.6% 

- FY2022: 39.9% 

- FY2023: 43.4% 

- FY2024: 40.3% 

- FY2025: 24.6% 

- FY2026: 13.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities regulated electric; annual sales are CAD 8.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1127248/000119312526062876/d845370d40f.htm (filed 2026-02-23); FY2025: revenue 8309000000; grossProfit 2042000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 24.6% to 43.4% during 2023–25; it earns 5.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2023: grossProfit / revenue = 43.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2024: grossProfit / revenue = 40.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1127248/000119312526062876/d845370d40f.htm (filed 2026-02-23); FY2025: grossProfit / revenue = 24.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); 10-year return on capital observations [[2017,0.05775062656641604],[2018,0.07002553976285196],[2019,0.06788958048407202],[2020,0.0457716180183103],[2021,0.0455302065994321],[2022,0.057004451634128234],[2023,0.06274725350860379],[2024,0.03995560488346282],[2025,0.0498166373893126],[2026,0.039775967623048705]]; median 0.05341054451172042. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Earns 6.8% on new investment; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2016: growth capex 438000000; upkeep 593000000; owner earnings 255000000. Growth capex / owner earnings = 1.7176470588235293.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2017: growth capex 678000000; upkeep 851000000; owner earnings 294000000. Growth capex / owner earnings = 2.306122448979592.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2018: growth capex 820588951.2635579; upkeep 1341411048.736442; owner earnings 332588951.2635579. Growth capex / owner earnings = 2.4672766432739603.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); FY2022: growth capex 1637000000; upkeep 959000000; owner earnings 1008000000. Growth capex / owner earnings = 1.6240079365079365.

- Source: https://www.sec.gov/Archives/edgar/data/1127248/000119312526062876/d845370d40f.htm (filed 2026-02-23); FY2025: growth capex 2234000000; upkeep 1298000000; owner earnings 1089000000. Growth capex / owner earnings = 2.051423324150597.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); Incremental return on capital 0.06785333064592537, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); Dividend observations: [[2016,249000000],[2017,315000000],[2018,382000000],[2019,423000000],[2020,454000000],[2021,493000000],[2022,535000000],[2023,554000000],[2024,611000000],[2025,651000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EMA.TO SharesStats.PercentInsiders = 0.28200000000000003 percentage points; cache date 2026-10-16.

### What the price says

The price is 2.4 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-23); Closing price 66.79 CAD; reporting-to-trading FX 1; FY2025 annual sales per share 27.72439105772439; price multiple 2.409070044530028. FY2025 cash earnings/share 3.6336336336336337. Closing-price date 2026-10-15.

## Monthly share-price history (CAD per share)

- 2016-10: CAD 46.78 per share

- 2016-11: CAD 45.11 per share

- 2016-12: CAD 45.39 per share

- 2017-01: CAD 45.44 per share

- 2017-02: CAD 45.55 per share

- 2017-03: CAD 46.98 per share

- 2017-04: CAD 47.25 per share

- 2017-05: CAD 48.18 per share

- 2017-06: CAD 48.21 per share

- 2017-07: CAD 46.40 per share

- 2017-08: CAD 47.96 per share

- 2017-09: CAD 47.26 per share

- 2017-10: CAD 48.60 per share

- 2017-11: CAD 48.56 per share

- 2017-12: CAD 46.98 per share

- 2018-01: CAD 45.50 per share

- 2018-02: CAD 41.41 per share

- 2018-03: CAD 40.76 per share

- 2018-04: CAD 39.99 per share

- 2018-05: CAD 40.50 per share

- 2018-06: CAD 42.80 per share

- 2018-07: CAD 42.15 per share

- 2018-08: CAD 41.29 per share

- 2018-09: CAD 40.16 per share

- 2018-10: CAD 40.62 per share

- 2018-11: CAD 44.60 per share

- 2018-12: CAD 43.71 per share

- 2019-01: CAD 46.00 per share

- 2019-02: CAD 46.82 per share

- 2019-03: CAD 49.97 per share

- 2019-04: CAD 50.31 per share

- 2019-05: CAD 52.04 per share

- 2019-06: CAD 53.51 per share

- 2019-07: CAD 54.80 per share

- 2019-08: CAD 57.68 per share

- 2019-09: CAD 58.16 per share

- 2019-10: CAD 54.53 per share

- 2019-11: CAD 54.62 per share

- 2019-12: CAD 55.79 per share

- 2020-01: CAD 58.96 per share

- 2020-02: CAD 56.56 per share

- 2020-03: CAD 55.50 per share

- 2020-04: CAD 55.41 per share

- 2020-05: CAD 54.74 per share

- 2020-06: CAD 53.42 per share

- 2020-07: CAD 55.75 per share

- 2020-08: CAD 53.25 per share

- 2020-09: CAD 54.70 per share

- 2020-10: CAD 53.15 per share

- 2020-11: CAD 53.85 per share

- 2020-12: CAD 54.10 per share

- 2021-01: CAD 53.47 per share

- 2021-02: CAD 50.14 per share

- 2021-03: CAD 55.93 per share

- 2021-04: CAD 55.87 per share

- 2021-05: CAD 56.29 per share

- 2021-06: CAD 56.24 per share

- 2021-07: CAD 58.19 per share

- 2021-08: CAD 59.56 per share

- 2021-09: CAD 57.36 per share

- 2021-10: CAD 57.58 per share

- 2021-11: CAD 58.69 per share

- 2021-12: CAD 63.22 per share

- 2022-01: CAD 60.23 per share

- 2022-02: CAD 59.30 per share

- 2022-03: CAD 61.97 per share

- 2022-04: CAD 62.03 per share

- 2022-05: CAD 62.87 per share

- 2022-06: CAD 60.30 per share

- 2022-07: CAD 60.71 per share

- 2022-08: CAD 60.77 per share

- 2022-09: CAD 55.89 per share

- 2022-10: CAD 50.49 per share

- 2022-11: CAD 52.37 per share

- 2022-12: CAD 51.75 per share

- 2023-01: CAD 52.98 per share

- 2023-02: CAD 54.05 per share

- 2023-03: CAD 55.52 per share

- 2023-04: CAD 57.65 per share

- 2023-05: CAD 55.97 per share

- 2023-06: CAD 54.56 per share

- 2023-07: CAD 53.49 per share

- 2023-08: CAD 50.65 per share

- 2023-09: CAD 47.42 per share

- 2023-10: CAD 45.42 per share

- 2023-11: CAD 47.69 per share

- 2023-12: CAD 50.30 per share

- 2024-01: CAD 47.51 per share

- 2024-02: CAD 47.60 per share

- 2024-03: CAD 47.67 per share

- 2024-04: CAD 46.43 per share

- 2024-05: CAD 47.46 per share

- 2024-06: CAD 45.65 per share

- 2024-07: CAD 49.84 per share

- 2024-08: CAD 50.75 per share

- 2024-09: CAD 53.29 per share

- 2024-10: CAD 52.60 per share

- 2024-11: CAD 53.42 per share

- 2024-12: CAD 53.73 per share

- 2025-01: CAD 55.22 per share

- 2025-02: CAD 57.86 per share

- 2025-03: CAD 60.61 per share

- 2025-04: CAD 62.05 per share

- 2025-05: CAD 62.91 per share

- 2025-06: CAD 62.38 per share

- 2025-07: CAD 65.06 per share

- 2025-08: CAD 65.41 per share

- 2025-09: CAD 66.77 per share

- 2025-10: CAD 66.68 per share

- 2025-11: CAD 67.82 per share

- 2025-12: CAD 67.64 per share

- 2026-01: CAD 67.49 per share

- 2026-02: CAD 70.97 per share

- 2026-03: CAD 72.11 per share

- 2026-04: CAD 72.47 per share

- 2026-05: CAD 72.10 per share

- 2026-06: CAD 75.23 per share

- 2026-07: CAD 74.91 per share

- 2026-08: CAD 69.51 per share

- 2026-09: CAD 68.02 per share

- 2026-10: CAD 64.98 per share

## Annual estimated value (CAD per share)

- FY2016: low CAD 29.09 per share, central CAD 38.74 per share, high CAD 45.12 per share

- FY2017: low CAD 33.01 per share, central CAD 37.86 per share, high CAD 43.78 per share

- FY2018: low CAD 22.90 per share, central CAD 32.02 per share, high CAD 37.45 per share

- FY2019: low CAD 16.64 per share, central CAD 22.09 per share, high CAD 25.79 per share

- FY2020: low CAD 11.63 per share, central CAD 13.17 per share, high CAD 15.23 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:00.148Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 40-F filing](https://www.sec.gov/Archives/edgar/data/1127248/000119312526062876/d845370d40f.htm); period 2025-12-31, filed 2026-02-23.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.