# Hawaiian Electric Industries (HE.US)

Canonical: https://gigainvestors.com/s/HE

Analysis as of: 2026-10-16T07:29:00.220Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## 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: $8.49 per share; close as of 2026-10-15.

Estimated value: low $4.03 per share, central $4.45 per share, high $5.00 per share. Buy at or below the central value $4.45 per share. Valuation as of 2026-10-16T07:29:00.220Z; scenarios are not confidence intervals.

Expected annual return: 6.2% at the stated quote. About 6.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

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

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 1

- Operating margin variation: 4.26×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.13×

- FY2018: 0.12×

- FY2019: 0.12×

- FY2020: 0.12×

- FY2021: 0.14×

- FY2022: 0.08×

- FY2023: 0.08×

- FY2024: -0.53×

- FY2025: 0.08×

- LTM to Jun 2026: 0.11×

### moat: fail

- ROIC median below threshold

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

- Recent gross margin fell 8.9pp below the typical margin (limit 4pp)

- ROIC, median of available years: 5.9%

- ROIC, second-lowest year: 4.2%

- Typical minus recent gross margin: 8.9 pp

- Typical gross margin (annual median): 16.5%

- Recent gross margin (lower of latest and 3-year median): 7.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 13.7%

- ROIC including acquisitions, ten-year median: 2.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 6.6%

- FY2017: 5.9%

- FY2018: 6.7%

- FY2019: 6.3%

- FY2020: 5.9%

- FY2021: 6.7%

- FY2022: 4.2%

- FY2023: 4.2%

- FY2024: -37.8%

- FY2025: 5.0%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$899M

- Net income, five-year total: -$611M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -22.6 pp

- Working capital / revenue, change between three-year averages: -175.9 pp

- Working capital / revenue, final three-year average: 9.1%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $246M

- FY2022: $241M

- FY2023: $39M

- FY2024: -$1.5B

- FY2025: $45M

### management: fail

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

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 6.6% vs 4.2%

- Per-share earnings: 1.53 to 0.73 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- 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: 5.0%

- Ordinary dilution, 5-year annual growth: 9.6%

- Market cap gain: -$1.5B

- Cumulative retained earnings: -$1.1B

- Diluted shares, 10-year annual growth: 5.0%

- Diluted shares, 5-year annual growth: 9.6%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -8.9%

- Per-share value change: -$0.80

- Per-share value, starting three-year median: $1.53

- Per-share value, ending three-year median: $0.73

- Buybacks concentrated in cheaper years (correlation): 0.45

- Average buyback yield: 0.3%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $82M

- Cumulative net income, 10 years: $425M

- ROIC, first three-year median: 6.6%

- ROIC, last three-year median: 4.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.31

- FY2017: $1.53

- FY2018: $1.87

- FY2019: $1.99

- FY2020: $1.81

- FY2021: $2.25

- FY2022: $2.20

- FY2023: $1.81

- FY2024: -$11.22

- FY2025: $0.73

### accounting: pass

- Sloan accruals: -3.0%

- Receivables to sales index (DSRI): 1.12×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.10×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.0%

- FY2017: -2.0%

- FY2018: -2.2%

- FY2019: -2.1%

- FY2020: -1.5%

- FY2021: -0.8%

- FY2022: -1.3%

- FY2023: -2.0%

- FY2024: -21.2%

- FY2025: -3.0%

## Holders

## Price story

Down 80% since May 2022 · "Update: Hawaiian Electric Industries Shares Fall After Higher 2026 Operational Cost Guidance" (finance.yahoo.com, May 2026) · sales +6.3%

Story as of 2026-10-16T09:58:52.300Z; price observation 2026-10-15.

Price needs cash profits to grow 10.7% a year for ten years

- 2025-11-08: Hawaiian Electric outlines $1.8B–$2.4B CapEx plan through 2028 as wildfire settlement advances ([seekingalpha.com](https://seekingalpha.com/news/4519020-hawaiian-electric-outlines-1_8b-2_4b-capex-plan-through-2028-as-wildfire-settlement-advances?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-02-27: Hawaiian Electric signals $550M–$700M capex for 2026 as wildfire settlements near final approval ([seekingalpha.com](https://seekingalpha.com/news/4558935-hawaiian-electric-signals-550m-700m-capex-for-2026-as-wildfire-settlements-near-final?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-05-11: Update: Hawaiian Electric Industries Shares Fall After Higher 2026 Operational Cost Guidance ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/hawaiian-electric-industries-shares-fall-184533621.html))

### Sales · FY2025–2026

sales +6.3%; source https://www.sec.gov/Archives/edgar/data/354707/000035470726000008/he-20251231.htm; observed 2026-02-27.

- FY2017: $2.6B 

- FY2018: $2.9B 

- FY2019: $2.9B 

- FY2020: $2.6B 

- FY2021: $2.9B 

- FY2022: $3.4B 

- FY2023: $3.3B 

- FY2024: $3.2B 

- FY2025: $3.1B 

- FY2026: $3.3B 

### Gross margin · FY2025

gross margin 7.6%; source https://www.sec.gov/Archives/edgar/data/354707/000035470726000008/he-20251231.htm; observed 2026-02-27.

- FY2016: 14.6% 

- FY2017: 13.2% 

- FY2018: 11.7% 

- FY2019: 21.8% 

- FY2020: 22.0% 

- FY2021: 23.7% 

- FY2022: 18.4% 

- FY2023: 19.1% 

- FY2025: 7.6% 

## Owner memo

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

### How it makes money

Operates in utilities regulated electric; annual sales are USD 3.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/354707/000035470726000008/he-20251231.htm (filed 2026-02-27); FY2025: revenue 3086896000; grossProfit 235321999; margin = grossProfit / revenue.

### Why customers stay

It earns 5.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: grossProfit / revenue = 19.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: grossProfit / revenue = -53%.

- Source: https://www.sec.gov/Archives/edgar/data/354707/000035470726000008/he-20251231.htm (filed 2026-02-27); FY2025: grossProfit / revenue = 7.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); 10-year return on capital observations [[2016,0.06641649537599922],[2017,0.05870103599261141],[2018,0.06746814254871814],[2019,0.06343515214395352],[2020,0.058959340188544075],[2021,0.06711591140488225],[2022,0.04215085989408726],[2023,0.04237562290981895],[2024,-0.3779469264386458],[2025,0.049670532006891574]]; median 0.058830188090577745. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 35.4 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2016: growth capex 0; upkeep 330043000; owner earnings 114376000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2017: growth capex 274110021.22280324; upkeep 221076978.77719676; owner earnings 146768021.22280324. Growth capex / owner earnings = 1.8676413222652004.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2018: growth capex 323333000; upkeep 214036000; owner earnings 203664000. Growth capex / owner earnings = 1.5875805247859218.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2019: growth capex 23306569.53254825; upkeep 434213430.46745175; owner earnings 61781569.53254825. Growth capex / owner earnings = 0.3772414606635997.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2020: growth capex 0; upkeep 383895000; owner earnings 104707000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2021: growth capex 35822000; upkeep 278702000; owner earnings 246166000. Growth capex / owner earnings = 0.14551968996530795.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2022: growth capex 73632000; upkeep 270405000; owner earnings 241138000. Growth capex / owner earnings = 0.30535212202141515.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: growth capex 0; upkeep 442727000; owner earnings 38817000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/354707/000035470726000008/he-20251231.htm (filed 2026-02-27); FY2025: growth capex 0; upkeep 341202000; owner earnings 45103000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Dividend observations: [[2016,117274000],[2017,136763000],[2018,136877000],[2019,141353000],[2020,145986000],[2021,150533000],[2022,155119000],[2023,75847000],[2024,27995000],[2025,1890000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/354707/000035470726000008/he-20251231.htm (filed 2026-02-27); FY2025: cash repurchases 35368000 USD.

### Are managers owners

Insiders own 0.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); HE.US SharesStats.PercentInsiders = 0.305 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits grow 10.7% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Ten-year compound average after fade. Initial solved rate 0.14050476820867963. Price 8.49; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.0604567048659589 → FY2025 0.26068536617789. Closing-price date 2026-10-15.

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

- 2016-10: $29.50 per share

- 2016-11: $30.80 per share

- 2016-12: $33.07 per share

- 2017-01: $33.48 per share

- 2017-02: $33.28 per share

- 2017-03: $33.31 per share

- 2017-04: $33.52 per share

- 2017-05: $33.14 per share

- 2017-06: $32.38 per share

- 2017-07: $32.99 per share

- 2017-08: $33.42 per share

- 2017-09: $33.37 per share

- 2017-10: $36.46 per share

- 2017-11: $38.35 per share

- 2017-12: $36.15 per share

- 2018-01: $34.11 per share

- 2018-02: $32.96 per share

- 2018-03: $34.38 per share

- 2018-04: $34.69 per share

- 2018-05: $34.33 per share

- 2018-06: $34.30 per share

- 2018-07: $35.17 per share

- 2018-08: $35.27 per share

- 2018-09: $35.59 per share

- 2018-10: $37.30 per share

- 2018-11: $38.32 per share

- 2018-12: $36.62 per share

- 2019-01: $37.19 per share

- 2019-02: $38.28 per share

- 2019-03: $40.77 per share

- 2019-04: $41.48 per share

- 2019-05: $41.54 per share

- 2019-06: $43.55 per share

- 2019-07: $44.80 per share

- 2019-08: $44.40 per share

- 2019-09: $45.61 per share

- 2019-10: $45.15 per share

- 2019-11: $43.67 per share

- 2019-12: $46.86 per share

- 2020-01: $48.91 per share

- 2020-02: $42.84 per share

- 2020-03: $43.05 per share

- 2020-04: $39.47 per share

- 2020-05: $39.46 per share

- 2020-06: $36.06 per share

- 2020-07: $36.26 per share

- 2020-08: $34.61 per share

- 2020-09: $33.24 per share

- 2020-10: $33.04 per share

- 2020-11: $35.83 per share

- 2020-12: $35.39 per share

- 2021-01: $33.06 per share

- 2021-02: $34.96 per share

- 2021-03: $44.43 per share

- 2021-04: $43.06 per share

- 2021-05: $43.05 per share

- 2021-06: $42.28 per share

- 2021-07: $43.34 per share

- 2021-08: $43.60 per share

- 2021-09: $40.83 per share

- 2021-10: $40.56 per share

- 2021-11: $37.99 per share

- 2021-12: $41.50 per share

- 2022-01: $42.50 per share

- 2022-02: $40.98 per share

- 2022-03: $42.31 per share

- 2022-04: $41.11 per share

- 2022-05: $43.17 per share

- 2022-06: $40.90 per share

- 2022-07: $42.30 per share

- 2022-08: $39.12 per share

- 2022-09: $34.66 per share

- 2022-10: $38.04 per share

- 2022-11: $41.08 per share

- 2022-12: $41.85 per share

- 2023-01: $42.27 per share

- 2023-02: $40.45 per share

- 2023-03: $38.40 per share

- 2023-04: $39.21 per share

- 2023-05: $35.91 per share

- 2023-06: $36.20 per share

- 2023-07: $38.39 per share

- 2023-08: $14.02 per share

- 2023-09: $12.31 per share

- 2023-10: $12.98 per share

- 2023-11: $12.19 per share

- 2023-12: $14.19 per share

- 2024-01: $12.97 per share

- 2024-02: $12.18 per share

- 2024-03: $11.27 per share

- 2024-04: $9.85 per share

- 2024-05: $10.99 per share

- 2024-06: $9.02 per share

- 2024-07: $16.56 per share

- 2024-08: $10.73 per share

- 2024-09: $9.68 per share

- 2024-10: $10.27 per share

- 2024-11: $10.39 per share

- 2024-12: $9.73 per share

- 2025-01: $9.14 per share

- 2025-02: $10.95 per share

- 2025-03: $10.95 per share

- 2025-04: $10.50 per share

- 2025-05: $10.68 per share

- 2025-06: $10.63 per share

- 2025-07: $10.72 per share

- 2025-08: $12.96 per share

- 2025-09: $11.04 per share

- 2025-10: $11.62 per share

- 2025-11: $11.76 per share

- 2025-12: $12.30 per share

- 2026-01: $15.32 per share

- 2026-02: $15.49 per share

- 2026-03: $14.84 per share

- 2026-04: $15.07 per share

- 2026-05: $13.30 per share

- 2026-06: $13.53 per share

- 2026-07: $12.92 per share

- 2026-08: $11.22 per share

- 2026-09: $8.94 per share

- 2026-10: $8.49 per share

## Annual estimated value (USD per share)

- FY2016: low $3.18 per share, central $3.32 per share, high $3.49 per share

- FY2017: low $2.96 per share, central $3.10 per share, high $3.29 per share

- FY2018: low $14.97 per share, central $16.87 per share, high $19.40 per share

- FY2019: low $15.50 per share, central $17.60 per share, high $20.20 per share

- FY2020: low $15.36 per share, central $17.06 per share, high $19.34 per share

- FY2021: low $18.79 per share, central $21.04 per share, high $24.04 per share

- FY2022: low $25.26 per share, central $28.57 per share, high $32.98 per share

- FY2023: low $15.01 per share, central $16.84 per share, high $19.27 per share

- FY2024: low $20.54 per share, central $22.09 per share, high $24.16 per share

- FY2025: low $8.16 per share, central $8.55 per share, high $9.08 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

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/354707/000035470726000008/he-20251231.htm); period 2025-12-31, filed 2026-02-27.

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.