Emera Incorporated (EMA.TO) stock analysis

In our weekly check, Emera Incorporated is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 4, red flags: 6.

About Emera Incorporated

Emera Incorporated is an Utilities company (Regulated Electric) based in Canada, listed on TSX as EMA.TO.

What our checks show for EMA.TO

Red flags

• Net debt is 7.5x a year of EBITDA (debt/equity 1.54). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 1.2 times: a weak year could make the payments hard.
• The gross margin fell by 24.2 points, to 13.5%: costs are rising faster than prices.
• Free cash flow is negative (-14.4% of revenue): the business spends more cash than it brings in.
• Return on capital (ROCE) is only 3.2%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect the net margin to shrink by 0.5 points from today's 12.9%.
• Revenue grew only 2.2% a year over the last 3 years.
• Earnings per share fell 3.8% a year over the last 3 years.
• Recovering from its deepest fall took about 1.8 years.

Strengths

• The net margin rose by 3.1 points over 5 years, to 12.9%.
• Operating cash flow is 2.31x net profit: the profit arrives as real cash.
• A large company: market value $15.06 billion.
• The price moves calmly: 15.7% annual volatility.
• Beta 0.42: the stock usually moves less than the market.

Next earnings report: 2026-11-06

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Questions

What grade does Emera Incorporated (EMA.TO) have?

In our weekly check, Emera Incorporated is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 4, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of EMA.TO stock?

This week's biggest flags for Emera Incorporated: High debt, Weak interest cover, Gross margin falling. In total 10 of 25 checks show a warning or a red flag.

What does Emera Incorporated do?

Emera Incorporated is an Utilities company (Regulated Electric) based in Canada, listed on TSX as EMA.TO.

When does Emera Incorporated report earnings next?

The next earnings report is expected on 2026-11-06. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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