Electric Services
Hawaiian Electric Industries, Inc., together with its subsidiaries, engages in the electric utility, banking, and non-regulated renewable/sustainable infrastructure investment businesses in the state of Hawaii. It operates through three segments: Electric Utility, Bank, and Other. The Electric Utility segment engages in the production, purchase, transmission, distribution, and sale of electricity in the islands of Oahu, Hawaii, Maui, Lanai, and Molokai. Its renewable energy sources and potential sources include wind, solar, photovoltaic, geothermal, wave, hydroelectric, municipal waste, and other biofuels. This segment serves suburban communities, resorts, the United States armed forces installations, and agricultural operations. The Bank segment operates a community bank that offers banking and other financial services to consumers and businesses, including savings and checking accounts; and loans comprising residential and commercial real estate, residential mortgage, construction and development, multifamily residential and commercial real estate, consumer, and commercial loans. This segment operates branches in Oahu, Maui, Hawaii, Kauai, and Molokai. The Other segment invests in non-regulated renewable energy and sustainable infrastructure in the State of Hawaii. Hawaiian Electric Industries, Inc. was incorporated in 1891 and is headquartered in Honolulu, Hawaii.
Discounted Cash Flow Valuation of Hawaiian Electric Industries Inc
Growth
%
%
Discount
%
%
Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $71.59M | $78.23M | $85.11M | $92.19M | $99.42M | $106.8M | $114.1M | $121.4M | $128.7M | $135.7M | $142.5M | $1.425B |
DCF | $68.02M | $64.35M | $60.61M | $56.84M | $53.07M | $49.33M | $45.66M | $42.06M | $38.58M | $35.22M | $352.2M | |
Value | $866M |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 6.1% | 10% | 6.5% | 7.1% | 7.6% | 7.7% | 8.6% | 6.4% | 5.4% | 5.1% |
ROA | 2.7% | 3% | 2.6% | 2.5% | 2.5% | 2.1% | 2.4% | 2.3% | 2% | 2% |
ROE | 8.3% | 12% | 7.9% | 9.3% | 9.6% | 8.5% | 10% | 11% | 8.5% | 7.9% |
The average Net Margin over the past 5 years is +7.13%.
The trend of Net Margin over the past 5 years is -0.3%.
The average ROA over the past 5 years is +2.33%.
The trend of ROA over the past 5 years is -0.08%.
The average ROE over the past 5 years is +9.52%.
The trend of ROE over the past 5 years is +0.05%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | -228.41 | 9.78 | -22.53 | -49.39 | 35.75 | 46.56 | 37.97 | 21.60 | 27.55 | 39.64 |
Debt Equity | 0.82 | 0.78 | 0.80 | 0.87 | 0.86 | 0.91 | 0.97 | 1.08 | 1.21 | 1.19 |
MIN | ||||||||||
Graham Stability | - | - | 86% | 100% | 100% | 100% | 100% | 100% | 87% | 86% |
The Debt/FCF trailing twelve month is 39.64.
The trend of Debt/FCF over the past 5 years is 9.53.
Graham’s Stability measure stands at 0.86.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
---|---|---|---|---|---|
Revenue | 6.4% | 5.2% | 13% | -1.6% | 2.9% |
Net Income | -3.1% | -0.25% | 0.24% | -17% | -2.3% |
Stockholders Equity | 1.8% | 1.6% | 0.1% | 6.5% | -0.81% |
FCF | -6.5% | - | 31% | -6.6% | 7.8% |
The Revenue CAGR over the past 5 years is +5.18%.
The trend of Revenue growth rate over the past 5 years is +2.93%.
The Earnings CAGR over the past 5 years is -0.25%.
The trend of Earnings growth rate over the past 5 years is -2.28%.
The Equity CAGR over the past 5 years is +1.63%.
The trend of Equity growth rate over the past 5 years is -0.81%.
The FCF CAGR over the past 5 years is -.
The trend of FCF growth rate over the past 5 years is +7.8%.