Hawaiian Electric Return On Equity vs. Price To Earning

HE Stock  USD 10.23  0.05  0.49%   
Based on the measurements of profitability obtained from Hawaiian Electric's financial statements, Hawaiian Electric Industries is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in January. Profitability indicators assess Hawaiian Electric's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.08577469
Current Value
0.1
Quarterly Volatility
0.01116308
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Hawaiian Electric's EV To Sales is projected to increase slightly based on the last few years of reporting. The current year's Price Sales Ratio is expected to grow to 0.77, whereas Sales General And Administrative To Revenue is projected to grow to (0). At present, Hawaiian Electric's Non Operating Income Net Other is projected to increase significantly based on the last few years of reporting.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.190.0958
Way Up
Slightly volatile
Net Profit Margin0.04530.0546
Significantly Down
Pretty Stable
Operating Profit Margin0.120.0958
Significantly Up
Pretty Stable
Pretax Profit Margin0.09660.0667
Way Up
Very volatile
Return On Assets0.0110.0117
Notably Down
Slightly volatile
Return On Equity0.10.0858
Fairly Up
Very volatile
For Hawaiian Electric profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hawaiian Electric to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hawaiian Electric Industries utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hawaiian Electric's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hawaiian Electric Industries over time as well as its relative position and ranking within its peers.
  

Hawaiian Electric's Revenue Breakdown by Earning Segment

Check out Risk vs Return Analysis.
Is Electric Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hawaiian Electric. If investors know Hawaiian will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hawaiian Electric listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.24)
Earnings Share
(11.72)
Revenue Per Share
33.159
Quarterly Revenue Growth
0.04
Return On Assets
(0.12)
The market value of Hawaiian Electric is measured differently than its book value, which is the value of Hawaiian that is recorded on the company's balance sheet. Investors also form their own opinion of Hawaiian Electric's value that differs from its market value or its book value, called intrinsic value, which is Hawaiian Electric's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hawaiian Electric's market value can be influenced by many factors that don't directly affect Hawaiian Electric's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Hawaiian Electric's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hawaiian Electric is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hawaiian Electric's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Hawaiian Electric Price To Earning vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Hawaiian Electric's current stock value. Our valuation model uses many indicators to compare Hawaiian Electric value to that of its competitors to determine the firm's financial worth.
Hawaiian Electric Industries is rated below average in return on equity category among its peers. It is rated below average in price to earning category among its peers . At present, Hawaiian Electric's Return On Equity is projected to increase slightly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Hawaiian Electric by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Hawaiian Price To Earning vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Hawaiian Electric

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.68
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Hawaiian Electric

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
22.25 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Hawaiian Price To Earning Comparison

Hawaiian Electric is currently under evaluation in price to earning category among its peers.

Hawaiian Electric Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Hawaiian Electric, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hawaiian Electric will eventually generate negative long term returns. The profitability progress is the general direction of Hawaiian Electric's change in net profit over the period of time. It can combine multiple indicators of Hawaiian Electric, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-289.4 M-303.8 M
Operating Income352.6 M313 M
Net Income201.1 M150.2 M
Income Tax Expense44.6 M44.2 M
Income Before Tax245.7 M221.6 M
Total Other Income Expense Net-106.9 M-101.6 M
Net Income Applicable To Common Shares277.3 M162.1 M
Net Income From Continuing Ops209.7 M228.1 M
Non Operating Income Net Other11 M11.1 M
Interest Income9.1 M8.6 M
Net Interest Income-113.9 M-119.6 M
Change To Netincome-34.1 M-32.4 M
Net Income Per Share 1.83  1.12 
Income Quality 2.74  2.61 
Net Income Per E B T 0.82  0.53 

Hawaiian Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Hawaiian Electric. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Hawaiian Electric position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Hawaiian Electric's important profitability drivers and their relationship over time.

Use Hawaiian Electric in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Hawaiian Electric position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hawaiian Electric will appreciate offsetting losses from the drop in the long position's value.

Hawaiian Electric Pair Trading

Hawaiian Electric Industries Pair Trading Analysis

The ability to find closely correlated positions to Hawaiian Electric could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hawaiian Electric when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Hawaiian Electric - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Hawaiian Electric Industries to buy it.
The correlation of Hawaiian Electric is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Hawaiian Electric moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hawaiian Electric moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Hawaiian Electric can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Hawaiian Electric position

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Corona Opportunity
Corona Opportunity Theme
Firms that are involved in some capacity in making products or providing services to the public to buttle the virus directly or indirectly. This also includes some defencive and contrarian stocks and ETFs that are managing to avoid the big market correction coused by coronavirus. The Corona Opportunity theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Corona Opportunity Theme or any other thematic opportunities.
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You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
To fully project Hawaiian Electric's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Hawaiian Electric at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Hawaiian Electric's income statement, its balance sheet, and the statement of cash flows.
Potential Hawaiian Electric investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Hawaiian Electric investors may work on each financial statement separately, they are all related. The changes in Hawaiian Electric's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Hawaiian Electric's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.