Monday, August 17, 2009

Emera Inc

I am reviewing this stock (TSX-EMA) today as I have not reviewed it since September 2008 and the 2008 year end annual statement came in later. I bought this stock in July 2005 and I have made a return of 7.5% per year, including dividends.

If you look at the growth figures for this stock, they basically range from ok to poor. The growth in stock price for the last 5 year period is the best figure at 9% per year. The increase in dividends is low, but they pay out a fairly high proportion of their earnings and cash flow. They have also increased their dividends this year. This shows the company has faith that they will make a decent amount of money this year to pay for it.

When looking at the liquidity ratios, they are lower than 1.50, where I would like to see them. However, the Asset/Liability Ratio is at least over 1.00 and is not much below 1.50 at 1.43. The Return on Equity has been fairly good with the 5 year running average at 10% and the 2008 year end at 9.4%.

I currently have every intention of holding on to this stock. It is doing what I expect it to do. It is a slow plotter and stable stock with a good dividend yield. The yield over the long term is in the 4 and 5% range.

Emera is a holding company in the energy sector. Its principal operating subsidiaries are Nova Scotia Power Inc. and Bangor Hydro-Electric Company. Nova Scotia Power is Nova Scotia's integrated electric utility. Bangor Hydro is an electric distribution utility in Central Maine. Emera has a few smaller operations and investments, such as a minority stake in M & NP pipeline. Its web site is See my spreadsheet at

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at for a list of the stocks for which I have put up spreadsheets.

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