Emera

The business

Emera is an energy holding company operating rate-regulated electric and gas utilities across Canada (Nova Scotia Power), the U.S. (Tampa Electric and Peoples Gas in Florida, plus New Mexico) and the Caribbean.

Roughly the bulk of earnings come from regulated operations, with Florida's Tampa Electric the largest single earnings contributor and primary growth engine.

Trailing-twelve-month revenue of ~C$8.9B (period ended Mar 31, 2026), up ~13% year over year, reflects rate increases and customer growth across its regulated footprint.

The moat

Regulated monopoly utilities carry high barriers to entry and predictable, regulator-approved returns on a growing rate base.

Geographic and regulatory diversification across multiple jurisdictions smooths single-regulator risk.

Long-life transmission and distribution assets are effectively irreplaceable, giving durable, defensive cash generation.

Financial snapshot

Most recent reported period : Q1 FY2026 (TTM ended Mar 31, 2026). Figures reflect the review date — confirm current numbers before acting.

Free cash flow yield & sustainable growth

Free cash flow yield : ≈-8.1% (est.)FCF yield ≈ -8.1%: TTM free cash flow of -C$1.85B (C$1.84B operating cash flow minus C$3.69B capex) on a ~C$22.9B market cap. Structurally negative, funded by debt and equity to grow the regulated rate base.

Free cash flow is structurally negative (-C$1.85B TTM) because capital spending of ~C$3.7B far exceeds C$1.8B of operating cash flow.

This is normal for a regulated utility in build-out: growth is funded by debt and equity, and value accrues through an expanding regulated rate base rather than self-funded free cash.

Sustainable growth therefore depends on regulatory approval of its multi-year capital program and constructive rate outcomes, not on FCF conversion.

See the full free-cash-flow yield ranking →

Valuation & what to watch

At ~C$73.66 the shares trade around 22.7x trailing earnings and a market cap near C$22.9B.

That multiple is a premium for a regulated utility, reflecting the market pricing in visible rate-base-driven earnings growth rather than any near-term free cash generation.

The ~3.9% dividend yield is the primary tangible return to shareholders today.

Dividend

Annualized dividend of ~C$2.93 per share, a yield of roughly 3.9%. Emera has a long multi-decade record of consecutive annual increases. On trailing EPS of C$3.29 the payout is high (~89%), typical for the sector but leaving limited cushion, so dividend growth has been kept modest.

Risks & the bear case

• Chronically negative free cash flow means continued reliance on debt and equity markets; higher rates raise financing costs and can pressure the balance sheet.
• High payout ratio leaves little margin for error if a rate case disappoints.
• Regulatory risk across Nova Scotia, Florida and other jurisdictions can cap allowed returns.
• Elevated leverage is a persistent credit-rating watch item for capital-heavy utilities.

Recent developments

Trailing-twelve-month results through Q1 2026 showed revenue up ~13% and EPS up ~12% year over year, driven by regulated rate increases and Florida customer growth.

Capital expenditures continued to run near C$3.7B annually to fund rate-base expansion.

The dividend was maintained at an annualized ~C$2.93.

Verdict

Emera is a classic defensive regulated utility: predictable regulated earnings, a long dividend record, and a ~3.9% yield, but structurally negative free cash flow and a high payout mean the story is entirely about rate-base growth and constructive regulation, not cash generation. Suited to income-oriented investors comfortable with heavy leverage and capital-market dependence; the premium earnings multiple leaves little valuation cushion if rate cases or financing conditions turn. CoinCompass publishes analysis, not advice.