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AES vs EMA

AES
The AES Corporation
NEUTRAL
Price
$14.25
Market Cap
$10.15B
Sector
Utilities
AI Confidence
65%
EMA
Emera Incorporated
NEUTRAL
Price
$52.58
Market Cap
$16.08B
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
AES
9.63
EMA
21.29
Forward P/E
AES
6.16
EMA
19.92
P/B Ratio
AES
2.63
EMA
1.82
P/S Ratio
AES
0.84
EMA
1.83
EV/EBITDA
AES
14.64
EMA
11.45

Profitability

Gross Margin
AES
17.27%
EMA
43.81%
Operating Margin
AES
20.5%
EMA
13.91%
Profit Margin
AES
8.74%
EMA
12.41%
ROE
AES
5.11%
EMA
8.17%
ROA
AES
2.27%
EMA
2.96%

Growth

Revenue Growth
AES
1.9%
EMA
13.8%
Earnings Growth
AES
25.3%
EMA
-56.9%

Financial Health

Debt/Equity
AES
3.03
EMA
1.61
Current Ratio
AES
0.72
EMA
0.66
Quick Ratio
AES
0.38
EMA
0.32

Dividends

Dividend Yield
AES
4.82%
EMA
4.02%
Payout Ratio
AES
46.08%
EMA
86.02%

AI Verdict

AES NEUTRAL

The AES Corporation exhibits a weak financial health profile with a Piotroski F-Score of 4/9, indicating borderline stability, and lacks an Altman Z-Score to confirm safety from distress. While the stock appears undervalued based on a low P/E of 9.63 and forward P/E of 6.16 relative to sector peers, and trades near its Graham Number of $13.44, high leverage (Debt/Equity: 3.03) and weak liquidity (Current Ratio: 0.72) raise concerns. Strong recent earnings growth (YoY +25.3%, Q/Q +26.8%) and a solid dividend yield of 4.82% provide support, but inconsistent quarterly earnings beats (1 of last 4) and bearish technical trend (10/100) limit upside conviction. Analysts recommend a 'buy' with a target of $15.21, implying modest upside, aligning with a neutral stance.

Strengths
Attractive valuation with P/E (9.63) and forward P/E (6.16) well below sector average (20.74)
Dividend yield of 4.82% is high and supported by a sustainable payout ratio of 46.08%
Recent earnings growth is strong: 25.3% YoY and 26.8% Q/Q
Risks
Weak Piotroski F-Score of 4/9 indicates fragile financial health and operational instability
Very high Debt/Equity ratio of 3.03, significantly above sector average of 1.73, increasing financial risk
Poor liquidity with Current Ratio (0.72) and Quick Ratio (0.38) below 1.0, indicating short-term solvency concerns
EMA NEUTRAL

Emera Inc. presents a conflicting profile: while it maintains a stable Piotroski F-Score of 4/9 and strong revenue growth, it is plagued by a severe collapse in earnings (-56.9% YoY). The stock is currently trading at a significant premium to both its Graham Number ($40.09) and its growth-based intrinsic value ($17.29). While the company outperforms sector averages in profit margins and ROE, critical liquidity risks are evident in the current and quick ratios. The overall outlook is tempered by a highly bearish technical trend and a dangerously high dividend payout ratio.

Strengths
Strong revenue growth (13.8% YoY) outperforming several peers
Profit margins (12.41%) and ROE (8.17%) are significantly higher than the sector average
P/E ratio (21.29) is lower than the utility sector average (26.52)
Risks
Severe earnings contraction (-56.9% YoY) indicating operational or cost pressures
Poor short-term liquidity with a Current Ratio of 0.66 and Quick Ratio of 0.32
High dividend payout ratio (86.02%) which may be unsustainable given earnings declines

Compare Another Pair

AES vs EMA: Head-to-Head Comparison

This page compares The AES Corporation (AES) and Emera Incorporated (EMA) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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