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HEI is a holding company with its subsidiaries principally engaged in electric utility and non-regulated renewable/sustainable infrastructure businesses operating in the State of Hawaii. As a holding company, HEI s sources of funds are primarily dividends from its Electric utility operating subsidiaries, borrowings, and sales of equity.
Operating margin is thin at 7.62%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 4.1% YoY. The question is whether this is cyclical or a structural shift.
Free cash flow declined 65% versus the prior year, cash generation momentum has weakened. Net debt of $2.47B represents 49.6x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$3.09B
▼ -4.1% YoY
Net Income (TTM)
$130M
▲ +108.9% YoY
Op. Margin
7.32%
▲ +60.6pp YoY
ROIC
4.13%
▲ +29.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$44M
▼ -65.2% YoY
Op. Cash Flow (TTM)
$402M
▼ -19.8% YoY
Net Debt
$2.49B
Cash & Equiv.
$453M
5Y CAGR: +4.1%
5Y CAGR: +1.8%
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