📊 HE Key Takeaways
Is Hawaiian Electric Industries Inc. (HE) a Good Investment?
Hawaiian Electric Industries faces significant financial stress with dangerously low interest coverage (1.1x) and elevated leverage (1.42x Debt/Equity) that severely constrains financial flexibility. Stagnant revenue growth (+0.4%) combined with minimal free cash flow generation ($49.9M or 1.6% margin) leaves inadequate capacity to service $2.3B in long-term debt, while historically low returns (ROE 7.9%, ROA 1.4%) indicate inefficient capital deployment.
Fundamentals show flat revenue growth with modest net income improvement but very thin profitability and free cash flow. Leverage is elevated and interest coverage at 1.1x leaves little cushion against cost pressures, while capex needs largely consume operating cash flow. Until coverage and FCF improve, risk outweighs the slow growth profile.
Why Buy Hawaiian Electric Industries Inc. Stock? HE Key Strengths
- Stable operating cash flow of $391.1M from regulated utility operations provides predictable revenue base
- Positive net income growth trajectory (+2.6% YoY) demonstrates operational profitability
- Adequate short-term liquidity with current ratio of 1.32x for meeting near-term obligations
- Consistent operating cash flow ($391.07M) supports core operations
- Adequate liquidity with 1.32x current/quick ratios and $501.78M cash
- EPS rebound and slight net income growth suggest some normalization
HE Stock Risks: Hawaiian Electric Industries Inc. Investment Risks
- Critical interest coverage ratio of 1.1x leaves virtually no margin for operational disruption or rate changes; minimal buffer to meet debt obligations
- Debt-to-Equity of 1.42x is elevated; high leverage constrains financial flexibility and limits investment capacity
- Free cash flow of only $49.9M (1.6% margin) is insufficient relative to $2.3B debt load; CapEx requirements ($341.2M) consume 87% of operating cash flow
- Revenue growth stagnation at 0.4% suggests market saturation or regulatory headwinds limiting growth prospects
- Abnormally high EPS growth (+106.3%) appears disconnected from operational growth, suggesting non-recurring items or base effects rather than sustainable earnings power
- Very weak interest coverage (1.1x) heightens refinancing and rate risk
- Elevated leverage (Debt/Equity 1.42x; $2.29B LT debt)
- Thin profitability and cash generation (4.1% net margin; 1.6% FCF margin) with flat revenue (+0.4% YoY)
Key Metrics to Watch
- Interest coverage ratio trend - any decline below 1.1x would signal distress; improvement above 1.2x would be positive
- Free cash flow generation and Debt/Equity ratio - monitor if company can reduce leverage through improved FCF or debt paydown
- Regulatory rate decisions and allowed returns - utility rates directly impact operating margins and debt service capacity
- Interest coverage (EBIT/interest)
- Free cash flow margin
Hawaiian Electric Industries Inc. (HE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.6% FCF margin may limit capital allocation flexibility.
HE Profit Margin, ROE & Profitability Analysis
HE vs Utilities Sector: How Hawaiian Electric Industries Inc. Compares
How Hawaiian Electric Industries Inc. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hawaiian Electric Industries Inc. Stock Overvalued? HE Valuation Analysis 2026
Based on fundamental analysis, Hawaiian Electric Industries Inc. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Hawaiian Electric Industries Inc. Balance Sheet: HE Debt, Cash & Liquidity
HE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hawaiian Electric Industries Inc.'s revenue has grown significantly by 29% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.81 reflects profitable operations.
HE Revenue Growth, EPS Growth & YoY Performance
HE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $799.0M | $84.9M | $0.18 |
| Q2 2025 | $738.7M | $53.7M | $0.15 |
| Q1 2025 | $747.7M | $27.1M | $0.15 |
| Q3 2024 | $822.0M | $41.6M | $0.37 |
| Q2 2024 | $791.0M | $55.1M | $0.50 |
| Q1 2024 | $775.1M | $42.6M | $0.38 |
| Q3 2023 | $822.0M | $41.6M | $0.37 |
| Q2 2023 | $791.0M | $53.0M | $0.48 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Hawaiian Electric Industries Inc. Dividends, Buybacks & Capital Allocation
HE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hawaiian Electric Industries Inc. (CIK: 0000354707)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HE
What is the AI rating for HE?
Hawaiian Electric Industries Inc. (HE) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HE's key strengths?
Claude: Stable operating cash flow of $391.1M from regulated utility operations provides predictable revenue base. Positive net income growth trajectory (+2.6% YoY) demonstrates operational profitability. ChatGPT: Consistent operating cash flow ($391.07M) supports core operations. Adequate liquidity with 1.32x current/quick ratios and $501.78M cash.
What are the risks of investing in HE?
Claude: Critical interest coverage ratio of 1.1x leaves virtually no margin for operational disruption or rate changes; minimal buffer to meet debt obligations. Debt-to-Equity of 1.42x is elevated; high leverage constrains financial flexibility and limits investment capacity. ChatGPT: Very weak interest coverage (1.1x) heightens refinancing and rate risk. Elevated leverage (Debt/Equity 1.42x; $2.29B LT debt).
What is HE's revenue and growth?
Hawaiian Electric Industries Inc. reported revenue of $3.1B.
Does HE pay dividends?
Hawaiian Electric Industries Inc. does not currently pay dividends.
Where can I find HE SEC filings?
Official SEC filings for Hawaiian Electric Industries Inc. (CIK: 0000354707) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HE's EPS?
Hawaiian Electric Industries Inc. has a diluted EPS of $0.71.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HE a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Hawaiian Electric Industries Inc. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HE stock overvalued or undervalued?
Valuation metrics for HE: ROE of 7.9% (sector avg: 10%), net margin of 4.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HE stock in 2026?
Our dual AI analysis gives Hawaiian Electric Industries Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HE's free cash flow?
Hawaiian Electric Industries Inc.'s operating cash flow is $391.1M, with capital expenditures of $341.2M. FCF margin is 1.6%.
How does HE compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 4.1% (avg: 12%), ROE 7.9% (avg: 10%), current ratio 1.32 (avg: 0.8).