📊 HE Key Takeaways
Is HE a Good Investment? Thesis Analysis
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.
Why Buy 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
HE Investment Risks to Consider
- 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
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
HE Financial Metrics
💡 AI Analyst Insight
The relatively thin 1.6% FCF margin may limit capital allocation flexibility.
HE Profitability Ratios
HE vs Default Sector
How HAWAIIAN ELECTRIC INDUSTRIES INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HE Overvalued or Undervalued?
Based on fundamental analysis, HAWAIIAN ELECTRIC INDUSTRIES INC shows some fundamental concerns relative to the Default 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.
HE Balance Sheet & Liquidity
HE 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
HE Quarterly 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.
HE Capital Allocation
HE SEC 10-K & 10-Q Filing 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 an AI rating of SELL with 72% 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.
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.
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: 15%), 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 Default stocks?
Vs Default sector averages: Net margin 4.1% (avg: 12%), ROE 7.9% (avg: 15%), current ratio 1.32 (avg: 1.8).