Hawaiian Electric (HE) | News Based Sentiment Analysis

• On October 1st, Trefis published an analysis forecasting an 8.5% upside for Hawaiian Electric Industries (HE) over the next three years, suggesting potential outperformance compared to NRG Energy. This forecast is based on an estimated Last Twelve Months (LTM) revenue of $2.9 billion for HE.
• Despite the optimistic long-term outlook, Trefis noted recent performance challenges, with a recent quarter growth of -6.2% and LTM growth of -4.4%. Over the past three years, HE has averaged an LTM growth rate of -2.6%, indicating a recent trend of declining revenue.
• Currently, HE's Price-to-Sales (P/S) ratio stands at 0.7, and its Price-to-Earnings Before Interest and Taxes (P/EBIT) ratio is 21.4. These ratios provide a snapshot of how the market values HE relative to its revenue and earnings.
• Hawaiian Electric Industries currently has a market capitalization of $1.9 billion. This figure represents the total value of the company as determined by the stock market.

The Investment Story: Hawaiian Electric Industries presents a mixed investment picture, with a projected long-term upside offset by recent revenue declines. The analysis suggests potential for growth, but investors should carefully consider the recent performance trends.

What It Means for Investors: The 8.5% upside forecast offers a potential return, but the negative recent growth rates (-6.2% quarterly, -4.4% LTM) indicate challenges. Investors should weigh the long-term projections against the short-term performance before making a decision.

Looking Ahead: Investors should monitor HE's revenue growth in the coming quarters to see if the company can reverse the recent downward trend and achieve the projected 1.6% annual growth rate. Tracking the P/S and P/EBIT ratios will also be crucial.

The Bottom Line: Hawaiian Electric Industries is a potentially undervalued stock with a projected upside, but recent performance raises concerns. A cautious approach, focused on monitoring future revenue growth, is warranted.