Hawaiian Electric Industries, Inc. (HE) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Hawaiian Electric Industries, Inc. (HE) Utility Operations & Dividend Profile

Hawaiian Electric Industries, Inc. is a diversified utility company providing electricity, banking, and renewable energy infrastructure in Hawaii. With a focus on renewable energy sources, the company serves residential, commercial, and military customers across multiple islands, distinguishing itself through its integrated service offerings.

What Is the Investment Thesis for HE?

Hawaiian Electric Industries presents a mixed investment thesis. The company's commitment to renewable energy sources aligns with Hawaii's sustainability goals, potentially driving long-term growth. However, with a P/E ratio of 8.05 and a modest profit margin of 4.2%, the company's valuation requires careful consideration. The beta of 0.57 suggests lower volatility compared to the market. Key catalysts include ongoing renewable energy projects and infrastructure investments. Potential risks include regulatory challenges, dependence on imported fuel, and the impact of natural disasters on its infrastructure. Investors should closely monitor the company's progress in transitioning to renewable energy and its ability to maintain profitability in a changing regulatory environment.

Based on FMP financials and quantitative analysis

HE Key Highlights

Market Cap of $1.81B reflects the company's significant presence in the Hawaiian utility market.

• P/E Ratio of 8.05 indicates the price investors are willing to pay for each dollar of earnings.
• Profit Margin of 4.2% demonstrates the company's profitability after accounting for all expenses.
• Gross Margin of 5.6% shows the profitability after deducting the cost of goods sold.
• Beta of 0.57 suggests the stock is less volatile than the overall market.

Who Are HE's Competitors?

HE is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are HE's Key Strengths?

Diversified business model with utility, banking, and renewable energy segments.

• Strong presence in the Hawaiian market with a well-established infrastructure.
• Commitment to renewable energy aligns with state sustainability goals.
• Stable revenue streams from regulated utility operations.

What Are HE's Weaknesses?

High dependence on imported fuel for electricity generation.

• Exposure to regulatory risks and environmental regulations.
• Modest profit margins compared to some peers in the utility sector.
• Vulnerability to natural disasters impacting infrastructure.

What Could Drive HE Stock Higher?

Implementation of renewable energy projects to meet Hawaii's 100% renewable energy goal by 2045.

• Infrastructure modernization projects, including smart grid deployment and grid hardening.
• Regulatory approvals for new renewable energy projects and infrastructure investments.
• Expansion of electric vehicle charging infrastructure across the Hawaiian Islands.

What Are the Key Risks for HE?

Financial-distress signal — its Altman Z-Score of 0.63 sits in the distress zone (elevated bankruptcy risk).

• Inconsistent delivery — missed Wall Street EPS estimates in 5 of the last 8 reported quarters.
• Regulatory changes impacting renewable energy incentives and utility operations.
• Dependence on imported fuel prices affecting electricity generation costs.
• Natural disasters, such as hurricanes and earthquakes, disrupting operations and damaging infrastructure.
• Economic downturns reducing electricity demand and impacting banking operations.

What Are the Growth Opportunities for HE?

• Expansion of Renewable Energy Portfolio: Hawaii's aggressive renewable energy goals present a significant growth opportunity for Hawaiian Electric. The state aims to achieve 100% renewable energy by 2045, creating a strong demand for renewable energy projects. HE can capitalize on this by developing new solar, wind, and geothermal projects, potentially increasing its market share and revenue. This expansion requires substantial investment but offers long-term revenue stability and aligns with environmental regulations.
• Infrastructure Modernization: Upgrading existing infrastructure to improve efficiency and reliability is another key growth area. Investments in smart grids, advanced metering infrastructure (AMI), and grid hardening can reduce energy losses, improve outage response times, and enhance overall system performance. These upgrades can also facilitate the integration of distributed energy resources, such as rooftop solar, further supporting the transition to renewable energy. Modernization efforts can attract regulatory support and incentives, enhancing the financial viability of these projects.
• Electric Vehicle (EV) Infrastructure Development: The increasing adoption of electric vehicles in Hawaii creates a demand for EV charging infrastructure. Hawaiian Electric can play a crucial role in developing and deploying charging stations across the islands, both for residential and commercial customers. This includes investing in fast-charging technology and integrating EV charging with the grid to manage peak demand. By becoming a leader in EV infrastructure, HE can capture a growing market and support the state's transportation electrification goals.
• Diversification of Banking Services: Hawaiian Electric's banking segment can expand its services to cater to the evolving needs of its customers. This includes offering innovative financial products, such as green loans for renewable energy projects and energy-efficient upgrades. Expanding digital banking services and enhancing customer experience can also attract new customers and increase market share. Diversification can provide a stable revenue stream and reduce reliance on the utility business.
• Sustainable Infrastructure Investments: The 'Other' segment focused on non-regulated renewable energy and sustainable infrastructure offers growth potential through strategic investments. Identifying and investing in promising renewable energy technologies and sustainable projects can generate attractive returns and contribute to Hawaii's sustainability goals. This includes exploring opportunities in energy storage, microgrids, and other innovative solutions. These investments can provide diversification and long-term growth potential.

What Threats Does HE Face?

• Increasing competition from alternative energy providers.
• Potential for stricter environmental regulations and carbon taxes.
• Impact of economic downturns on electricity demand and banking operations.
• Risk of natural disasters disrupting operations and damaging infrastructure.

What Are HE's Competitive Advantages?

• Geographic Monopoly: Operates as the primary electricity provider in Hawaii, creating a natural monopoly.
• Integrated Services: Offers a combination of utility and banking services, providing diversification.
• Regulatory Advantages: Benefits from regulatory support for renewable energy initiatives.
• Established Infrastructure: Possesses a well-established infrastructure network across the Hawaiian Islands.

What Does HE Do?

Hawaiian Electric Industries, Inc. (HE) was incorporated in 1891 and is headquartered in Honolulu, Hawaii. The company operates as a diversified entity with core businesses in electric utility services, banking, and renewable/sustainable infrastructure investments. Its Electric Utility segment focuses on the generation, transmission, distribution, and sale of electricity to customers on Oahu, Hawaii, Maui, Lanai, and Molokai. This segment is committed to incorporating renewable energy sources such as wind, solar, photovoltaic, geothermal, wave, hydroelectric, municipal waste, and biofuels. The Bank segment, operating as a community bank, provides financial services including savings and checking accounts, residential and commercial real estate loans, and consumer loans through its 42 branches across the Hawaiian Islands. The Other segment focuses on investments in non-regulated renewable energy and sustainable infrastructure projects within Hawaii. HE serves a diverse customer base, including suburban communities, resorts, U.S. armed forces installations, and agricultural operations, making it a critical infrastructure provider in the state.

What Products and Services Does HE Offer?

• Generates, transmits, and distributes electricity to customers on multiple Hawaiian islands.
• Operates a community bank offering financial services to consumers and businesses.
• Invests in renewable energy and sustainable infrastructure projects.
• Focuses on incorporating renewable energy sources like wind, solar, and geothermal.
• Provides banking services through 42 branches across Hawaii.
• Serves residential, commercial, and military customers.

How Does HE Make Money?

• Generates revenue through the sale of electricity to residential, commercial, and government customers.
• Earns income from banking services, including loans, deposits, and fees.
• Receives revenue from investments in renewable energy projects.
• Focuses on regulated utility operations and non-regulated investments.

What Industry Does HE Operate In?

Hawaiian Electric Industries operates within the diversified utilities sector, facing increasing pressure to transition to renewable energy sources. The industry is characterized by high capital expenditures and regulatory oversight. The Hawaiian market is unique due to its geographic isolation and dependence on imported fuel, creating both challenges and opportunities for HE. The company's focus on renewable energy aligns with the global trend towards sustainability, but it must navigate the complexities of integrating these sources into its existing infrastructure. Competitors like AVA: Avista Corporation and CTRI: Centuri Holdings, Inc. operate in different geographic markets, but share similar challenges related to infrastructure development and regulatory compliance.

Who Are HE's Key Customers?

• Residential customers across Oahu, Hawaii, Maui, Lanai, and Molokai.
• Commercial businesses, including resorts and agricultural operations.
• United States armed forces installations.
• Government entities and public sector organizations.

Hawaiian Electric Industries, Inc. Financial Trajectory

Hawaiian Electric Industries, Inc. (HE) reported $939.7M in revenue for Q2 FY2026, reflecting 25.9% growth compared to the prior quarter. The company recorded net income of $123.2M, with diluted EPS of $0.71. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Utilities. Across the four most recent quarters, HE averaged $0.33 in diluted EPS.

Company Profile

Hawaiian Electric Industries, Inc. operates in the Regulated Electric industry within the Utilities sector. It is headquartered in Honolulu, US. The company is led by CEO Scott W. H. Seu. HE has traded publicly since 1964.

How Hawaiian Electric Industries, Inc. Is Valued

Hawaiian Electric Industries, Inc. carries a market capitalization of $1.81B, placing it in the small-cap category. Analyst price targets span from $11.75 to $12.00, with a consensus of $11.88. At the current price of $10.47, that implies approximately 13% upside potential. Relative to its peer group, HE's quantitative score of 28/100 is below the peer average of 64/100.

Return on equity for Hawaiian Electric Industries, Inc. stands at 13.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.7%, showing how much profit it generates from its asset base. HE trades at a trailing price-to-earnings ratio of 8.05, below the Utilities sector average of ~16.60x. Its free cash flow yield is -28.8%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.99 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 11.5%, the inverse of the P/E and a quick read on earnings relative to price.

Hawaiian Electric Industries, Inc.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.63 places it in the distress zone, a signal of elevated financial risk.

Hawaiian Electric Industries, Inc. has missed Wall Street's EPS estimate in 5 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 5.7% above estimates on average.

Over the past six months, Hawaiian Electric Industries, Inc. insiders filed 10 SEC Form 4 transactions — 0 sales and 10 purchases. On net that is roughly 92K shares acquired (about $0) — insiders putting money in tends to read as conviction.

HE Financials

HE Latest News

HE Analyst Consensus

HE MoonshotScore

Hawaiian Electric Industries, Inc. Utilities Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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