Hawaiian Electric Industries, Inc. (HE) vs Terrestrial Energy Inc. (IMSR)

Hawaiian Electric Industries, Inc. and Terrestrial Energy Inc. are both Utilities Regulated Electric companies. Hawaiian Electric Industries, Inc. is the larger, with a market value of $1.6B against $464.0M — 3.4× the size. Terrestrial Energy Inc. has negative trailing earnings, so its P/E is not meaningful; Hawaiian Electric Industries, Inc. trades at 7.0×. Hawaiian Electric Industries, Inc. has the higher net margin (6.82% vs 0.00%) and the higher return on invested capital (5.49% vs −296.3%). Across the 13 metrics below, Hawaiian Electric Industries, Inc. leads on 9 and Terrestrial Energy Inc. on 4.

Valuation

Metric HE IMSR Utilities Regulated Electric median
P/E 7.00 n/m 18.84
P/S 0.48 n/m 2.52
P/B 0.89 1.62 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 6.27 n/m 11.82
EV/Sales 1.29 n/m 4.58
Earnings yield 14.29% (8.89%) 5.30%
Free cash flow yield (36.00%) (5.71%) (5.06%)

Profitability

Metric HE IMSR Utilities Regulated Electric median
Gross margin 13.15% — 66.28%
Operating margin 11.48% 0.00% 21.79%
Net margin 6.82% 0.00% 12.94%
Free cash flow margin (17.23%) 0.00% (11.51%)
Return on equity 13.59% (26.46%) 9.75%
Return on assets 2.68% (13.36%) 2.75%
Return on invested capital 5.49% (296.34%) 3.87%

Growth

Metric HE IMSR Utilities Regulated Electric median
Revenue growth (TTM) 5.11% — 7.43%
EPS growth (last fiscal year) 106.32% (105.16%) —
Revenue growth, 5-year CAGR 3.65% — 6.75%
Net income growth, 5-year CAGR (9.05%) — 6.44%

Health

Metric HE IMSR Utilities Regulated Electric median
Debt to equity 1.57 0.00 1.53
Current ratio 0.99 44.53 0.81
Net debt to EBITDA 3.62 13.60 5.25

Dividend

Metric HE IMSR Utilities Regulated Electric median
Dividend yield 11.02% — 4.33%
Payout ratio 0.68 — 0.66

Size

Metric HE IMSR Utilities Regulated Electric median
Market cap 1.58b 464.02m 22.90b

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