Hawaiian Electric Industries Inc (HE, Financial) has recently experienced a notable surge in its stock price, with a 9.61% gain over the past week and an impressive 28.87% gain over the past three months. The company's market capitalization now stands at $1.7 billion, with the current stock price at $15.4. Despite these gains, the GF Value of $46.16 suggests a significant disparity when compared to the current price, indicating a possible value trap and advising investors to think twice before making an investment decision. This valuation remains consistent with the past GF Value of $49.15 and the past GF Valuation, which also indicated a possible value trap.
Understanding Hawaiian Electric Industries Inc
Hawaiian Electric Industries Inc, operating in the Utilities - Regulated industry, is the parent company of three Hawaii-based regulated utilities and Hawaii's American Savings Bank. The company is committed to renewable energy, with nearly 40% of electricity in its service territory derived from renewable sources. The state of Hawaii aims to achieve 100% renewable energy by 2045, and Hawaiian Electric Industries is a key player in this initiative. 
Profitability Analysis
The company's Profitability Rank is strong at 7/10, indicating a robust position within the industry. Hawaiian Electric Industries boasts an Operating Margin of 9.97%, which is better than 44.38% of 507 companies in the same industry. The ROE stands at 9.44%, surpassing 53.94% of its peers, while the ROA at 1.27% and ROIC at 1.95% also demonstrate the company's ability to generate profits relative to its assets and invested capital. Notably, Hawaiian Electric Industries has maintained profitability for the past 10 years, a testament to its financial stability. 
Growth Prospects
The company's Growth Rank is a solid 6/10. Hawaiian Electric Industries has seen a 9.10% 3-Year Revenue Growth Rate per Share, outperforming 54.43% of 485 companies in the industry. The 5-Year Revenue Growth Rate per Share is 5.10%, and the estimated Total Revenue Growth Rate for the next 3 to 5 years is 3.34%. However, the 3-Year EPS without NRI Growth Rate is 2.60%, and the 5-Year EPS without NRI Growth Rate is 6.40%. The future EPS Growth Rate is projected at -1.08%, which may raise concerns about the company's long-term earnings potential. 
Investor Holdings
Notable investors have taken positions in Hawaiian Electric Industries, with Jim Simons (Trades, Portfolio) holding 1,092,400 shares, representing 0.99% of the company. Steven Cohen (Trades, Portfolio) owns 54,945 shares, and Caxton Associates (Trades, Portfolio) holds 52,327 shares, each with a 0.05% share percentage. These holdings reflect the confidence of seasoned investors in the company's market performance and future outlook.
Competitive Landscape
When compared to its competitors, Hawaiian Electric Industries Inc stands in the middle of the pack in terms of market capitalization. Genie Energy Ltd (GNE, Financial) has a market cap of $779.219 million, while MGE Energy Inc (MGEE, Financial) boasts a larger market cap of $2.63 billion. Via Renewables Inc (VIA, Financial), on the other hand, has a significantly smaller market cap of $34.590 million. This comparison highlights the diverse range of companies within the regulated utilities industry and the varying scales of operation.
Conclusion
In summary, Hawaiian Electric Industries Inc has shown a remarkable stock performance with a 28.87% gain over the past three months. The company's strong profitability and consistent track record over the past decade, coupled with solid growth rates, make it an interesting prospect for investors. However, the current GF Valuation suggests caution, labeling it as a possible value trap. Investors should carefully consider the company's growth prospects and the positions of significant holders before making investment decisions. With its focus on renewable energy and a strategic role in Hawaii's energy future, Hawaiian Electric Industries Inc remains a company to watch in the regulated utilities sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
