Hawaiian Electric Industries (HE) drew fresh attention on August 7, 2026, after reporting second quarter and year-to-date earnings that showed higher revenue, net income, and earnings per share compared with a year earlier.
See our latest analysis for Hawaiian Electric Industries.
Despite the stronger second quarter figures, Hawaiian Electric Industries’ share price has been under pressure, with a 30 day share price return of down 11.42% and a 90 day share price return of down 14.46%, while the 1 year total shareholder return is roughly flat and the 5 year total shareholder return is down 70.76%. This suggests longer term sentiment has been weak even as investors reassess the stock around the latest results.
If these earnings have you rethinking the power sector, it can help to compare Hawaiian Electric Industries with other grid focused opportunities through our 39 power grid technology and infrastructure stocks
Hawaiian Electric Industries now trades only slightly below the average analyst target, even after the recent share price drop. Is fair value closer to today’s price, or to the broader range of fundamental estimates?
Most Popular Narrative: 8.2% Undervalued
The most followed narrative puts Hawaiian Electric Industries’ fair value at $12.75, slightly above the last close of $11.71, which frames today’s discount as modest rather than extreme.
Recent Hawaii legislation enabling wildfire liability caps, state funding for settlements, and securitization of wildfire safety investments significantly reduces legal and financial risk exposure while supporting large-scale infrastructure upgrades, which is likely to stabilize earnings and improve net margins. Streamlined focus on the core utility business, after divesting non-core assets such as American Savings Bank and Pacific Current's energy facilities, positions Hawaiian Electric to deploy capital more efficiently towards grid modernization and renewable integration, driving long-term asset growth and revenue generation.
Curious what sits behind that $12.75 fair value? The narrative leans heavily on future revenue mix, profitability and a very specific earnings multiple. The detailed blueprint is where the story gets interesting.
Result: Fair Value of $12.75 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, that fair value story for Hawaiian Electric Industries still relies on wildfire litigation and settlement costs staying contained, and on higher wildfire mitigation spending not putting sustained pressure on margins.
Find out about the key risks to this Hawaiian Electric Industries narrative.
Another View On Hawaiian Electric Industries Valuation
The SWS DCF model presents a different perspective on Hawaiian Electric Industries. At a share price of $11.71, the stock is trading well above an estimated future cash flow value of $2.88. On this basis, the shares appear expensive rather than modestly undervalued. Which version of fair value do you find more convincing?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Hawaiian Electric Industries for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 52 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
With such a mixed picture around Hawaiian Electric Industries, it makes sense to move quickly, review the data yourself, and weigh both sides using the 4 key rewards and 2 important warning signs
Looking for more investment ideas beyond Hawaiian Electric Industries?
Hawaiian Electric Industries might be front of mind today, but you do not want to miss other stocks that could fit your goals even better.
- Target resilient cash generators by scanning for companies with strong finances and cleaner balance sheets through the solid balance sheet and fundamentals stocks screener (50 results).
- Spot potential bargains before they attract wider attention by checking the 52 high quality undervalued stocks built around quality and pricing metrics.
- Prioritize consistency and lower volatility by reviewing companies highlighted in the 78 resilient stocks with low risk scores that focus on resilience first.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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