TacticScaleWhat Hawaiian Electric Industries Does & How It Makes Money (HE)
Updated October 2026 · reflects Hawaiian Electric Industries's latest reported financials
Hawaii's main electric utility, powering Oahu, Hawaii Island and Maui County. It earns most of its revenue by selling electricity to customers at rates approved by regulators, recovering its generation, purchased-power and grid costs.
How Hawaiian Electric Industries makes money
It earns most of its revenue by selling electricity to customers at rates approved by regulators, recovering its generation, purchased-power and grid costs. A smaller share comes from investments in non-regulated renewable energy and sustainable infrastructure in Hawaii.
What Hawaiian Electric Industries does
Hawaiian Electric Industries, founded in 1891 and headquartered in Honolulu, is the holding company for the regulated electric utility serving Hawaii's main island grids: Oahu, Hawaii Island, and Maui, Lanai and Molokai. It produces, purchases, transmits, distributes and sells electricity to residential areas, suburban communities, resorts, U.S. Armed Forces installations and agricultural operations. Because each island runs its own isolated grid, the company draws on a mix of conventional generation and renewable sources, including wind, solar, geothermal, wave, hydroelectric, municipal waste and biofuels. Beyond the regulated utility, it invests in non-regulated renewable energy and sustainable infrastructure within Hawaii, making it a pure-play bet on the state's power sector and energy transition.
Products & services
- Electricity generation
- Purchased renewable power (wind, solar, geothermal, hydro)
- Electric transmission and distribution
- Retail electricity service for Oahu, Hawaii Island and Maui County
- Non-regulated renewable energy and infrastructure investments
What is Hawaiian Electric Industries worth?
On an owner-earnings DCF, Hawaiian Electric Industries's most-likely value is about $6 versus a recent price near $9 (35% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$4) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 29.0× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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