DTB - Hawaiian Electric Industries: Very Strong Finances But Litigation Risks Cast A Shadow

2024-04-17 08:30:00 ET

Summary

• Hawaiian Electric Industries is the largest electric utility in Hawaii, providing 95% of the state's electricity.
• The company has suspended its dividend and taken measures to strengthen its balance sheet due to litigation over its role in the Maui wildfires.
• There is uncertainty surrounding the potential consequences of the litigation, but investors could see substantial upside if the company is deemed innocent.
• The potential downside here is almost a total wipeout for common shareholders, as there is no real way that the company could pay a huge judgment.
• The company's finances are strong, and it might be worth taking a chance if you have some money that you do not need.

Hawaiian Electric Industries, Inc. ( HE ) is an electric utility that, as the name implies, serves the U.S. state of Hawaii. In fact, the company has nearly a monopoly on the provision of electricity, as it provides roughly 95% of all of the electricity consumed in the state. The company also owns the American Savings Bank, which is one of the largest banks in Hawaii....

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