How Hawaiian Electric Industries Stock Reacts To Fresh Earnings Data

Hawaiian Electric Industries (HE) has just released second quarter 2026 results, providing new data on revenue, profit and earnings per share that can influence how you think about the stock.

At a share price of $11.85, Hawaiian Electric Industries has seen its 7 day share price return fall 7.13% and its 30 day share price return fall 12.68%, while the 1 year total shareholder return is 3.22%. This suggests that short term momentum has faded compared with the longer term picture.

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The latest earnings jump sits alongside a share price that has slipped over the past month. Does Hawaiian Electric Industries still offer a compelling balance between risks and potential rewards on today’s valuation numbers?

Most Popular Narrative: 7.1% Undervalued

At $11.85, the most widely followed narrative on Hawaiian Electric Industries points to a fair value that sits above the current share price, using a 7.32% discount rate and detailed long term earnings assumptions as the anchor.

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.

Curious what sits behind that view on Hawaiian Electric Industries? The narrative relies on projected revenue growth, higher margins and a lower future earnings multiple. The exact mix of those inputs is what drives the gap between today’s price and the stated fair value.

Result: Fair Value of $12.75 (UNDERVALUED)

However, Hawaiian Electric Industries still faces wildfire related litigation and higher mitigation and insurance costs that could pressure margins and weaken the current valuation narrative.

Another View On Hawaiian Electric Industries Valuation

The earlier narrative focuses on analyst targets and earnings assumptions to suggest Hawaiian Electric Industries is 7.1% undervalued. A different lens comes from our DCF model, which estimates future cash flow value at $2.88 per share versus the current $11.85 price, implying the stock screens as expensive on that basis.

When two methods point in opposite directions like this, it raises a simple question for you as an investor. Do you put more weight on analyst earnings paths and multiples, or on a cash flow model that prices in a wider margin of safety over the long run?

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 49 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

This mix of optimism and concern around Hawaiian Electric Industries puts you in the judge’s seat, so move quickly, review the detail and weigh the 4 key rewards and 2 important warning signs

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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.