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The Bull Case For Hawaiian Electric Industries (HE) Could Change Following S&P SmallCap 600 Inclusion Amid Litigation

Simply Wall St · 2d ago
  • Hawaiian Electric Industries recently learned it will be added to the S&P SmallCap 600 index in December 2025, even as court challenges delay Maui wildfire settlement payments until at least early 2026.
  • This combination of index inclusion and slower-than-expected settlement progress highlights how improving market visibility intersects with ongoing legal and financial uncertainty for the utility.
  • We’ll now examine how the planned S&P SmallCap 600 inclusion could reshape Hawaiian Electric’s investment narrative amid ongoing wildfire litigation.

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Hawaiian Electric Industries Investment Narrative Recap

To own Hawaiian Electric Industries today, you need to believe the utility can work through wildfire liabilities while maintaining a viable, regulated earnings base in Hawaii. The S&P SmallCap 600 inclusion may improve liquidity and visibility, but the key near term catalyst remains progress on Maui wildfire settlements, while the biggest risk is that delayed or higher than expected payouts strain cash flow and balance sheet flexibility. The index change itself does not materially alter that risk profile.

The company’s continued investment in projects like Maui’s first large standalone battery energy storage system ties directly into its clean energy and grid resilience goals, which are central to long term growth plans and regulatory support. However, these capital intensive initiatives sit alongside the need to fund wildfire related obligations, so any shifts in financing costs, debt capacity or regulatory treatment could influence how quickly Hawaiian Electric can turn these projects into stable, regulated earnings.

Yet even with index inclusion ahead, investors should be aware of how unresolved wildfire liabilities could still affect...

Read the full narrative on Hawaiian Electric Industries (it's free!)

Hawaiian Electric Industries' narrative projects $3.7 billion revenue and $145.4 million earnings by 2028. This requires 6.2% yearly revenue growth and an earnings increase of about $186.7 million from -$41.3 million today.

Uncover how Hawaiian Electric Industries' forecasts yield a $10.75 fair value, a 6% downside to its current price.

Exploring Other Perspectives

HE 1-Year Stock Price Chart
HE 1-Year Stock Price Chart

Four fair value estimates from the Simply Wall St Community range from about US$4 to over US$6,000 per share, showing just how far apart individual views can be. When you set those opinions against the ongoing wildfire litigation risk and delayed settlement timeline, it becomes even more important to compare several perspectives before deciding how Hawaiian Electric might fit into your portfolio.

Explore 4 other fair value estimates on Hawaiian Electric Industries - why the stock might be a potential multi-bagger!

Build Your Own Hawaiian Electric Industries Narrative

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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.