CANADIAN UTILITIES LTD - CUCN 4.9 PERP (CU-PR-D.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CU-PR-D - CA1367176759
22.43 CAD
0 (0%)
CU-PR-D gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 19 industry peers in the Multi-Utilities industry. CU-PR-D has only an average score on both its financial health and profitability. CU-PR-D is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- CU-PR-D had positive earnings in the past year.
- In the past year CU-PR-D had a positive cash flow from operations.
- CU-PR-D had positive earnings in each of the past 5 years.
- In the past 5 years CU-PR-D always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of CU-PR-D (2.16%) is better than 68.42% of its industry peers.
- CU-PR-D has a Return On Equity of 7.68%. This is in the better half of the industry: CU-PR-D outperforms 63.16% of its industry peers.
- The Return On Invested Capital of CU-PR-D (3.86%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CU-PR-D is in line with the industry average of 3.73%.
- The 3 year average ROIC (3.80%) for CU-PR-D is below the current ROIC(3.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 7.68% | ||
| ROIC | 3.86% |
ROA(3y)2.32%
ROA(5y)2.06%
ROE(3y)7.67%
ROE(5y)6.68%
ROIC(3y)3.8%
ROIC(5y)3.75%
1.3 Margins
- The Profit Margin of CU-PR-D (14.43%) is better than 68.42% of its industry peers.
- In the last couple of years the Profit Margin of CU-PR-D has declined.
- The Operating Margin of CU-PR-D (31.51%) is better than 68.42% of its industry peers.
- In the last couple of years the Operating Margin of CU-PR-D has declined.
- CU-PR-D has a Gross Margin of 88.73%. This is in the better half of the industry: CU-PR-D outperforms 68.42% of its industry peers.
- CU-PR-D's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.51% | ||
| PM (TTM) | 14.43% | ||
| GM | 88.73% |
OM growth 3Y1.06%
OM growth 5Y-4.58%
PM growth 3Y4.89%
PM growth 5Y-13.81%
GM growth 3Y1.25%
GM growth 5Y0.22%
2. Health
2.1 Basic Checks
- CU-PR-D has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, CU-PR-D has more shares outstanding
- The number of shares outstanding for CU-PR-D has been reduced compared to 5 years ago.
- Compared to 1 year ago, CU-PR-D has a worse debt to assets ratio.
2.2 Solvency
- CU-PR-D has an Altman-Z score of 0.72. This is a bad value and indicates that CU-PR-D is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.72, CU-PR-D is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
- The Debt to FCF ratio of CU-PR-D is 34.08, which is on the high side as it means it would take CU-PR-D, 34.08 years of fcf income to pay off all of its debts.
- CU-PR-D has a better Debt to FCF ratio (34.08) than 73.68% of its industry peers.
- A Debt/Equity ratio of 1.68 is on the high side and indicates that CU-PR-D has dependencies on debt financing.
- The Debt to Equity ratio of CU-PR-D (1.68) is better than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 34.08 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.78
WACC4.93%
2.3 Liquidity
- A Current Ratio of 1.56 indicates that CU-PR-D should not have too much problems paying its short term obligations.
- CU-PR-D has a Current ratio of 1.56. This is in the better half of the industry: CU-PR-D outperforms 73.68% of its industry peers.
- A Quick Ratio of 1.48 indicates that CU-PR-D should not have too much problems paying its short term obligations.
- The Quick ratio of CU-PR-D (1.48) is better than 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
- The earnings per share for CU-PR-D have decreased by -2.13% in the last year.
- The Earnings Per Share has been growing slightly by 0.09% on average over the past years.
- The Revenue has decreased by -0.94% in the past year.
- The Revenue has been decreasing by -0.85% on average over the past years.
EPS 1Y (TTM)-2.13%
EPS 3Y1.06%
EPS 5Y0.09%
EPS Q2Q%5.26%
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y2.11%
Revenue growth 5Y-0.85%
Sales Q2Q%-2.22%
3.2 Future
- The Earnings Per Share is expected to grow by 5.88% on average over the next years.
- The Revenue is expected to grow by 1.45% on average over the next years.
EPS Next Y11.35%
EPS Next 2Y7.18%
EPS Next 3Y6.77%
EPS Next 5Y5.88%
Revenue Next Year-4.75%
Revenue Next 2Y-0.31%
Revenue Next 3Y1.45%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 9.75 indicates a reasonable valuation of CU-PR-D.
- Based on the Price/Earnings ratio, CU-PR-D is valued a bit cheaper than 68.42% of the companies in the same industry.
- CU-PR-D is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- CU-PR-D is valuated reasonably with a Price/Forward Earnings ratio of 8.72.
- Based on the Price/Forward Earnings ratio, CU-PR-D is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
- CU-PR-D's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 8.72 |
4.2 Price Multiples
- CU-PR-D's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, CU-PR-D is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.01 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
- CU-PR-D's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- CU-PR-D has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.86
PEG (5Y)108.93
EPS Next 2Y7.18%
EPS Next 3Y6.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.20%, CU-PR-D is a good candidate for dividend investing.
- CU-PR-D's Dividend Yield is slightly below the industry average, which is at 5.19.
- Compared to an average S&P500 Dividend Yield of 1.81, CU-PR-D pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
5.2 History
- The dividend of CU-PR-D has a limited annual growth rate of 0.91%.
- CU-PR-D has been paying a dividend for at least 10 years, so it has a reliable track record.
- CU-PR-D has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.91%
Div Incr Years0
Div Non Decr Years12
5.3 Sustainability
- CU-PR-D pays out 107.49% of its income as dividend. This is not a sustainable payout ratio.
- CU-PR-D's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP107.49%
EPS Next 2Y7.18%
EPS Next 3Y6.77%
CANADIAN UTILITIES LTD - CUCN 4.9 PERP / CU-PR-D.CA FAQ
What is the fundamental rating for CU-PR-D stock?
ChartMill assigns a fundamental rating of 5 / 10 to CU-PR-D.CA.
What is the valuation status for CU-PR-D stock?
ChartMill assigns a valuation rating of 6 / 10 to CANADIAN UTILITIES LTD - CUCN 4.9 PERP (CU-PR-D.CA). This can be considered as Fairly Valued.
What is the profitability of CU-PR-D stock?
CANADIAN UTILITIES LTD - CUCN 4.9 PERP (CU-PR-D.CA) has a profitability rating of 6 / 10.
What is the valuation of CANADIAN UTILITIES LTD - CUCN 4.9 PERP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CANADIAN UTILITIES LTD - CUCN 4.9 PERP (CU-PR-D.CA) is 9.75 and the Price/Book (PB) ratio is 0.66.
How sustainable is the dividend of CANADIAN UTILITIES LTD - CUCN 4.9 PERP (CU-PR-D.CA) stock?
The dividend rating of CANADIAN UTILITIES LTD - CUCN 4.9 PERP (CU-PR-D.CA) is 6 / 10 and the dividend payout ratio is 107.49%.