CANADIAN UTILITIES LTD - CUCN 4 1/2 PERP (CU-PR-G.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CU-PR-G - CA1367176429
20.86 CAD
-0.14 (-0.67%)
We assign a fundamental rating of 6 out of 10 to CU-PR-G. CU-PR-G was compared to 19 industry peers in the Multi-Utilities industry. While CU-PR-G belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CU-PR-G is valued quite cheap, but it does not seem to be growing. With these ratings, CU-PR-G could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- CU-PR-G had positive earnings in the past year.
- In the past year CU-PR-G had a positive cash flow from operations.
- Each year in the past 5 years CU-PR-G has been profitable.
- Each year in the past 5 years CU-PR-G had a positive operating cash flow.
1.2 Ratios
- CU-PR-G has a Return On Assets of 2.16%. This is amongst the best in the industry. CU-PR-G outperforms 89.47% of its industry peers.
- CU-PR-G's Return On Equity of 7.68% is amongst the best of the industry. CU-PR-G outperforms 84.21% of its industry peers.
- CU-PR-G has a Return On Invested Capital of 3.86%. This is in the better half of the industry: CU-PR-G outperforms 73.68% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CU-PR-G is in line with the industry average of 3.73%.
- The 3 year average ROIC (3.80%) for CU-PR-G 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
- CU-PR-G's Profit Margin of 14.43% is amongst the best of the industry. CU-PR-G outperforms 89.47% of its industry peers.
- CU-PR-G's Profit Margin has declined in the last couple of years.
- CU-PR-G has a Operating Margin of 31.51%. This is amongst the best in the industry. CU-PR-G outperforms 89.47% of its industry peers.
- In the last couple of years the Operating Margin of CU-PR-G has declined.
- CU-PR-G has a Gross Margin of 88.73%. This is amongst the best in the industry. CU-PR-G outperforms 89.47% of its industry peers.
- In the last couple of years the Gross Margin of CU-PR-G has remained more or less at the same level.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CU-PR-G is destroying value.
- CU-PR-G has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for CU-PR-G has been reduced compared to 5 years ago.
- CU-PR-G has a worse debt/assets ratio than last year.
2.2 Solvency
- CU-PR-G has an Altman-Z score of 0.71. This is a bad value and indicates that CU-PR-G is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.71, CU-PR-G is in line with its industry, outperforming 42.11% of the companies in the same industry.
- CU-PR-G has a debt to FCF ratio of 34.08. This is a negative value and a sign of low solvency as CU-PR-G would need 34.08 years to pay back of all of its debts.
- The Debt to FCF ratio of CU-PR-G (34.08) is better than 94.74% of its industry peers.
- CU-PR-G has a Debt/Equity ratio of 1.68. This is a high value indicating a heavy dependency on external financing.
- CU-PR-G has a better Debt to Equity ratio (1.68) than 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 34.08 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.79
WACC4.86%
2.3 Liquidity
- A Current Ratio of 1.56 indicates that CU-PR-G should not have too much problems paying its short term obligations.
- CU-PR-G's Current ratio of 1.56 is amongst the best of the industry. CU-PR-G outperforms 94.74% of its industry peers.
- A Quick Ratio of 1.48 indicates that CU-PR-G should not have too much problems paying its short term obligations.
- CU-PR-G has a better Quick ratio (1.48) than 94.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
- CU-PR-G shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.13%.
- The Earnings Per Share has been growing slightly by 0.09% on average over the past years.
- CU-PR-G shows a decrease in Revenue. In the last year, the revenue decreased by -0.94%.
- Measured over the past years, CU-PR-G shows a decrease in Revenue. The Revenue has been decreasing by -0.85% on average per year.
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.
- CU-PR-G is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.45% yearly.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- Based on the Price/Earnings ratio of 9.07, the valuation of CU-PR-G can be described as reasonable.
- Based on the Price/Earnings ratio, CU-PR-G is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
- CU-PR-G's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- A Price/Forward Earnings ratio of 8.11 indicates a reasonable valuation of CU-PR-G.
- 100.00% of the companies in the same industry are more expensive than CU-PR-G, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of CU-PR-G to the average of the S&P500 Index (25.83), we can say CU-PR-G is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.07 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CU-PR-G is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, CU-PR-G is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.1 | ||
| EV/EBITDA | 8.38 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of CU-PR-G may justify a higher PE ratio.
PEG (NY)0.8
PEG (5Y)101.31
EPS Next 2Y7.18%
EPS Next 3Y6.77%
5. Dividend
5.1 Amount
- CU-PR-G has a Yearly Dividend Yield of 4.20%, which is a nice return.
- Compared to an average industry Dividend Yield of 5.19, CU-PR-G's dividend is way lower than its industry peers. On top of this 89.47% of the companies listed in the same industry pay a better dividend than CU-PR-G!
- CU-PR-G's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
5.2 History
- The dividend of CU-PR-G has a limited annual growth rate of 0.91%.
- CU-PR-G has paid a dividend for at least 10 years, which is a reliable track record.
- CU-PR-G 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 Years11
5.3 Sustainability
- 107.49% of the earnings are spent on dividend by CU-PR-G. This is not a sustainable payout ratio.
- The dividend of CU-PR-G is growing, but earnings are growing more, so the dividend growth is sustainable.
DP107.49%
EPS Next 2Y7.18%
EPS Next 3Y6.77%
CANADIAN UTILITIES LTD - CUCN 4 1/2 PERP / CU-PR-G.CA FAQ
Can you provide the ChartMill fundamental rating for CANADIAN UTILITIES LTD - CUCN 4 1/2 PERP?
ChartMill assigns a fundamental rating of 6 / 10 to CU-PR-G.CA.
What is the valuation status of CANADIAN UTILITIES LTD - CUCN 4 1/2 PERP (CU-PR-G.CA) stock?
ChartMill assigns a valuation rating of 8 / 10 to CANADIAN UTILITIES LTD - CUCN 4 1/2 PERP (CU-PR-G.CA). This can be considered as Undervalued.
What is the profitability of CU-PR-G stock?
CANADIAN UTILITIES LTD - CUCN 4 1/2 PERP (CU-PR-G.CA) has a profitability rating of 8 / 10.
Can you provide the financial health for CU-PR-G stock?
The financial health rating of CANADIAN UTILITIES LTD - CUCN 4 1/2 PERP (CU-PR-G.CA) is 5 / 10.
Is the dividend of CANADIAN UTILITIES LTD - CUCN 4 1/2 PERP sustainable?
The dividend rating of CANADIAN UTILITIES LTD - CUCN 4 1/2 PERP (CU-PR-G.CA) is 6 / 10 and the dividend payout ratio is 107.49%.