CANADIAN UTILITIES LTD - CUCN 4 1/2 PERP (CU-PR-I.CA) Stock Fundamental Analysis
TSX:CU-PR-I - Toronto Stock Exchange - CA1367176262 - Currency: CAD
We assign a fundamental rating of 4 out of 10 to CU-PR-I. CU-PR-I was compared to 21 industry peers in the Multi-Utilities industry. Both the profitability and the financial health of CU-PR-I get a neutral evaluation. Nothing too spectacular is happening here. CU-PR-I has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
CU-PR-I had positive earnings in the past year.
CU-PR-I had a positive operating cash flow in the past year.
In the past 5 years CU-PR-I has always been profitable.
In the past 5 years CU-PR-I always reported a positive cash flow from operatings.
1.2 Ratios
CU-PR-I has a better Return On Assets (1.69%) than 66.67% of its industry peers.
With a decent Return On Equity value of 5.83%, CU-PR-I is doing good in the industry, outperforming 61.90% of the companies in the same industry.
CU-PR-I has a worse Return On Invested Capital (3.33%) than 61.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CU-PR-I is in line with the industry average of 3.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 5.83% | ||
| ROIC | 3.33% |
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-I (10.77%) is better than 66.67% of its industry peers.
CU-PR-I's Profit Margin has declined in the last couple of years.
The Operating Margin of CU-PR-I (25.90%) is better than 66.67% of its industry peers.
In the last couple of years the Operating Margin of CU-PR-I has declined.
The Gross Margin of CU-PR-I (87.20%) is better than 66.67% of its industry peers.
CU-PR-I's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.9% | ||
| PM (TTM) | 10.77% | ||
| GM | 87.2% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CU-PR-I is destroying value.
CU-PR-I has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CU-PR-I has less shares outstanding
CU-PR-I has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.71, we must say that CU-PR-I is in the distress zone and has some risk of bankruptcy.
CU-PR-I's Altman-Z score of 0.71 is amongst the best of the industry. CU-PR-I outperforms 90.48% of its industry peers.
CU-PR-I has a debt to FCF ratio of 34.51. This is a negative value and a sign of low solvency as CU-PR-I would need 34.51 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 34.51, CU-PR-I is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
A Debt/Equity ratio of 1.60 is on the high side and indicates that CU-PR-I has dependencies on debt financing.
CU-PR-I has a Debt to Equity ratio of 1.60. This is comparable to the rest of the industry: CU-PR-I outperforms 52.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 34.51 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.68
WACC4.9%
2.3 Liquidity
A Current Ratio of 1.10 indicates that CU-PR-I should not have too much problems paying its short term obligations.
The Current ratio of CU-PR-I (1.10) is better than 61.90% of its industry peers.
CU-PR-I has a Quick Ratio of 1.05. This is a normal value and indicates that CU-PR-I is financially healthy and should not expect problems in meeting its short term obligations.
CU-PR-I's Quick ratio of 1.05 is fine compared to the rest of the industry. CU-PR-I outperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
CU-PR-I shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.18%.
CU-PR-I shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.09% yearly.
CU-PR-I shows a decrease in Revenue. In the last year, the revenue decreased by -1.42%.
The Revenue has been decreasing by -0.85% on average over the past years.
EPS 1Y (TTM)-2.18%
EPS 3Y1.06%
EPS 5Y0.09%
EPS Q2Q%-15.49%
Revenue 1Y (TTM)-1.42%
Revenue growth 3Y2.11%
Revenue growth 5Y-0.85%
Sales Q2Q%0.72%
3.2 Future
CU-PR-I is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.76% yearly.
The Revenue is expected to grow by 2.89% on average over the next years.
EPS Next Y9.55%
EPS Next 2Y7.16%
EPS Next 3Y6.61%
EPS Next 5Y3.76%
Revenue Next Year0.85%
Revenue Next 2Y2.25%
Revenue Next 3Y2.89%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.01, which indicates a very decent valuation of CU-PR-I.
CU-PR-I's Price/Earnings ratio is a bit cheaper when compared to the industry. CU-PR-I is cheaper than 66.67% of the companies in the same industry.
CU-PR-I is valuated cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.05, which indicates a very decent valuation of CU-PR-I.
CU-PR-I's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CU-PR-I is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.81, CU-PR-I is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 10.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CU-PR-I is valued a bit more expensive than 61.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CU-PR-I is valued a bit cheaper than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.7 | ||
| EV/EBITDA | 9.11 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.15
PEG (5Y)122.97
EPS Next 2Y7.16%
EPS Next 3Y6.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.84%, CU-PR-I is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.20, CU-PR-I has a dividend in line with its industry peers.
CU-PR-I's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.84% |
5.2 History
The dividend of CU-PR-I has a limited annual growth rate of 0.91%.
CU-PR-I has been paying a dividend for at least 10 years, so it has a reliable track record.
CU-PR-I has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)0.91%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
136.48% of the earnings are spent on dividend by CU-PR-I. This is not a sustainable payout ratio.
The dividend of CU-PR-I is growing, but earnings are growing more, so the dividend growth is sustainable.
DP136.48%
EPS Next 2Y7.16%
EPS Next 3Y6.61%
CANADIAN UTILITIES LTD - CUCN 4 1/2 PERP
TSX:CU-PR-I (5/1/2025, 7:00:00 PM)
24.66
-0.34 (-1.36%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners15.17%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap5.06B
Analysts77.14
Price Target25.91 (5.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.84% |
Yearly Dividend2.03
Dividend Growth(5Y)0.91%
DP136.48%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.83%
Min EPS beat(2)-19.54%
Max EPS beat(2)7.87%
EPS beat(4)2
Avg EPS beat(4)-3.12%
Min EPS beat(4)-19.54%
Max EPS beat(4)7.87%
EPS beat(8)3
Avg EPS beat(8)-1.48%
EPS beat(12)6
Avg EPS beat(12)0.97%
EPS beat(16)10
Avg EPS beat(16)1.38%
Revenue beat(2)1
Avg Revenue beat(2)-3.1%
Min Revenue beat(2)-17.35%
Max Revenue beat(2)11.16%
Revenue beat(4)2
Avg Revenue beat(4)-2.82%
Min Revenue beat(4)-17.35%
Max Revenue beat(4)11.16%
Revenue beat(8)5
Avg Revenue beat(8)0.27%
Revenue beat(12)8
Avg Revenue beat(12)4.37%
Revenue beat(16)10
Avg Revenue beat(16)2.93%
PT rev (1m)-6.58%
PT rev (3m)-8.03%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-9.46%
EPS NY rev (1m)0%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 10.05 | ||
| P/S | 1.35 | ||
| P/FCF | 15.7 | ||
| P/OCF | 2.64 | ||
| P/B | 0.73 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 9.11 |
EPS(TTM)2.24
EY9.08%
EPS(NY)2.45
Fwd EY9.95%
FCF(TTM)1.57
FCFY6.37%
OCF(TTM)9.35
OCFY37.91%
SpS18.25
BVpS33.69
TBVpS28.15
PEG (NY)1.15
PEG (5Y)122.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 5.83% | ||
| ROCE | 4.29% | ||
| ROIC | 3.33% | ||
| ROICexc | 3.39% | ||
| ROICexgc | 3.57% | ||
| OM | 25.9% | ||
| PM (TTM) | 10.77% | ||
| GM | 87.2% | ||
| FCFM | 8.61% |
ROA(3y)2.32%
ROA(5y)2.06%
ROE(3y)7.67%
ROE(5y)6.68%
ROIC(3y)3.8%
ROIC(5y)3.75%
ROICexc(3y)3.89%
ROICexc(5y)3.86%
ROICexgc(3y)4.08%
ROICexgc(5y)4.04%
ROCE(3y)4.85%
ROCE(5y)4.79%
ROICexcg growth 3Y-1.78%
ROICexcg growth 5Y-8.85%
ROICexc growth 3Y-2.21%
ROICexc growth 5Y-9.16%
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%
F-Score5
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 34.51 | ||
| Debt/EBITDA | 6.57 | ||
| Cap/Depr | 224.33% | ||
| Cap/Sales | 42.62% | ||
| Interest Coverage | 1.94 | ||
| Cash Conversion | 114.11% | ||
| Profit Quality | 79.9% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 0.71 |
F-Score5
WACC4.9%
ROIC/WACC0.68
Cap/Depr(3y)207.42%
Cap/Depr(5y)191.14%
Cap/Sales(3y)37.24%
Cap/Sales(5y)34.8%
Profit Quality(3y)96.11%
Profit Quality(5y)129.14%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.18%
EPS 3Y1.06%
EPS 5Y0.09%
EPS Q2Q%-15.49%
EPS Next Y9.55%
EPS Next 2Y7.16%
EPS Next 3Y6.61%
EPS Next 5Y3.76%
Revenue 1Y (TTM)-1.42%
Revenue growth 3Y2.11%
Revenue growth 5Y-0.85%
Sales Q2Q%0.72%
Revenue Next Year0.85%
Revenue Next 2Y2.25%
Revenue Next 3Y2.89%
Revenue Next 5YN/A
EBIT growth 1Y-6.47%
EBIT growth 3Y3.19%
EBIT growth 5Y-5.39%
EBIT Next Year241.26%
EBIT Next 3Y58.27%
EBIT Next 5Y36.01%
FCF growth 1Y-26.98%
FCF growth 3Y-13.47%
FCF growth 5Y0.5%
OCF growth 1Y7.7%
OCF growth 3Y3.72%
OCF growth 5Y7.14%