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. While CU-PR-I is still in line with the averages on profitability rating, there are concerns on its financial health. CU-PR-I is valued correctly, but it does not seem to be growing. Finally CU-PR-I also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CU-PR-I had positive earnings in the past year.
In the past year CU-PR-I had a positive cash flow from operations.
CU-PR-I had positive earnings in each of the past 5 years.
Each year in the past 5 years CU-PR-I had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.65%, CU-PR-I perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
CU-PR-I has a Return On Equity (5.67%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.34%, CU-PR-I is doing worse than 85.71% of the companies in the same industry.
CU-PR-I had an Average Return On Invested Capital over the past 3 years of 3.80%. This is in line with the industry average of 3.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 5.67% | ||
| ROIC | 3.34% |
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-I's Profit Margin of 10.63% is in line compared to the rest of the industry. CU-PR-I outperforms 57.14% of its industry peers.
CU-PR-I's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 26.39%, CU-PR-I is in line with its industry, outperforming 57.14% of the companies in the same industry.
CU-PR-I's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 88.20%, CU-PR-I perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Gross Margin of CU-PR-I has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.39% | ||
| PM (TTM) | 10.63% | ||
| GM | 88.2% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CU-PR-I is destroying value.
The number of shares outstanding for CU-PR-I has been increased compared to 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
CU-PR-I has an Altman-Z score of 0.71. This is a bad value and indicates that CU-PR-I 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-I is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
The Debt to FCF ratio of CU-PR-I is 30.24, which is on the high side as it means it would take CU-PR-I, 30.24 years of fcf income to pay off all of its debts.
CU-PR-I has a Debt to FCF ratio of 30.24. This is comparable to the rest of the industry: CU-PR-I outperforms 57.14% of its industry peers.
CU-PR-I has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.60, CU-PR-I perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 30.24 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.67
WACC4.98%
2.3 Liquidity
A Current Ratio of 1.04 indicates that CU-PR-I should not have too much problems paying its short term obligations.
The Current ratio of CU-PR-I (1.04) is comparable to the rest of the industry.
A Quick Ratio of 0.99 indicates that CU-PR-I may have some problems paying its short term obligations.
CU-PR-I has a Quick ratio (0.99) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The earnings per share for CU-PR-I have decreased by -2.16% in the last year.
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.
The Revenue has decreased by -0.53% in the past year.
Measured over the past years, CU-PR-I shows a decrease in Revenue. The Revenue has been decreasing by -0.85% on average per year.
EPS 1Y (TTM)-2.16%
EPS 3Y1.06%
EPS 5Y0.09%
EPS Q2Q%2.41%
Revenue 1Y (TTM)-0.53%
Revenue growth 3Y2.11%
Revenue growth 5Y-0.85%
Sales Q2Q%-0.55%
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.
CU-PR-I is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.89% yearly.
EPS Next Y9.55%
EPS Next 2Y7.16%
EPS Next 3Y6.61%
EPS Next 5Y3.76%
Revenue Next Year0.85%
Revenue Next 2Y2.26%
Revenue Next 3Y2.89%
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.
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
CU-PR-I is valuated reasonably with a Price/Earnings ratio of 11.15.
CU-PR-I's Price/Earnings is on the same level as the industry average.
CU-PR-I's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.18.
CU-PR-I is valuated reasonably with a Price/Forward Earnings ratio of 9.80.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CU-PR-I indicates a somewhat cheap valuation: CU-PR-I is cheaper than 66.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.34, CU-PR-I is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.15 | ||
| Fwd PE | 9.8 |
4.2 Price Multiples
71.43% of the companies in the same industry are cheaper than CU-PR-I, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as CU-PR-I.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.83 | ||
| EV/EBITDA | 8.96 |
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)1.17
PEG (5Y)124.55
EPS Next 2Y7.16%
EPS Next 3Y6.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.54%, CU-PR-I is a good candidate for dividend investing.
CU-PR-I's Dividend Yield is a higher than the industry average which is at 5.45.
Compared to an average S&P500 Dividend Yield of 2.34, CU-PR-I pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
5.2 History
The dividend of CU-PR-I has a limited annual growth rate of 0.91%.
CU-PR-I has paid a dividend for at least 10 years, which is 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
CU-PR-I pays out 141.56% of its income as dividend. 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.
DP141.56%
EPS Next 2Y7.16%
EPS Next 3Y6.61%
CANADIAN UTILITIES LTD - CUCN 4 1/2 PERP
TSX:CU-PR-I (7/15/2025, 7:00:00 PM)
25.2
+0.05 (+0.2%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners14.24%
Inst Owner ChangeN/A
Ins Owners0.3%
Ins Owner ChangeN/A
Market Cap5.17B
Analysts76
Price Target27.25 (8.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
Yearly Dividend2.03
Dividend Growth(5Y)0.91%
DP141.56%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.77%
Min EPS beat(2)-19.54%
Max EPS beat(2)-1.99%
EPS beat(4)2
Avg EPS beat(4)-3.08%
Min EPS beat(4)-19.54%
Max EPS beat(4)7.87%
EPS beat(8)2
Avg EPS beat(8)-2.23%
EPS beat(12)5
Avg EPS beat(12)0.5%
EPS beat(16)9
Avg EPS beat(16)1.2%
Revenue beat(2)0
Avg Revenue beat(2)-17.45%
Min Revenue beat(2)-17.55%
Max Revenue beat(2)-17.35%
Revenue beat(4)2
Avg Revenue beat(4)-4.24%
Min Revenue beat(4)-17.55%
Max Revenue beat(4)11.16%
Revenue beat(8)4
Avg Revenue beat(8)-2.43%
Revenue beat(12)7
Avg Revenue beat(12)1.59%
Revenue beat(16)10
Avg Revenue beat(16)2.94%
PT rev (1m)1.98%
PT rev (3m)2.22%
EPS NQ rev (1m)1.54%
EPS NQ rev (3m)-1.49%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.15 | ||
| Fwd PE | 9.8 | ||
| P/S | 1.38 | ||
| P/FCF | 13.83 | ||
| P/OCF | 2.52 | ||
| P/B | 0.74 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 8.96 |
EPS(TTM)2.26
EY8.97%
EPS(NY)2.57
Fwd EY10.21%
FCF(TTM)1.82
FCFY7.23%
OCF(TTM)10
OCFY39.68%
SpS18.2
BVpS34.12
TBVpS28.56
PEG (NY)1.17
PEG (5Y)124.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 5.67% | ||
| ROCE | 4.33% | ||
| ROIC | 3.34% | ||
| ROICexc | 3.42% | ||
| ROICexgc | 3.6% | ||
| OM | 26.39% | ||
| PM (TTM) | 10.63% | ||
| GM | 88.2% | ||
| FCFM | 10.01% |
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 Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 30.24 | ||
| Debt/EBITDA | 6.6 | ||
| Cap/Depr | 234.36% | ||
| Cap/Sales | 44.91% | ||
| Interest Coverage | 1.96 | ||
| Cash Conversion | 120.56% | ||
| Profit Quality | 94.21% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 0.71 |
F-Score5
WACC4.98%
ROIC/WACC0.67
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)-2.16%
EPS 3Y1.06%
EPS 5Y0.09%
EPS Q2Q%2.41%
EPS Next Y9.55%
EPS Next 2Y7.16%
EPS Next 3Y6.61%
EPS Next 5Y3.76%
Revenue 1Y (TTM)-0.53%
Revenue growth 3Y2.11%
Revenue growth 5Y-0.85%
Sales Q2Q%-0.55%
Revenue Next Year0.85%
Revenue Next 2Y2.26%
Revenue Next 3Y2.89%
Revenue Next 5YN/A
EBIT growth 1Y3.68%
EBIT growth 3Y3.19%
EBIT growth 5Y-5.39%
EBIT Next Year239.73%
EBIT Next 3Y58.42%
EBIT Next 5Y36.01%
FCF growth 1Y-41.1%
FCF growth 3Y-13.47%
FCF growth 5Y0.5%
OCF growth 1Y0.54%
OCF growth 3Y3.72%
OCF growth 5Y7.14%