CANADIAN UTILITIES LTD - CUCN 5.6 PERP (CU-PR-K.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CU-PR-K -
25.2 CAD
0 (0%)
We assign a fundamental rating of 4 out of 10 to CU-PR-K. CU-PR-K was compared to 19 industry peers in the Multi-Utilities industry. While CU-PR-K is still in line with the averages on profitability rating, there are concerns on its financial health. CU-PR-K 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-K had positive earnings in the past year.
- In the past year CU-PR-K had a positive cash flow from operations.
- CU-PR-K had positive earnings in each of the past 5 years.
- In the past 5 years CU-PR-K always reported a positive cash flow from operatings.
1.2 Ratios
- CU-PR-K has a Return On Assets (2.16%) which is in line with its industry peers.
- CU-PR-K has a Return On Equity of 7.68%. This is comparable to the rest of the industry: CU-PR-K outperforms 47.37% of its industry peers.
- With a Return On Invested Capital value of 3.86%, CU-PR-K is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
- Measured over the past 3 years, the Average Return On Invested Capital for CU-PR-K is in line with the industry average of 3.73%.
- The last Return On Invested Capital (3.86%) for CU-PR-K is above the 3 year average (3.80%), which is a sign of increasing profitability.
| 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-K has a Profit Margin (14.43%) which is comparable to the rest of the industry.
- CU-PR-K's Profit Margin has declined in the last couple of years.
- CU-PR-K has a Operating Margin of 31.51%. This is comparable to the rest of the industry: CU-PR-K outperforms 52.63% of its industry peers.
- CU-PR-K's Operating Margin has declined in the last couple of years.
- CU-PR-K has a Gross Margin (88.73%) which is comparable to the rest of the industry.
- CU-PR-K'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-K has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for CU-PR-K has been increased compared to 1 year ago.
- CU-PR-K has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CU-PR-K has a worse debt to assets ratio.
2.2 Solvency
- CU-PR-K has an Altman-Z score of 0.74. This is a bad value and indicates that CU-PR-K is not financially healthy and even has some risk of bankruptcy.
- CU-PR-K's Altman-Z score of 0.74 is fine compared to the rest of the industry. CU-PR-K outperforms 78.95% of its industry peers.
- CU-PR-K has a debt to FCF ratio of 34.08. This is a negative value and a sign of low solvency as CU-PR-K would need 34.08 years to pay back of all of its debts.
- CU-PR-K's Debt to FCF ratio of 34.08 is in line compared to the rest of the industry. CU-PR-K outperforms 57.89% of its industry peers.
- A Debt/Equity ratio of 1.68 is on the high side and indicates that CU-PR-K has dependencies on debt financing.
- CU-PR-K has a Debt to Equity ratio (1.68) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 34.08 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.77
WACC5.04%
2.3 Liquidity
- A Current Ratio of 1.56 indicates that CU-PR-K should not have too much problems paying its short term obligations.
- CU-PR-K's Current ratio of 1.56 is in line compared to the rest of the industry. CU-PR-K outperforms 57.89% of its industry peers.
- CU-PR-K has a Quick Ratio of 1.48. This is a normal value and indicates that CU-PR-K is financially healthy and should not expect problems in meeting its short term obligations.
- CU-PR-K's Quick ratio of 1.48 is in line compared to the rest of the industry. CU-PR-K outperforms 57.89% 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-K have decreased by -2.13% in the last year.
- Measured over the past 5 years, CU-PR-K shows a small growth in Earnings Per Share. The EPS has been growing by 0.09% on average per year.
- CU-PR-K shows a decrease in Revenue. In the last year, the revenue decreased by -0.94%.
- CU-PR-K shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.85% yearly.
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
- Based on estimates for the next years, CU-PR-K will show a small growth in Earnings Per Share. The EPS will grow by 5.88% on average per year.
- CU-PR-K 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
- 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
- Based on the Price/Earnings ratio of 10.96, the valuation of CU-PR-K can be described as reasonable.
- CU-PR-K's Price/Earnings ratio is in line with the industry average.
- CU-PR-K is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 9.79, which indicates a very decent valuation of CU-PR-K.
- Based on the Price/Forward Earnings ratio, CU-PR-K is valued a bit cheaper than 63.16% of the companies in the same industry.
- CU-PR-K is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 9.79 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CU-PR-K is valued a bit more expensive than the industry average as 63.16% of the companies are valued more cheaply.
- The rest of the industry has a similar Price/Free Cash Flow ratio as CU-PR-K.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.62 | ||
| EV/EBITDA | 8.86 |
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.
PEG (NY)0.97
PEG (5Y)122.38
EPS Next 2Y7.18%
EPS Next 3Y6.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.20%, CU-PR-K is a good candidate for dividend investing.
- CU-PR-K's Dividend Yield is comparable with the industry average which is at 5.19.
- CU-PR-K'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-K has a limited annual growth rate of 0.91%.
- CU-PR-K does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)0.91%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 107.49% of the earnings are spent on dividend by CU-PR-K. This is not a sustainable payout ratio.
- CU-PR-K'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 5.6 PERP / CU-PR-K.CA FAQ
Can you provide the ChartMill fundamental rating for CANADIAN UTILITIES LTD - CUCN 5.6 PERP?
ChartMill assigns a fundamental rating of 4 / 10 to CU-PR-K.CA.
What is the valuation status for CU-PR-K stock?
ChartMill assigns a valuation rating of 5 / 10 to CANADIAN UTILITIES LTD - CUCN 5.6 PERP (CU-PR-K.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for CANADIAN UTILITIES LTD - CUCN 5.6 PERP?
CANADIAN UTILITIES LTD - CUCN 5.6 PERP (CU-PR-K.CA) has a profitability rating of 4 / 10.
What is the valuation of CANADIAN UTILITIES LTD - CUCN 5.6 PERP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CANADIAN UTILITIES LTD - CUCN 5.6 PERP (CU-PR-K.CA) is 10.96 and the Price/Book (PB) ratio is 0.74.
How sustainable is the dividend of CANADIAN UTILITIES LTD - CUCN 5.6 PERP (CU-PR-K.CA) stock?
The dividend rating of CANADIAN UTILITIES LTD - CUCN 5.6 PERP (CU-PR-K.CA) is 4 / 10 and the dividend payout ratio is 107.49%.