CANADIAN UTILITIES LTD-A (CU.CA) Stock Fundamental Analysis
TSX:CU - Toronto Stock Exchange - CA1367178326 - Common Stock - Currency: CAD
We assign a fundamental rating of 3 out of 10 to CU. CU was compared to 21 industry peers in the Multi-Utilities industry. There are concerns on the financial health of CU while its profitability can be described as average. CU does not seem to be growing, but still is valued expensively. CU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CU was profitable.
CU had a positive operating cash flow in the past year.
Each year in the past 5 years CU has been profitable.
Each year in the past 5 years CU had a positive operating cash flow.
1.2 Ratios
CU's Return On Assets of 1.65% is in line compared to the rest of the industry. CU outperforms 52.38% of its industry peers.
CU has a Return On Equity of 5.67%. This is comparable to the rest of the industry: CU outperforms 42.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.34%, CU is doing worse than 90.48% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CU is in line with the industry average of 3.67%.
| 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 has a Profit Margin (10.63%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CU has declined.
Looking at the Operating Margin, with a value of 26.39%, CU is in line with its industry, outperforming 52.38% of the companies in the same industry.
In the last couple of years the Operating Margin of CU has declined.
With a Gross Margin value of 88.20%, CU perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
In the last couple of years the Gross Margin of CU 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
CU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CU has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CU has less shares outstanding
Compared to 1 year ago, CU has a worse debt to assets ratio.
2.2 Solvency
CU has an Altman-Z score of 0.80. This is a bad value and indicates that CU is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.80, CU belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
CU has a debt to FCF ratio of 30.24. This is a negative value and a sign of low solvency as CU would need 30.24 years to pay back of all of its debts.
CU has a Debt to FCF ratio of 30.24. This is comparable to the rest of the industry: CU outperforms 52.38% of its industry peers.
A Debt/Equity ratio of 1.60 is on the high side and indicates that CU has dependencies on debt financing.
CU has a Debt to Equity ratio of 1.60. This is comparable to the rest of the industry: CU outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 30.24 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.61
WACC5.44%
2.3 Liquidity
CU has a Current Ratio of 1.04. This is a normal value and indicates that CU is financially healthy and should not expect problems in meeting its short term obligations.
CU has a worse Current ratio (1.04) than 61.90% of its industry peers.
CU has a Quick Ratio of 1.04. This is a bad value and indicates that CU is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.99, CU perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
CU shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.44%.
Measured over the past 5 years, CU shows a small growth in Earnings Per Share. The EPS has been growing by 0.09% on average per year.
The Revenue has decreased by -1.42% in the past year.
The Revenue has been decreasing by -0.85% on average over the past years.
EPS 1Y (TTM)-0.44%
EPS 3Y1.06%
EPS 5Y0.09%
EPS Q2Q%4.65%
Revenue 1Y (TTM)-1.42%
Revenue growth 3Y2.11%
Revenue growth 5Y-0.85%
Sales Q2Q%N/A
3.2 Future
CU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.76% yearly.
Based on estimates for the next years, CU will show a small growth in Revenue. The Revenue will grow by 1.23% on average per year.
EPS Next Y9.55%
EPS Next 2Y7.16%
EPS Next 3Y6.61%
EPS Next 5Y3.76%
Revenue Next Year-5.22%
Revenue Next 2Y-0.57%
Revenue Next 3Y1.23%
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
A Price/Earnings ratio of 16.80 indicates a correct valuation of CU.
Compared to the rest of the industry, the Price/Earnings ratio of CU is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.93. CU is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.89, which indicates a correct valuation of CU.
Based on the Price/Forward Earnings ratio, CU is valued a bit more expensive than the industry average as 61.90% of the companies are valued more cheaply.
CU is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.8 | ||
| Fwd PE | 14.89 |
4.2 Price Multiples
80.95% of the companies in the same industry are cheaper than CU, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CU is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.02 | ||
| EV/EBITDA | 10.54 |
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)1.76
PEG (5Y)187.64
EPS Next 2Y7.16%
EPS Next 3Y6.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.64%, CU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.32, CU pays a bit more dividend than its industry peers.
CU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
5.2 History
The dividend of CU has a limited annual growth rate of 0.91%.
CU has paid a dividend for at least 10 years, which is a reliable track record.
CU 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 Years34
Div Non Decr Years34
5.3 Sustainability
CU pays out 141.56% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP141.56%
EPS Next 2Y7.16%
EPS Next 3Y6.61%
TSX:CU (8/14/2025, 7:00:00 PM)
38.3
+0.34 (+0.9%)
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 Cap7.86B
Analysts76
Price Target40.95 (6.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
Yearly Dividend2.03
Dividend Growth(5Y)0.91%
DP141.56%
Div Incr Years34
Div Non Decr Years34
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)-0.06%
PT rev (3m)2.49%
EPS NQ rev (1m)0%
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)-6.02%
Revenue NY rev (3m)-6.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.8 | ||
| Fwd PE | 14.89 | ||
| P/S | 2.1 | ||
| P/FCF | 21.02 | ||
| P/OCF | 3.83 | ||
| P/B | 1.12 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 10.54 |
EPS(TTM)2.28
EY5.95%
EPS(NY)2.57
Fwd EY6.72%
FCF(TTM)1.82
FCFY4.76%
OCF(TTM)10
OCFY26.11%
SpS18.2
BVpS34.12
TBVpS28.56
PEG (NY)1.76
PEG (5Y)187.64
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 | 0.8 |
F-Score5
WACC5.44%
ROIC/WACC0.61
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)-0.44%
EPS 3Y1.06%
EPS 5Y0.09%
EPS Q2Q%4.65%
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%N/A
Revenue Next Year-5.22%
Revenue Next 2Y-0.57%
Revenue Next 3Y1.23%
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%