CANADIAN UTILITIES LTD-A (CU.CA) Stock Fundamental Analysis
TSX:CU • CA1367178326
45.6 CAD
+0.95 (+2.13%)
Last: Feb 12, 2026, 07:00 PM
Taking everything into account, CU scores 3 out of 10 in our fundamental rating. CU was compared to 19 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 is valued expensive and it does not seem to be growing. Finally CU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- CU had positive earnings in the past year.
- CU had a positive operating cash flow in the past year.
- CU had positive earnings in each of the past 5 years.
- Each year in the past 5 years CU had a positive operating cash flow.
1.2 Ratios
- CU has a Return On Assets (2.16%) which is in line with its industry peers.
- With a Return On Equity value of 7.68%, CU perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
- CU has a Return On Invested Capital of 3.86%. This is in the lower half of the industry: CU underperforms 68.42% of its industry peers.
- CU had an Average Return On Invested Capital over the past 3 years of 3.80%. This is in line with the industry average of 3.77%.
- The last Return On Invested Capital (3.86%) for CU 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 has a Profit Margin (14.43%) which is in line with its industry peers.
- CU's Profit Margin has declined in the last couple of years.
- CU's Operating Margin of 31.51% is in line compared to the rest of the industry. CU outperforms 47.37% of its industry peers.
- In the last couple of years the Operating Margin of CU has declined.
- CU has a Gross Margin of 88.73%. This is comparable to the rest of the industry: CU outperforms 47.37% of its industry peers.
- CU'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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CU is destroying value.
- The number of shares outstanding for CU has been increased compared to 1 year ago.
- CU has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CU has a worse debt to assets ratio.
2.2 Solvency
- CU has an Altman-Z score of 0.88. This is a bad value and indicates that CU is not financially healthy and even has some risk of bankruptcy.
- With an excellent Altman-Z score value of 0.88, CU belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
- The Debt to FCF ratio of CU is 34.08, which is on the high side as it means it would take CU, 34.08 years of fcf income to pay off all of its debts.
- CU's Debt to FCF ratio of 34.08 is in line compared to the rest of the industry. CU outperforms 52.63% of its industry peers.
- A Debt/Equity ratio of 1.68 is on the high side and indicates that CU has dependencies on debt financing.
- The Debt to Equity ratio of CU (1.68) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 34.08 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.68
WACC5.66%
2.3 Liquidity
- A Current Ratio of 1.56 indicates that CU should not have too much problems paying its short term obligations.
- CU's Current ratio of 1.56 is in line compared to the rest of the industry. CU outperforms 52.63% of its industry peers.
- A Quick Ratio of 1.48 indicates that CU should not have too much problems paying its short term obligations.
- CU's Quick ratio of 1.48 is in line compared to the rest of the industry. CU outperforms 52.63% 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 have decreased by -2.13% in the last year.
- 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.
- Looking at the last year, CU shows a decrease in Revenue. The Revenue has decreased by -0.94% in the last year.
- CU 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
- The Earnings Per Share is expected to grow by 5.88% on average over the next years.
- The Revenue is expected to grow by 1.45% on average over the next years.
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.
- 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 is valuated rather expensively with a Price/Earnings ratio of 19.83.
- CU's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.97, CU is valued a bit cheaper.
- A Price/Forward Earnings ratio of 17.72 indicates a rather expensive valuation of CU.
- The rest of the industry has a similar Price/Forward Earnings ratio as CU.
- CU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.83 | ||
| Fwd PE | 17.72 |
4.2 Price Multiples
- CU's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CU is more expensive than 73.68% of the companies in the same industry.
- CU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.45 | ||
| EV/EBITDA | 11.07 |
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)1.75
PEG (5Y)221.46
EPS Next 2Y7.18%
EPS Next 3Y6.77%
5. Dividend
5.1 Amount
- CU has a Yearly Dividend Yield of 4.12%, which is a nice return.
- CU's Dividend Yield is a higher than the industry average which is at 4.37.
- CU's Dividend Yield is rather good when compared to the S&P500 average which is at 1.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.91%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- 107.49% of the earnings are spent on dividend by CU. This is not a sustainable payout ratio.
- The dividend of CU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP107.49%
EPS Next 2Y7.18%
EPS Next 3Y6.77%
TSX:CU (2/12/2026, 7:00:00 PM)
45.6
+0.95 (+2.13%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)11-07 2025-11-07/bmo
Earnings (Next)02-26 2026-02-26/amc
Inst Owners16.33%
Inst Owner ChangeN/A
Ins Owners0.3%
Ins Owner ChangeN/A
Market Cap9.36B
Revenue(TTM)3.70B
Net Income(TTM)534.00M
Analysts76
Price Target44.3 (-2.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
Yearly Dividend2.03
Dividend Growth(5Y)0.91%
DP107.49%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-05 2026-02-05 (0.4623)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.43%
Min EPS beat(2)-0.71%
Max EPS beat(2)3.56%
EPS beat(4)1
Avg EPS beat(4)-4.67%
Min EPS beat(4)-19.54%
Max EPS beat(4)3.56%
EPS beat(8)3
Avg EPS beat(8)-1.46%
EPS beat(12)4
Avg EPS beat(12)-1.81%
EPS beat(16)8
Avg EPS beat(16)0.87%
Revenue beat(2)2
Avg Revenue beat(2)3.91%
Min Revenue beat(2)1.21%
Max Revenue beat(2)6.61%
Revenue beat(4)2
Avg Revenue beat(4)-6.77%
Min Revenue beat(4)-17.55%
Max Revenue beat(4)6.61%
Revenue beat(8)4
Avg Revenue beat(8)-4.85%
Revenue beat(12)7
Avg Revenue beat(12)-1.37%
Revenue beat(16)11
Avg Revenue beat(16)2.94%
PT rev (1m)0.33%
PT rev (3m)7.04%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)-0.81%
EPS NY rev (1m)0.14%
EPS NY rev (3m)1.18%
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 | 19.83 | ||
| Fwd PE | 17.72 | ||
| P/S | 2.53 | ||
| P/FCF | 26.45 | ||
| P/OCF | 4.52 | ||
| P/B | 1.35 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 11.07 |
EPS(TTM)2.3
EY5.04%
EPS(NY)2.57
Fwd EY5.64%
FCF(TTM)1.72
FCFY3.78%
OCF(TTM)10.09
OCFY22.12%
SpS18.02
BVpS33.86
TBVpS28.09
PEG (NY)1.75
PEG (5Y)221.46
Graham Number41.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 7.68% | ||
| ROCE | 4.92% | ||
| ROIC | 3.86% | ||
| ROICexc | 3.9% | ||
| ROICexgc | 4.11% | ||
| OM | 31.51% | ||
| PM (TTM) | 14.43% | ||
| GM | 88.73% | ||
| FCFM | 9.57% |
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%
ROICexgc growth 3Y-1.78%
ROICexgc 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 | 1.68 | ||
| Debt/FCF | 34.08 | ||
| Debt/EBITDA | 6.17 | ||
| Cap/Depr | 236.18% | ||
| Cap/Sales | 46.41% | ||
| Interest Coverage | 2.3 | ||
| Cash Conversion | 109.4% | ||
| Profit Quality | 66.29% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 0.88 |
F-Score5
WACC5.66%
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)-2.13%
EPS 3Y1.06%
EPS 5Y0.09%
EPS Q2Q%5.26%
EPS Next Y11.35%
EPS Next 2Y7.18%
EPS Next 3Y6.77%
EPS Next 5Y5.88%
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y2.11%
Revenue growth 5Y-0.85%
Sales Q2Q%-2.22%
Revenue Next Year-4.75%
Revenue Next 2Y-0.31%
Revenue Next 3Y1.45%
Revenue Next 5YN/A
EBIT growth 1Y54.44%
EBIT growth 3Y3.19%
EBIT growth 5Y-5.39%
EBIT Next Year241.72%
EBIT Next 3Y57.68%
EBIT Next 5Y30.99%
FCF growth 1Y-27.01%
FCF growth 3Y-13.47%
FCF growth 5Y0.5%
OCF growth 1Y9.93%
OCF growth 3Y3.72%
OCF growth 5Y7.14%
CANADIAN UTILITIES LTD-A / CU.CA FAQ
Can you provide the ChartMill fundamental rating for CANADIAN UTILITIES LTD-A?
ChartMill assigns a fundamental rating of 3 / 10 to CU.CA.
What is the valuation status for CU stock?
ChartMill assigns a valuation rating of 2 / 10 to CANADIAN UTILITIES LTD-A (CU.CA). This can be considered as Overvalued.
What is the profitability of CU stock?
CANADIAN UTILITIES LTD-A (CU.CA) has a profitability rating of 4 / 10.
What is the valuation of CANADIAN UTILITIES LTD-A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CANADIAN UTILITIES LTD-A (CU.CA) is 19.83 and the Price/Book (PB) ratio is 1.35.
Is the dividend of CANADIAN UTILITIES LTD-A sustainable?
The dividend rating of CANADIAN UTILITIES LTD-A (CU.CA) is 7 / 10 and the dividend payout ratio is 107.49%.