CANADIAN UTILITIES LTD-A (CU.CA) Stock Fundamental Analysis
TSX:CU - Toronto Stock Exchange - CA1367178326 - Common Stock - Currency: CAD
CU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 21 industry peers in the Multi-Utilities industry. While CU is still in line with the averages on profitability rating, there are concerns on its financial health. 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
In the past year CU was profitable.
CU had a positive operating cash flow in the past year.
In the past 5 years CU has always been profitable.
CU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CU has a Return On Assets (1.65%) which is in line with its industry peers.
With a Return On Equity value of 5.67%, CU perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
With a Return On Invested Capital value of 3.34%, CU is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
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's Profit Margin of 10.63% is in line compared to the rest of the industry. CU outperforms 57.14% of its industry peers.
CU's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 26.39%, CU perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Operating Margin of CU has declined.
The Gross Margin of CU (88.20%) is comparable to the rest of the 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.
The number of shares outstanding for CU has been increased compared to 1 year ago.
The number of shares outstanding for CU has been reduced compared to 5 years ago.
CU has a worse debt/assets ratio than last year.
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.
CU has a better Altman-Z score (0.80) than 90.48% of its industry peers.
The Debt to FCF ratio of CU is 30.24, which is on the high side as it means it would take CU, 30.24 years of fcf income to pay off all of its debts.
CU has a Debt to FCF ratio (30.24) which is in line with its industry peers.
CU 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 perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 30.24 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.63
WACC5.33%
2.3 Liquidity
A Current Ratio of 1.04 indicates that CU should not have too much problems paying its short term obligations.
The Current ratio of CU (1.04) is worse 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.
CU 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
CU shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.16%.
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 -0.53% in the last year.
Measured over the past years, CU 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
The Earnings Per Share is expected to grow by 3.76% on average over the next years.
CU 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.
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
CU is valuated correctly with a Price/Earnings ratio of 16.66.
The rest of the industry has a similar Price/Earnings ratio as CU.
Compared to an average S&P500 Price/Earnings ratio of 26.34, CU is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.64, CU is valued correctly.
CU's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CU is more expensive than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CU to the average of the S&P500 Index (22.19), we can say CU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.66 | ||
| Fwd PE | 14.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CU indicates a rather expensive valuation: CU more expensive than 80.95% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.65 | ||
| EV/EBITDA | 10.46 |
4.3 Compensation for Growth
CU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.74
PEG (5Y)186.13
EPS Next 2Y7.16%
EPS Next 3Y6.61%
5. Dividend
5.1 Amount
CU has a Yearly Dividend Yield of 5.73%, which is a nice return.
Compared to an average industry Dividend Yield of 5.62, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.73% |
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
141.56% of the earnings are spent on dividend by CU. This is not a sustainable payout ratio.
CU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP141.56%
EPS Next 2Y7.16%
EPS Next 3Y6.61%
TSX:CU (6/19/2025, 7:00:00 PM)
37.66
-0.11 (-0.29%)
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 Cap7.72B
Analysts77.14
Price Target40.97 (8.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.73% |
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)2.55%
PT rev (3m)3.43%
EPS NQ rev (1m)-2.99%
EPS NQ rev (3m)-2.99%
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%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.66 | ||
| Fwd PE | 14.64 | ||
| P/S | 2.07 | ||
| P/FCF | 20.65 | ||
| P/OCF | 3.76 | ||
| P/B | 1.1 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 10.46 |
EPS(TTM)2.26
EY6%
EPS(NY)2.57
Fwd EY6.83%
FCF(TTM)1.82
FCFY4.84%
OCF(TTM)10.01
OCFY26.57%
SpS18.22
BVpS34.15
TBVpS28.58
PEG (NY)1.74
PEG (5Y)186.13
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
WACC5.33%
ROIC/WACC0.63
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%