CANADIAN UTILITIES LTD-A (CU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CU - CA1367178326 - Common Stock
42.03 CAD
-0.1 (-0.24%)
Taking everything into account, CU scores 3 out of 10 in our fundamental rating. CU was compared to 20 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. Finally CU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CU had positive earnings in the past year.
In the past year CU had a positive cash flow from operations.
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 of 2.16%. This is comparable to the rest of the industry: CU outperforms 50.00% of its industry peers.
Looking at the Return On Equity, with a value of 7.68%, CU is in line with its industry, outperforming 45.00% of the companies in the same industry.
CU's Return On Invested Capital of 3.86% is on the low side compared to the rest of the industry. CU is outperformed by 70.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CU is in line with the industry average of 3.84%.
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 comparable to the rest of the industry.
CU's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 31.51%, CU perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CU has declined.
CU has a Gross Margin (88.73%) which is in line with 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CU is destroying value.
CU has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CU has less shares outstanding
CU has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.85, we must say that CU is in the distress zone and has some risk of bankruptcy.
CU has a better Altman-Z score (0.85) than 90.00% of its industry peers.
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 has a Debt to FCF ratio (34.08) which is comparable to the rest of the industry.
CU has a Debt/Equity ratio of 1.68. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CU (1.68) is worse than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 34.08 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.71
WACC5.45%
2.3 Liquidity
A Current Ratio of 1.56 indicates that CU should not have too much problems paying its short term obligations.
CU has a Current ratio (1.56) which is in line with its industry peers.
CU has a Quick Ratio of 1.48. This is a normal value and indicates that CU is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.48, CU perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
| 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.
CU shows a decrease in Revenue. In the last year, the revenue decreased by -0.94%.
The Revenue has been decreasing by -0.85% on average over the past years.
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
CU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.97% yearly.
Based on estimates for the next years, CU will show a small growth in Revenue. The Revenue will grow by 1.22% on average per year.
EPS Next Y10.05%
EPS Next 2Y7%
EPS Next 3Y6.64%
EPS Next 5Y5.97%
Revenue Next Year-5.06%
Revenue Next 2Y-0.61%
Revenue Next 3Y1.22%
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
CU is valuated rather expensively with a Price/Earnings ratio of 18.27.
CU's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.15. CU is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.39, the valuation of CU can be described as correct.
CU's Price/Forward Earnings is on the same level as the industry average.
CU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.27 | ||
| Fwd PE | 16.39 |
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 75.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CU is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.37 | ||
| EV/EBITDA | 10.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CU does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)1.82
PEG (5Y)204.12
EPS Next 2Y7%
EPS Next 3Y6.64%
5. Dividend
5.1 Amount
CU has a Yearly Dividend Yield of 4.39%, which is a nice return.
Compared to an average industry Dividend Yield of 4.60, 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
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
CU pays out 107.49% 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.
DP107.49%
EPS Next 2Y7%
EPS Next 3Y6.64%
TSX:CU (11/27/2025, 7:00:00 PM)
42.03
-0.1 (-0.24%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners15.18%
Inst Owner ChangeN/A
Ins Owners0.3%
Ins Owner ChangeN/A
Market Cap8.63B
Revenue(TTM)3.70B
Net Income(TTM)534.00M
Analysts76
Price Target42.4 (0.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
Yearly Dividend2.03
Dividend Growth(5Y)0.91%
DP107.49%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)3.56%
PT rev (3m)3.56%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)-0.35%
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 | 18.27 | ||
| Fwd PE | 16.39 | ||
| P/S | 2.33 | ||
| P/FCF | 24.37 | ||
| P/OCF | 4.17 | ||
| P/B | 1.24 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 10.68 |
EPS(TTM)2.3
EY5.47%
EPS(NY)2.56
Fwd EY6.1%
FCF(TTM)1.72
FCFY4.1%
OCF(TTM)10.09
OCFY24.01%
SpS18.03
BVpS33.87
TBVpS28.1
PEG (NY)1.82
PEG (5Y)204.12
Graham Number41.87
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 | 0.85 |
F-Score5
WACC5.45%
ROIC/WACC0.71
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 Y10.05%
EPS Next 2Y7%
EPS Next 3Y6.64%
EPS Next 5Y5.97%
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y2.11%
Revenue growth 5Y-0.85%
Sales Q2Q%-2.22%
Revenue Next Year-5.06%
Revenue Next 2Y-0.61%
Revenue Next 3Y1.22%
Revenue Next 5YN/A
EBIT growth 1Y54.44%
EBIT growth 3Y3.19%
EBIT growth 5Y-5.39%
EBIT Next Year237.12%
EBIT Next 3Y57.47%
EBIT Next 5Y36.01%
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 of CANADIAN UTILITIES LTD-A (CU.CA) 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 financial health of CANADIAN UTILITIES LTD-A (CU.CA) stock?
The financial health rating of CANADIAN UTILITIES LTD-A (CU.CA) is 3 / 10.
What is the expected EPS growth for CANADIAN UTILITIES LTD-A (CU.CA) stock?
The Earnings per Share (EPS) of CANADIAN UTILITIES LTD-A (CU.CA) is expected to grow by 10.05% in the next year.