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 22 industry peers in the Multi-Utilities industry. CU has a medium profitability rating, but doesn't score so well on its financial health evaluation. CU has a expensive valuation and it also scores bad on growth. 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.
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 has a Return On Assets (1.65%) which is comparable to the rest of the industry.
CU has a Return On Equity (5.67%) which is in line with its industry peers.
CU has a worse Return On Invested Capital (3.34%) than 90.91% 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 3.69%.
| 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
The Profit Margin of CU (10.63%) is comparable to the rest of the industry.
CU's Profit Margin has declined in the last couple of years.
CU's Operating Margin of 26.39% is in line compared to the rest of the industry. CU outperforms 54.55% of its industry peers.
In the last couple of years the Operating Margin of CU has declined.
CU has a Gross Margin of 88.20%. This is comparable to the rest of the industry: CU outperforms 54.55% of its industry peers.
CU's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for CU has been reduced compared to 5 years ago.
The debt/assets ratio for CU is higher compared to a year ago.
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 90.91% 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 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 30.24 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.62
WACC5.34%
2.3 Liquidity
A Current Ratio of 1.04 indicates that CU should not have too much problems paying its short term obligations.
CU has a Current ratio of 1.04. This is comparable to the rest of the industry: CU outperforms 40.91% of its industry peers.
A Quick Ratio of 0.99 indicates that CU may have some problems paying its short term obligations.
CU has a Quick ratio (0.99) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The earnings per share for CU have decreased by -2.16% in the last year.
The Earnings Per Share has been growing slightly by 0.09% on average over the past years.
CU shows a decrease in Revenue. In the last year, the revenue decreased by -0.53%.
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
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 2.89% on average per year.
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
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
With a Price/Earnings ratio of 17.00, CU is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CU is on the same level as its industry peers.
CU is valuated rather cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
CU is valuated correctly with a Price/Forward Earnings ratio of 14.94.
63.64% of the companies in the same industry are cheaper than CU, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.20. CU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 14.94 |
4.2 Price Multiples
81.82% of the companies in the same industry are cheaper than CU, based on the Enterprise Value to EBITDA ratio.
CU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.06 | ||
| EV/EBITDA | 10.51 |
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)1.78
PEG (5Y)189.89
EPS Next 2Y7.16%
EPS Next 3Y6.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.80%, CU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.98, CU pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, CU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
5.2 History
The dividend of CU has a limited annual growth rate of 0.91%.
CU has been paying a dividend for at least 10 years, so it has 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 (5/27/2025, 7:00:00 PM)
38.42
+0.35 (+0.92%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners15.17%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap7.88B
Analysts77.14
Price Target39.95 (3.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
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)0.86%
PT rev (3m)2.84%
EPS NQ rev (1m)-2.99%
EPS NQ rev (3m)10.26%
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)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 14.94 | ||
| P/S | 2.11 | ||
| P/FCF | 21.06 | ||
| P/OCF | 3.84 | ||
| P/B | 1.12 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 10.51 |
EPS(TTM)2.26
EY5.88%
EPS(NY)2.57
Fwd EY6.7%
FCF(TTM)1.82
FCFY4.75%
OCF(TTM)10.01
OCFY26.05%
SpS18.22
BVpS34.15
TBVpS28.58
PEG (NY)1.78
PEG (5Y)189.89
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
WACC5.34%
ROIC/WACC0.62
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%