CANADIAN UTILITIES LTD-A (CU.CA) Stock Fundamental Analysis
TSX:CU - Toronto Stock Exchange - CA1367178326 - Common Stock - Currency: CAD
Taking everything into account, CU scores 4 out of 10 in our fundamental rating. 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 does not seem to be growing, but still is valued expensively. 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.
CU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CU has a better Return On Assets (1.69%) than 63.64% of its industry peers.
CU has a Return On Equity (5.83%) which is in line with its industry peers.
The Return On Invested Capital of CU (3.33%) is worse than 68.18% 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 3.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 5.83% | ||
| ROIC | 3.33% |
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 (10.77%) is better than 63.64% of its industry peers.
In the last couple of years the Profit Margin of CU has declined.
With a decent Operating Margin value of 25.90%, CU is doing good in the industry, outperforming 63.64% of the companies in the same industry.
CU's Operating Margin has declined in the last couple of years.
CU has a Gross Margin of 87.20%. This is in the better half of the industry: CU outperforms 63.64% of its industry peers.
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 | 25.9% | ||
| PM (TTM) | 10.77% | ||
| GM | 87.2% |
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
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.
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 0.81. This is a bad value and indicates that CU is not financially healthy and even has some risk of bankruptcy.
CU has a Altman-Z score of 0.81. This is amongst the best in the industry. CU outperforms 100.00% of its industry peers.
The Debt to FCF ratio of CU is 34.51, which is on the high side as it means it would take CU, 34.51 years of fcf income to pay off all of its debts.
CU's Debt to FCF ratio of 34.51 is in line compared to the rest of the industry. CU outperforms 54.55% 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's Debt to Equity ratio of 1.60 is in line compared to the rest of the industry. CU outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 34.51 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.63
WACC5.29%
2.3 Liquidity
A Current Ratio of 1.10 indicates that CU should not have too much problems paying its short term obligations.
With a Current ratio value of 1.10, CU perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
A Quick Ratio of 1.05 indicates that CU should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.05, CU perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
CU shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.18%.
CU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.09% yearly.
The Revenue has decreased by -1.42% in the past 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)-2.18%
EPS 3Y1.06%
EPS 5Y0.09%
EPS Q2Q%-15.49%
Revenue 1Y (TTM)-1.42%
Revenue growth 3Y2.11%
Revenue growth 5Y-0.85%
Sales Q2Q%0.72%
3.2 Future
Based on estimates for the next years, CU will show a small growth in Earnings Per Share. The EPS will grow by 3.76% on average per year.
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 2Y2.25%
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.
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
Based on the Price/Earnings ratio of 16.79, the valuation of CU can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as CU.
CU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.22.
A Price/Forward Earnings ratio of 15.32 indicates a correct valuation of CU.
CU's Price/Forward Earnings is on the same level as the industry average.
CU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.79 | ||
| Fwd PE | 15.32 |
4.2 Price Multiples
72.73% 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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.94 | ||
| EV/EBITDA | 10.71 |
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)1.76
PEG (5Y)187.5
EPS Next 2Y7.16%
EPS Next 3Y6.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.87%, CU is a good candidate for dividend investing.
CU's Dividend Yield is comparable with the industry average which is at 5.20.
CU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
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 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 136.48% 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.
DP136.48%
EPS Next 2Y7.16%
EPS Next 3Y6.61%
TSX:CU (5/2/2025, 7:00:00 PM)
37.6
-0.19 (-0.5%)
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 Cap7.71B
Analysts77.14
Price Target39.95 (6.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
Yearly Dividend2.03
Dividend Growth(5Y)0.91%
DP136.48%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.83%
Min EPS beat(2)-19.54%
Max EPS beat(2)7.87%
EPS beat(4)2
Avg EPS beat(4)-3.12%
Min EPS beat(4)-19.54%
Max EPS beat(4)7.87%
EPS beat(8)3
Avg EPS beat(8)-1.48%
EPS beat(12)6
Avg EPS beat(12)0.97%
EPS beat(16)10
Avg EPS beat(16)1.38%
Revenue beat(2)1
Avg Revenue beat(2)-3.1%
Min Revenue beat(2)-17.35%
Max Revenue beat(2)11.16%
Revenue beat(4)2
Avg Revenue beat(4)-2.82%
Min Revenue beat(4)-17.35%
Max Revenue beat(4)11.16%
Revenue beat(8)5
Avg Revenue beat(8)0.27%
Revenue beat(12)8
Avg Revenue beat(12)4.37%
Revenue beat(16)10
Avg Revenue beat(16)2.93%
PT rev (1m)0.86%
PT rev (3m)4.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.06%
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 | 16.79 | ||
| Fwd PE | 15.32 | ||
| P/S | 2.06 | ||
| P/FCF | 23.94 | ||
| P/OCF | 4.02 | ||
| P/B | 1.12 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 10.71 |
EPS(TTM)2.24
EY5.96%
EPS(NY)2.45
Fwd EY6.53%
FCF(TTM)1.57
FCFY4.18%
OCF(TTM)9.35
OCFY24.86%
SpS18.25
BVpS33.69
TBVpS28.15
PEG (NY)1.76
PEG (5Y)187.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 5.83% | ||
| ROCE | 4.29% | ||
| ROIC | 3.33% | ||
| ROICexc | 3.39% | ||
| ROICexgc | 3.57% | ||
| OM | 25.9% | ||
| PM (TTM) | 10.77% | ||
| GM | 87.2% | ||
| FCFM | 8.61% |
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 Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 34.51 | ||
| Debt/EBITDA | 6.57 | ||
| Cap/Depr | 224.33% | ||
| Cap/Sales | 42.62% | ||
| Interest Coverage | 1.94 | ||
| Cash Conversion | 114.11% | ||
| Profit Quality | 79.9% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 0.81 |
F-Score5
WACC5.29%
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)-2.18%
EPS 3Y1.06%
EPS 5Y0.09%
EPS Q2Q%-15.49%
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%0.72%
Revenue Next Year0.85%
Revenue Next 2Y2.25%
Revenue Next 3Y2.89%
Revenue Next 5YN/A
EBIT growth 1Y-6.47%
EBIT growth 3Y3.19%
EBIT growth 5Y-5.39%
EBIT Next Year241.26%
EBIT Next 3Y58.27%
EBIT Next 5Y36.01%
FCF growth 1Y-26.98%
FCF growth 3Y-13.47%
FCF growth 5Y0.5%
OCF growth 1Y7.7%
OCF growth 3Y3.72%
OCF growth 5Y7.14%