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. There are concerns on the financial health of CU while its profitability can be described as average. 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.
CU had positive earnings in each of the past 5 years.
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.
CU has a Return On Equity (5.67%) which is comparable to the rest of the industry.
CU's Return On Invested Capital of 3.34% is on the low side compared to the rest of the industry. CU is outperformed by 90.91% 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 3.69%.
| 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
CU has a Profit Margin (10.63%) which is in line with its industry peers.
In the last couple of years the Profit Margin of CU has declined.
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.
CU's Operating Margin has declined in the last couple of years.
CU has a Gross Margin (88.20%) which is in line with 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CU 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.
CU has a worse debt/assets ratio than last year.
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.
With an excellent Altman-Z score value of 0.81, CU belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 30.24, CU perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
A Debt/Equity ratio of 1.60 is on the high side and indicates that CU has dependencies on debt 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 | 0.81 |
ROIC/WACC0.62
WACC5.35%
2.3 Liquidity
CU has a Current Ratio of 1.04. This is a normal value and indicates that CU is financially healthy and should not expect problems in meeting its short term obligations.
CU's Current ratio of 1.04 is in line compared to the rest of the industry. CU outperforms 40.91% 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's Quick ratio of 0.99 is in line compared to the rest of the industry. CU outperforms 54.55% of 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%.
CU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.09% yearly.
Looking at the last year, CU shows a decrease in Revenue. The Revenue has decreased by -0.53% 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)-2.16%
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.
The Revenue is expected to grow by 2.89% on average over the next years.
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.
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
Based on the Price/Earnings ratio of 17.00, the valuation of CU can be described as rather expensive.
CU's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.35, CU is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.94 indicates a correct valuation of CU.
Based on the Price/Forward Earnings ratio, CU is valued a bit more expensive than 63.64% of the companies in the same industry.
CU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 14.94 |
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 81.82% 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 | 21.06 | ||
| EV/EBITDA | 10.55 |
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)1.78
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.
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 | 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 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 141.56% 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.
DP141.56%
EPS Next 2Y7.16%
EPS Next 3Y6.61%
TSX:CU (5/27/2025, 7:00:00 PM)
38.42
+0.36 (+0.95%)
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 | 10.55 |
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 | 0.81 |
F-Score5
WACC5.35%
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%