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 21 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. 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
With a Return On Assets value of 1.65%, CU perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
The Return On Equity of CU (5.67%) is comparable to the rest of the industry.
The Return On Invested Capital of CU (3.34%) is worse than 90.48% 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 3.66%.
| 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 of 10.63%. This is comparable to the rest of the industry: CU outperforms 52.38% of its industry peers.
CU's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 26.39%, CU is in line with its industry, outperforming 52.38% of the companies in the same industry.
In the last couple of years the Operating Margin of CU has declined.
Looking at the Gross Margin, with a value of 88.20%, CU is in line with its industry, outperforming 52.38% of the companies in the same industry.
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.
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.
Looking at the Altman-Z score, with a value of 0.80, CU belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
CU has a debt to FCF ratio of 30.24. This is a negative value and a sign of low solvency as CU would need 30.24 years to pay back of all of its debts.
CU has a Debt to FCF ratio of 30.24. This is comparable to the rest of the industry: CU outperforms 52.38% 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 has a Debt to Equity ratio of 1.60. This is comparable to the rest of the industry: CU outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 30.24 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.61
WACC5.43%
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.
The Current ratio of CU (1.04) is worse than 61.90% of its industry peers.
A Quick Ratio of 0.99 indicates that CU may have some problems paying its short term obligations.
The Quick ratio of CU (0.99) 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
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.
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
The Earnings Per Share is expected to grow by 3.76% on average over the next years.
The Revenue is expected to grow by 1.23% on average over the next years.
EPS Next Y9.55%
EPS Next 2Y7.16%
EPS Next 3Y6.61%
EPS Next 5Y3.76%
Revenue Next Year-5.22%
Revenue Next 2Y-0.57%
Revenue Next 3Y1.23%
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
With a Price/Earnings ratio of 16.91, CU is valued correctly.
61.90% of the companies in the same industry are cheaper than CU, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CU to the average of the S&P500 Index (26.54), we can say CU is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.85, which indicates a correct valuation of CU.
Based on the Price/Forward Earnings ratio, CU is valued a bit more expensive than 61.90% of the companies in the same industry.
CU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.91 | ||
| Fwd PE | 14.85 |
4.2 Price Multiples
80.95% of the companies in the same industry are cheaper than CU, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as CU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.97 | ||
| EV/EBITDA | 10.53 |
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)1.77
PEG (5Y)188.85
EPS Next 2Y7.16%
EPS Next 3Y6.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.50%, CU is a good candidate for dividend investing.
CU's Dividend Yield is a higher than the industry average which is at 5.22.
Compared to an average S&P500 Dividend Yield of 2.40, CU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.5% |
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 141.56% of its income as dividend. 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 (8/7/2025, 7:00:00 PM)
38.21
-0.62 (-1.6%)
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 Cap7.84B
Analysts76
Price Target40.95 (7.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.5% |
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)-0.06%
PT rev (3m)2.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.49%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-6.02%
Revenue NY rev (3m)-6.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.91 | ||
| Fwd PE | 14.85 | ||
| P/S | 2.1 | ||
| P/FCF | 20.97 | ||
| P/OCF | 3.82 | ||
| P/B | 1.12 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 10.53 |
EPS(TTM)2.26
EY5.91%
EPS(NY)2.57
Fwd EY6.73%
FCF(TTM)1.82
FCFY4.77%
OCF(TTM)10
OCFY26.17%
SpS18.2
BVpS34.12
TBVpS28.56
PEG (NY)1.77
PEG (5Y)188.85
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
WACC5.43%
ROIC/WACC0.61
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 Year-5.22%
Revenue Next 2Y-0.57%
Revenue Next 3Y1.23%
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%