CANADIAN UTILITIES LTD-A (CU.CA) Stock Fundamental Analysis
Canada - TSX:CU - CA1367178326 - Common Stock
40.2 CAD
-0.17 (-0.42%)
We assign a fundamental rating of 3 out of 10 to CU. CU was compared to 20 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
In the past year CU was profitable.
In the past year CU had a positive cash flow from operations.
Each year in the past 5 years CU has been profitable.
In the past 5 years CU always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.87%, CU is in line with its industry, outperforming 52.38% of the companies in the same industry.
CU has a Return On Equity of 6.39%. This is comparable to the rest of the industry: CU outperforms 42.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.51%, CU is doing worse than 76.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CU is in line with the industry average of 3.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 6.39% | ||
| ROIC | 3.51% |
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's Profit Margin of 12.00% is in line compared to the rest of the industry. CU outperforms 52.38% of its industry peers.
In the last couple of years the Profit Margin of CU has declined.
CU has a Operating Margin (28.00%) which is in line with its industry peers.
CU's Operating Margin has declined in the last couple of years.
The Gross Margin of CU (88.65%) is comparable to the rest of the industry.
CU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28% | ||
| PM (TTM) | 12% | ||
| GM | 88.65% |
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.
Compared to 1 year ago, CU has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that CU is in the distress zone and has some risk of bankruptcy.
CU has a better Altman-Z score (0.84) than 90.48% of its industry peers.
CU has a debt to FCF ratio of 39.44. This is a negative value and a sign of low solvency as CU would need 39.44 years to pay back of all of its debts.
CU has a Debt to FCF ratio (39.44) which is in line with its industry peers.
A Debt/Equity ratio of 1.62 is on the high side and indicates that CU has dependencies on debt financing.
With a Debt to Equity ratio value of 1.62, CU perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 39.44 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.64
WACC5.45%
2.3 Liquidity
CU has a Current Ratio of 1.20. This is a normal value and indicates that CU is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.20, CU is in line with its industry, outperforming 52.38% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that CU should not have too much problems paying its short term obligations.
CU's Quick ratio of 1.12 is in line compared to the rest of the industry. CU outperforms 52.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for CU have decreased by -0.44% 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.
Looking at the last year, CU shows a decrease in Revenue. The Revenue has decreased by -0.51% in the last year.
The Revenue has been decreasing by -0.85% on average over the past years.
EPS 1Y (TTM)-0.44%
EPS 3Y1.06%
EPS 5Y0.09%
EPS Q2Q%4.65%
Revenue 1Y (TTM)-0.51%
Revenue growth 3Y2.11%
Revenue growth 5Y-0.85%
Sales Q2Q%-2.09%
3.2 Future
CU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.78% yearly.
The Revenue is expected to grow by 1.22% on average over the next years.
EPS Next Y10.43%
EPS Next 2Y7.07%
EPS Next 3Y6.68%
EPS Next 5Y5.78%
Revenue Next Year-5.06%
Revenue Next 2Y-0.61%
Revenue Next 3Y1.22%
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.
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
A Price/Earnings ratio of 17.63 indicates a rather expensive valuation of CU.
CU's Price/Earnings is on the same level as the industry average.
CU is valuated rather cheaply when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.65, CU is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CU is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.99. CU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 15.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CU is valued a bit more expensive than 76.19% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CU indicates a slightly more expensive valuation: CU is more expensive than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.65 | ||
| EV/EBITDA | 10.66 |
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)1.69
PEG (5Y)196.94
EPS Next 2Y7.07%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.54%, CU is a good candidate for dividend investing.
CU's Dividend Yield is comparable with the industry average which is at 5.40.
Compared to an average S&P500 Dividend Yield of 2.31, CU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.54% |
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
128.25% of the earnings are spent on dividend by CU. This is not a sustainable payout ratio.
The dividend of CU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP128.25%
EPS Next 2Y7.07%
EPS Next 3Y6.68%
TSX:CU (10/24/2025, 7:00:00 PM)
40.2
-0.17 (-0.42%)
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 Cap8.25B
Revenue(TTM)3.72B
Net Income(TTM)446.00M
Analysts76
Price Target40.95 (1.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.54% |
Yearly Dividend2.03
Dividend Growth(5Y)0.91%
DP128.25%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.35%
Min EPS beat(2)-1.99%
Max EPS beat(2)-0.71%
EPS beat(4)1
Avg EPS beat(4)-3.59%
Min EPS beat(4)-19.54%
Max EPS beat(4)7.87%
EPS beat(8)2
Avg EPS beat(8)-2.01%
EPS beat(12)4
Avg EPS beat(12)-0.28%
EPS beat(16)8
Avg EPS beat(16)0.78%
Revenue beat(2)1
Avg Revenue beat(2)-8.17%
Min Revenue beat(2)-17.55%
Max Revenue beat(2)1.21%
Revenue beat(4)2
Avg Revenue beat(4)-5.63%
Min Revenue beat(4)-17.55%
Max Revenue beat(4)11.16%
Revenue beat(8)4
Avg Revenue beat(8)-3.46%
Revenue beat(12)7
Avg Revenue beat(12)-0.1%
Revenue beat(16)11
Avg Revenue beat(16)3.23%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)-1.97%
EPS NY rev (1m)0%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 15.65 | ||
| P/S | 2.22 | ||
| P/FCF | 28.65 | ||
| P/OCF | 4.08 | ||
| P/B | 1.18 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 10.66 |
EPS(TTM)2.28
EY5.67%
EPS(NY)2.57
Fwd EY6.39%
FCF(TTM)1.4
FCFY3.49%
OCF(TTM)9.85
OCFY24.51%
SpS18.11
BVpS33.99
TBVpS28.34
PEG (NY)1.69
PEG (5Y)196.94
Graham Number41.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 6.39% | ||
| ROCE | 4.52% | ||
| ROIC | 3.51% | ||
| ROICexc | 3.57% | ||
| ROICexgc | 3.76% | ||
| OM | 28% | ||
| PM (TTM) | 12% | ||
| GM | 88.65% | ||
| FCFM | 7.75% |
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-Score4
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 39.44 | ||
| Debt/EBITDA | 6.42 | ||
| Cap/Depr | 240.83% | ||
| Cap/Sales | 46.64% | ||
| Interest Coverage | 2.08 | ||
| Cash Conversion | 114.82% | ||
| Profit Quality | 64.57% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 0.84 |
F-Score4
WACC5.45%
ROIC/WACC0.64
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)-0.44%
EPS 3Y1.06%
EPS 5Y0.09%
EPS Q2Q%4.65%
EPS Next Y10.43%
EPS Next 2Y7.07%
EPS Next 3Y6.68%
EPS Next 5Y5.78%
Revenue 1Y (TTM)-0.51%
Revenue growth 3Y2.11%
Revenue growth 5Y-0.85%
Sales Q2Q%-2.09%
Revenue Next Year-5.06%
Revenue Next 2Y-0.61%
Revenue Next 3Y1.22%
Revenue Next 5YN/A
EBIT growth 1Y14.77%
EBIT growth 3Y3.19%
EBIT growth 5Y-5.39%
EBIT Next Year237.12%
EBIT Next 3Y57.47%
EBIT Next 5Y36.01%
FCF growth 1Y-32.71%
FCF growth 3Y-13.47%
FCF growth 5Y0.5%
OCF growth 1Y8.13%
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 10.43% in the next year.