CARIBBEAN UTILITIES CO LTD-A (CUP-U.CA) Stock Fundamental Analysis
TSX:CUP-U - Toronto Stock Exchange - KYG1899E1465 - Common Stock - Currency: USD
CUP-U gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 19 industry peers in the Electric Utilities industry. CUP-U scores excellent on profitability, but there are some minor concerns on its financial health. CUP-U has a correct valuation and a medium growth rate. CUP-U also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CUP-U was profitable.
CUP-U had a positive operating cash flow in the past year.
In the past 5 years CUP-U has always been profitable.
CUP-U had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CUP-U's Return On Assets of 4.90% is amongst the best of the industry. CUP-U outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 10.60%, CUP-U belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
CUP-U's Return On Invested Capital of 3.76% is in line compared to the rest of the industry. CUP-U outperforms 52.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CUP-U is in line with the industry average of 3.62%.
The last Return On Invested Capital (3.76%) for CUP-U is above the 3 year average (3.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 10.6% | ||
| ROIC | 3.76% |
ROA(3y)4.73%
ROA(5y)4.55%
ROE(3y)10.88%
ROE(5y)10.23%
ROIC(3y)3.75%
ROIC(5y)3.71%
1.3 Margins
CUP-U has a Profit Margin of 14.19%. This is amongst the best in the industry. CUP-U outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of CUP-U has remained more or less at the same level.
Looking at the Operating Margin, with a value of 13.79%, CUP-U is doing worse than 94.74% of the companies in the same industry.
In the last couple of years the Operating Margin of CUP-U has remained more or less at the same level.
CUP-U has a Gross Margin (40.42%) which is comparable to the rest of the industry.
CUP-U's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.79% | ||
| PM (TTM) | 14.19% | ||
| GM | 40.42% |
OM growth 3Y-3.23%
OM growth 5Y-1.03%
PM growth 3Y-1.3%
PM growth 5Y0.52%
GM growth 3Y-4.7%
GM growth 5Y-1.21%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CUP-U is destroying value.
CUP-U has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CUP-U has been increased compared to 5 years ago.
The debt/assets ratio for CUP-U has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that CUP-U is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CUP-U (1.29) is better than 94.74% of its industry peers.
CUP-U has a Debt/Equity ratio of 0.96. This is a neutral value indicating CUP-U is somewhat dependend on debt financing.
The Debt to Equity ratio of CUP-U (0.96) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC0.57
WACC6.64%
2.3 Liquidity
A Current Ratio of 1.19 indicates that CUP-U should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.19, CUP-U belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that CUP-U should not have too much problems paying its short term obligations.
CUP-U's Quick ratio of 1.10 is amongst the best of the industry. CUP-U outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
CUP-U shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.51%, which is quite good.
Measured over the past 5 years, CUP-U shows a small growth in Earnings Per Share. The EPS has been growing by 5.14% on average per year.
The Revenue has been growing slightly by 2.25% in the past year.
CUP-U shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.10% yearly.
EPS 1Y (TTM)16.51%
EPS 3Y10.63%
EPS 5Y5.14%
EPS Q2Q%16.67%
Revenue 1Y (TTM)2.25%
Revenue growth 3Y17.4%
Revenue growth 5Y8.1%
Sales Q2Q%-1.57%
3.2 Future
CUP-U is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.18% yearly.
Based on estimates for the next years, CUP-U will show a quite strong growth in Revenue. The Revenue will grow by 9.44% on average per year.
EPS Next Y7.93%
EPS Next 2Y3.4%
EPS Next 3Y4.18%
EPS Next 5YN/A
Revenue Next Year24.7%
Revenue Next 2Y11.49%
Revenue Next 3Y9.44%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.58 indicates a reasonable valuation of CUP-U.
78.95% of the companies in the same industry are cheaper than CUP-U, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.88. CUP-U is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.98, the valuation of CUP-U can be described as reasonable.
Based on the Price/Forward Earnings ratio, CUP-U is valued a bit more expensive than the industry average as 78.95% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 21.20. CUP-U is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 8.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CUP-U indicates a slightly more expensive valuation: CUP-U is more expensive than 78.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.13 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CUP-U has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.21
PEG (5Y)1.86
EPS Next 2Y3.4%
EPS Next 3Y4.18%
5. Dividend
5.1 Amount
CUP-U has a Yearly Dividend Yield of 5.56%, which is a nice return.
Compared to an average industry Dividend Yield of 4.21, CUP-U pays a better dividend. On top of this CUP-U pays more dividend than 100.00% of the companies listed in the same industry.
CUP-U's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.56% |
5.2 History
The dividend of CUP-U decreases each year by -1.32%.
CUP-U has paid a dividend for at least 10 years, which is a reliable track record.
CUP-U has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-1.32%
Div Incr Years2
Div Non Decr Years20
5.3 Sustainability
65.63% of the earnings are spent on dividend by CUP-U. This is not a sustainable payout ratio.
DP65.63%
EPS Next 2Y3.4%
EPS Next 3Y4.18%
TSX:CUP-U (4/30/2025, 7:00:00 PM)
13.31
0 (0%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners0.06%
Inst Owner ChangeN/A
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap561.55M
Analysts40
Price Target14.23 (6.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.56% |
Yearly Dividend0.95
Dividend Growth(5Y)-1.32%
DP65.63%
Div Incr Years2
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 8.98 | ||
| P/S | 1.38 | ||
| P/FCF | N/A | ||
| P/OCF | 4.44 | ||
| P/B | 1.03 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 9.13 |
EPS(TTM)1.39
EY10.44%
EPS(NY)1.48
Fwd EY11.13%
FCF(TTM)-0.32
FCFYN/A
OCF(TTM)3
OCFY22.52%
SpS9.63
BVpS12.89
TBVpS12.75
PEG (NY)1.21
PEG (5Y)1.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 10.6% | ||
| ROCE | 5.22% | ||
| ROIC | 3.76% | ||
| ROICexc | 3.86% | ||
| ROICexgc | 3.88% | ||
| OM | 13.79% | ||
| PM (TTM) | 14.19% | ||
| GM | 40.42% | ||
| FCFM | N/A |
ROA(3y)4.73%
ROA(5y)4.55%
ROE(3y)10.88%
ROE(5y)10.23%
ROIC(3y)3.75%
ROIC(5y)3.71%
ROICexc(3y)3.8%
ROICexc(5y)3.81%
ROICexgc(3y)3.83%
ROICexgc(5y)3.84%
ROCE(3y)5.37%
ROCE(5y)5.25%
ROICexcg growth 3Y0.39%
ROICexcg growth 5Y-0.99%
ROICexc growth 3Y0.42%
ROICexc growth 5Y-0.97%
OM growth 3Y-3.23%
OM growth 5Y-1.03%
PM growth 3Y-1.3%
PM growth 5Y0.52%
GM growth 3Y-4.7%
GM growth 5Y-1.21%
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.4 | ||
| Cap/Depr | 223.02% | ||
| Cap/Sales | 34.48% | ||
| Interest Coverage | 2.07 | ||
| Cash Conversion | 106.49% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 1.29 |
F-Score6
WACC6.64%
ROIC/WACC0.57
Cap/Depr(3y)238.04%
Cap/Depr(5y)205.09%
Cap/Sales(3y)35.4%
Cap/Sales(5y)34.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.51%
EPS 3Y10.63%
EPS 5Y5.14%
EPS Q2Q%16.67%
EPS Next Y7.93%
EPS Next 2Y3.4%
EPS Next 3Y4.18%
EPS Next 5YN/A
Revenue 1Y (TTM)2.25%
Revenue growth 3Y17.4%
Revenue growth 5Y8.1%
Sales Q2Q%-1.57%
Revenue Next Year24.7%
Revenue Next 2Y11.49%
Revenue Next 3Y9.44%
Revenue Next 5YN/A
EBIT growth 1Y5.39%
EBIT growth 3Y10.27%
EBIT growth 5Y6.54%
EBIT Next Year148.78%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y52.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y13.22%
OCF growth 3Y13.83%
OCF growth 5Y8.05%