CANADIAN UTILITIES LTD - CUCN 5.2 PERP (CU-PR-C.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CU-PR-C - CA1367176916
24.55 CAD
-0.07 (-0.28%)
Overall CU-PR-C gets a fundamental rating of 5 out of 10. We evaluated CU-PR-C against 19 industry peers in the Multi-Utilities industry. CU-PR-C has an average financial health and profitability rating. CU-PR-C is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year CU-PR-C was profitable.
- In the past year CU-PR-C had a positive cash flow from operations.
- CU-PR-C had positive earnings in each of the past 5 years.
- CU-PR-C had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 2.16%, CU-PR-C is doing good in the industry, outperforming 63.16% of the companies in the same industry.
- CU-PR-C has a Return On Equity (7.68%) which is comparable to the rest of the industry.
- CU-PR-C has a Return On Invested Capital (3.86%) which is comparable to the rest of the industry.
- CU-PR-C had an Average Return On Invested Capital over the past 3 years of 3.80%. This is in line with the industry average of 3.73%.
- The last Return On Invested Capital (3.86%) for CU-PR-C is above the 3 year average (3.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 7.68% | ||
| ROIC | 3.86% |
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-PR-C has a Profit Margin of 14.43%. This is in the better half of the industry: CU-PR-C outperforms 63.16% of its industry peers.
- CU-PR-C's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 31.51%, CU-PR-C is doing good in the industry, outperforming 63.16% of the companies in the same industry.
- In the last couple of years the Operating Margin of CU-PR-C has declined.
- CU-PR-C's Gross Margin of 88.73% is fine compared to the rest of the industry. CU-PR-C outperforms 63.16% of its industry peers.
- In the last couple of years the Gross Margin of CU-PR-C has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.51% | ||
| PM (TTM) | 14.43% | ||
| GM | 88.73% |
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-PR-C has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, CU-PR-C has more shares outstanding
- Compared to 5 years ago, CU-PR-C has less shares outstanding
- CU-PR-C has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.73, we must say that CU-PR-C is in the distress zone and has some risk of bankruptcy.
- With a decent Altman-Z score value of 0.73, CU-PR-C is doing good in the industry, outperforming 68.42% of the companies in the same industry.
- The Debt to FCF ratio of CU-PR-C is 34.08, which is on the high side as it means it would take CU-PR-C, 34.08 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CU-PR-C (34.08) is better than 68.42% of its industry peers.
- A Debt/Equity ratio of 1.68 is on the high side and indicates that CU-PR-C has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.68, CU-PR-C perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 34.08 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.77
WACC5.01%
2.3 Liquidity
- CU-PR-C has a Current Ratio of 1.56. This is a normal value and indicates that CU-PR-C is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.56, CU-PR-C is doing good in the industry, outperforming 68.42% of the companies in the same industry.
- CU-PR-C has a Quick Ratio of 1.48. This is a normal value and indicates that CU-PR-C is financially healthy and should not expect problems in meeting its short term obligations.
- CU-PR-C's Quick ratio of 1.48 is fine compared to the rest of the industry. CU-PR-C outperforms 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
- The earnings per share for CU-PR-C have decreased by -2.13% in the last year.
- Measured over the past 5 years, CU-PR-C shows a small growth in Earnings Per Share. The EPS has been growing by 0.09% on average per year.
- CU-PR-C shows a decrease in Revenue. In the last year, the revenue decreased by -0.94%.
- The Revenue has been decreasing by -0.85% on average over the past years.
EPS 1Y (TTM)-2.13%
EPS 3Y1.06%
EPS 5Y0.09%
EPS Q2Q%5.26%
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y2.11%
Revenue growth 5Y-0.85%
Sales Q2Q%-2.22%
3.2 Future
- The Earnings Per Share is expected to grow by 5.88% on average over the next years.
- Based on estimates for the next years, CU-PR-C will show a small growth in Revenue. The Revenue will grow by 1.45% on average per year.
EPS Next Y11.35%
EPS Next 2Y7.18%
EPS Next 3Y6.77%
EPS Next 5Y5.88%
Revenue Next Year-4.75%
Revenue Next 2Y-0.31%
Revenue Next 3Y1.45%
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
- CU-PR-C is valuated reasonably with a Price/Earnings ratio of 10.67.
- Compared to the rest of the industry, the Price/Earnings ratio of CU-PR-C indicates a somewhat cheap valuation: CU-PR-C is cheaper than 63.16% of the companies listed in the same industry.
- CU-PR-C's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.82.
- Based on the Price/Forward Earnings ratio of 9.54, the valuation of CU-PR-C can be described as reasonable.
- 73.68% of the companies in the same industry are more expensive than CU-PR-C, based on the Price/Forward Earnings ratio.
- CU-PR-C is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 9.54 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as CU-PR-C.
- The rest of the industry has a similar Price/Free Cash Flow ratio as CU-PR-C.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.24 | ||
| EV/EBITDA | 8.78 |
4.3 Compensation for Growth
- CU-PR-C's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of CU-PR-C may justify a higher PE ratio.
PEG (NY)0.94
PEG (5Y)119.23
EPS Next 2Y7.18%
EPS Next 3Y6.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.20%, CU-PR-C is a good candidate for dividend investing.
- CU-PR-C's Dividend Yield is slightly below the industry average, which is at 5.19.
- CU-PR-C's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
5.2 History
- The dividend of CU-PR-C has a limited annual growth rate of 0.91%.
- CU-PR-C has paid a dividend for at least 10 years, which is a reliable track record.
- CU-PR-C has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.91%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- 107.49% of the earnings are spent on dividend by CU-PR-C. This is not a sustainable payout ratio.
- CU-PR-C's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP107.49%
EPS Next 2Y7.18%
EPS Next 3Y6.77%
CANADIAN UTILITIES LTD - CUCN 5.2 PERP / CU-PR-C.CA FAQ
Can you provide the ChartMill fundamental rating for CANADIAN UTILITIES LTD - CUCN 5.2 PERP?
ChartMill assigns a fundamental rating of 4 / 10 to CU-PR-C.CA.
What is the valuation status of CANADIAN UTILITIES LTD - CUCN 5.2 PERP (CU-PR-C.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to CANADIAN UTILITIES LTD - CUCN 5.2 PERP (CU-PR-C.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for CANADIAN UTILITIES LTD - CUCN 5.2 PERP?
CANADIAN UTILITIES LTD - CUCN 5.2 PERP (CU-PR-C.CA) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for CU-PR-C stock?
The Price/Earnings (PE) ratio for CANADIAN UTILITIES LTD - CUCN 5.2 PERP (CU-PR-C.CA) is 10.67 and the Price/Book (PB) ratio is 0.73.
Can you provide the expected EPS growth for CU-PR-C stock?
The Earnings per Share (EPS) of CANADIAN UTILITIES LTD - CUCN 5.2 PERP (CU-PR-C.CA) is expected to grow by 11.35% in the next year.