CANADIAN UTILITIES LTD-A (CU.CA) Stock Fundamental Analysis
Canada - TSX:CU - CA1367178326 - Common Stock
37.46 CAD
-0.5 (-1.32%)
CU gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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 has a expensive valuation and it also scores bad on growth. 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.
In the past 5 years CU has always 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's Return On Equity of 6.39% is in line compared to the rest of the industry. CU outperforms 42.86% of its industry peers.
CU has a worse Return On Invested Capital (3.51%) than 76.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CU is in line with the industry average of 3.65%.
| 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
With a Profit Margin value of 12.00%, CU perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
In the last couple of years the Profit Margin of CU has declined.
CU's Operating Margin of 28.00% 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 Operating Margin of CU has declined.
CU has a Gross Margin (88.65%) which is comparable to the rest of the industry.
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 | 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.
The number of shares outstanding for CU has been increased compared to 1 year ago.
CU has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CU has a worse debt to assets ratio.
2.2 Solvency
CU has an Altman-Z score of 0.82. This is a bad value and indicates that CU is not financially healthy and even has some risk of bankruptcy.
CU has a better Altman-Z score (0.82) 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.
Looking at the Debt to FCF ratio, with a value of 39.44, CU is in line with its industry, outperforming 52.38% of the companies in the same industry.
CU has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external 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 | 0.82 |
ROIC/WACC0.64
WACC5.48%
2.3 Liquidity
A Current Ratio of 1.20 indicates that CU should not have too much problems paying its short term obligations.
CU's Current ratio of 1.20 is in line compared to the rest of the industry. CU outperforms 52.38% of its industry peers.
CU has a Quick Ratio of 1.12. 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 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.
The Earnings Per Share has been growing slightly by 0.09% on average over the past years.
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
The Earnings Per Share is expected to grow by 3.76% on average over the next years.
CU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.22% yearly.
EPS Next Y10.43%
EPS Next 2Y7.04%
EPS Next 3Y6.68%
EPS Next 5Y3.76%
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
The Price/Earnings ratio is 16.43, which indicates a correct 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 27.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.60, which indicates a correct valuation of CU.
CU's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, CU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 14.6 |
4.2 Price Multiples
CU's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CU is more expensive than 76.19% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CU is valued a bit more expensive than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.7 | ||
| EV/EBITDA | 10.34 |
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)1.57
PEG (5Y)183.52
EPS Next 2Y7.04%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.34%, CU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.16, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
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 128.25% 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.
DP128.25%
EPS Next 2Y7.04%
EPS Next 3Y6.68%
TSX:CU (9/16/2025, 7:00:00 PM)
37.46
-0.5 (-1.32%)
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 Cap7.69B
Analysts76
Price Target40.95 (9.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
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)-0.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)17.24%
EPS NY rev (1m)0.8%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-5.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 14.6 | ||
| P/S | 2.07 | ||
| P/FCF | 26.7 | ||
| P/OCF | 3.8 | ||
| P/B | 1.1 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 10.34 |
EPS(TTM)2.28
EY6.09%
EPS(NY)2.57
Fwd EY6.85%
FCF(TTM)1.4
FCFY3.75%
OCF(TTM)9.85
OCFY26.3%
SpS18.12
BVpS33.99
TBVpS28.34
PEG (NY)1.57
PEG (5Y)183.52
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%
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-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 | 0.82 |
F-Score4
WACC5.48%
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 2Y7.04%
EPS Next 3Y6.68%
EPS Next 5Y3.76%
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 Year239.73%
EBIT Next 3Y58.42%
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%