CANADIAN UTILITIES LTD-A (CU.CA) Stock Fundamental Analysis
TSX:CU - Toronto Stock Exchange - CA1367178326 - Common Stock - Currency: CAD
Overall CU gets a fundamental rating of 4 out of 10. We evaluated CU against 21 industry peers in the Multi-Utilities industry. There are concerns on the financial health of CU while its profitability can be described as average. 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
In the past year CU was profitable.
CU had a positive operating cash flow in the past year.
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
CU has a Return On Assets of 1.82%. This is comparable to the rest of the industry: CU outperforms 57.89% of its industry peers.
The Return On Equity of CU (6.17%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.58%, CU is doing worse than 94.74% 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 2.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | 6.17% | ||
| ROIC | 2.59% |
ROA(3y)2.27%
ROA(5y)2.6%
ROE(3y)7.37%
ROE(5y)8.14%
ROIC(3y)3.79%
ROIC(5y)4.06%
1.3 Margins
With a Profit Margin value of 11.35%, CU perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
In the last couple of years the Profit Margin of CU has grown nicely.
The Operating Margin of CU (20.21%) is worse than 78.95% of its industry peers.
CU's Operating Margin has improved in the last couple of years.
CU has a Gross Margin of 86.40%. This is comparable to the rest of the industry: CU outperforms 57.89% of its industry peers.
CU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.21% | ||
| PM (TTM) | 11.35% | ||
| GM | 86.4% |
OM growth 3Y-2.68%
OM growth 5Y2.04%
PM growth 3Y14.23%
PM growth 5Y5.08%
GM growth 3Y-0.45%
GM growth 5Y2.15%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CU 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 0.79, we must say that CU is in the distress zone and has some risk of bankruptcy.
CU has a better Altman-Z score (0.79) than 100.00% of its industry peers.
CU has a debt to FCF ratio of 23.27. This is a negative value and a sign of low solvency as CU would need 23.27 years to pay back of all of its debts.
The Debt to FCF ratio of CU (23.27) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.57 is on the high side and indicates that CU has dependencies on debt financing.
With a Debt to Equity ratio value of 1.57, CU perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 23.27 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.49
WACC5.26%
2.3 Liquidity
CU has a Current Ratio of 1.63. This is a normal value and indicates that CU is financially healthy and should not expect problems in meeting its short term obligations.
CU has a Current ratio (1.63) which is in line with its industry peers.
CU has a Quick Ratio of 1.55. 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 1.55 is in line compared to the rest of the industry. CU outperforms 47.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
CU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.91%.
CU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.44% yearly.
CU shows a decrease in Revenue. In the last year, the revenue decreased by -4.94%.
CU shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.81% yearly.
EPS 1Y (TTM)4.91%
EPS 3Y5.32%
EPS 5Y0.44%
EPS Q2Q%18.75%
Revenue 1Y (TTM)-4.94%
Revenue growth 3Y5.5%
Revenue growth 5Y-2.81%
Sales Q2Q%-0.25%
3.2 Future
CU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.54% yearly.
Based on estimates for the next years, CU will show a small growth in Revenue. The Revenue will grow by 3.05% on average per year.
EPS Next Y6.24%
EPS Next 2Y3.46%
EPS Next 3Y3.57%
EPS Next 5Y2.54%
Revenue Next Year4.84%
Revenue Next 2Y2.65%
Revenue Next 3Y3.05%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.69 indicates a correct valuation of CU.
CU's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.63, CU is valued rather cheaply.
With a Price/Forward Earnings ratio of 14.08, CU is valued correctly.
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 22.68, CU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 14.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CU is valued more expensive than 84.21% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CU is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.11 | ||
| EV/EBITDA | 11.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.35
PEG (5Y)33.19
EPS Next 2Y3.46%
EPS Next 3Y3.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.35%, CU is a good candidate for dividend investing.
CU's Dividend Yield is rather good when compared to the industry average which is at 5.33. CU pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, CU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.35% |
5.2 History
The dividend of CU has a limited annual growth rate of 4.49%.
CU has been paying a dividend for at least 10 years, so it has a reliable track record.
CU has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.49%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
126.89% of the earnings are spent on dividend by CU. This is not a sustainable payout ratio.
CU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP126.89%
EPS Next 2Y3.46%
EPS Next 3Y3.57%
TSX:CU (2/21/2025, 7:00:00 PM)
34.51
+0.32 (+0.94%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners15.17%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap7.07B
Analysts77.14
Price Target38.85 (12.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.35% |
Yearly Dividend1.98
Dividend Growth(5Y)4.49%
DP126.89%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.6%
Min EPS beat(2)1.33%
Max EPS beat(2)7.87%
EPS beat(4)2
Avg EPS beat(4)1.74%
Min EPS beat(4)-2.13%
Max EPS beat(4)7.87%
EPS beat(8)3
Avg EPS beat(8)-0.38%
EPS beat(12)7
Avg EPS beat(12)2.71%
EPS beat(16)11
Avg EPS beat(16)3.17%
Revenue beat(2)2
Avg Revenue beat(2)8.97%
Min Revenue beat(2)6.77%
Max Revenue beat(2)11.16%
Revenue beat(4)2
Avg Revenue beat(4)-2.92%
Min Revenue beat(4)-17.74%
Max Revenue beat(4)11.16%
Revenue beat(8)5
Avg Revenue beat(8)1.34%
Revenue beat(12)9
Avg Revenue beat(12)6.17%
Revenue beat(16)10
Avg Revenue beat(16)3.31%
PT rev (1m)1.29%
PT rev (3m)1.29%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)-0.37%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 14.08 | ||
| P/S | 1.89 | ||
| P/FCF | 15.11 | ||
| P/OCF | 3.73 | ||
| P/B | 1.03 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 11.61 |
EPS(TTM)2.35
EY6.81%
EPS(NY)2.45
Fwd EY7.1%
FCF(TTM)2.28
FCFY6.62%
OCF(TTM)9.25
OCFY26.8%
SpS18.22
BVpS33.55
TBVpS28.08
PEG (NY)2.35
PEG (5Y)33.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | 6.17% | ||
| ROCE | 3.34% | ||
| ROIC | 2.59% | ||
| ROICexc | 2.63% | ||
| ROICexgc | 2.77% | ||
| OM | 20.21% | ||
| PM (TTM) | 11.35% | ||
| GM | 86.4% | ||
| FCFM | 12.53% |
ROA(3y)2.27%
ROA(5y)2.6%
ROE(3y)7.37%
ROE(5y)8.14%
ROIC(3y)3.79%
ROIC(5y)4.06%
ROICexc(3y)3.9%
ROICexc(5y)4.21%
ROICexgc(3y)4.08%
ROICexgc(5y)4.39%
ROCE(3y)4.92%
ROCE(5y)5.26%
ROICexcg growth 3Y-1.21%
ROICexcg growth 5Y-1.87%
ROICexc growth 3Y-1.8%
ROICexc growth 5Y-2.29%
OM growth 3Y-2.68%
OM growth 5Y2.04%
PM growth 3Y14.23%
PM growth 5Y5.08%
GM growth 3Y-0.45%
GM growth 5Y2.15%
F-Score5
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 23.27 | ||
| Debt/EBITDA | 7.24 | ||
| Cap/Depr | 192.71% | ||
| Cap/Sales | 38.23% | ||
| Interest Coverage | 1.42 | ||
| Cash Conversion | 126.74% | ||
| Profit Quality | 110.38% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 0.79 |
F-Score5
WACC5.26%
ROIC/WACC0.49
Cap/Depr(3y)195.16%
Cap/Depr(5y)182.15%
Cap/Sales(3y)34.61%
Cap/Sales(5y)31.62%
Profit Quality(3y)119.98%
Profit Quality(5y)120.26%
High Growth Momentum
Growth
EPS 1Y (TTM)4.91%
EPS 3Y5.32%
EPS 5Y0.44%
EPS Q2Q%18.75%
EPS Next Y6.24%
EPS Next 2Y3.46%
EPS Next 3Y3.57%
EPS Next 5Y2.54%
Revenue 1Y (TTM)-4.94%
Revenue growth 3Y5.5%
Revenue growth 5Y-2.81%
Sales Q2Q%-0.25%
Revenue Next Year4.84%
Revenue Next 2Y2.65%
Revenue Next 3Y3.05%
Revenue Next 5YN/A
EBIT growth 1Y-36.77%
EBIT growth 3Y2.67%
EBIT growth 5Y-0.83%
EBIT Next Year240.7%
EBIT Next 3Y58.38%
EBIT Next 5Y29.4%
FCF growth 1Y-40.31%
FCF growth 3Y-15.88%
FCF growth 5YN/A
OCF growth 1Y-7.15%
OCF growth 3Y2.96%
OCF growth 5Y15.39%