CANADIAN UTILITIES LTD-A (CU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CU - CA1367178326 - Common Stock
42.28 CAD
-0.05 (-0.12%)
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 is valued expensive and it does not seem to be growing. 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.
In the past 5 years CU has always been profitable.
CU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.16%, CU perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
CU's Return On Equity of 7.68% is in line compared to the rest of the industry. CU outperforms 45.00% of its industry peers.
CU has a Return On Invested Capital of 3.86%. This is in the lower half of the industry: CU underperforms 70.00% 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 3.74%.
The 3 year average ROIC (3.80%) for CU is below the current ROIC(3.86%), indicating increased profibility in the last year.
| 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
The Profit Margin of CU (14.43%) is comparable to the rest of the industry.
CU's Profit Margin has declined in the last couple of years.
The Operating Margin of CU (31.51%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CU has declined.
CU has a Gross Margin of 88.73%. This is comparable to the rest of the industry: CU outperforms 50.00% of its industry peers.
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 | 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 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.
The number of shares outstanding for CU has been reduced compared to 5 years ago.
The debt/assets ratio for CU is higher compared to a year ago.
2.2 Solvency
CU has an Altman-Z score of 0.86. This is a bad value and indicates that CU is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CU (0.86) is better than 90.00% of its industry peers.
CU has a debt to FCF ratio of 34.08. This is a negative value and a sign of low solvency as CU would need 34.08 years to pay back of all of its debts.
CU has a Debt to FCF ratio (34.08) which is comparable to the rest of the industry.
CU has a Debt/Equity ratio of 1.68. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CU (1.68) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 34.08 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.7
WACC5.48%
2.3 Liquidity
A Current Ratio of 1.56 indicates that CU should not have too much problems paying its short term obligations.
CU's Current ratio of 1.56 is in line compared to the rest of the industry. CU outperforms 55.00% of its industry peers.
CU has a Quick Ratio of 1.48. 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 Quick ratio (1.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
CU shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.13%.
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.
CU shows a decrease in Revenue. In the last year, the revenue decreased by -0.94%.
Measured over the past years, CU shows a decrease in Revenue. The Revenue has been decreasing by -0.85% on average per year.
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
Based on estimates for the next years, CU will show a small growth in Earnings Per Share. The EPS will grow by 5.97% on average per year.
Based on estimates for the next years, CU will show a small growth in Revenue. The Revenue will grow by 1.45% on average per year.
EPS Next Y11%
EPS Next 2Y7.17%
EPS Next 3Y6.7%
EPS Next 5Y5.97%
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
With a Price/Earnings ratio of 18.38, CU is valued on the expensive side.
CU's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.57, CU is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.43 indicates a correct valuation of CU.
CU's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CU is more expensive than 60.00% of the companies in the same industry.
CU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.38 | ||
| Fwd PE | 16.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CU indicates a slightly more expensive valuation: CU is more expensive than 75.00% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.52 | ||
| EV/EBITDA | 10.71 |
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)1.67
PEG (5Y)205.33
EPS Next 2Y7.17%
EPS Next 3Y6.7%
5. Dividend
5.1 Amount
CU has a Yearly Dividend Yield of 5.46%, which is a nice return.
CU's Dividend Yield is a higher than the industry average which is at 4.93.
Compared to an average S&P500 Dividend Yield of 2.00, CU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.46% |
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
CU pays out 107.49% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP107.49%
EPS Next 2Y7.17%
EPS Next 3Y6.7%
TSX:CU (12/24/2025, 7:00:00 PM)
42.28
-0.05 (-0.12%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners16.08%
Inst Owner ChangeN/A
Ins Owners0.3%
Ins Owner ChangeN/A
Market Cap8.68B
Revenue(TTM)3.70B
Net Income(TTM)534.00M
Analysts76
Price Target44.15 (4.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.46% |
Yearly Dividend2.03
Dividend Growth(5Y)0.91%
DP107.49%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.43%
Min EPS beat(2)-0.71%
Max EPS beat(2)3.56%
EPS beat(4)1
Avg EPS beat(4)-4.67%
Min EPS beat(4)-19.54%
Max EPS beat(4)3.56%
EPS beat(8)3
Avg EPS beat(8)-1.46%
EPS beat(12)4
Avg EPS beat(12)-1.81%
EPS beat(16)8
Avg EPS beat(16)0.87%
Revenue beat(2)2
Avg Revenue beat(2)3.91%
Min Revenue beat(2)1.21%
Max Revenue beat(2)6.61%
Revenue beat(4)2
Avg Revenue beat(4)-6.77%
Min Revenue beat(4)-17.55%
Max Revenue beat(4)6.61%
Revenue beat(8)4
Avg Revenue beat(8)-4.85%
Revenue beat(12)7
Avg Revenue beat(12)-1.37%
Revenue beat(16)11
Avg Revenue beat(16)2.94%
PT rev (1m)4.23%
PT rev (3m)5.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)0.86%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.38 | ||
| Fwd PE | 16.43 | ||
| P/S | 2.35 | ||
| P/FCF | 24.52 | ||
| P/OCF | 4.19 | ||
| P/B | 1.25 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 10.71 |
EPS(TTM)2.3
EY5.44%
EPS(NY)2.57
Fwd EY6.09%
FCF(TTM)1.72
FCFY4.08%
OCF(TTM)10.09
OCFY23.86%
SpS18.02
BVpS33.86
TBVpS28.09
PEG (NY)1.67
PEG (5Y)205.33
Graham Number41.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 7.68% | ||
| ROCE | 4.92% | ||
| ROIC | 3.86% | ||
| ROICexc | 3.9% | ||
| ROICexgc | 4.11% | ||
| OM | 31.51% | ||
| PM (TTM) | 14.43% | ||
| GM | 88.73% | ||
| FCFM | 9.57% |
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-Score5
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 34.08 | ||
| Debt/EBITDA | 6.17 | ||
| Cap/Depr | 236.18% | ||
| Cap/Sales | 46.41% | ||
| Interest Coverage | 2.3 | ||
| Cash Conversion | 109.4% | ||
| Profit Quality | 66.29% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 0.86 |
F-Score5
WACC5.48%
ROIC/WACC0.7
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)-2.13%
EPS 3Y1.06%
EPS 5Y0.09%
EPS Q2Q%5.26%
EPS Next Y11%
EPS Next 2Y7.17%
EPS Next 3Y6.7%
EPS Next 5Y5.97%
Revenue 1Y (TTM)-0.94%
Revenue growth 3Y2.11%
Revenue growth 5Y-0.85%
Sales Q2Q%-2.22%
Revenue Next Year-4.75%
Revenue Next 2Y-0.31%
Revenue Next 3Y1.45%
Revenue Next 5YN/A
EBIT growth 1Y54.44%
EBIT growth 3Y3.19%
EBIT growth 5Y-5.39%
EBIT Next Year242.49%
EBIT Next 3Y57.7%
EBIT Next 5Y36.01%
FCF growth 1Y-27.01%
FCF growth 3Y-13.47%
FCF growth 5Y0.5%
OCF growth 1Y9.93%
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 11% in the next year.