CANADIAN UTILITIES LTD-A (CU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CU - CA1367178326 - Common Stock
42.33 CAD
+0.36 (+0.86%)
Overall CU gets a fundamental rating of 3 out of 10. We evaluated CU against 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 has a expensive valuation and it also scores bad on growth. CU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CU was profitable.
In the past year CU had a positive cash flow from operations.
Each year in the past 5 years CU has been profitable.
CU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CU (2.16%) is comparable to the rest of the industry.
CU has a Return On Equity (7.68%) which is comparable to the rest of the industry.
The Return On Invested Capital of CU (3.86%) is worse than 70.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CU is in line with the industry average of 3.74%.
The last Return On Invested Capital (3.86%) for CU 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
The Profit Margin of CU (14.43%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CU has declined.
With a Operating Margin value of 31.51%, CU perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
CU's Operating Margin has declined in the last couple of years.
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.
CU's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CU is destroying value.
The number of shares outstanding for CU has been increased compared to 1 year ago.
Compared to 5 years ago, CU has less shares outstanding
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.
With an excellent Altman-Z score value of 0.86, CU belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
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 of 34.08. This is comparable to the rest of the industry: CU outperforms 55.00% of its industry peers.
A Debt/Equity ratio of 1.68 is on the high side and indicates that CU has dependencies on debt financing.
With a Debt to Equity ratio value of 1.68, CU perfoms like the industry average, outperforming 45.00% of the companies in the same 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
CU has a Current Ratio of 1.56. 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 of 1.56. This is comparable to the rest of the industry: CU outperforms 55.00% of its industry peers.
A Quick Ratio of 1.48 indicates that CU should not have too much problems paying its short term obligations.
CU has a Quick ratio (1.48) which is in line with 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 have decreased by -2.13% in the last year.
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.
CU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.45% yearly.
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.
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
The Price/Earnings ratio is 18.40, which indicates a rather expensive current valuation of CU.
CU's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of CU to the average of the S&P500 Index (26.50), we can say CU is valued slightly cheaper.
CU is valuated correctly with a Price/Forward Earnings ratio of 16.45.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CU indicates a slightly more expensive valuation: CU is more expensive than 60.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CU to the average of the S&P500 Index (23.93), we can say CU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.4 | ||
| Fwd PE | 16.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CU is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
CU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.55 | ||
| EV/EBITDA | 10.71 |
4.3 Compensation for Growth
CU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.67
PEG (5Y)205.58
EPS Next 2Y7.17%
EPS Next 3Y6.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.33%, CU is a good candidate for dividend investing.
CU's Dividend Yield is a higher than the industry average which is at 4.55.
Compared to an average S&P500 Dividend Yield of 1.87, CU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
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 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 (12/23/2025, 7:00:00 PM)
42.33
+0.36 (+0.86%)
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 Cap8.69B
Revenue(TTM)3.70B
Net Income(TTM)534.00M
Analysts76
Price Target43.13 (1.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
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 | 18.4 | ||
| Fwd PE | 16.45 | ||
| P/S | 2.35 | ||
| P/FCF | 24.55 | ||
| P/OCF | 4.2 | ||
| P/B | 1.25 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 10.71 |
EPS(TTM)2.3
EY5.43%
EPS(NY)2.57
Fwd EY6.08%
FCF(TTM)1.72
FCFY4.07%
OCF(TTM)10.09
OCFY23.83%
SpS18.02
BVpS33.86
TBVpS28.09
PEG (NY)1.67
PEG (5Y)205.58
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.