CANADIAN UTILITIES LTD-A (CU.CA) Stock Fundamental Analysis
Canada - TSX:CU - CA1367178326 - Common Stock
39.73 CAD
+0.2 (+0.51%)
We assign a fundamental rating of 3 out of 10 to CU. CU was compared to 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.
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
With a Return On Assets value of 1.87%, CU perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
CU has a Return On Equity (6.39%) which is comparable to the rest of the industry.
CU's Return On Invested Capital of 3.51% is on the low side compared to the rest of the industry. CU is outperformed by 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
The Profit Margin of CU (12.00%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CU has declined.
CU has a Operating Margin of 28.00%. This is comparable 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.
With a Gross Margin value of 88.65%, CU perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
CU's Gross Margin has been stable in the last couple of years.
| 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
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.
CU has less shares outstanding than it did 5 years ago.
CU has a worse debt/assets ratio than last year.
2.2 Solvency
CU has an Altman-Z score of 0.84. This is a bad value and indicates that CU is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.84, CU belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
The Debt to FCF ratio of CU is 39.44, which is on the high side as it means it would take CU, 39.44 years of fcf income to pay off all of its debts.
CU has a Debt to FCF ratio (39.44) which is in line with its industry peers.
CU has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.62, CU is in line with its industry, outperforming 47.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 39.44 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.64
WACC5.52%
2.3 Liquidity
CU has a Current Ratio of 1.20. 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 1.20. This is comparable to the rest of the industry: CU outperforms 52.38% of its industry peers.
A Quick Ratio of 1.12 indicates that CU should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.12, CU perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
CU shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.44%.
CU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.09% yearly.
The Revenue has decreased by -0.51% in the past 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
CU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.78% yearly.
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 2Y7.07%
EPS Next 3Y6.68%
EPS Next 5Y5.78%
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
Based on the Price/Earnings ratio of 17.43, the valuation of CU can be described as rather expensive.
CU's Price/Earnings is on the same level as the industry average.
CU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.40.
With a Price/Forward Earnings ratio of 15.47, CU is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as CU.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, CU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.43 | ||
| Fwd PE | 15.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CU is valued a bit 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 the industry average as 71.43% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.31 | ||
| EV/EBITDA | 10.6 |
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)194.64
EPS Next 2Y7.07%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
CU has a Yearly Dividend Yield of 4.63%, which is a nice return.
CU's Dividend Yield is comparable with the industry average which is at 5.47.
CU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.63% |
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 128.25% 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.
DP128.25%
EPS Next 2Y7.07%
EPS Next 3Y6.68%
TSX:CU (10/17/2025, 7:00:00 PM)
39.73
+0.2 (+0.51%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners15.18%
Inst Owner ChangeN/A
Ins Owners0.3%
Ins Owner ChangeN/A
Market Cap8.15B
Analysts76
Price Target40.95 (3.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.63% |
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%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)-3.25%
EPS NY rev (1m)0%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.43 | ||
| Fwd PE | 15.47 | ||
| P/S | 2.19 | ||
| P/FCF | 28.31 | ||
| P/OCF | 4.03 | ||
| P/B | 1.17 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 10.6 |
EPS(TTM)2.28
EY5.74%
EPS(NY)2.57
Fwd EY6.46%
FCF(TTM)1.4
FCFY3.53%
OCF(TTM)9.85
OCFY24.8%
SpS18.12
BVpS33.99
TBVpS28.34
PEG (NY)1.67
PEG (5Y)194.64
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 | 0.84 |
F-Score4
WACC5.52%
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 2Y7.07%
EPS Next 3Y6.68%
EPS Next 5Y5.78%
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 Year237.12%
EBIT Next 3Y57.47%
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%