CANADIAN UTILITIES LTD-A (CU.CA) Stock Fundamental Analysis
TSX:CU • CA1367178326
46.35 CAD
-0.03 (-0.06%)
Last: Feb 18, 2026, 07:00 PM
Taking everything into account, CU scores 3 out of 10 in our fundamental rating. CU was compared to 19 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 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.
- In the past year CU had a positive cash flow from operations.
- CU had positive earnings in each of the past 5 years.
- 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 47.37% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 7.68%, CU is in line with its industry, outperforming 42.11% of the companies in the same industry.
- The Return On Invested Capital of CU (3.86%) is worse than 68.42% 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 3.77%.
- 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.
- Looking at the Operating Margin, with a value of 31.51%, CU is in line with its industry, outperforming 47.37% of the companies in the same 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 47.37% 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
- CU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, CU has more shares outstanding
- 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 0.88, we must say that CU is in the distress zone and has some risk of bankruptcy.
- CU has a better Altman-Z score (0.88) than 89.47% 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 | 0.88 |
ROIC/WACC0.68
WACC5.68%
2.3 Liquidity
- A Current Ratio of 1.56 indicates that CU should not have too much problems paying its short term obligations.
- CU has a Current ratio of 1.56. This is comparable to the rest of the industry: CU outperforms 52.63% 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.
- Looking at the Quick ratio, with a value of 1.48, CU is in line with its industry, outperforming 52.63% of the companies in the same 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%.
- CU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.09% yearly.
- CU shows a decrease in Revenue. In the last year, the revenue decreased by -0.94%.
- The Revenue has been decreasing by -0.85% on average over the past years.
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
- CU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.88% yearly.
- CU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.45% yearly.
EPS Next Y11.35%
EPS Next 2Y7.18%
EPS Next 3Y6.77%
EPS Next 5Y5.88%
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
- CU is valuated rather expensively with a Price/Earnings ratio of 20.15.
- CU's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.27, CU is valued a bit cheaper.
- A Price/Forward Earnings ratio of 18.01 indicates a rather expensive valuation of CU.
- The rest of the industry has a similar Price/Forward Earnings ratio as CU.
- When comparing the Price/Forward Earnings ratio of CU to the average of the S&P500 Index (28.16), we can say CU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.15 | ||
| Fwd PE | 18.01 |
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 73.68% of the companies 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 | 26.91 | ||
| EV/EBITDA | 11.15 |
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)1.77
PEG (5Y)225.1
EPS Next 2Y7.18%
EPS Next 3Y6.77%
5. Dividend
5.1 Amount
- CU has a Yearly Dividend Yield of 4.01%, which is a nice return.
- CU's Dividend Yield is a higher than the industry average which is at 4.69.
- Compared to an average S&P500 Dividend Yield of 1.85, CU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
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.
- CU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP107.49%
EPS Next 2Y7.18%
EPS Next 3Y6.77%
TSX:CU (2/18/2026, 7:00:00 PM)
46.35
-0.03 (-0.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)11-07 2025-11-07/bmo
Earnings (Next)02-26 2026-02-26/amc
Inst Owners16.33%
Inst Owner ChangeN/A
Ins Owners0.3%
Ins Owner ChangeN/A
Market Cap9.52B
Revenue(TTM)3.70B
Net Income(TTM)534.00M
Analysts76
Price Target44.3 (-4.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
Yearly Dividend2.03
Dividend Growth(5Y)0.91%
DP107.49%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-05 2026-02-05 (0.4623)
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)0.33%
PT rev (3m)7.04%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)-0.81%
EPS NY rev (1m)0.14%
EPS NY rev (3m)1.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.15 | ||
| Fwd PE | 18.01 | ||
| P/S | 2.57 | ||
| P/FCF | 26.91 | ||
| P/OCF | 4.6 | ||
| P/B | 1.37 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 11.15 |
EPS(TTM)2.3
EY4.96%
EPS(NY)2.57
Fwd EY5.55%
FCF(TTM)1.72
FCFY3.72%
OCF(TTM)10.08
OCFY21.74%
SpS18.01
BVpS33.83
TBVpS28.07
PEG (NY)1.77
PEG (5Y)225.1
Graham Number41.84
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 | 0.88 |
F-Score5
WACC5.68%
ROIC/WACC0.68
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 Y11.35%
EPS Next 2Y7.18%
EPS Next 3Y6.77%
EPS Next 5Y5.88%
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 Year241.72%
EBIT Next 3Y57.68%
EBIT Next 5Y30.99%
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 for CU 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 valuation of CANADIAN UTILITIES LTD-A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CANADIAN UTILITIES LTD-A (CU.CA) is 20.15 and the Price/Book (PB) ratio is 1.37.
Is the dividend of CANADIAN UTILITIES LTD-A sustainable?
The dividend rating of CANADIAN UTILITIES LTD-A (CU.CA) is 7 / 10 and the dividend payout ratio is 107.49%.