CANADIAN UTILITIES LTD-A (CU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CU - CA1367178326 - Common Stock
42.21 CAD
-0.02 (-0.05%)
CU gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 20 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. 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.
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
CU has a Return On Assets (2.16%) which is in line with its industry peers.
CU has a Return On Equity (7.68%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 3.86%, CU is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for CU is in line with the industry average of 3.84%.
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
CU has a Profit Margin of 14.43%. This is comparable to the rest of the industry: CU outperforms 50.00% of its industry peers.
CU's Profit Margin has declined in the last couple of years.
CU has a Operating Margin (31.51%) which is comparable to the rest of the industry.
CU's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 88.73%, CU is in line with its industry, outperforming 50.00% 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 | 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.
CU has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CU has less shares outstanding
Compared to 1 year ago, CU has a worse debt to assets ratio.
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.
The Debt to FCF ratio of CU is 34.08, which is on the high side as it means it would take CU, 34.08 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 34.08, CU is in line with its industry, outperforming 55.00% of the companies in the same industry.
A Debt/Equity ratio of 1.68 is on the high side and indicates that CU has dependencies on debt financing.
The Debt to Equity ratio of CU (1.68) is worse than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 34.08 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.71
WACC5.46%
2.3 Liquidity
A Current Ratio of 1.56 indicates that CU should not have too much problems paying its short term obligations.
The Current ratio of CU (1.56) is comparable to the rest of the industry.
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 in line with its industry peers.
| 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.
The Revenue has decreased by -0.94% in the past year.
CU shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.85% yearly.
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
The Earnings Per Share is expected to grow by 5.97% on average over the next years.
CU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.22% yearly.
EPS Next Y10.05%
EPS Next 2Y7%
EPS Next 3Y6.64%
EPS Next 5Y5.97%
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
With a Price/Earnings ratio of 18.35, CU is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CU is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.11, CU is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.46, which indicates a correct valuation of CU.
CU's Price/Forward Earnings is on the same level as the industry average.
CU is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 16.46 |
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.
Based on the Price/Free Cash Flow ratio, CU is valued a bit more expensive than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.48 | ||
| EV/EBITDA | 10.7 |
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)1.83
PEG (5Y)204.99
EPS Next 2Y7%
EPS Next 3Y6.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.36%, CU is a good candidate for dividend investing.
CU's Dividend Yield is a higher than the industry average which is at 4.53.
CU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
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 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%
EPS Next 3Y6.64%
TSX:CU (12/1/2025, 7:00:00 PM)
42.21
-0.02 (-0.05%)
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 Cap8.67B
Revenue(TTM)3.70B
Net Income(TTM)534.00M
Analysts76
Price Target42.4 (0.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
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)3.56%
PT rev (3m)3.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)-0.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 16.46 | ||
| P/S | 2.34 | ||
| P/FCF | 24.48 | ||
| P/OCF | 4.18 | ||
| P/B | 1.25 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 10.7 |
EPS(TTM)2.3
EY5.45%
EPS(NY)2.56
Fwd EY6.08%
FCF(TTM)1.72
FCFY4.08%
OCF(TTM)10.09
OCFY23.9%
SpS18.02
BVpS33.86
TBVpS28.09
PEG (NY)1.83
PEG (5Y)204.99
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
WACC5.46%
ROIC/WACC0.71
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 Y10.05%
EPS Next 2Y7%
EPS Next 3Y6.64%
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-5.06%
Revenue Next 2Y-0.61%
Revenue Next 3Y1.22%
Revenue Next 5YN/A
EBIT growth 1Y54.44%
EBIT growth 3Y3.19%
EBIT growth 5Y-5.39%
EBIT Next Year237.12%
EBIT Next 3Y57.47%
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 10.05% in the next year.