CANADIAN UTILITIES LTD-A (CU.CA) Stock Fundamental Analysis
Canada - TSX:CU - CA1367178326 - Common Stock
41.68 CAD
-0.4 (-0.95%)
Taking everything into account, CU scores 3 out of 10 in our fundamental rating. CU was compared to 21 industry peers in the Multi-Utilities industry. While CU is still in line with the averages on profitability rating, there are concerns on its financial health. CU has a expensive valuation and it also scores bad on growth. 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.
Each year in the past 5 years CU had a positive operating cash flow.
1.2 Ratios
CU has a Return On Assets (2.16%) which is comparable to the rest of the industry.
CU has a Return On Equity (7.68%) which is in line with its industry peers.
The Return On Invested Capital of CU (3.86%) is worse than 66.67% 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 3.83%.
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
CU has a Profit Margin (14.43%) which is comparable to the rest of the industry.
CU's Profit Margin has declined in the last couple of years.
CU's Operating Margin of 31.51% is in line compared 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.
The Gross Margin of CU (88.73%) is comparable to the rest of the industry.
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.
CU has more shares outstanding than it did 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 0.85. This is a bad value and indicates that CU is not financially healthy and even has some risk of bankruptcy.
CU has a Altman-Z score of 0.85. This is amongst the best in the industry. CU outperforms 90.48% 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 in line with 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 is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 34.08 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.7
WACC5.49%
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.
The Current ratio of CU (1.56) is comparable to the rest of the industry.
A Quick Ratio of 1.48 indicates that CU should not have too much problems paying its short term obligations.
The Quick ratio of CU (1.48) 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 -2.18%.
CU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.09% yearly.
Looking at the last year, CU shows a decrease in Revenue. The Revenue has decreased by -0.94% in the last year.
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)-2.18%
EPS 3Y1.06%
EPS 5Y0.09%
EPS Q2Q%1080%
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 5.97% 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 Y10.05%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 18.61, CU is valued on the expensive side.
Based on the Price/Earnings ratio, CU is valued a bit more expensive than 76.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of CU to the average of the S&P500 Index (25.07), we can say CU is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.25, the valuation of CU can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as CU.
CU is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.61 | ||
| Fwd PE | 16.25 |
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 76.19% of the companies in the same industry.
CU's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. CU is more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.17 | ||
| EV/EBITDA | 10.68 |
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)1.85
PEG (5Y)207.84
EPS Next 2Y7%
EPS Next 3Y6.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.47%, CU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.63, CU has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, CU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.47% |
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%
EPS Next 3Y6.64%
TSX:CU (11/20/2025, 7:00:00 PM)
41.68
-0.4 (-0.95%)
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 Cap8.55B
Revenue(TTM)3.70B
Net Income(TTM)534.00M
Analysts76
Price Target41.38 (-0.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.47% |
Yearly Dividend2.03
Dividend Growth(5Y)0.91%
DP107.49%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)1.07%
PT rev (3m)1.07%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.61 | ||
| Fwd PE | 16.25 | ||
| P/S | 2.31 | ||
| P/FCF | 24.17 | ||
| P/OCF | 4.13 | ||
| P/B | 1.23 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 10.68 |
EPS(TTM)2.24
EY5.37%
EPS(NY)2.56
Fwd EY6.15%
FCF(TTM)1.72
FCFY4.14%
OCF(TTM)10.09
OCFY24.21%
SpS18.03
BVpS33.87
TBVpS28.1
PEG (NY)1.85
PEG (5Y)207.84
Graham Number41.32
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 | 0.85 |
F-Score5
WACC5.49%
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)-2.18%
EPS 3Y1.06%
EPS 5Y0.09%
EPS Q2Q%1080%
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.