CANADIAN UTILITIES LTD-A (CU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CU - CA1367178326 - Common Stock
42.03 CAD
-0.1 (-0.24%)
CU gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 20 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 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
CU had positive earnings in the past year.
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's Return On Assets of 2.16% is in line compared to the rest of the industry. CU outperforms 50.00% of 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.
Measured over the past 3 years, the Average Return On Invested Capital 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 (14.43%) which is comparable to the rest of the industry.
CU's Profit Margin has declined in the last couple of years.
CU has a Operating Margin (31.51%) which is in line with its industry peers.
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.
CU has more shares outstanding than it did 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
Based on the Altman-Z score of 0.85, we must say that CU is in the distress zone and has some risk of bankruptcy.
CU's Altman-Z score of 0.85 is amongst the best of the industry. CU outperforms 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.
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.
Looking at the Debt to Equity ratio, with a value of 1.68, CU is doing worse than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 34.08 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.71
WACC5.45%
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 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.
The Earnings Per Share has been growing slightly by 0.09% on average over the past years.
Looking at the last year, CU shows a decrease in Revenue. The Revenue has decreased by -0.94% in the last 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
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 1.22% 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
CU is valuated rather expensively with a Price/Earnings ratio of 18.27.
CU's Price/Earnings ratio is in line with the industry average.
CU is valuated rather cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.39, the valuation of CU can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CU is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 36.12. CU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.27 | ||
| Fwd PE | 16.39 |
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 75.00% 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 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.37 | ||
| 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)1.82
PEG (5Y)204.12
EPS Next 2Y7%
EPS Next 3Y6.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.39%, CU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.60, CU pays a bit more dividend than its industry peers.
CU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
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
107.49% of the earnings are spent on dividend by CU. 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%
EPS Next 3Y6.64%
TSX:CU (11/27/2025, 7:00:00 PM)
42.03
-0.1 (-0.24%)
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 Cap8.63B
Revenue(TTM)3.70B
Net Income(TTM)534.00M
Analysts76
Price Target42.4 (0.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
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)-0.34%
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 | 18.27 | ||
| Fwd PE | 16.39 | ||
| P/S | 2.33 | ||
| P/FCF | 24.37 | ||
| P/OCF | 4.17 | ||
| P/B | 1.24 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 10.68 |
EPS(TTM)2.3
EY5.47%
EPS(NY)2.56
Fwd EY6.1%
FCF(TTM)1.72
FCFY4.1%
OCF(TTM)10.09
OCFY24.01%
SpS18.03
BVpS33.87
TBVpS28.1
PEG (NY)1.82
PEG (5Y)204.12
Graham Number41.87
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
WACC5.45%
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.