CANADIAN UTILITIES LTD-A (CU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CU - CA1367178326 - Common Stock
43.17 CAD
+0.26 (+0.61%)
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.
CU had a positive operating cash flow in the past year.
Each year in the past 5 years CU has been profitable.
In the past 5 years CU always reported a positive cash flow from operatings.
1.2 Ratios
CU has a Return On Assets of 2.16%. This is comparable to the rest of the industry: CU outperforms 50.00% of its industry peers.
CU has a Return On Equity (7.68%) which is in line with its industry peers.
CU's Return On Invested Capital of 3.86% is on the low side compared to the rest of the industry. CU is outperformed by 70.00% 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 3.73%.
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
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.
The Operating Margin of CU (31.51%) is comparable to the rest of the 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 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
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.
With an excellent Altman-Z score value of 0.86, CU belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
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 in line with its industry peers.
CU has a Debt/Equity ratio of 1.68. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.68, CU perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 34.08 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.7
WACC5.5%
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.
With a Current ratio value of 1.56, CU perfoms like the industry average, outperforming 55.00% of the companies in the same 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's Quick ratio of 1.48 is in line compared to the rest of the industry. CU outperforms 55.00% of 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%.
Measured over the past 5 years, CU shows a small growth in Earnings Per Share. The EPS has been growing by 0.09% on average per year.
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
CU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.88% yearly.
Based on estimates for the next years, CU will show a small growth in Revenue. The Revenue will grow by 1.45% on average per year.
EPS Next Y11.2%
EPS Next 2Y7.22%
EPS Next 3Y6.68%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.77, which indicates a rather expensive current valuation of CU.
CU's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.19. CU is valued slightly cheaper when compared to this.
CU is valuated correctly with a Price/Forward Earnings ratio of 16.77.
Based on the Price/Forward Earnings ratio, CU is valued a bit more expensive than 60.00% of the companies in the same industry.
CU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.77 | ||
| Fwd PE | 16.77 |
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.
CU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.04 | ||
| EV/EBITDA | 10.8 |
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)1.68
PEG (5Y)209.66
EPS Next 2Y7.22%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
CU has a Yearly Dividend Yield of 5.44%, which is a nice return.
CU's Dividend Yield is a higher than the industry average which is at 5.23.
CU's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.44% |
5.2 History
The dividend of CU has a limited annual growth rate of 0.91%.
CU has been paying a dividend for at least 10 years, so it has 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 2Y7.22%
EPS Next 3Y6.68%
TSX:CU (1/9/2026, 7:00:00 PM)
43.17
+0.26 (+0.61%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners16.33%
Inst Owner ChangeN/A
Ins Owners0.3%
Ins Owner ChangeN/A
Market Cap8.86B
Revenue(TTM)3.70B
Net Income(TTM)534.00M
Analysts76
Price Target44.15 (2.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.44% |
Yearly Dividend2.03
Dividend Growth(5Y)0.91%
DP107.49%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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)2.36%
PT rev (3m)7.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)0.18%
EPS NY rev (3m)0.69%
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 | 18.77 | ||
| Fwd PE | 16.77 | ||
| P/S | 2.4 | ||
| P/FCF | 25.04 | ||
| P/OCF | 4.28 | ||
| P/B | 1.27 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 10.8 |
EPS(TTM)2.3
EY5.33%
EPS(NY)2.58
Fwd EY5.96%
FCF(TTM)1.72
FCFY3.99%
OCF(TTM)10.09
OCFY23.37%
SpS18.02
BVpS33.86
TBVpS28.09
PEG (NY)1.68
PEG (5Y)209.66
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
WACC5.5%
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)-2.13%
EPS 3Y1.06%
EPS 5Y0.09%
EPS Q2Q%5.26%
EPS Next Y11.2%
EPS Next 2Y7.22%
EPS Next 3Y6.68%
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 18.77 and the Price/Book (PB) ratio is 1.27.
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%.