CANADIAN UTILITIES LTD-A (CU.CA) Stock Fundamental Analysis
Canada - TSX:CU - CA1367178326 - Common Stock
39.69 CAD
0 (0%)
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. 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.
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 (1.87%) which is comparable to the rest of the industry.
The Return On Equity of CU (6.39%) is comparable to the rest of the industry.
CU's Return On Invested Capital of 3.51% is on the low side compared to the rest of the industry. CU is outperformed by 76.19% 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 3.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 6.39% | ||
| ROIC | 3.51% |
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
Looking at the Profit Margin, with a value of 12.00%, CU is in line with its industry, outperforming 52.38% of the companies in the same industry.
In the last couple of years the Profit Margin of CU has declined.
CU's Operating Margin of 28.00% 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.
Looking at the Gross Margin, with a value of 88.65%, CU is in line with its industry, outperforming 52.38% 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 | 28% | ||
| PM (TTM) | 12% | ||
| GM | 88.65% |
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.
The number of shares outstanding for CU has been increased compared to 1 year ago.
CU has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CU is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that CU is in the distress zone and has some risk of bankruptcy.
CU's Altman-Z score of 0.84 is amongst the best of the industry. CU outperforms 90.48% of its industry peers.
The Debt to FCF ratio of CU is 39.44, which is on the high side as it means it would take CU, 39.44 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CU (39.44) is comparable to the rest of the industry.
CU has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.62, CU is in line with its industry, outperforming 47.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 39.44 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.65
WACC5.44%
2.3 Liquidity
A Current Ratio of 1.20 indicates that CU should not have too much problems paying its short term obligations.
CU's Current ratio of 1.20 is in line compared to the rest of the industry. CU outperforms 52.38% of its industry peers.
CU has a Quick Ratio of 1.12. 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 (1.12) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for CU have decreased by -0.44% in the last year.
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 -0.51% in the past 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)-0.44%
EPS 3Y1.06%
EPS 5Y0.09%
EPS Q2Q%4.65%
Revenue 1Y (TTM)-0.51%
Revenue growth 3Y2.11%
Revenue growth 5Y-0.85%
Sales Q2Q%-2.09%
3.2 Future
The Earnings Per Share is expected to grow by 5.78% on average over the next years.
The Revenue is expected to grow by 1.22% on average over the next years.
EPS Next Y10.43%
EPS Next 2Y7.07%
EPS Next 3Y6.68%
EPS Next 5Y5.78%
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
The Price/Earnings ratio is 17.41, which indicates a rather expensive current valuation of CU.
CU's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CU to the average of the S&P500 Index (25.67), we can say CU is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.45, which indicates a correct valuation of CU.
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 31.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.41 | ||
| Fwd PE | 15.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CU is valued a bit more expensive than 76.19% 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 71.43% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.29 | ||
| EV/EBITDA | 10.6 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.67
PEG (5Y)194.45
EPS Next 2Y7.07%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
CU has a Yearly Dividend Yield of 4.65%, which is a nice return.
Compared to an average industry Dividend Yield of 5.46, CU has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, CU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.65% |
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 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
128.25% 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.
DP128.25%
EPS Next 2Y7.07%
EPS Next 3Y6.68%
TSX:CU (11/6/2025, 7:00:00 PM)
39.69
0 (0%)
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 Cap8.15B
Revenue(TTM)3.72B
Net Income(TTM)446.00M
Analysts76
Price Target41.38 (4.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.65% |
Yearly Dividend2.03
Dividend Growth(5Y)0.91%
DP128.25%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.35%
Min EPS beat(2)-1.99%
Max EPS beat(2)-0.71%
EPS beat(4)1
Avg EPS beat(4)-3.59%
Min EPS beat(4)-19.54%
Max EPS beat(4)7.87%
EPS beat(8)2
Avg EPS beat(8)-2.01%
EPS beat(12)4
Avg EPS beat(12)-0.28%
EPS beat(16)8
Avg EPS beat(16)0.78%
Revenue beat(2)1
Avg Revenue beat(2)-8.17%
Min Revenue beat(2)-17.55%
Max Revenue beat(2)1.21%
Revenue beat(4)2
Avg Revenue beat(4)-5.63%
Min Revenue beat(4)-17.55%
Max Revenue beat(4)11.16%
Revenue beat(8)4
Avg Revenue beat(8)-3.46%
Revenue beat(12)7
Avg Revenue beat(12)-0.1%
Revenue beat(16)11
Avg Revenue beat(16)3.23%
PT rev (1m)1.07%
PT rev (3m)1.07%
EPS NQ rev (1m)-0.66%
EPS NQ rev (3m)-1.32%
EPS NY rev (1m)0%
EPS NY rev (3m)0.8%
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 | 17.41 | ||
| Fwd PE | 15.45 | ||
| P/S | 2.19 | ||
| P/FCF | 28.29 | ||
| P/OCF | 4.03 | ||
| P/B | 1.17 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 10.6 |
EPS(TTM)2.28
EY5.74%
EPS(NY)2.57
Fwd EY6.47%
FCF(TTM)1.4
FCFY3.54%
OCF(TTM)9.85
OCFY24.82%
SpS18.11
BVpS33.99
TBVpS28.34
PEG (NY)1.67
PEG (5Y)194.45
Graham Number41.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 6.39% | ||
| ROCE | 4.52% | ||
| ROIC | 3.51% | ||
| ROICexc | 3.57% | ||
| ROICexgc | 3.76% | ||
| OM | 28% | ||
| PM (TTM) | 12% | ||
| GM | 88.65% | ||
| FCFM | 7.75% |
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-Score4
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 39.44 | ||
| Debt/EBITDA | 6.42 | ||
| Cap/Depr | 240.83% | ||
| Cap/Sales | 46.64% | ||
| Interest Coverage | 2.08 | ||
| Cash Conversion | 114.82% | ||
| Profit Quality | 64.57% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 0.84 |
F-Score4
WACC5.44%
ROIC/WACC0.65
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)-0.44%
EPS 3Y1.06%
EPS 5Y0.09%
EPS Q2Q%4.65%
EPS Next Y10.43%
EPS Next 2Y7.07%
EPS Next 3Y6.68%
EPS Next 5Y5.78%
Revenue 1Y (TTM)-0.51%
Revenue growth 3Y2.11%
Revenue growth 5Y-0.85%
Sales Q2Q%-2.09%
Revenue Next Year-5.06%
Revenue Next 2Y-0.61%
Revenue Next 3Y1.22%
Revenue Next 5YN/A
EBIT growth 1Y14.77%
EBIT growth 3Y3.19%
EBIT growth 5Y-5.39%
EBIT Next Year237.12%
EBIT Next 3Y57.47%
EBIT Next 5Y36.01%
FCF growth 1Y-32.71%
FCF growth 3Y-13.47%
FCF growth 5Y0.5%
OCF growth 1Y8.13%
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 10.43% in the next year.