CANADIAN UTILITIES LTD-A (CU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CU - CA1367178326 - Common Stock
43.66 CAD
+0.13 (+0.3%)
Taking everything into account, CU scores 4 out of 10 in our fundamental rating. CU was compared to 19 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 does not seem to be growing, but still is valued expensively. 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.
- Each year in the past 5 years CU has been profitable.
- CU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of CU (2.16%) is comparable to the rest of the industry.
- CU has a Return On Equity (7.68%) which is comparable to the rest of the industry.
- 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 68.42% 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
- CU has a Profit Margin of 14.43%. This is comparable to the rest of the industry: CU outperforms 47.37% of its industry peers.
- In the last couple of years the Profit Margin of CU has declined.
- Looking at the Operating Margin, with a value of 31.51%, CU is in line with its industry, outperforming 47.37% of the companies in the same 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 47.37% 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
- 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.
- 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 0.87. 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 0.87, CU belongs to the best of the industry, outperforming 89.47% 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.
- Looking at the Debt to FCF ratio, with a value of 34.08, CU is in line with its industry, outperforming 52.63% 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.
- With a Debt to Equity ratio value of 1.68, CU perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 34.08 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.69
WACC5.61%
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 52.63% 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's Quick ratio of 1.48 is in line compared to the rest of the industry. CU outperforms 52.63% of 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.
- 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.
- 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)-2.13%
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 5.88% on average over the next years.
- The Revenue is expected to grow by 1.45% on average over the next years.
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
- 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
- A Price/Earnings ratio of 18.98 indicates a rather expensive valuation of CU.
- CU's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of CU to the average of the S&P500 Index (27.38), we can say CU is valued slightly cheaper.
- The Price/Forward Earnings ratio is 16.96, which indicates a correct valuation of CU.
- 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 24.29. CU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.98 | ||
| Fwd PE | 16.96 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CU is valued a bit more expensive than the industry average as 73.68% of the companies are valued more cheaply.
- CU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.32 | ||
| EV/EBITDA | 10.86 |
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)1.69
PEG (5Y)212.04
EPS Next 2Y7.22%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
- CU has a Yearly Dividend Yield of 4.21%, which is a nice return.
- CU's Dividend Yield is comparable with the industry average which is at 4.80.
- Compared to an average S&P500 Dividend Yield of 1.85, CU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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
- 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 2Y7.22%
EPS Next 3Y6.68%
TSX:CU (1/16/2026, 7:00:00 PM)
43.66
+0.13 (+0.3%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)11-07 2025-11-07/bmo
Earnings (Next)02-25 2026-02-25/amc
Inst Owners16.33%
Inst Owner ChangeN/A
Ins Owners0.3%
Ins Owner ChangeN/A
Market Cap8.96B
Revenue(TTM)3.70B
Net Income(TTM)534.00M
Analysts76
Price Target44.15 (1.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend2.03
Dividend Growth(5Y)0.91%
DP107.49%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-05 2026-02-05 (0.4623)
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)-0.34%
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 | 18.98 | ||
| Fwd PE | 16.96 | ||
| P/S | 2.42 | ||
| P/FCF | 25.32 | ||
| P/OCF | 4.33 | ||
| P/B | 1.29 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 10.86 |
EPS(TTM)2.3
EY5.27%
EPS(NY)2.58
Fwd EY5.9%
FCF(TTM)1.72
FCFY3.95%
OCF(TTM)10.09
OCFY23.1%
SpS18.02
BVpS33.86
TBVpS28.09
PEG (NY)1.69
PEG (5Y)212.04
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 | 0.87 |
F-Score5
WACC5.61%
ROIC/WACC0.69
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 4 / 10 to CU.CA.
What is the valuation status for CU stock?
ChartMill assigns a valuation rating of 3 / 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 18.98 and the Price/Book (PB) ratio is 1.29.
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%.