CARIBBEAN UTILITIES CO LTD-A (CUP-U.CA) Stock Fundamental Analysis
TSX:CUP-U - Toronto Stock Exchange - KYG1899E1465 - Common Stock - Currency: USD
CUP-U gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 19 industry peers in the Electric Utilities industry. CUP-U scores excellent on profitability, but there are some minor concerns on its financial health. CUP-U is valued correctly, but it does not seem to be growing. Finally CUP-U also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CUP-U had positive earnings in the past year.
CUP-U had a positive operating cash flow in the past year.
CUP-U had positive earnings in each of the past 5 years.
Each year in the past 5 years CUP-U had a positive operating cash flow.
1.2 Ratios
CUP-U's Return On Assets of 4.90% is amongst the best of the industry. CUP-U outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 10.60%, CUP-U belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of CUP-U (3.76%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for CUP-U is in line with the industry average of 3.62%.
The 3 year average ROIC (3.75%) for CUP-U is below the current ROIC(3.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 10.6% | ||
| ROIC | 3.76% |
ROA(3y)4.73%
ROA(5y)4.55%
ROE(3y)10.88%
ROE(5y)10.23%
ROIC(3y)3.75%
ROIC(5y)3.71%
1.3 Margins
With an excellent Profit Margin value of 14.19%, CUP-U belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CUP-U has remained more or less at the same level.
CUP-U has a worse Operating Margin (13.79%) than 94.74% of its industry peers.
CUP-U's Operating Margin has been stable in the last couple of years.
CUP-U has a Gross Margin (40.42%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CUP-U has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.79% | ||
| PM (TTM) | 14.19% | ||
| GM | 40.42% |
OM growth 3Y-3.23%
OM growth 5Y-1.03%
PM growth 3Y-1.3%
PM growth 5Y0.52%
GM growth 3Y-4.7%
GM growth 5Y-1.21%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CUP-U is destroying value.
CUP-U has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CUP-U has been increased compared to 5 years ago.
The debt/assets ratio for CUP-U has been reduced compared to a year ago.
2.2 Solvency
CUP-U has an Altman-Z score of 1.27. This is a bad value and indicates that CUP-U is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.27, CUP-U belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
CUP-U has a Debt/Equity ratio of 0.96. This is a neutral value indicating CUP-U is somewhat dependend on debt financing.
The Debt to Equity ratio of CUP-U (0.96) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.27 |
ROIC/WACC0.56
WACC6.71%
2.3 Liquidity
A Current Ratio of 1.19 indicates that CUP-U should not have too much problems paying its short term obligations.
CUP-U has a Current ratio of 1.19. This is amongst the best in the industry. CUP-U outperforms 100.00% of its industry peers.
A Quick Ratio of 1.10 indicates that CUP-U should not have too much problems paying its short term obligations.
CUP-U's Quick ratio of 1.10 is amongst the best of the industry. CUP-U outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
CUP-U shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.85%.
Measured over the past 5 years, CUP-U shows a small growth in Earnings Per Share. The EPS has been growing by 5.07% on average per year.
The Revenue has been growing slightly by 2.25% in the past year.
The Revenue has been growing slightly by 7.64% on average over the past years.
EPS 1Y (TTM)6.85%
EPS 3Y10.83%
EPS 5Y5.07%
EPS Q2Q%18.59%
Revenue 1Y (TTM)2.25%
Revenue growth 3Y13.95%
Revenue growth 5Y7.64%
Sales Q2Q%-1.57%
3.2 Future
CUP-U is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.82% yearly.
Based on estimates for the next years, CUP-U will show a small growth in Revenue. The Revenue will grow by 2.52% on average per year.
EPS Next Y-0.95%
EPS Next 2Y2.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.32%
Revenue Next 2Y2.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.64, which indicates a very decent valuation of CUP-U.
CUP-U's Price/Earnings ratio is a bit cheaper when compared to the industry. CUP-U is cheaper than 63.16% of the companies in the same industry.
CUP-U is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.67, the valuation of CUP-U can be described as reasonable.
Based on the Price/Forward Earnings ratio, CUP-U is valued a bit more expensive than 78.95% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. CUP-U is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.64 | ||
| Fwd PE | 8.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CUP-U indicates a slightly more expensive valuation: CUP-U is more expensive than 78.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.95 |
4.3 Compensation for Growth
CUP-U has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.71
EPS Next 2Y2.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CUP-U has a Yearly Dividend Yield of 5.56%, which is a nice return.
Compared to an average industry Dividend Yield of 4.46, CUP-U pays a better dividend. On top of this CUP-U pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, CUP-U pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.56% |
5.2 History
The dividend of CUP-U decreases each year by -1.32%.
CUP-U has been paying a dividend for at least 10 years, so it has a reliable track record.
CUP-U has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-1.32%
Div Incr Years2
Div Non Decr Years20
5.3 Sustainability
CUP-U pays out 65.63% of its income as dividend. This is not a sustainable payout ratio.
DP65.63%
EPS Next 2Y2.82%
EPS Next 3YN/A
TSX:CUP-U (3/7/2025, 7:00:00 PM)
13.31
0 (0%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners0.06%
Inst Owner ChangeN/A
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap560.62M
Analysts40
Price Target14.23 (6.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.56% |
Yearly Dividend0.98
Dividend Growth(5Y)-1.32%
DP65.63%
Div Incr Years2
Div Non Decr Years20
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-6.87%
Revenue NY rev (3m)-6.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.64 | ||
| Fwd PE | 8.67 | ||
| P/S | 1.33 | ||
| P/FCF | N/A | ||
| P/OCF | 4.28 | ||
| P/B | 0.99 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 8.95 |
EPS(TTM)1.54
EY11.57%
EPS(NY)1.54
Fwd EY11.54%
FCF(TTM)-0.33
FCFYN/A
OCF(TTM)3.11
OCFY23.39%
SpS10
BVpS13.39
TBVpS13.24
PEG (NY)N/A
PEG (5Y)1.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 10.6% | ||
| ROCE | 5.22% | ||
| ROIC | 3.76% | ||
| ROICexc | 3.86% | ||
| ROICexgc | 3.88% | ||
| OM | 13.79% | ||
| PM (TTM) | 14.19% | ||
| GM | 40.42% | ||
| FCFM | N/A |
ROA(3y)4.73%
ROA(5y)4.55%
ROE(3y)10.88%
ROE(5y)10.23%
ROIC(3y)3.75%
ROIC(5y)3.71%
ROICexc(3y)3.8%
ROICexc(5y)3.81%
ROICexgc(3y)3.83%
ROICexgc(5y)3.84%
ROCE(3y)5.37%
ROCE(5y)5.25%
ROICexcg growth 3Y0.39%
ROICexcg growth 5Y-0.99%
ROICexc growth 3Y0.42%
ROICexc growth 5Y-0.97%
OM growth 3Y-3.23%
OM growth 5Y-1.03%
PM growth 3Y-1.3%
PM growth 5Y0.52%
GM growth 3Y-4.7%
GM growth 5Y-1.21%
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.4 | ||
| Cap/Depr | 223.02% | ||
| Cap/Sales | 34.48% | ||
| Interest Coverage | 2.07 | ||
| Cash Conversion | 106.49% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 1.27 |
F-Score6
WACC6.71%
ROIC/WACC0.56
Cap/Depr(3y)238.04%
Cap/Depr(5y)205.09%
Cap/Sales(3y)35.4%
Cap/Sales(5y)34.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.85%
EPS 3Y10.83%
EPS 5Y5.07%
EPS Q2Q%18.59%
EPS Next Y-0.95%
EPS Next 2Y2.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.25%
Revenue growth 3Y13.95%
Revenue growth 5Y7.64%
Sales Q2Q%-1.57%
Revenue Next Year-0.32%
Revenue Next 2Y2.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y5.39%
EBIT growth 3Y10.27%
EBIT growth 5Y6.54%
EBIT Next Year143.9%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y52.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y13.22%
OCF growth 3Y13.83%
OCF growth 5Y8.05%