CARIBBEAN UTILITIES CO LTD-A (CUP-U.CA) Stock Fundamental Analysis
TSX:CUP-U - Toronto Stock Exchange - KYG1899E1465 - Common Stock - Currency: USD
Overall CUP-U gets a fundamental rating of 5 out of 10. We evaluated CUP-U against 19 industry peers in the Electric Utilities industry. While CUP-U belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CUP-U does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year CUP-U was profitable.
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
The Return On Assets of CUP-U (5.05%) is better than 100.00% of its industry peers.
CUP-U's Return On Equity of 10.95% is amongst the best of the industry. CUP-U outperforms 100.00% of its industry peers.
The Return On Invested Capital of CUP-U (3.83%) is comparable to the rest of the industry.
CUP-U had an Average Return On Invested Capital over the past 3 years of 3.75%. This is in line with the industry average of 3.84%.
The last Return On Invested Capital (3.83%) for CUP-U is above the 3 year average (3.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 10.95% | ||
| ROIC | 3.83% |
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
CUP-U has a better Profit Margin (14.98%) than 100.00% of its industry peers.
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 Operating Margin of 14.33%. This is amonst the worse of the industry: CUP-U underperforms 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 (41.98%) which is comparable to the rest of the industry.
CUP-U's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.33% | ||
| PM (TTM) | 14.98% | ||
| GM | 41.98% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CUP-U is destroying value.
The number of shares outstanding for CUP-U has been increased compared to 1 year ago.
The number of shares outstanding for CUP-U has been increased compared to 5 years ago.
Compared to 1 year ago, CUP-U has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that CUP-U is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.26, CUP-U belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
A Debt/Equity ratio of 0.96 indicates that 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 | 1.26 |
ROIC/WACC0.56
WACC6.78%
2.3 Liquidity
CUP-U has a Current Ratio of 1.08. This is a normal value and indicates that CUP-U is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CUP-U (1.08) is better than 100.00% of its industry peers.
CUP-U has a Quick Ratio of 1.08. This is a bad value and indicates that CUP-U is not financially healthy enough and could expect problems in meeting its short term obligations.
CUP-U has a better Quick ratio (0.99) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
CUP-U shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.91%.
The Earnings Per Share has been growing slightly by 5.07% on average over the past years.
The Revenue has been growing slightly by 1.12% in the past year.
Measured over the past years, CUP-U shows a small growth in Revenue. The Revenue has been growing by 7.64% on average per year.
EPS 1Y (TTM)6.91%
EPS 3Y10.83%
EPS 5Y5.07%
EPS Q2Q%12.92%
Revenue 1Y (TTM)1.12%
Revenue growth 3Y13.95%
Revenue growth 5Y7.64%
Sales Q2Q%-8.19%
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 2.35% yearly.
The Revenue is expected to grow by 2.52% on average over the next years.
EPS Next Y-0.95%
EPS Next 2Y2.35%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.75, the valuation of CUP-U can be described as reasonable.
CUP-U's Price/Earnings ratio is a bit more expensive when compared to the industry. CUP-U is more expensive than 78.95% of the companies in the same industry.
CUP-U's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.50.
CUP-U is valuated reasonably with a Price/Forward Earnings ratio of 8.42.
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.
When comparing the Price/Forward Earnings ratio of CUP-U to the average of the S&P500 Index (36.44), we can say CUP-U is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 8.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CUP-U is valued a bit more expensive than the industry average as 78.95% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.01 |
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)1.73
EPS Next 2Y2.35%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CUP-U has a Yearly Dividend Yield of 5.88%, which is a nice return.
Compared to an average industry Dividend Yield of 6.57, CUP-U has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, CUP-U pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
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
65.55% of the earnings are spent on dividend by CUP-U. This is not a sustainable payout ratio.
DP65.55%
EPS Next 2Y2.35%
EPS Next 3YN/A
TSX:CUP-U (7/17/2025, 7:00:00 PM)
13.13
+0.29 (+2.26%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners0.16%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap553.95M
Analysts40
Price Target14.28 (8.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
Yearly Dividend0.93
Dividend Growth(5Y)-1.32%
DP65.55%
Div Incr Years2
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.98%
Min EPS beat(2)8.74%
Max EPS beat(2)9.22%
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)0.38%
EPS NQ rev (1m)0%
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)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 8.42 | ||
| P/S | 1.4 | ||
| P/FCF | N/A | ||
| P/OCF | 4.48 | ||
| P/B | 1.02 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 9.01 |
EPS(TTM)1.5
EY11.42%
EPS(NY)1.56
Fwd EY11.88%
FCF(TTM)-0.4
FCFYN/A
OCF(TTM)2.93
OCFY22.3%
SpS9.4
BVpS12.86
TBVpS12.71
PEG (NY)N/A
PEG (5Y)1.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 10.95% | ||
| ROCE | 5.32% | ||
| ROIC | 3.83% | ||
| ROICexc | 3.9% | ||
| ROICexgc | 3.92% | ||
| OM | 14.33% | ||
| PM (TTM) | 14.98% | ||
| GM | 41.98% | ||
| 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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.33 | ||
| Cap/Depr | 221.7% | ||
| Cap/Sales | 35.43% | ||
| Interest Coverage | 2.22 | ||
| Cash Conversion | 102.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 1.26 |
F-Score6
WACC6.78%
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)6.91%
EPS 3Y10.83%
EPS 5Y5.07%
EPS Q2Q%12.92%
EPS Next Y-0.95%
EPS Next 2Y2.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.12%
Revenue growth 3Y13.95%
Revenue growth 5Y7.64%
Sales Q2Q%-8.19%
Revenue Next Year-0.32%
Revenue Next 2Y2.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.64%
EBIT growth 3Y10.27%
EBIT growth 5Y6.54%
EBIT Next Year148.78%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y77.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y82.78%
OCF growth 3Y13.83%
OCF growth 5Y8.05%