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. While CUP-U has a great profitability rating, 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
CUP-U had positive earnings in the past year.
CUP-U had a positive operating cash flow in the past year.
Each year in the past 5 years CUP-U has been profitable.
Each year in the past 5 years CUP-U had a positive operating cash flow.
1.2 Ratios
CUP-U has a better Return On Assets (5.05%) than 100.00% of its industry peers.
The Return On Equity of CUP-U (10.95%) is better than 100.00% of its industry peers.
CUP-U has a Return On Invested Capital of 3.83%. This is comparable to the rest of the industry: CUP-U outperforms 52.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CUP-U 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 Profit Margin of 14.98%. This is amongst the best in the industry. CUP-U outperforms 100.00% of its industry peers.
CUP-U's Profit Margin has been stable in the last couple of years.
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.
Looking at the Gross Margin, with a value of 41.98%, CUP-U is in line with its industry, outperforming 52.63% of the companies in the same 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
CUP-U has an Altman-Z score of 1.26. This is a bad value and indicates that CUP-U is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CUP-U (1.26) is better than 94.74% of its industry peers.
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 | 1.26 |
ROIC/WACC0.57
WACC6.7%
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.
Looking at the Current ratio, with a value of 1.08, CUP-U belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 0.99 indicates that CUP-U may have some problems paying its short term obligations.
CUP-U has a Quick ratio of 0.99. This is amongst the best in the industry. CUP-U outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.91% over the past year.
CUP-U shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.07% yearly.
Looking at the last year, CUP-U shows a small growth in Revenue. The Revenue has grown by 1.12% in the last 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
The Earnings Per Share is expected to grow by 2.35% on average over the next years.
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 2Y2.35%
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
CUP-U is valuated reasonably with a Price/Earnings ratio of 8.76.
Compared to the rest of the industry, the Price/Earnings 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.
The average S&P500 Price/Earnings ratio is at 27.29. CUP-U is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.43, the valuation of CUP-U can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.74, CUP-U is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.76 | ||
| Fwd PE | 8.43 |
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 | 9.02 |
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 5.89%, which is a nice return.
Compared to an average industry Dividend Yield of 6.59, CUP-U has a dividend in line with its industry peers.
CUP-U's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
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 65.55% of its income as dividend. This is not a sustainable payout ratio.
DP65.55%
EPS Next 2Y2.35%
EPS Next 3YN/A
TSX:CUP-U (7/7/2025, 7:00:00 PM)
13.05
+0.04 (+0.31%)
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 Cap550.58M
Analysts40
Price Target14.28 (9.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
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)0.38%
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 | 8.76 | ||
| Fwd PE | 8.43 | ||
| P/S | 1.4 | ||
| P/FCF | N/A | ||
| P/OCF | 4.49 | ||
| P/B | 1.02 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 9.02 |
EPS(TTM)1.49
EY11.42%
EPS(NY)1.55
Fwd EY11.86%
FCF(TTM)-0.4
FCFYN/A
OCF(TTM)2.9
OCFY22.26%
SpS9.32
BVpS12.75
TBVpS12.61
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
WACC6.7%
ROIC/WACC0.57
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%