CARIBBEAN UTILITIES CO LTD-A (CUP-U.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CUP-U - KYG1899E1465 - Common Stock
13.6 USD
+0.18 (+1.34%)
CUP-U gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 18 industry peers in the Electric Utilities industry. While CUP-U has a great profitability rating, there are quite some concerns on its financial health. CUP-U is valued expensive and it does not seem to be growing. CUP-U also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year CUP-U was profitable.
- In the past year CUP-U had a positive cash flow from operations.
- In the past 5 years CUP-U has always been profitable.
- CUP-U had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CUP-U has a Return On Assets of 5.27%. This is amongst the best in the industry. CUP-U outperforms 100.00% of its industry peers.
- With an excellent Return On Equity value of 11.33%, CUP-U belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- CUP-U has a Return On Invested Capital of 4.01%. This is comparable to the rest of the industry: CUP-U outperforms 50.00% of its industry peers.
- 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 4.03%.
- The 3 year average ROIC (3.75%) for CUP-U is below the current ROIC(4.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 11.33% | ||
| ROIC | 4.01% |
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 (16.37%) than 100.00% of its industry peers.
- CUP-U's Profit Margin has been stable in the last couple of years.
- The Operating Margin of CUP-U (15.71%) is worse than 94.44% of its industry peers.
- CUP-U's Operating Margin has been stable in the last couple of years.
- CUP-U has a Gross Margin (44.88%) which is in line with its industry peers.
- CUP-U's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.71% | ||
| PM (TTM) | 16.37% | ||
| GM | 44.88% |
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.
- Compared to 5 years ago, CUP-U has more shares outstanding
- Compared to 1 year ago, CUP-U has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.24, we must say that CUP-U is in the distress zone and has some risk of bankruptcy.
- With an excellent Altman-Z score value of 1.24, CUP-U belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
- CUP-U has a Debt/Equity ratio of 0.94. This is a neutral value indicating CUP-U is somewhat dependend on debt financing.
- CUP-U has a better Debt to Equity ratio (0.94) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.24 |
ROIC/WACC0.6
WACC6.7%
2.3 Liquidity
- CUP-U has a Current Ratio of 0.89. 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.
- With an excellent Current ratio value of 0.89, CUP-U belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- CUP-U has a Quick Ratio of 0.89. 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.
- The Quick ratio of CUP-U (0.83) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
- CUP-U shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.17%.
- The Earnings Per Share has been growing slightly by 5.07% on average over the past years.
- Looking at the last year, CUP-U shows a decrease in Revenue. The Revenue has decreased by -4.37% in the last year.
- The Revenue has been growing slightly by 7.64% on average over the past years.
EPS 1Y (TTM)7.17%
EPS 3Y10.83%
EPS 5Y5.07%
EPS Q2Q%0.83%
Revenue 1Y (TTM)-4.37%
Revenue growth 3Y13.95%
Revenue growth 5Y7.64%
Sales Q2Q%-5.87%
3.2 Future
- The Earnings Per Share is expected to grow by 4.55% on average over the next years.
- CUP-U is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.43% yearly.
EPS Next Y4.76%
EPS Next 2Y4.2%
EPS Next 3Y4.55%
EPS Next 5YN/A
Revenue Next Year-2.56%
Revenue Next 2Y1.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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
- A Price/Earnings ratio of 8.89 indicates a reasonable valuation of CUP-U.
- CUP-U's Price/Earnings ratio is a bit more expensive when compared to the industry. CUP-U is more expensive than 77.78% of the companies in the same industry.
- CUP-U is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 8.38 indicates a reasonable valuation of CUP-U.
- CUP-U's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CUP-U is more expensive than 77.78% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. CUP-U is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.89 | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
- 77.78% of the companies in the same industry are cheaper than CUP-U, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.47 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CUP-U does not grow enough to justify the current Price/Earnings ratio.
- CUP-U has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)1.75
EPS Next 2Y4.2%
EPS Next 3Y4.55%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.69%, CUP-U is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 4.43, 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 1.82, CUP-U pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.69% |
5.2 History
- The dividend of CUP-U decreases each year by -1.32%.
- CUP-U has paid a dividend for at least 10 years, which is 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
- 65.20% of the earnings are spent on dividend by CUP-U. This is not a sustainable payout ratio.
DP65.2%
EPS Next 2Y4.2%
EPS Next 3Y4.55%
CARIBBEAN UTILITIES CO LTD-A / CUP-U.CA FAQ
Can you provide the ChartMill fundamental rating for CARIBBEAN UTILITIES CO LTD-A?
ChartMill assigns a fundamental rating of 4 / 10 to CUP-U.CA.
What is the valuation status for CUP-U stock?
ChartMill assigns a valuation rating of 3 / 10 to CARIBBEAN UTILITIES CO LTD-A (CUP-U.CA). This can be considered as Overvalued.
What is the profitability of CUP-U stock?
CARIBBEAN UTILITIES CO LTD-A (CUP-U.CA) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for CUP-U stock?
The Price/Earnings (PE) ratio for CARIBBEAN UTILITIES CO LTD-A (CUP-U.CA) is 8.89 and the Price/Book (PB) ratio is 1.02.
Can you provide the financial health for CUP-U stock?
The financial health rating of CARIBBEAN UTILITIES CO LTD-A (CUP-U.CA) is 3 / 10.