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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CUP-U has a expensive valuation and it also scores bad on growth.
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.
In the past 5 years CUP-U always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.05%, CUP-U belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of CUP-U (10.95%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.83%, CUP-U is in line with its industry, outperforming 52.63% of the companies in the same industry.
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 3 year average ROIC (3.75%) for CUP-U is below the current ROIC(3.83%), indicating increased profibility in the last year.
| 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
The Profit Margin of CUP-U (14.98%) is better 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.
With a Operating Margin value of 14.33%, CUP-U is not doing good in the industry: 94.74% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of CUP-U has remained more or less at the same level.
CUP-U has a Gross Margin (41.98%) 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 | 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.
CUP-U has more shares outstanding than it did 1 year ago.
CUP-U has more shares outstanding than it did 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.
CUP-U's Altman-Z score of 1.26 is amongst the best of the industry. CUP-U outperforms 94.74% of its industry peers.
A Debt/Equity ratio of 0.96 indicates that CUP-U is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.96, CUP-U belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| 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.
The Current ratio of CUP-U (1.08) is better than 100.00% of its industry peers.
A Quick Ratio of 0.99 indicates that CUP-U may have some problems paying its short term obligations.
CUP-U's Quick ratio of 0.99 is amongst the best of 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
CUP-U shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.91%.
CUP-U shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.07% yearly.
CUP-U shows a small growth in Revenue. In the last year, the Revenue has grown by 1.12%.
CUP-U shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.64% yearly.
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
Based on estimates for the next years, CUP-U will show a small growth in Earnings Per Share. The EPS will grow by 2.35% on average per year.
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.
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
A Price/Earnings ratio of 8.73 indicates a reasonable valuation of CUP-U.
78.95% of the companies in the same industry are cheaper than CUP-U, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.45, CUP-U is valued rather cheaply.
A Price/Forward Earnings ratio of 8.45 indicates a reasonable valuation of CUP-U.
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.
CUP-U is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.73 | ||
| Fwd PE | 8.45 |
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 | 9.03 |
4.3 Compensation for Growth
The decent profitability rating of CUP-U may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.72
EPS Next 2Y2.35%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.89%, CUP-U is a good candidate for dividend investing.
CUP-U's Dividend Yield is comparable with the industry average which is at 6.59.
Compared to an average S&P500 Dividend Yield of 2.38, CUP-U pays a better dividend.
| 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 (7/4/2025, 7:00:00 PM)
13.01
+0.11 (+0.85%)
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 Cap548.89M
Analysts40
Price Target14.28 (9.76%)
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 | 8.73 | ||
| Fwd PE | 8.45 | ||
| P/S | 1.4 | ||
| P/FCF | N/A | ||
| P/OCF | 4.5 | ||
| P/B | 1.02 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 9.03 |
EPS(TTM)1.49
EY11.45%
EPS(NY)1.54
Fwd EY11.84%
FCF(TTM)-0.4
FCFYN/A
OCF(TTM)2.89
OCFY22.22%
SpS9.28
BVpS12.7
TBVpS12.55
PEG (NY)N/A
PEG (5Y)1.72
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%