TSX:CU

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Canadian Utilities

Executive Summary

Canadian Utilities Limited and its subsidiaries engage in the electricity, pipelines and liquids, and retail energy businesses worldwide. More Details


Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has Canadian Utilities's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CU is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CU's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

2.8%

CU

1.6%

CA Integrated Utilities

-0.5%

CA Market


1 Year Return

-19.8%

CU

-12.0%

CA Integrated Utilities

1.6%

CA Market

Return vs Industry: CU underperformed the Canadian Integrated Utilities industry which returned -12.1% over the past year.

Return vs Market: CU underperformed the Canadian Market which returned 1.7% over the past year.


Shareholder returns

CUIndustryMarket
7 Day2.8%1.6%-0.5%
30 Day2.6%-1.8%2.9%
90 Day-6.2%-4.9%12.2%
1 Year-15.6%-19.8%-8.7%-12.0%5.3%1.6%
3 Year4.4%-9.6%23.7%10.7%13.1%2.3%
5 Year18.9%-4.2%60.5%33.9%66.1%40.5%

Long-Term Price Volatility Vs. Market

How volatile is Canadian Utilities's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Canadian Utilities undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CU (CA$32.14) is trading below our estimate of fair value (CA$83.97)

Significantly Below Fair Value: CU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CU is poor value based on its PE Ratio (21.5x) compared to the XN Integrated Utilities industry average (19.8x).

PE vs Market: CU is poor value based on its PE Ratio (21.5x) compared to the Canadian market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: CU is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: CU is good value based on its PB Ratio (1.7x) compared to the XN Integrated Utilities industry average (1.9x).


Next Steps

Future Growth

How is Canadian Utilities forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CU's forecast earnings growth (12.6% per year) is above the savings rate (1.5%).

Earnings vs Market: CU's earnings (12.6% per year) are forecast to grow slower than the Canadian market (25.9% per year).

High Growth Earnings: CU's earnings are forecast to grow, but not significantly.

Revenue vs Market: CU's revenue (4.9% per year) is forecast to grow slower than the Canadian market (7.9% per year).

High Growth Revenue: CU's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CU's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has Canadian Utilities performed over the past 5 years?

14.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CU has high quality earnings.

Growing Profit Margin: CU's current net profit margins (12.4%) are lower than last year (24.6%).


Past Earnings Growth Analysis

Earnings Trend: CU's earnings have grown by 14.8% per year over the past 5 years.

Accelerating Growth: CU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CU had negative earnings growth (-58.8%) over the past year, making it difficult to compare to the Integrated Utilities industry average (-0.5%).


Return on Equity

High ROE: CU's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is Canadian Utilities's financial position?


Financial Position Analysis

Short Term Liabilities: CU's short term assets (CA$1.6B) exceed its short term liabilities (CA$914.0M).

Long Term Liabilities: CU's short term assets (CA$1.6B) do not cover its long term liabilities (CA$12.5B).


Debt to Equity History and Analysis

Debt Level: CU's debt to equity ratio (134.7%) is considered high.

Reducing Debt: CU's debt to equity ratio has increased from 126.2% to 134.7% over the past 5 years.

Debt Coverage: CU's debt is not well covered by operating cash flow (16.9%).

Interest Coverage: CU's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Canadian Utilities's current dividend yield, its reliability and sustainability?

5.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CU's dividend (5.47%) is higher than the bottom 25% of dividend payers in the Canadian market (1.54%).

High Dividend: CU's dividend (5.47%) is in the top 25% of dividend payers in the Canadian market (4.99%)


Stability and Growth of Payments

Stable Dividend: CU's dividends per share have been stable in the past 10 years.

Growing Dividend: CU's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (115.9%), CU's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CU's dividends in 3 years are forecast to be covered by earnings (85.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Siegfried Kiefer (61 yo)

1.67yrs

Tenure

CA$1,291,717

Compensation

Mr. Siegfried W. Kiefer serves as Member of Office of the Chair of ATCO Limited and served as its President. He serves as President and Chief Executive Officer of Canadian Utilities Limited since 2019 and ...


CEO Compensation Analysis

Compensation vs Market: Siegfried's total compensation ($USD1.01M) is below average for companies of similar size in the Canadian market ($USD3.45M).

Compensation vs Earnings: Siegfried's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nancy Southern
Executive Chair8.08yrsCA$831.08k0.42%
CA$ 36.8m
Siegfried Kiefer
President & CEO1.67yrsCA$1.29m0.019%
CA$ 1.6m
Dennis DeChamplain
Executive VP & CFO3.58yrsCA$1.34m0.0085%
CA$ 745.5k
Wayne Stensby
Executive Vice President of Puerto Rico1yrCA$1.15m0.0053%
CA$ 461.1k
Alan Skiffington
VP & Chief Information Officerno datano datano data
Myles Dougan
Director of Investor Relations & External Reportingno datano datano data
Kurt Kadatz
Senior Manager of Corporate Communicationsno datano datano data
Robert Myles
Executive Vice President of Corporate Development1yrno datano data
Deanna Girard
Vice President of Human Resources2.58yrsno datano data
Brian Bale
Special Advisor to the CEO and Senior VP of IT & Real Estate3.58yrsCA$500.73kno data
J.D. Creaghan
Managing Director for Australia3.67yrsno data0.0040%
CA$ 350.0k
George Opocensky
Senior VP & GM for Electricity in Mexico3.25yrsno data0.0021%
CA$ 181.1k

2.9yrs

Average Tenure

61yo

Average Age

Experienced Management: CU's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nancy Southern
Executive Chair8.08yrsCA$831.08k0.42%
CA$ 36.8m
Roger Urwin
Independent Lead Director1yrCA$253.39k0.0070%
CA$ 616.0k
Charles Wilson
Independent Director21yrsCA$322.68k0.031%
CA$ 2.7m
Alexander Pourbaix
Independent Director1.17yrsCA$36.67k0.0020%
CA$ 174.1k
Robert Normand
Independent Director12.67yrsCA$248.50k0.0082%
CA$ 714.9k
Linda Southern-Heathcott
Vice Chair of the Board3.83yrsCA$228.00k0.33%
CA$ 28.5m
Laura Reed
Independent Director6.67yrsCA$284.85k0.0041%
CA$ 357.0k
Loraine Charlton
Independent Director14.67yrsCA$262.70k0.015%
CA$ 1.3m
Matthias Bichsel
Independent Director6.67yrsCA$220.00k0.0052%
CA$ 457.6k
Hector Rangel
Independent Director6.67yrsCA$224.50k0.0055%
CA$ 481.3k
Wayne Wouters
Independent Director1.67yrsCA$146.67k0.00063%
CA$ 55.1k

6.7yrs

Average Tenure

66yo

Average Age

Experienced Board: CU's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CU insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Canadian Utilities Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Canadian Utilities Limited
  • Ticker: CU
  • Exchange: TSX
  • Founded: 1927
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: CA$8.750b
  • Shares outstanding: 272.28m
  • Website: https://www.canadianutilities.com

Number of Employees


Location

  • Canadian Utilities Limited
  • West Building
  • 4th Floor
  • Calgary
  • Alberta
  • T3E 8B4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CU.XTSX (The Toronto Stock Exchange)Class B Common SharesCACADAug 1973
CDUU.FOTCPK (Pink Sheets LLC)Class B Common SharesUSUSDAug 1973
CUTSX (The Toronto Stock Exchange)YesClass A Non-Voting SharesCACADSep 1982
CUDDB (Deutsche Boerse AG)YesClass A Non-Voting SharesDEEURSep 1982
CDUA.FOTCPK (Pink Sheets LLC)YesClass A Non-Voting SharesUSUSDSep 1982
CU.PRETSX (The Toronto Stock Exchange)2ND PF SH SER BBCACADJul 2012
CU.PRFTSX (The Toronto Stock Exchange)CUMRED PFDSHS CCCACADMar 2013
CU.PRHTSX (The Toronto Stock Exchange)2ND PFD SER-EECACADAug 2015
CU.PRITSX (The Toronto Stock Exchange)2ND PFD FFCACADSep 2015
CDUT.FOTCPK (Pink Sheets LLC)2ND PFD FFUSUSDSep 2015

Biography

Canadian Utilities Limited and its subsidiaries engage in the electricity, pipelines and liquids, and retail energy businesses worldwide. It operates through Electricity, Pipelines & Liquids, and Corporate...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 23:30
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.