Executive Summary
Canadian Utilities Limited and its subsidiaries engage in the electricity, pipelines and liquids, and retail energy businesses worldwide. More Details
Rewards
Risk Analysis
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
| CU | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.8% | 1.6% | -0.5% |
| 30 Day | 2.6% | -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 Year | 4.4%-9.6% | 23.7%10.7% | 13.1%2.3% |
| 5 Year | 18.9%-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
3 days ago | Simply Wall St
Is Canadian Utilities (TSE:CU) A Risky Investment?2 weeks ago | Simply Wall St
A Look At Canadian Utilities' (TSE:CU) Share Price Returns1 month ago | Simply Wall St
How Much Are Canadian Utilities Limited (TSE:CU) Insiders Taking Off The Table?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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chair | 8.08yrs | CA$831.08k | 0.42% CA$ 36.8m | |
| President & CEO | 1.67yrs | CA$1.29m | 0.019% CA$ 1.6m | |
| Executive VP & CFO | 3.58yrs | CA$1.34m | 0.0085% CA$ 745.5k | |
| Executive Vice President of Puerto Rico | 1yr | CA$1.15m | 0.0053% CA$ 461.1k | |
| VP & Chief Information Officer | no data | no data | no data | |
| Director of Investor Relations & External Reporting | no data | no data | no data | |
| Senior Manager of Corporate Communications | no data | no data | no data | |
| Executive Vice President of Corporate Development | 1yr | no data | no data | |
| Vice President of Human Resources | 2.58yrs | no data | no data | |
| Special Advisor to the CEO and Senior VP of IT & Real Estate | 3.58yrs | CA$500.73k | no data | |
| Managing Director for Australia | 3.67yrs | no data | 0.0040% CA$ 350.0k | |
| Senior VP & GM for Electricity in Mexico | 3.25yrs | no data | 0.0021% 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chair | 8.08yrs | CA$831.08k | 0.42% CA$ 36.8m | |
| Independent Lead Director | 1yr | CA$253.39k | 0.0070% CA$ 616.0k | |
| Independent Director | 21yrs | CA$322.68k | 0.031% CA$ 2.7m | |
| Independent Director | 1.17yrs | CA$36.67k | 0.0020% CA$ 174.1k | |
| Independent Director | 12.67yrs | CA$248.50k | 0.0082% CA$ 714.9k | |
| Vice Chair of the Board | 3.83yrs | CA$228.00k | 0.33% CA$ 28.5m | |
| Independent Director | 6.67yrs | CA$284.85k | 0.0041% CA$ 357.0k | |
| Independent Director | 14.67yrs | CA$262.70k | 0.015% CA$ 1.3m | |
| Independent Director | 6.67yrs | CA$220.00k | 0.0052% CA$ 457.6k | |
| Independent Director | 6.67yrs | CA$224.50k | 0.0055% CA$ 481.3k | |
| Independent Director | 1.67yrs | CA$146.67k | 0.00063% CA$ 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CU.X | TSX (The Toronto Stock Exchange) | Class B Common Shares | CA | CAD | Aug 1973 | |
| CDUU.F | OTCPK (Pink Sheets LLC) | Class B Common Shares | US | USD | Aug 1973 | |
| CU | TSX (The Toronto Stock Exchange) | Yes | Class A Non-Voting Shares | CA | CAD | Sep 1982 |
| CUD | DB (Deutsche Boerse AG) | Yes | Class A Non-Voting Shares | DE | EUR | Sep 1982 |
| CDUA.F | OTCPK (Pink Sheets LLC) | Yes | Class A Non-Voting Shares | US | USD | Sep 1982 |
| CU.PRE | TSX (The Toronto Stock Exchange) | 2ND PF SH SER BB | CA | CAD | Jul 2012 | |
| CU.PRF | TSX (The Toronto Stock Exchange) | CUMRED PFDSHS CC | CA | CAD | Mar 2013 | |
| CU.PRH | TSX (The Toronto Stock Exchange) | 2ND PFD SER-EE | CA | CAD | Aug 2015 | |
| CU.PRI | TSX (The Toronto Stock Exchange) | 2ND PFD FF | CA | CAD | Sep 2015 | |
| CDUT.F | OTCPK (Pink Sheets LLC) | 2ND PFD FF | US | USD | Sep 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 23:30 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.