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CU

Canadian UtilitiesTSX:CU Stock Report

Market Cap

CA$9.3b

7D

-0.7%

1Y

7.2%

Updated

26 Sep, 2021

Data

Company Financials +
CU fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health1/6
Dividends5/6

CU Overview

Canadian Utilities Limited and its subsidiaries engage in the electricity, natural gas, and retail energy businesses worldwide.

Canadian Utilities Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Canadian Utilities
Historical stock prices
Current Share PriceCA$34.38
52 Week HighCA$29.96
52 Week LowCA$37.00
Beta0.51
1 Month Change-3.54%
3 Month Change-1.86%
1 Year Change7.24%
3 Year Change8.25%
5 Year Change-7.13%
Change since IPO532.28%

Recent News & Updates

Shareholder Returns

CUCA Integrated UtilitiesCA Market
7D-0.7%-0.5%-0.3%
1Y7.2%4.8%30.8%

Return vs Industry: CU exceeded the Canadian Integrated Utilities industry which returned 4.8% over the past year.

Return vs Market: CU underperformed the Canadian Market which returned 30.8% over the past year.

Price Volatility

Is CU's price volatile compared to industry and market?
CU volatility
CU Beta0.51
Industry Beta0.55
Market Beta1

Stable Share Price: CU is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: CU's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19274,473Nancy Southernhttps://www.canadianutilities.com

Canadian Utilities Limited and its subsidiaries engage in the electricity, natural gas, and retail energy businesses worldwide. It operates through Utilities, Energy Infrastructure, and Corporate & Other segments. The Utilities segment provides regulated electricity transmission and distribution services in northern and central east Alberta, the Yukon, and the Northwest Territories; and integrated natural gas transmission and distribution services in Alberta, the Lloydminster area of Saskatchewan, and Western Australia.

Canadian Utilities Fundamentals Summary

How do Canadian Utilities's earnings and revenue compare to its market cap?
CU fundamental statistics
Market CapCA$9.25b
Earnings (TTM)CA$274.00m
Revenue (TTM)CA$3.31b

33.7x

P/E Ratio

2.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CU income statement (TTM)
RevenueCA$3.31b
Cost of RevenueCA$1.01b
Gross ProfitCA$2.29b
ExpensesCA$2.02b
EarningsCA$274.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.02
Gross Margin69.38%
Net Profit Margin8.29%
Debt/Equity Ratio134.5%

How did CU perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

174%

Payout Ratio

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$34.38) is trading below our estimate of fair value (CA$93.95)

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 (33.7x) compared to the North American Integrated Utilities industry average (20.3x).

PE vs Market: CU is poor value based on its PE Ratio (33.7x) compared to the Canadian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: CU is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: CU's PB Ratio (1.8x) is in line with the XN Integrated Utilities industry average.


Future Growth

How is Canadian Utilities forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

22.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CU's forecast earnings growth (22.3% per year) is above the savings rate (1.5%).

Earnings vs Market: CU's earnings (22.3% per year) are forecast to grow faster than the Canadian market (12.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CU's revenue (1.7% per year) is forecast to grow slower than the Canadian market (6.1% per year).

High Growth Revenue: CU's revenue (1.7% 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 (10.8%).


Past Performance

How has Canadian Utilities performed over the past 5 years?

2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CU has high quality earnings.

Growing Profit Margin: CU's current net profit margins (8.3%) are lower than last year (17.4%).


Past Earnings Growth Analysis

Earnings Trend: CU's earnings have grown by 2.1% 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 (-54.3%) over the past year, making it difficult to compare to the Integrated Utilities industry average (10.6%).


Return on Equity

High ROE: CU's Return on Equity (5.2%) is considered low.


Financial Health

How is Canadian Utilities's financial position?


Financial Position Analysis

Short Term Liabilities: CU's short term assets (CA$1.1B) exceed its short term liabilities (CA$913.0M).

Long Term Liabilities: CU's short term assets (CA$1.1B) do not cover its long term liabilities (CA$12.5B).


Debt to Equity History and Analysis

Debt Level: CU's debt to equity ratio (134.5%) is considered high.

Reducing Debt: CU's debt to equity ratio has increased from 133.9% to 134.5% over the past 5 years.

Debt Coverage: CU's debt is not well covered by operating cash flow (17.7%).

Interest Coverage: CU's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Dividend

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

5.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CU's dividend (5.12%) is higher than the bottom 25% of dividend payers in the Canadian market (1.66%).

High Dividend: CU's dividend (5.12%) is in the top 25% of dividend payers in the Canadian market (4.59%)


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 (173.6%), 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 (82.7% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Nancy Southern (64 yo)

0.17

Tenure

CA$4,819,758

Compensation

Ms. Nancy C. Southern has been Executive Chairman at CU Inc. She serves as Chief Executive Officer of ATCO Ltd. since January 2000. Ms. Southern served as the Chief Executive Officer at Canadian Utilities...


CEO Compensation Analysis

Compensation vs Market: Nancy's total compensation ($USD3.80M) is about average for companies of similar size in the Canadian market ($USD3.54M).

Compensation vs Earnings: Nancy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: CU's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: CU's board of directors are considered experienced (7.3 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 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$9.254b
  • Shares outstanding: 268.85m
  • Website: https://www.canadianutilities.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:06
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.