| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 3/6 |
| Past Performance | 2/6 |
| Financial Health | 1/6 |
| Dividends | 5/6 |
CU Overview
Canadian Utilities Limited and its subsidiaries engage in the electricity, natural gas, and retail energy businesses worldwide.
Rewards
Risk Analysis
Canadian Utilities Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | CA$34.38 |
| 52 Week High | CA$29.96 |
| 52 Week Low | CA$37.00 |
| Beta | 0.51 |
| 1 Month Change | -3.54% |
| 3 Month Change | -1.86% |
| 1 Year Change | 7.24% |
| 3 Year Change | 8.25% |
| 5 Year Change | -7.13% |
| Change since IPO | 532.28% |
Recent News & Updates
Shareholder Returns
| CU | CA Integrated Utilities | CA Market | |
|---|---|---|---|
| 7D | -0.7% | -0.5% | -0.3% |
| 1Y | 7.2% | 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
| CU volatility | |
|---|---|
| CU Beta | 0.51 |
| Industry Beta | 0.55 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1927 | 4,473 | Nancy Southern | https://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
| CU fundamental statistics | |
|---|---|
| Market Cap | CA$9.25b |
| Earnings (TTM) | CA$274.00m |
| Revenue (TTM) | CA$3.31b |
33.7x
P/E Ratio2.8x
P/S RatioIs CU overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CU income statement (TTM) | |
|---|---|
| Revenue | CA$3.31b |
| Cost of Revenue | CA$1.01b |
| Gross Profit | CA$2.29b |
| Expenses | CA$2.02b |
| Earnings | CA$274.00m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.02 |
| Gross Margin | 69.38% |
| Net Profit Margin | 8.29% |
| Debt/Equity Ratio | 134.5% |
How did CU perform over the long term?
See historical performance and comparisonDividends
5.1%
Current Dividend Yield174%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/26 22:06 |
| End of Day Share Price | 2021/09/24 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.