Canadian Utilities Ltd. (CU) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Canadian Utilities Ltd.

CF Energy Corp.

AltaGas Ltd.

Brookfield Infrastructure Corp.

Why is Canadian Utilities Ltd. ?

Poor Management Efficiency with a low ROCE of 6.25%

The company has been able to generate a Return on Capital Employed (avg) of 6.25% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 1.57% and Operating profit at 0.54% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 7.51% signifying low profitability per unit of shareholders funds

The company has declared positive results in Dec'2024 after 6 consecutive negative quarters

OPERATING CASH FLOW(Y) Highest at CAD 1,522 MM
RAW MATERIAL COST(Y) Fallen by -22.73% (YoY)
NET PROFIT(9M) Higher at CAD 655.52 MM

With ROE of 8.67%, it has a very attractive valuation with a 1.10 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 7.50%, its profits have risen by 102.7% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Canadian Utilities Ltd. should be less than 10%
Overall Portfolio exposure to Gas should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gas)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Canadian Utilities Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Canadian Utilities Ltd.

-100.0%

2.26

13.66%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.57%

EBIT Growth (5y)

0.54%

EBIT to Interest (avg)

2.33

Debt to EBITDA (avg)

5.61

Net Debt to Equity (avg)

1.53

Sales to Capital Employed (avg)

0.22

Tax Ratio

24.07%

Dividend Payout Ratio

122.05%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

6.25%

ROE (avg)

7.51%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.16

EV to EBIT

16.43

EV to EBITDA

10.13

EV to Capital Employed

1.06

EV to Sales

5.11

PEG Ratio

0.13

Dividend Yield

ROCE (Latest)

6.47%

ROE (Latest)

8.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 1,522 MM

RAW MATERIAL COST(Y)

Fallen by -22.73% (YoY

NET PROFIT(9M)

Higher at CAD 655.52 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 8.19%

DIVIDEND PER SHARE(HY)

Highest at CAD 8.19

-2What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 157.07 %

Here's what is working for Canadian Utilities Ltd.

Net Profit

At CAD 655.52 MM has Grown at 335.5%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CAD MM)

Operating Cash Flow

Highest at CAD 1,522 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Debtors Turnover Ratio

Highest at 8.19%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at CAD 8.19

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Net Profit

Higher at CAD 655.52 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CAD MM)

Raw Material Cost

Fallen by -22.73% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 182 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Canadian Utilities Ltd.

Debt-Equity Ratio

Highest at 157.07 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio