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

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.

35.43%

2.26

13.66%

S&P/TSX 60

23.72%

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)

2.68%

EBIT Growth (5y)

-8.81%

EBIT to Interest (avg)

2.33

Debt to EBITDA (avg)

5.61

Net Debt to Equity (avg)

1.53

Sales to Capital Employed (avg)

0.21

Tax Ratio

24.07%

Dividend Payout Ratio

1,184.98%

Pledged Shares

Institutional Holding

0.02%

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

115

Industry P/E

Price to Book Value

2.08

EV to EBIT

41.78

EV to EBITDA

13.11

EV to Capital Employed

1.39

EV to Sales

6.69

PEG Ratio

Dividend Yield

ROCE (Latest)

3.32%

ROE (Latest)

1.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

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

12What is working for the Company

NET PROFIT(HY)

At CAD 282.35 MM has Grown at 7,967.22%

OPERATING CASH FLOW(Y)

Highest at CAD 1,563 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 7.86 times

DIVIDEND PER SHARE(HY)

Highest at CAD 7.86

-5What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 33.12 times

DEBT-EQUITY RATIO (HY)

Highest at 160.64 %

NET SALES(Q)

Lowest at CAD 792 MM

Here's what is working for Canadian Utilities Ltd.

Net Profit

At CAD 282.35 MM has Grown at 7,967.22%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CAD MM)

Operating Cash Flow

Highest at CAD 1,563 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 7.86 times

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 7.86

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Depreciation

Highest at CAD 183 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.

Inventory Turnover Ratio

Lowest at 33.12 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at CAD 792 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Net Sales

At CAD 792 MM has Fallen at -14.79%

over average net sales of the previous four periods of CAD 929.5 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Debt-Equity Ratio

Highest at 160.64 %

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