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

AltaGas Ltd.

CF Energy Corp.

Canadian Utilities 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)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 2.53% and Operating profit at -7.96% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 7.51% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

NET PROFIT(HY) At CAD -187 MM has Grown at -135.3%
ROCE(HY) Lowest at 1.58%
DEBT-EQUITY RATIO (HY) Highest at 176.8 %

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Canadian Utilities Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Canadian Utilities Ltd.

36.22%

5.48

13.62%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.53%

EBIT Growth (5y)

-7.96%

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

133

Industry P/E

Price to Book Value

2.16

EV to EBIT

43.15

EV to EBITDA

13.51

EV to Capital Employed

1.42

EV to Sales

6.94

PEG Ratio

Dividend Yield

ROCE (Latest)

3.29%

ROE (Latest)

1.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

10What is working for the Company

PRE-TAX PROFIT(Q)

At CAD 274 MM has Grown at 736.64%

NET PROFIT(Q)

At CAD 224 MM has Grown at 759.03%

DIVIDEND PAYOUT RATIO(Y)

Highest at 61.38%

RAW MATERIAL COST(Y)

Fallen by 1.82% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 50.16 times

OPERATING PROFIT(Q)

Highest at CAD 582 MM

-12What is not working for the Company

NET PROFIT(HY)

At CAD -187 MM has Grown at -135.3%

ROCE(HY)

Lowest at 1.58%

DEBT-EQUITY RATIO (HY)

Highest at 176.8 %

Here's what is working for Canadian Utilities Ltd.

Pre-Tax Profit

At CAD 274 MM has Grown at 736.64%

over average net sales of the previous four periods of CAD 32.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 224 MM has Grown at 759.03%

over average net sales of the previous four periods of CAD 26.08 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Operating Profit

Highest at CAD 582 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Inventory Turnover Ratio

Highest at 50.16 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 61.38%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 1.82% (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

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

Debt-Equity Ratio

Highest at 176.8 % 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