ducovest

CU:CA:TSX-Canadian Utilities Limited Class A Non-Voting Shares (CAD)

EQUITY | Utilities—Diversified | Toronto Stock Exchange

Last Closing

CAD 33.19

Change

-0.91 (-2.67)%

Market Cap

CAD 7.09B

Volume

0.59M

Analyst Target

CAD 37.56
Analyst Rating

N/A

ducovest Verdict

Verdict

About

Canadian Utilities Ltd is engaged transmission & distribution of electricity and natural gas. The Company is also involved in power generation & sales, natural gas gathering, processing, storage and liquids extraction.

Company Website : http://www.canadianutilities.com

Currency: CAD

Country : Canada

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-08-05 )

Largest Industry Peers for Utilities—Diversified

ETFs Containing CU:CA

DXM 0.00 % 1.50 %

N/A

 N/A
FXM.A:CA 0.00 % 1.52 %

N/A

 N/A

Market Performance

  Market Performance vs. Industry/Classification (Utilities—Diversified) Market Performance vs. Exchange (Toronto Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -15.27% 40% F 32% F
Dividend Return 2.22% 67% D+ 92% A
Total Return -13.04% 40% F 35% F
Trailing 12 Months  
Capital Gain -8.34% 50% F 37% F
Dividend Return 4.74% 80% B- 92% A
Total Return -3.60% 50% F 43% F
Trailing 5 Years  
Capital Gain -8.31% 33% F 41% F
Dividend Return 20.60% 33% F 73% C
Total Return 12.28% 33% F 48% F
Average Annual (5 Year Horizon)  
Capital Gain 1.95% 50% F 44% F
Dividend Return 6.04% 50% F 54% F
Total Return 4.10% 67% D+ 78% C+
Risk Return Profile  
Volatility (Standard Deviation) 14.85% 100% F 50% F
Risk Adjusted Return 40.72% 50% F 44% F
Market Capitalization 7.09B 30% F 92% A

Key Financial Ratios

  Ratio vs. Industry/Classification (Utilities—Diversified) Ratio vs. Market (Toronto Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 24.30 30% 45%
Price/Book Ratio 1.81 60% 39%
Price / Cash Flow Ratio 6.91 80% 51%
Price/Free Cash Flow Ratio 9.84 80% 53%
Management Effectiveness  
Return on Equity 9.97% 44% 74%
Return on Invested Capital 7.53% 40% 66%
Return on Assets 3.41% 80% 71%
Debt to Equity Ratio 130.80% 89% 17%

Annual Financials (CAD)

Quarterly Financials (CAD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Underpriced on cashflow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What to not like:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.