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Canadian Utilities Ltd
TSX:CU

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Canadian Utilities Ltd
TSX:CU
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Price: 30.69 CAD -0.16% Market Closed
Updated: Mar 28, 2024

Intrinsic Value

Canadian Utilities Ltd. engages in the provision of business solutions to companies in the utilities, energy, structures and logistics, and technologies sector. [ Read More ]

The intrinsic value of one CU stock under the Base Case scenario is 56.47 CAD. Compared to the current market price of 30.69 CAD, Canadian Utilities Ltd is Undervalued by 46%.

Key Points:
CU Intrinsic Value
Base Case
56.47 CAD
Undervaluation 46%
Intrinsic Value
Price
C
Worst Case
Base Case
Best Case

Valuation Backtest
Canadian Utilities Ltd

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Fundamental Analysis

Canadian Utilities' Q3 2023 Performance
2023-Q3 Earnings Call

Canadian Utilities' Q3 2023 Performance

In Q3 2023, Canadian Utilities reported adjusted earnings of $87 million or $0.32 per share, down from $120 million last year, chiefly due to a $17 million impact from Alberta distribution utilities rebasing. This rebasing pressure is set to lessen in Q4. The Alberta Utilities Commission (AUC) has set guidelines for the third performance-based regulation cycle (PBR 3) starting in 2024, with a new formula for return on equity (ROE) suggesting 9% to 9.2% against the current 8.5%. Meanwhile, in Australia, despite strong operational growth, year-over-year earnings declined by $8 million amid moderating inflation, expected at 4% to 5% for the year. Capital investments of $331 million, mainly in Utilities, aim to sustain earnings and cash flow. Adjusted earnings for ATCO EnPower fell to $9 million from $12 million, with new renewable assets underpinning future growth expectations.

Financials

Balance Sheet Decomposition
Canadian Utilities Ltd

Current Assets 1.4B
Cash & Short-Term Investments 399m
Receivables 755m
Other Current Assets 283m
Non-Current Assets 21.7B
Long-Term Investments 232m
PP&E 19.9B
Intangibles 1.1B
Other Non-Current Assets 494m
Current Liabilities 1.4B
Accounts Payable 820m
Other Current Liabilities 602m
Non-Current Liabilities 14.8B
Long-Term Debt 10.1B
Other Non-Current Liabilities 4.7B
Efficiency

Earnings Waterfall
Canadian Utilities Ltd

Revenue
3.8B CAD
Cost of Revenue
-556m CAD
Gross Profit
3.2B CAD
Operating Expenses
-2.2B CAD
Operating Income
1B CAD
Other Expenses
-405m CAD
Net Income
630m CAD

Free Cash Flow Analysis
Canadian Utilities Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate
History
Components
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Fundamental Scores

CU Profitability Score
Profitability Due Diligence

Canadian Utilities Ltd's profitability score is 56/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive Free Cash Flow
Positive Operating Income
Positive 3-Years Revenue Growth
56/100
Profitability
Score

Canadian Utilities Ltd's profitability score is 56/100. The higher the profitability score, the more profitable the company is.

CU Solvency Score
Solvency Due Diligence

Canadian Utilities Ltd's solvency score is 27/100. The higher the solvency score, the more solvent the company is.

Long-Term Solvency
Short-Term Solvency
Average D/E
Positive Net Debt
27/100
Solvency
Score

Canadian Utilities Ltd's solvency score is 27/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

CU Price Targets Summary
Canadian Utilities Ltd

Wall Street analysts forecast CU stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for CU is 36.06 CAD with a low forecast of 33.33 CAD and a high forecast of 40.43 CAD.

Lowest
Price Target
33.33 CAD
9% Upside
Average
Price Target
36.06 CAD
18% Upside
Highest
Price Target
40.43 CAD
32% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Shareholder Return

CU Price
Canadian Utilities Ltd

1M 1M
+0%
6M 6M
+6%
1Y 1Y
-16%
3Y 3Y
+0%
5Y 5Y
+3%
10Y 10Y
+13%
Annual Price Range
30.69
52w Low
28.3892
52w High
39.47
Price Metrics
Average Annual Return 5.9%
Standard Deviation of Annual Returns 16.93%
Max Drawdown -40%
Shares Statistics
Market Capitalization 6.2B CAD
Shares Outstanding 202 070 000
Percentage of Shares Shorted 4.61%

CU Return Decomposition
Main factors of price return

What is price return decomposition?

Company Profile

Canadian Utilities Ltd

Country

Canada

Industry

Utilities

Market Cap

6.2B CAD

Dividend Yield

5.91%

Description

Canadian Utilities Ltd. engages in the provision of business solutions to companies in the utilities, energy, structures and logistics, and technologies sector. The company is headquartered in Calgary, Alberta and currently employs 4,796 full-time employees. The firm is engaged in the three business activities, utilities, energy infrastructure and retail energy. Utilities business includes electricity and natural gas transmission, and distribution and international electricity operations. Energy infrastructure business offers electricity generation, energy storage, and industrial water solutions. Retail energy business is engaged in electricity and natural gas retail sales, included in the Company and other segment.

Contact

ALBERTA
Calgary
5302 Forand St SW
+14032927500.0
http://www.canadianutilities.com/

IPO

1982-09-16

Employees

4 796

Officers

Executive Chair & CEO
Ms. Nancy C. Southern
Executive VP & CFO
Mr. Brian P. Shkrobot
Chief Operating Officer of ATCO EnPower
Mr. Robert J. Myles B. Eng., B.Sc., P.Eng.
Executive Vice President of Corporate Services
Ms. Rebecca A. Penrice
President of ATCO Electric Ltd
Ms. Melanie L. Bayley
VP & Chief Information Officer
Mr. Alan M. Skiffington
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Director of Investor Relations & External Reporting
Mr. Myles Dougan
Senior Communications Manager
Mr. Kurt Kadatz
Senior VP & Chief Marketing Officer
Ms. Lisa Cooke
Vice President of Human Resources
Mr. Deanna M. Girard
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See Also

Discover More
What is the Intrinsic Value of one CU stock?

The intrinsic value of one CU stock under the Base Case scenario is 56.47 CAD.

Is CU stock undervalued or overvalued?

Compared to the current market price of 30.69 CAD, Canadian Utilities Ltd is Undervalued by 46%.