Fact based stock research
Canadian Utilities (TSX:CU)
CA1367178326
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Canadian Utilities stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 95 (better than 95% compared with investment alternatives), Canadian Utilities (Multi-Utilities, Canada) shares have much better financial characteristics than comparable stocks. Shares of Canadian Utilities are a good value (attractively priced) with a consolidated Value Rank of 89 (better than 89% of alternatives), show above-average growth (Growth Rank of 55), and are safely financed (Safety Rank of 79), which means low debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 95, is a strong buy recommendation based on Canadian Utilities's financial characteristics. As the company Canadian Utilities's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 89), above-average growth (Obermatt Growth Rank of 55), and indicate that the company is safely financed (Obermatt Safety Rank of 79), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Canadian Utilities. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Canada |
| Industry | Multi-Utilities |
| Index | TSX Composite |
| Size class | Large |
This stock has achievements: Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Canadian Utilities
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 39 |
|
81 |
|
93 |
|
89 |
|
| GROWTH | ||||||||
| GROWTH | 8 |
|
75 |
|
5 |
|
55 |
|
| SAFETY | ||||||||
| SAFETY | 8 |
|
77 |
|
71 |
|
79 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
92 |
|
39 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
100 |
|
51 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 95 (better than 95% compared with investment alternatives), Canadian Utilities (Multi-Utilities, Canada) shares have much better financial characteristics than comparable stocks. Shares of Canadian Utilities are a good value (attractively priced) with a consolidated Value Rank of 89 (better than 89% of alternatives), show above-average growth (Growth Rank of 55), and are safely financed (Safety Rank of 79), which means low debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 95, is a strong buy recommendation based on Canadian Utilities's financial characteristics. As the company Canadian Utilities's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 89), above-average growth (Obermatt Growth Rank of 55), and indicate that the company is safely financed (Obermatt Safety Rank of 79), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Canadian Utilities. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 39 |
|
81 |
|
93 |
|
89 |
|
| GROWTH | ||||||||
| GROWTH | 8 |
|
75 |
|
5 |
|
55 |
|
| SAFETY | ||||||||
| SAFETY | 8 |
|
77 |
|
71 |
|
79 |
|
| COMBINED | ||||||||
| COMBINED | 3 |
|
93 |
|
67 |
|
95 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 89 (better than 89% compared with alternatives) for 2024, Canadian Utilities shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Canadian Utilities. Price-to-Sales is 80 which means that the stock price compared with what market professionals expect for future sales is lower than for 80% of comparable companies, indicating a good value for Canadian Utilities's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 83% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 78. Compared with other companies in the same industry, dividend yields of Canadian Utilities are expected to be higher than for 89% of all competitors (a Dividend Yield rank of 89). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 89, is a buy recommendation based on Canadian Utilities's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Canadian Utilities based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 24 |
|
50 |
|
80 |
|
80 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 23 |
|
89 |
|
86 |
|
83 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 42 |
|
47 |
|
80 |
|
78 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 73 |
|
91 |
|
87 |
|
89 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 39 |
|
81 |
|
93 |
|
89 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 55 (better than 55% compared with alternatives), Canadian Utilities shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Canadian Utilities. Profit Growth has a rank of 63 which means that currently professionals expect the company to grow its profits more than 63% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 73, and Stock Returns has a rank of 63 which means that the stock returns have recently been above 63% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 18 (82% of its competitors are better). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 55, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 23 |
|
24 |
|
19 |
|
18 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 28 |
|
56 |
|
10 |
|
63 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
94 |
|
11 |
|
73 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 46 |
|
55 |
|
31 |
|
63 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 8 |
|
75 |
|
5 |
|
55 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 79 (better than 79% compared with alternatives) for 2024, the company Canadian Utilities has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Canadian Utilities is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Canadian Utilities. Refinancing is at 99, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 99% of its competitors. Liquidity is also good at 57, meaning the company generates more profit to service its debt than 57% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 42, which means the company has an above-average debt-to-equity ratio. It has more debt than 58% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 79 (better than 79% compared with alternatives), Canadian Utilities has a financing structure that is significantly safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Canadian Utilities could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Canadian Utilities and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 11 |
|
44 |
|
58 |
|
42 |
|
| REFINANCING | ||||||||
| REFINANCING | 49 |
|
87 |
|
55 |
|
99 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 13 |
|
51 |
|
57 |
|
57 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 8 |
|
77 |
|
71 |
|
79 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
39 |
|
36 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
77 |
|
19 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
96 |
|
92 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
92 |
|
39 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Canadian Utilities from December 19, 2024.
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