Canadian Utilities A (CU) AI Stock Analysis

• Market Cap: C$10.72B
• Dividend Yield: 4.32%
• Average Volume (3M): 422.49K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.42
• Revenue Growth: -0.94%
• EPS Growth: 25.64%
• Country: CA
• Employees: 9,084
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.40
• Shares Outstanding: 205,253,780
• 10 Day Avg. Volume: 547,242
• 30 Day Avg. Volume: 422,489
• PEG Ratio: -0.54
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 2.53
• P/FCF Ratio: 29.37
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$42.50
• Price Target Upside: 0.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: C$43.00 ▲(1.42% Upside)

Canadian Utilities A's overall stock score is driven by strong financial performance and positive earnings call sentiment, despite challenges with high leverage and regulatory headwinds. The technical indicators support a bullish outlook, while the valuation suggests caution due to a high P/E ratio.

Positive Factors

Strong Cash Flow Generation

Improved cash generation enhances financial flexibility, allowing for strategic investments and debt management, supporting long-term growth.

Project Developments

Completion of the CETO project will enhance grid reliability, supporting long-term operational efficiency and customer satisfaction.

Successful Financing Activities

Strong investor interest in financing activities indicates robust market confidence, providing capital for growth and stability.

Negative Factors

High Leverage

Significant leverage poses risks to financial stability, potentially limiting the company's ability to invest in growth opportunities.

Regulatory Headwinds

Regulatory challenges in Alberta could impact earnings, affecting the company's ability to maintain profitability in regulated markets.

Uncertainty in Hydrogen Projects

Uncertainty in hydrogen project support may hinder long-term growth potential in emerging energy sectors, affecting strategic diversification.

Canadian Utilities A Business Overview & Revenue Model

Company Description

Canadian Utilities Limited (CU) is a diversified global energy infrastructure corporation headquartered in Calgary, Alberta, Canada. The company operates through various sectors including electricity, pipelines and liquids, and retail energy. It is engaged in the generation, transmission, and distribution of electricity, as well as natural gas distribution, transmission, and infrastructure development. Canadian Utilities also provides industrial water solutions and operates in both regulated and non-regulated businesses across North America, Australia, and other select global markets.

How the Company Makes Money

Canadian Utilities makes money through a diverse set of revenue streams primarily tied to its regulated and unregulated energy businesses. In the electricity sector, the company generates revenue from the generation, transmission, and distribution of electricity to residential, commercial, and industrial customers in regulated markets, ensuring stable and predictable cash flows. The pipelines and liquids segment contributes to its earnings by transporting and distributing natural gas, with revenues coming from regulated tariffs and contracts. Additionally, Canadian Utilities earns income from its retail energy operations by selling electricity and natural gas directly to end customers. The company's revenue model is bolstered by long-term contracts and regulatory frameworks that provide steady income streams, while its international operations and investments in infrastructure development and industrial water solutions offer opportunities for growth and diversification.

Canadian Utilities A Financial Statement Overview

Summary

Canadian Utilities A demonstrates strong profitability and cash flow generation, though it faces challenges with declining revenue growth and high leverage. The company maintains healthy margins and cash flow ratios, but the high debt levels require careful management to mitigate financial risks.

Income Statement

The company shows strong profitability with a consistent gross profit margin above 60% and a net profit margin around 14% in TTM. However, revenue growth has been negative in recent periods, indicating a potential challenge in expanding sales. EBIT and EBITDA margins remain healthy, suggesting efficient operations despite revenue declines.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.63 in TTM, indicating significant leverage which could pose risks if not managed properly. Return on equity is moderate at 7.5%, showing decent profitability relative to shareholder equity. The equity ratio is stable, reflecting a balanced asset structure.

Cash Flow

Cash flow analysis shows positive trends with a free cash flow growth rate of 16.1% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is strong at 2.43, suggesting efficient cash conversion. However, the free cash flow to net income ratio is relatively low at 0.14, indicating limited free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.72B	3.74B	3.80B	4.05B	3.52B	3.23B
Gross Profit	1.50B	1.44B	1.45B	1.72B	1.36B	1.32B
EBITDA	1.82B	1.76B	2.03B	1.80B	1.53B	1.55B
Net Income	523.00M	480.00M	707.00M	632.00M	393.00M	427.00M
Balance Sheet
Total Assets	23.88B	23.79B	23.16B	21.97B	21.07B	20.30B
Cash, Cash Equivalents and Short-Term Investments	401.00M	332.00M	356.00M	698.00M	746.00M	776.00M
Total Debt	11.36B	11.11B	10.59B	9.59B	9.57B	9.11B
Total Liabilities	16.69B	16.67B	16.00B	14.91B	14.25B	13.49B
Stockholders Equity	6.98B	6.91B	6.94B	6.88B	6.63B	6.62B
Cash Flow
Free Cash Flow	288.00M	322.00M	-12.00M	771.00M	497.00M	741.00M
Operating Cash Flow	2.02B	1.92B	1.33B	2.14B	1.72B	1.63B
Investing Cash Flow	-1.55B	-1.41B	-2.25B	-1.26B	-1.26B	-905.00M
Financing Cash Flow	-428.00M	-790.00M	434.00M	-932.00M	-478.00M	-924.00M

Canadian Utilities A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CU, the sentiment is Positive. The current price of 42.4 is above the 20-day moving average (MA) of 40.13, above the 50-day MA of 38.84, and above the 200-day MA of 36.72, indicating a bullish trend. The MACD of 1.00 indicates Negative momentum. The RSI at 75.76 is Negative, neither overbought nor oversold. The STOCH value of 93.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CU.

Canadian Utilities A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTS	76 Outperform	$37.06B	21.79	7.42%	3.39%	5.21%	4.27%
H	75 Outperform	C$30.98B	24.70	10.58%	2.40%	5.98%	14.79%
EMA	73 Outperform	$20.19B	18.19	8.83%	5.10%	14.10%	65.76%
ACO.X	73 Outperform	C$6.06B	13.48	9.32%	3.58%	7.75%	11.25%
ACO.Y	72 Outperform	C$6.43B	17.85	9.11%	2.92%	7.75%	11.25%
CU	67 Neutral	C$10.72B	24.01	8.84%	4.32%	-0.94%	25.64%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

Canadian Utilities A Corporate Events

Canadian Utilities Reports Increased Q3 Earnings and Advances Key Energy Projects

Canadian Utilities Limited reported an increase in third-quarter 2025 earnings, with adjusted earnings of $108 million, up from $102 million in the same quarter of 2024. The company has made significant investments in energy infrastructure, with $402 million in capital expenditures, primarily in regulated utilities. Key projects include the Yellowhead Pipeline and the Central East Transfer-Out Project, which are progressing as planned and are expected to enhance Alberta’s energy infrastructure. The company also filed a General Rate Application for revenue requirements related to these projects, ensuring continued growth and stability.

The most recent analyst rating on (TSE:CU) stock is a Hold with a C$41.00 price target. To see the full list of analyst forecasts on Canadian Utilities A stock, see the TSE:CU Stock Forecast page.

Canadian Utilities to Redeem Series FF Preferred Shares

Canadian Utilities Limited has announced its plan to redeem all outstanding Cumulative Redeemable Second Preferred Shares Series FF on December 1, 2025, at a price of $25.00 per share. The redemption, costing $250 million, will be funded from available cash. This move marks the final dividend payment for these shares, aligning with the company’s strategic financial management and potentially impacting shareholder value and market positioning.

The most recent analyst rating on (TSE:CU) stock is a Hold with a C$41.00 price target. To see the full list of analyst forecasts on Canadian Utilities A stock, see the TSE:CU Stock Forecast page.

Canadian Utilities to Announce Q3 2025 Financial Results

Canadian Utilities Limited announced it will release its third-quarter 2025 financial results on November 7, 2025. The company will host a live teleconference and webcast featuring its CEO and CFO to discuss the results, which will be available on their website. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction amid evolving global energy demands.

The most recent analyst rating on (TSE:CU) stock is a Hold with a C$41.00 price target. To see the full list of analyst forecasts on Canadian Utilities A stock, see the TSE:CU Stock Forecast page.

Canadian Utilities Declares Quarterly Dividends for 2025

Canadian Utilities Limited has announced its quarterly dividends for various classes of shares, with payment dates set for December 1, 2025. This declaration underscores the company’s commitment to delivering shareholder value and reflects its stable financial position. The dividends are eligible under the Income Tax Act of Canada, which may have favorable tax implications for shareholders.

The most recent analyst rating on (TSE:CU) stock is a Hold with a C$41.00 price target. To see the full list of analyst forecasts on Canadian Utilities A stock, see the TSE:CU Stock Forecast page.

Canadian Utilities Limited Announces $750 Million Hybrid Note Issuance

Canadian Utilities Limited announced the issuance of $750 million in 5.45% fixed-to-fixed rate subordinated notes due in 2055, with the offering expected to close by September 22, 2025. The proceeds will be used for capital expenditures, refinancing existing obligations, and general corporate purposes, potentially impacting the company’s operational capacity and financial strategy.

The most recent analyst rating on (TSE:CU) stock is a Hold with a C$42.00 price target. To see the full list of analyst forecasts on Canadian Utilities A stock, see the TSE:CU Stock Forecast page.