Caribbean Utilities Company (CUP.U) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 4.1%
• Average Volume (3M): 1.46K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.30
• Revenue Growth: -4.37%
• EPS Growth: 77.48%
• Country: CA
• Employees: 275
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.38
• Shares Outstanding: 42,337,200
• 10 Day Avg. Volume: 1,029
• 30 Day Avg. Volume: 1,456
• PEG Ratio: 1.59
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 1.84
• P/FCF Ratio: -55.32
• Enterprise Value/Market Cap: 10.00T>
• Enterprise Value/Revenue: 3.42
• Enterprise Value/Gross Profit: 8.83
• Enterprise Value/Ebitda: 9.96
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $14.50 ▲(6.85% Upside)

The stock's overall score is driven by its attractive valuation and strong return on equity. However, financial challenges such as declining revenue and negative free cash flow, along with neutral technical indicators, weigh on the score. The company needs to address these financial issues to improve its outlook.

Positive Factors

Operational Efficiency

Operational efficiency with stable margins and strong return on equity indicates effective management and cost control, supporting long-term profitability.

Stable Financial Position

A stable financial position with moderate leverage suggests the company can manage its debt effectively, reducing financial risk and supporting future growth.

Sustainable Energy Investments

Investments in renewable energy projects align with global sustainability trends, potentially enhancing long-term growth and regulatory compliance.

Negative Factors

Declining Revenue

Declining revenue suggests challenges in maintaining market share or pricing power, which could impact long-term growth and financial stability.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, limiting the company's ability to invest in growth opportunities or weather economic downturns.

Revenue Generation Challenges

Challenges in revenue generation may reflect competitive pressures or market saturation, impacting long-term profitability and strategic positioning.

Caribbean Utilities Company Business Overview & Revenue Model

Company Description

Caribbean Utilities Company, Ltd. generates and distributes electricity in Grand Cayman, the Cayman Islands. The company generates electricity using diesel. As of December 31, 2021, its installed generating capacity is 161 megawatts. It also operates a transmission and distribution system, including 8 transformer substations with approximately 387 miles of overhead high-voltage, 53.8 miles of underground high-voltage, and 14 miles of high-voltage submarine cables. The company also provides telecommunication services. The company was founded in 1966 and is headquartered in Grand Cayman, the Cayman Islands. Caribbean Utilities Company, Ltd. is a subsidiary of Fortis Energy (Bermuda) Ltd.

How the Company Makes Money

CUP.U generates revenue primarily through the sale of electricity to its customers, which includes residential, commercial, and industrial sectors. The company operates under a regulated framework that allows it to earn a return on investment through a rate-setting process approved by the government's utility regulator. Key revenue streams include base electricity rates, fuel adjustment charges, and infrastructure fees. Additionally, CUP.U may engage in energy efficiency programs and renewable energy projects, which can create additional revenue opportunities. Significant partnerships with government entities and other stakeholders in the energy sector also play a role in its financial performance, particularly in terms of investments in new technologies and sustainable practices.

Caribbean Utilities Company Financial Statement Overview

Summary

Caribbean Utilities Company shows operational efficiency with stable margins and strong return on equity. However, declining revenue and negative free cash flow highlight potential financial challenges. The company needs to address revenue decline and improve cash flow management.

Income Statement

The income statement shows a mixed performance. The gross profit margin is stable at around 37%, and the net profit margin is healthy at 15.3% for TTM. However, there is a concerning revenue decline of 4.62% in the TTM period, indicating potential challenges in revenue generation. EBIT and EBITDA margins are consistent, reflecting operational efficiency, but the negative revenue growth is a significant concern.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.02, indicating moderate leverage. Return on equity is strong at 12.1%, showcasing effective use of equity to generate profits. The equity ratio is reasonable, suggesting a balanced capital structure. However, the high debt level could pose risks if not managed carefully.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow and a free cash flow to net income ratio of -0.14, indicating cash flow issues. Although operating cash flow is positive and covers net income, the negative free cash flow growth rate is concerning. The company needs to improve cash flow management to ensure financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	286.72M	293.68M	287.23M	267.34M	198.48M	177.45M
Gross Profit	111.18M	105.50M	98.71M	90.42M	86.87M	82.59M
EBITDA	98.63M	93.94M	87.13M	76.94M	74.26M	71.68M
Net Income	45.48M	42.69M	38.66M	33.18M	22.19M	15.51M
Balance Sheet
Total Assets	861.42M	850.96M	777.81M	726.54M	634.15M	633.67M
Cash, Cash Equivalents and Short-Term Investments	4.91M	20.20M	3.99M	7.95M	7.36M	45.59M
Total Debt	407.45M	404.76M	399.73M	358.60M	293.38M	307.39M
Total Liabilities	463.09M	457.59M	453.06M	418.31M	336.27M	344.17M
Stockholders Equity	398.33M	393.37M	324.74M	308.23M	297.88M	289.50M
Cash Flow
Free Cash Flow	-16.49M	-9.79M	-20.77M	-41.04M	-1.25M	9.08M
Operating Cash Flow	87.48M	91.46M	80.78M	56.19M	62.01M	66.51M
Investing Cash Flow	-103.51M	-100.43M	-101.22M	-97.19M	-63.13M	-56.28M
Financing Cash Flow	15.90M	25.18M	16.47M	41.59M	-37.11M	11.69M

Caribbean Utilities Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CUP.U, the sentiment is Positive. The current price of 13.57 is above the 20-day moving average (MA) of 13.15, above the 50-day MA of 13.20, and above the 200-day MA of 12.92, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.39 is Neutral, neither overbought nor oversold. The STOCH value of 28.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CUP.U.

Caribbean Utilities Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CU	67 Neutral	C$10.72B	24.01	8.84%	4.39%	-0.94%	25.64%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CPX	65 Neutral	C$10.87B	24.81	9.40%	4.24%	-2.99%	-32.11%
CUP.U	64 Neutral	―	7.22	12.67%	4.10%	-4.37%	77.48%
FTS	61 Neutral	$35.72B	21.00	7.42%	3.52%	5.21%	4.27%
NPI	60 Neutral	$4.51B	―	-7.06%	6.96%	-4.86%	-86.64%
AQN	54 Neutral	$6.24B	―	2.04%	4.51%	-4.72%	96.98%