Caribbean Utilities Company (CUP.U) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 4.13%
• Average Volume (3M): 1.46K
• Price to Earnings (P/E): 7.4
• 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: N/A
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 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: 70 Outperform
• Price Target: $14.50 ▲(11.54% Upside)

Caribbean Utilities Company's overall stock score is driven by its strong valuation, with a low P/E ratio and high dividend yield, making it attractive for value and income investors. Financial performance is stable but hindered by negative free cash flow, which is a concern. Technical indicators suggest a neutral market sentiment, lacking strong momentum in either direction.

Positive Factors

Stable Profitability

Stable profitability with healthy margins indicates efficient operational management, supporting long-term financial stability and shareholder returns.

Regulated Framework

Operating under a regulated framework provides predictable revenue streams and reduces business risk, ensuring stable returns over time.

Diverse Energy Sources

A diverse energy mix enhances resilience against market fluctuations and supports sustainable practices, aligning with long-term industry trends.

Negative Factors

Negative Free Cash Flow

Negative free cash flow suggests liquidity issues, which could limit the company's ability to invest in growth opportunities and manage debt effectively.

Decline in Revenue Growth

A decline in revenue growth may signal challenges in market expansion or competitive pressures, potentially impacting future profitability.

High Leverage

High leverage increases financial risk, especially if cash flow issues persist, potentially affecting the company's ability to meet financial obligations.

Caribbean Utilities Company Business Overview & Revenue Model

Company Description

Caribbean Utilities Company (CUP.U) is a leading electric utility provider in the Cayman Islands, primarily engaged in the generation, transmission, distribution, and sale of electricity. The company serves residential, commercial, and industrial customers, and its operations are supported by a diverse mix of energy sources, including fossil fuels and renewable energy. CUP.U is committed to sustainable energy practices and plays a vital role in the economic development of the Cayman Islands through reliable power supply and infrastructure investment.

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	281.98M	293.68M	287.23M	267.34M	198.48M	177.45M
Gross Profit	114.50M	105.50M	98.71M	90.42M	86.87M	82.59M
EBITDA	101.70M	93.94M	87.13M	76.94M	74.26M	71.68M
Net Income	47.15M	42.69M	38.66M	33.18M	22.19M	15.51M
Balance Sheet
Total Assets	876.12M	850.96M	777.81M	726.54M	634.15M	633.67M
Cash, Cash Equivalents and Short-Term Investments	2.45M	20.20M	3.99M	7.95M	7.36M	45.59M
Total Debt	407.07M	404.76M	399.73M	358.60M	293.38M	307.39M
Total Liabilities	468.87M	457.59M	453.06M	418.31M	336.27M	344.17M
Stockholders Equity	407.25M	393.37M	324.74M	308.23M	297.88M	289.50M
Cash Flow
Free Cash Flow	-9.14M	-9.79M	-20.77M	-41.04M	-1.25M	9.08M
Operating Cash Flow	86.54M	91.46M	80.78M	56.19M	62.01M	66.51M
Investing Cash Flow	-95.00M	-100.43M	-101.22M	-97.19M	-63.13M	-56.28M
Financing Cash Flow	6.70M	25.18M	16.47M	41.59M	-37.11M	11.69M

Caribbean Utilities Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 is below the 20-day moving average (MA) of 13.21, below the 50-day MA of 13.16, and above the 200-day MA of 12.96, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 61.41 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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	72 Outperform	C$11.50B	21.51	8.84%	4.33%	-0.94%	25.64%
CUP.U	70 Outperform	―	7.39	12.67%	4.13%	-4.37%	77.48%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CPX	64 Neutral	C$9.28B	21.14	9.40%	4.44%	-2.99%	-32.11%
FTS	61 Neutral	C$35.70B	20.99	7.42%	3.50%	5.21%	4.27%
AQN	54 Neutral	$6.53B	―	2.04%	4.32%	-4.72%	96.98%
NPI	53 Neutral	$4.68B	-16.45	-7.06%	6.80%	-4.86%	-86.64%