tiprankstipranks
Trending News
More News >
Caribbean Utilities Company (TSE:CUP.U)
:CUP.U
Advertisement

Caribbean Utilities Company (CUP.U) AI Stock Analysis

Compare
12 Followers

Top Page

TSE:CUP.U

Caribbean Utilities Company

(OTC:CUP.U)

Rating:76Outperform
Price Target:
$14.50
▲(12.23% Upside)
Caribbean Utilities Company earns a strong overall score based on robust financial health and attractive valuation. While technical indicators reflect neutral to mildly bearish sentiment, the stock's attractive P/E ratio and dividend yield provide significant upside potential. Investors should monitor leverage and liquidity closely.

Caribbean Utilities Company (CUP.U) vs. iShares MSCI Canada ETF (EWC)

Caribbean Utilities Company Business Overview & Revenue Model

Company DescriptionCaribbean Utilities Company, Ltd. (CUP.U) is an electric utility company that operates within the Cayman Islands. The company is responsible for generating, transmitting, and distributing electricity to residential, commercial, and institutional customers across the islands. As a key player in the region's energy sector, Caribbean Utilities Company is committed to delivering reliable and sustainable energy solutions to its customers, ensuring the efficient and effective management of its energy resources.
How the Company Makes MoneyCaribbean Utilities Company makes money primarily through the generation and sale of electricity. The company's revenue model is based on charging customers for the electricity they consume, which is measured in kilowatt-hours. Rates are determined by a regulatory framework that allows the company to recover costs associated with fuel, operations, and infrastructure investments, while also earning a reasonable return on investment. Additionally, the company may engage in demand-side management programs and energy efficiency initiatives that can provide cost savings and optimize energy distribution. Significant partnerships or regulatory agreements with government entities may also play a role in stabilizing and forecasting revenue streams.

Caribbean Utilities Company Financial Statement Overview

Summary
Caribbean Utilities Company shows strong financial health with consistent revenue growth and profitability. The balance sheet is stable, though rising debt levels should be monitored. Cash flow management indicates robust operating activities, but negative free cash flow suggests a need for careful capital allocation.
Income Statement
85
Very Positive
The company demonstrates strong revenue growth, with a notable increase from $267.3M in 2022 to $288.1M in TTM (Trailing-Twelve-Months). Gross profit margin remains robust, consistently exceeding 35%, indicating effective cost management. Net profit margin has improved to 15.3% in TTM, reflecting enhanced profitability. However, the slight decline in total revenue compared to 2024 ($293.7M) could signal a need for cautious monitoring.
Balance Sheet
78
Positive
The debt-to-equity ratio is moderate at approximately 1.02, showing a balanced approach to leverage. Return on equity is healthy, rising to 11.2% in TTM, suggesting efficient use of equity capital. The equity ratio stands at 46.2%, indicating a stable financial structure. However, the increase in total debt over recent periods warrants attention to potential leverage risks.
Cash Flow
72
Positive
Operating cash flow remains strong, reaching $89.8M in TTM, but free cash flow has shifted to negative territory at -$12.3M due to significant capital expenditures, which may impact liquidity. The operating cash flow to net income ratio is robust at 2.03, indicating solid cash generation relative to earnings. Maintaining positive free cash flow will be crucial moving forward.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue293.68M287.23M267.34M198.48M177.45M
Gross Profit105.50M98.71M90.42M86.87M82.59M
EBITDA93.94M87.13M71.06M69.36M67.23M
Net Income42.69M38.66M33.18M22.19M15.51M
Balance Sheet
Total Assets850.96M777.81M726.54M634.15M633.67M
Cash, Cash Equivalents and Short-Term Investments20.20M3.99M7.95M7.36M45.59M
Total Debt401.46M399.73M358.60M293.38M307.39M
Total Liabilities457.59M453.06M418.31M336.27M344.17M
Stockholders Equity393.37M324.74M308.23M297.88M289.50M
Cash Flow
Free Cash Flow-9.79M-20.77M-41.04M-1.25M9.08M
Operating Cash Flow91.46M80.78M56.19M62.01M66.51M
Investing Cash Flow-100.43M-101.22M-97.19M-63.13M-56.28M
Financing Cash Flow25.18M16.47M41.59M-37.11M11.69M

Caribbean Utilities Company Technical Analysis

Technical Analysis Sentiment
Negative
Last Price12.92
Price Trends
50DMA
13.23
Negative
100DMA
13.23
Negative
200DMA
13.37
Negative
Market Momentum
MACD
-0.05
Negative
RSI
41.84
Neutral
STOCH
38.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CUP.U, the sentiment is Negative. The current price of 12.92 is below the 20-day moving average (MA) of 12.99, below the 50-day MA of 13.23, and below the 200-day MA of 13.37, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 41.84 is Neutral, neither overbought nor oversold. The STOCH value of 38.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CUP.U.

Caribbean Utilities Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$557.77M7.1412.28%4.33%1.12%78.62%
73
Outperform
C$5.90B22.676.08%5.54%-5.33%
73
Outperform
C$34.96B20.417.50%3.51%4.22%6.63%
68
Neutral
C$8.86B17.8810.00%4.41%-16.83%-37.24%
68
Neutral
C$7.94B23.557.52%4.71%-0.51%-17.17%
67
Neutral
$17.68B17.876.85%3.51%6.34%4.32%
56
Neutral
$6.27B5.54%4.48%-4.74%-213.24%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CUP.U
Caribbean Utilities Company
12.96
-0.34
-2.58%
TSE:FTS
Fortis
69.43
12.57
22.10%
TSE:NPI
Northland Power
22.58
0.49
2.23%
TSE:AQN
Algonquin Power & Utilities
8.11
0.04
0.51%
TSE:CU
Canadian Utilities A
38.67
7.01
22.14%
TSE:CPX
Capital Power
59.09
17.59
42.39%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 01, 2025