# Canadian Utilities Limited (CU.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Utilities / Multi-Utilities. Price C$50.91, market value C$13.9 billion.

## Valuation
- **P/E (trailing): 318.2×** (5-yr avg 70.5×, 3-yr avg 104.4×). Canadian Utilities Limited trades at 318.2× trailing earnings, well above its own five-year average of 70.5×: investors are paying up relative to the company's past. The Utilities median in the September 2026 study was 21.2×. Forward P/E is 18.3×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 3.7×**. Each dollar of revenue is priced at 3.7×.
- **Price / book: 2.7×**. The shares trade at 2.7× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 12.4×**. Enterprise value is 12.4× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 2.3%** (5-yr avg 4.0%). Free cash flow equals 2.3% of the market value, below its five-year average of 4.0%, so the shares are pricier on cash than usual.
- **Earnings yield: 0.3%**. The inverse of the P/E: 0.3% of the price is earned each year.

## Profitability
- **Gross margin: 32.7%**. Canadian Utilities Limited keeps 32.7% of revenue after the direct cost of what it sells.
- **Operating margin: 16.3%**. 16.3% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 3.2%**. 3.2% of each dollar of sales reaches the bottom line.
- **Return on equity: 1.9%**. 1.9% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 2.1%**. Return on all capital, debt included, is 2.1%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 0.5%**. Each dollar of assets produces 0.5% of profit.

## Growth
- **Revenue growth (1 yr): -1.4%** (3-yr -3.0%/yr, 5-yr 2.7%/yr). Revenue fell 1.4% over the last year, against 2.7% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -89.9%** (3-yr -58.3%/yr, 5-yr -35.3%/yr). Earnings per share fell 89.9%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -48.9%/yr**. Free cash flow has compounded at -48.9% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 1.95**. Debt is 1.95 times equity, a leveraged balance sheet, which is normal for utilities.
- **Net debt / EBITDA: 5.6×**. It would take 5.6 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 1.1×**. Operating profit covers interest only 1.1×: fragile.
- **Current ratio: 1.56** (quick 1.52). Current assets cover the next year's liabilities 1.56 times.
- **Altman Z-score: 1.08**. A Z-score of 1.08 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.63%** (C$1.84 per share, trailing). Canadian Utilities Limited yields 3.63%, an income-level yield.
- **Payout ratio: 483%** (179% of free cash flow). The dividend exceeds earnings (483% payout), which is rarely sustainable outside REITs and one-off years.
- **Consecutive years of increases: 26**. 26 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 1.0%/yr** (1-yr 1.1%). The dividend has grown 1.0% a year over five years.
- **Shareholder yield: 2.1%**. Dividends plus net buybacks return 2.1% of the market value a year.

## Price and momentum
- **Total return (1 yr): 38.0%** (YTD 21.5%, 3-mo -0.2%). The shares are up 38.0% over twelve months including dividends.
- **From 52-week high: -10.5%** (37.1% above the low). Trading 11% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 39**. An RSI of 39 is neutral.
- **Beta (1 yr): -0.09** (volatility 15%). Beta of -0.09 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CU.TO · Page: https://foliofundamentals.com/stocks/cu.to

Not investment advice.