# Caribbean Utilities Company, Ltd. (CUP-U.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Utilities / Electric Utilities. Price $14.47, market value $619 million.

## Valuation
- **P/E (trailing): 12.4×** (5-yr avg 13.0×, 3-yr avg 11.2×). Caribbean Utilities Company, Ltd. trades at 12.4× trailing earnings, close to its own five-year average of 13.0×. The Utilities median in the September 2026 study was 21.2×. Forward P/E is 11.1×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 5.97**. A PEG of 5.97 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 2.1×**. Each dollar of revenue is priced at 2.1×.
- **Price / book: 1.5×**. The shares trade at 1.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 10.2×**. Enterprise value is 10.2× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: -0.6%** (5-yr avg -4.0%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 8.1%**. The inverse of the P/E: 8.1% of the price is earned each year.

## Profitability
- **Gross margin: 40.2%**. Caribbean Utilities Company, Ltd. keeps 40.2% of revenue after the direct cost of what it sells.
- **Operating margin: 16.6%**. 16.6% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 16.7%**. 16.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 11.5%**. 11.5% on shareholders' equity is solid.
- **Return on invested capital: 4.6%**. Return on all capital, debt included, is 4.6%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 5.7%**. Each dollar of assets produces 5.7% of profit.

## Growth
- **Revenue growth (1 yr): -3.3%** (3-yr 2.0%/yr, 5-yr 9.9%/yr). Revenue fell 3.3% over the last year, against 9.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 1.9%** (3-yr 4.3%/yr, 5-yr 19.6%/yr). Earnings per share rose 1.9%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 1.01**. Debt is 1.01 times equity, a leveraged balance sheet, which is normal for utilities.
- **Net debt / EBITDA: 4.1×**. It would take 4.1 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 9.4×**. Operating profit covers interest 9.4× over, a safe margin.
- **Current ratio: 0.66** (quick 0.62). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 1.89**. A Z-score of 1.89 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 5.55%** ($0.77 per share, trailing). Caribbean Utilities Company, Ltd. yields 5.55%, an income-level yield.
- **Payout ratio: 64%**. 64% of earnings goes out as dividends, leaving room to keep raising it.
- **Dividend growth (5 yr): -4.2%/yr** (1-yr -23.1%). The dividend has not grown over five years.
- **Shareholder yield: 5.4%**. Dividends plus net buybacks return 5.4% of the market value a year.

## Price and momentum
- **Total return (1 yr): 12.0%** (YTD 8.8%, 3-mo -0.9%). The shares are up 12.0% over twelve months including dividends.
- **From 52-week high: -3.5%** (12.1% above the low). Trading within 5% of 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): 50**. An RSI of 50 is neutral.
- **Beta (1 yr): 0.04** (volatility 23%). Beta of 0.04 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CUP-U.TO · Page: https://foliofundamentals.com/stocks/cup-u.to

Not investment advice.