CU Stock Analysis: Canadian Utilities | TO

Electricity Networks, Natural Gas, Power Generation, Water

Total Rating 35

Safety 48

Buy Signal 0.13

Utilities - Diversified
Industry Rotation: +8.7

Market Cap: 9.63B
Avg Turnover: 27.4M

Risk 3d forecast

Volatility20.0%

VaR 5^th Pctl3.61%

VaR vs Median9.57%

Reward TTM

Sharpe Ratio1.52

Rel. Str. IBD61.8

Rel. Str. Peer Group79.8 pctl

Character TTM

Beta-0.189

Beta Downside-0.301

Hurst Exponent0.435

Choppyness74.9%

Drawdowns 3y

Max DD14.16%

CAGR/Max DD1.87

CAGR/Mean DD9.22

EPS (Earnings per Share)

EPS CAGR: 4.74%
EPS Trend: 94.4%

Last SUE: 1.29
Qual. Beats: 2

Revenue

Rev. CAGR: -1.29%
Rev. Trend: -68.9%

Last SUE: 0.21
Qual. Beats: 0

Warnings

P/E Ratio 312.4

High Debt/EBITDA With Thin Interest Coverage

Below Avwap Earnings

Tailwinds

Confidence

Seasonality

Not enough history

Description: CU Canadian Utilities

Canadian Utilities Limited is a Calgary-based utility company and subsidiary of ATCO Ltd. Its businesses span electricity and natural gas networks, power generation, energy storage, renewables, pipelines, and related services in Canada, Australia, and other markets.

Its regulated electricity and gas transmission and distribution operations serve regions including Alberta, northern Canada, and Western Australia. The company also develops generation, storage, and infrastructure projects; regulated utility networks typically earn revenue under regulatory frameworks.

Headlines to Watch Out For

Regulated electricity and gas rate-base growth drives predictable earnings expansion
Higher interest rates increase financing costs for capital-intensive grid investment
Renewable, storage and hydrogen projects add growth potential and execution risk

Piotroski VR-10 (Strict) 2.0

Net Income: 124.0m TTM > 0 and > 6% of Revenue
FCF/TA: 0.01 > 0.02 and ΔFCF/TA -0.31 > 1.0
NWC/Revenue: 14.25% < 20% (prev 4.38%; Δ 9.87% < -1%)
CFO/TA 0.06 > 3% & CFO 1.59b > Net Income 124.0m
Net Debt (11.7b) to EBITDA (2.01b): 5.82 < 3
Current Ratio: 1.80 > 1.5 & < 3
Outstanding Shares: last quarter (273.1m) vs 12m ago 0.40% < -2%
Gross Margin: 24.94% > 18% (prev 40.32%; Δ -15.38% > 0.5%)
Asset Turnover: 15.52% > 50% (prev 15.57%; Δ -0.05% > 0%)
Interest Coverage Ratio: 1.31 > 6 (EBIT TTM 700.0m / Interest Expense TTM 535.0m)

Altman Z'' 1.21

A: 0.02 (Total Current Assets 1.21b - Total Current Liabilities 671.0m) / Total Assets 24.6b
B: 0.15 (Retained Earnings 3.66b / Total Assets 24.6b)
C: 0.03 (EBIT TTM 700.0m / Avg Total Assets 24.2b)
D: 0.37 (Book Value of Equity 6.57b / Total Liabilities 17.8b)
Altman-Z'' = 1.21 = BB

Beneish M -2.42

DSRI: 1.10 (Receivables 451.0m/405.0m, Revenue 3.76b/3.72b)
GMI: 1.62 (GM 40.32% / 24.94%)
AQI: 0.93 (AQ_t 0.07 / AQ_t-1 0.08)
SGI: 1.01 (Revenue 3.76b / 3.72b)
TATA: -0.06 (NI 124.0m - CFO 1.59b) / TA 24.6b)
Beneish M = -2.42 (Cap -4..+1) = BBB

What is the price of CU shares?

As of October 18, 2026, the stock is trading at CAD 49.99 with a total of 1,616,327 shares traded. Over the past week, the price has changed by +1.19%, over one month by -1.86%, over three months by -8.04% and over the past year by +30.96%.

Current recommended Stop Loss: 47.50 (which is 5% or 2.2 ATR below the current price).

Is CU a buy, sell or hold?

Canadian Utilities has no consensus analysts rating.

Canadian Utilities (CU) - Fundamental Data Overview as of 18 October 2026

Market Cap USD = 9.63b (13.6b CAD * 0.7071 CAD.USD)
P/E Trailing = 312.4375
P/E Forward = 18.1488
P/S = 3.6197
P/B = 2.74
P/EG = 2.6351
Revenue TTM = 3.76b CAD
EBIT TTM = 700.0m CAD
EBITDA TTM = 2.01b CAD
Long Term Debt = 12.0b CAD (from longTermDebt, last quarter)
Short Term Debt = 41.0m CAD (from shortTermDebt, last quarter)
Debt = 12.2b CAD (from shortLongTermDebtTotal, last quarter) + Leases 61.0m
Net Debt = 11.7b CAD (calculated: Debt 12.2b - CCE 490.0m)
Enterprise Value = 25.3b CAD (13.6b + Debt 12.2b - CCE 490.0m)
Interest Coverage Ratio = 1.31 (Ebit TTM 700.0m / Interest Expense TTM 535.0m)
EV/FCF = 115.1x (Enterprise Value 25.3b / FCF TTM 220.0m)
FCF Yield = 0.87% (FCF TTM 220.0m / Enterprise Value 25.3b)
FCF Margin = 5.85% (FCF TTM 220.0m / Revenue TTM 3.76b)
Net Margin = 3.30% (Net Income TTM 124.0m / Revenue TTM 3.76b)
Gross Margin = 24.94% ((Revenue TTM 3.76b - Cost of Revenue TTM 2.82b) / Revenue TTM)
Gross Margin QoQ = 37.86% (prev 43.73%)
Tobins Q-Ratio = 1.03 (Enterprise Value 25.3b / Total Assets 24.6b)
Interest Expense / Debt = 4.39% (Interest Expense 535.0m / Debt 12.2b)
Taxrate = 38.36% (84.0m / 219.0m)
NOPAT = 431.5m (EBIT 700.0m * (1 - 38.36%))
Current Ratio = 1.80 (Total Current Assets 1.21b / Total Current Liabilities 671.0m)
Debt / Equity = 1.86 (Debt 12.2b / totalStockholderEquity, last quarter 6.57b)
Debt / EBITDA = 5.82 (Net Debt 11.7b / EBITDA 2.01b)
Debt / FCF = 53.23 (Net Debt 11.7b / FCF TTM 220.0m)
Total Stockholder Equity = 6.61b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.51% (Net Income 124.0m / Total Assets 24.6b)
RoE = 1.88% (Net Income TTM 124.0m / Total Stockholder Equity 6.61b)
RoCE = 3.75% (EBIT 700.0m / Capital Employed (Equity 6.61b + L.T.Debt 12.0b))
RoIC = 1.81% (NOPAT 431.5m / Invested Capital 23.8b)
WACC = 3.93% (E(13.6b)/V(25.8b) * Re(5.02%) + D(12.2b)/V(25.8b) * Rd(4.39%) * (1-Tc(0.38)))
Discount Rate = 5.02% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 95.64 | Cagr: 0.34%
[DCF] Terminal Value 73.10% ; FCFF base≈247.2m ; Y1≈216.8m ; Y5≈175.1m
[DCF] Fair Price = N/A (negative equity: EV 2.81b - Net Debt 11.7b = -8.90b; debt exceeds intrinsic value)
EPS Correlation: 94.39 | EPS CAGR: 4.74% | SUE: 1.29 | # QB: 2
Revenue Correlation: -68.94 | Revenue CAGR: -1.29% | SUE: 0.21 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.43 | Chg30d=+0.78% | Revisions=+50% | Analysts=4
EPS current Year (2026-12-31): EPS=2.59 | Chg30d=+0.01% | Revisions=+29% | GrowthEPS=+7.1% | GrowthRev=+4.9%
EPS next Year (2027-12-31): EPS=2.77 | Chg30d=-0.24% | Revisions=+38% | GrowthEPS=+6.9% | GrowthRev=+5.0%
[Analyst] Revisions Ratio: +53% (up=10, down=2)