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Canadian Utilities Limited
🇨🇦 CU.TO · Toronto · CA1367178326
Utilities
Price at analysis: CAD 51.92 Current price: CAD 51.93 * updated every night
Scores
Key Metrics
Powered by EODHDP/E (TTM)
114.9
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 51.92 ÷ 0.45 = 114.9
TTM period through: 2026-06-30
Forward P/E (estimated): 20.3
Based on analyst estimates
Reference: Provider P/E (Trailing): 324.3
Net Debt/EBITDA (TTM)
5.8x
Latest quarter: 25.1x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-06-30
Latest quarter (2026-06-30): 25.1x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
1.9%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
13.3x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
3.59%
TTM: 3.49%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 3.59%
Trailing Yield (TTM, last 12 months): 3.49%
Payout Ratio (Fwd)
409.3%
TTM: 466.1%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 409.3%
Payout (TTM): 466.1%
Cash Flow Payout (TTM): 36.2%
FCF Coverage (TTM): 0.38x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
1.0%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 06 Aug 2027 | — | CAD | 0.462 |
| Forecast* | Quarterly | — | 07 May 2027 | — | CAD | 0.462 |
| Forecast* | Quarterly | — | 05 Feb 2027 | — | CAD | 0.462 |
| Forecast* | Quarterly | — | 06 Nov 2026 | — | CAD | 0.458 |
| Paid | Quarterly | 09 Jul 2026 | 06 Aug 2026 | 01 Sep 2026 | CAD | 0.462 |
| Paid | Quarterly | 09 Apr 2026 | 07 May 2026 | 01 Jun 2026 | CAD | 0.462 |
| Paid | Quarterly | 08 Jan 2026 | 05 Feb 2026 | 01 Mar 2026 | CAD | 0.462 |
| Paid | Quarterly | 09 Oct 2025 | 06 Nov 2025 | 01 Dec 2025 | CAD | 0.458 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Canadian Utilities Limited is a high-quality regulated infrastructure operator providing essential energy services with highly defensive cash flows. The recent Q4 non-cash impairment severely distorted GAAP earnings, but trading at an attractive 9.92x P/FFO, the underlying operational resilience is strong. Worth considering for new positions as the market overlooks the temporary accounting noise in favor of robust cash flows.
Sector Context
Canadian Utilities operates in the Diversified Utilities sector, providing regulated electricity and natural gas transmission and distribution. For DGI investors, regulated utilities are foundational holdings offering essential services, though their heavy capital intensity requires assessing FFO/AFFO rather than raw free cash flow.
Temporary Opportunity Identified
The recent Q4 2025 net loss of $328 million was driven entirely by non-cash impairments and write-offs. This heavily distorts the TTM P/E ratio to 114.88x and depresses GAAP ROE to 1.93%, even though underlying adjusted cash flows and operational earnings remain strongly positive.
📊 Strategy Analysis
- • Highly attractive valuation for a regulated utility, trading at a P/FFO of 9.92x and a P/AFFO of 5.06x, well within the target DGI range.
- • The recent Q4 net loss was driven purely by non-cash impairments, masking underlying full-year adjusted earnings of $658 million.
- • Shareholder returns are well-supported, with a 3.49% TTM dividend yield easily covered by operating cash flows (36.24% payout) and supplemented by a 1.69% net buyback yield.
- • A massive $12 billion 5-year capital expenditure plan ensures ongoing regulated rate base growth.
⚠ What to Watch
- • Acute geopolitical and operational risk regarding the LUMA Energy concession in Puerto Rico, exposing the company to potential early contract termination and a $105 million USD guarantee liability.
- • Alberta's unique 'Stores Block' regulatory framework poses long-term structural risk, as utility owners bear the financial burden for 'stranded assets' during the energy transition.
- • Net Debt/EBITDA of 5.79x remains elevated, increasing interest rate sensitivity amidst central banks' signals for potential rate hikes.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-08-29
Disclaimer: This information is for educational purposes only. Not financial advice.