Canadian Utilities Limited (CU.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+27.4%

CA$65.50

vs CA$51.43 price

Levered DCF

-CA$11.63

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

0.84

Distress zone

Rating

C-

Overall 1 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	284.87×	23.55×	13.69×	17.71×	30.07×	23.55×	12.09×	15.06×
P/B	1.82×	1.37×	1.24×	1.43×	1.49×	1.28×	1.59×	1.33×
P/S	3.15×	2.53×	2.27×	2.44×	2.82×	2.62×	2.73×	1.94×
EV / EBITDA	11.7×	11.58×	9.37×	10.4×	12.21×	10.84×	9.1×	9.41×
Gross margin	24.8%	38.5%	38.3%	42.4%	38.6%	40.9%	44.6%	43.3%
Operating margin	15.5%	28.5%	20.9%	30.2%	25.9%	29.6%	32.5%	26.1%
Net margin	3.2%	12.8%	18.6%	15.6%	11.2%	13.2%	24.4%	14.5%
Current ratio	1.56×	1.1×	1.01×	1.42×	1.22×	1.82×	2.32×	1.13×
Debt / equity	1.95×	1.61×	1.52×	1.39×	1.44×	1.38×	1.34×	1.64×
Interest coverage	1.14×	2.1×	1.75×	3.05×	2.27×	2.47×	2.61×	2.38×
Dividend yield	5.0%	5.8%	6.2%	5.4%	5.5%	6.4%	5.0%	5.1%
Payout ratio	483.2%	114.6%	75.7%	84.7%	137.7%	127.4%	55.6%	68.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	1.9%	6.9%	10.2%	9.2%	5.9%	6.4%	14.1%	9.9%
Return on invested capital	1.5%	3.7%	2.8%	4.5%	3.4%	3.6%	6.2%	4.1%
Return on assets	0.5%	2.0%	3.1%	2.9%	1.9%	2.1%	4.7%	2.9%
Free cash flow yield	0.9%	3.4%	-0.1%	7.8%	5.0%	8.7%	2.3%	-3.1%
Earnings yield	1.0%	5.1%	8.2%	6.4%	4.0%	5.0%	8.9%	7.5%
Enterprise value	CA$23.4B	CA$20.4B	CA$19B	CA$18.8B	CA$18.7B	CA$16.8B	CA$18.7B	CA$18.4B
Net debt / EBITDA	5.88×	6.21×	5.12×	4.93×	5.75×	5.37×	3.91×	5.07×
Cash conversion cycle (days)	-26	-50	-45	-71	-42	-25	-26	-53