Canadian Utilities Limited (TSX: CU): A Stable Player in the Utilities Sector
Canadian Utilities Limited (TSX: CU) is a diversified energy infrastructure company headquartered in Calgary, Canada. Established in 1927, the company operates across various segments, including electricity, natural gas, renewables, pipelines, liquids, and retail energy businesses in Canada, Australia, and other international markets. Its operations are structured into ATCO Energy Systems, ATCO EnPower, and ATCO Australia segments.
In 2024, Canadian Utilities reported adjusted earnings of $647 million ($2.38 per share), an increase from $596 million ($2.21 per share) in 2023. This growth reflects the company’s effective management and expansion strategies within its diverse portfolio.
The company’s commitment to shareholder returns is evident in its consistent dividend payments. Notably, Canadian Utilities has increased its common share dividend for 53 consecutive years, highlighting its financial stability and dedication to delivering value to investors.
In the fourth quarter of 2024, Canadian Utilities reported earnings per share (EPS) of $0.74, surpassing analyst expectations of $0.729. This performance underscores the company’s operational efficiency and ability to generate consistent earnings. Despite a slight decrease in revenue to $3.74 billion in 2024 from $3.80 billion the previous year, the company’s strategic initiatives have maintained its profitability.
The stock has experienced fluctuations over the past year, with a 52-week high of $38.37 and a low of $29.15. As of April 4, 2025, the stock closed at $36.53, reflecting investor confidence in the company’s long-term prospects. The company’s price-to-earnings (P/E) ratio stands at 24.06, indicating market expectations of future earnings growth.
Stock Performance Analysis: Canadian Utilities Limited (TSX: CU)
Canadian Utilities Limited (TSX: CU) has shown steady performance over the past year, benefiting from its diversified utility operations and reliable dividend payouts. With a market cap nearing $10 billion and a strong presence in regulated electricity and natural gas transmission, the company provides stability in volatile markets. The stock has maintained a relatively narrow trading range, reflecting its low-beta profile and defensive characteristics.
Its 52-week high of $36.48 and low of $27.80 highlight moderate fluctuations, with the stock trending upward in recent months. The 50-day moving average sits above the 200-day MA, indicating short-term bullish momentum. Investor interest remains strong, particularly among income-focused investors, due to its long-standing dividend history and predictable cash flows.
📌 Canadian Utilities (TSX: CU) is a reliable option for conservative investors seeking stable income and defensive exposure within their TFSA portfolios.
Peers Comparison: Canadian Utilities Limited (TSX: CU)
Canadian Utilities operates in a competitive landscape alongside other major utility companies. A comparative analysis of key financial metrics such as market capitalization, beta, and 52-week high and low prices provides insights into Canadian Utilities’ market position relative to its peers. This information is crucial for investors considering Canadian Utilities as part of a diversified investment portfolio.
| Code | Name | GIC Sector | Market Cap (CAD) | Beta | 52-Week High (CAD) | 52-Week Low (CAD) | P/E Ratio | Dividend Yield |
|---|---|---|---|---|---|---|---|---|
| CU | Canadian Utilities | Utilities | $7.31B | 0.6034 | $38.37 | $29.15 | 24.06 | 5.00% |
| ACO.X | ATCO Ltd. | Utilities | $5.64B | N/A | N/A | N/A | N/A | N/A |
| EMA | Emera Inc. | Utilities | $18.12B | N/A | N/A | N/A | N/A | N/A |
| AQN | Algonquin Power & Utilities | Utilities | $5.7B | N/A | N/A | N/A | 33.9x | N/A |
| NPI | Northland Power Inc. | Utilities | $5.1B | N/A | N/A | N/A | 19.2x | N/A |
📌 Canadian Utilities (TSX: CU) holds a strong position among Canadian utility peers, offering one of the most attractive dividend yields in the sector while maintaining stable valuation metrics and moderate market volatility.
Valuation Measures: Canadian Utilities Limited (TSX: CU)
Evaluating Canadian Utilities’ valuation metrics, including market capitalization, enterprise value, and price-to-earnings ratios over recent quarters, offers a comprehensive view of the company’s financial health and market valuation. These measures assist investors in making informed decisions based on Canadian Utilities’ current and historical financial performance.
| Current | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | |
|---|---|---|---|---|---|---|
| Market Cap | 9.66B | 9.46B | 9.75B | 8.02B | 8.36B | 8.62B |
| Enterprise Value | 22.01B | 21.53B | 21.67B | 19.84B | 20.11B | 20.18B |
| Trailing P/E | 24.04 | 22.34 | 18.14 | 13.81 | 13.24 | 14.63 |
| Forward P/E | 14.81 | 14.51 | 14.97 | 12.52 | 13.11 | 13.62 |
| PEG Ratio (5yr expected) | — | — | — | — | — | — |
| Price/Sales | 2.58 | 2.53 | 2.60 | 2.13 | 2.20 | 2.20 |
| Price/Book | 1.81 | 1.78 | 1.82 | 1.47 | 1.56 | 1.66 |
| Enterprise Value/Revenue | 5.88 | 5.77 | 5.80 | 5.28 | 5.30 | 5.14 |
| Enterprise Value/EBITDA | 11.96 | 11.44 | 10.77 | 9.70 | 9.61 | 10.08 |
📌 Valuation Overview: Canadian Utilities Limited maintains a stable valuation profile with consistent enterprise value and improving forward P/E ratios, indicating strong investor confidence and projected earnings growth.
Key Takeaways:
- Consistent Earnings Growth: Adjusted earnings increased to $647 million in 2024 from $596 million in 2023.
- Reliable Dividend Payments: 53 consecutive years of dividend increases, with a current yield of approximately 4.91%.
- Strong Financial Performance: Q4 2024 EPS of $0.74 exceeded analyst expectations.
- Stable Stock Performance: Shares traded between $29.15 and $38.37 over the past year, closing at $36.53 on April 4, 2025.
- Market Valuation: P/E ratio of 25.64 refl
