Caribbean Utilities Company, Ltd.
Caribbean Utilities Company, Ltd. Fundamental Analysis
Caribbean Utilities Company, Ltd. (CUP-U.TO) shows moderate financial fundamentals with a PE ratio of 12.93, profit margin of 16.68%, and ROE of 11.76%. The company generates $0.3B in annual revenue with weak year-over-year growth of 2.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CUP-U.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakCUP-U.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCUP-U.TO trades at attractive valuation levels.
Growth Score
WeakCUP-U.TO faces weak or negative growth trends.
Financial Health Score
WeakCUP-U.TO carries high financial risk with limited liquidity.
Profitability Score
WeakCUP-U.TO struggles to sustain strong margins.
Key Financial Metrics
Is CUP-U.TO Expensive or Cheap?
P/E Ratio
CUP-U.TO trades at 12.93 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CUP-U.TO's PEG of -7.24 indicates potential undervaluation.
Price to Book
The market values Caribbean Utilities Company, Ltd. at 1.49 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.96 times EBITDA. This is generally considered low.
How Well Does CUP-U.TO Make Money?
Net Profit Margin
For every $100 in sales, Caribbean Utilities Company, Ltd. keeps $16.68 as profit after all expenses.
Operating Margin
Core operations generate 15.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.76 in profit for every $100 of shareholder equity.
ROA
Caribbean Utilities Company, Ltd. generates $5.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Caribbean Utilities Company, Ltd. generates strong operating cash flow of $85.98M, reflecting robust business health.
Free Cash Flow
Caribbean Utilities Company, Ltd. generates weak or negative free cash flow of $-4.30M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.10 in free cash annually.
FCF Yield
CUP-U.TO converts -0.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-7.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How CUP-U.TO Stacks Against Its Sector Peers
| Metric | CUP-U.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.93 | 20.36 | Better (Cheaper) |
| ROE | 11.76% | 921.00% | Weak |
| Net Margin | 16.68% | 737.00% | Weak |
| Debt/Equity | 1.01 | 1.49 | Strong (Low Leverage) |
| Current Ratio | 0.66 | 1.43 | Weak Liquidity |
| ROA | 5.39% | -6170.00% (disorted) | Weak |
CUP-U.TO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Caribbean Utilities Company, Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.24%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
108.36%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
26.61%
Industry Style: Defensive, Dividend, Income
High Growth