Reaves Utility Income Fund
Reaves Utility Income Fund Fundamental Analysis
Reaves Utility Income Fund (UTG) shows strong financial fundamentals with a PE ratio of 4.97, profit margin of 2.79%, and ROE of 23.93%. The company generates $0.3B in annual revenue with strong year-over-year growth of 13.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze UTG's fundamental strength across five key dimensions:
Efficiency Score
ExcellentUTG demonstrates superior asset utilization.
Valuation Score
ExcellentUTG trades at attractive valuation levels.
Growth Score
ExcellentUTG delivers strong and consistent growth momentum.
Financial Health Score
ExcellentUTG maintains a strong and stable balance sheet.
Profitability Score
ModerateUTG maintains healthy but balanced margins.
Key Financial Metrics
Is UTG Expensive or Cheap?
P/E Ratio
UTG trades at 4.97 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, UTG's PEG of -0.29 indicates potential undervaluation.
Price to Book
The market values Reaves Utility Income Fund at 1.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.56 times EBITDA. This is generally considered low.
How Well Does UTG Make Money?
Net Profit Margin
For every $100 in sales, Reaves Utility Income Fund keeps $2.79 as profit after all expenses.
Operating Margin
Core operations generate 2.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.93 in profit for every $100 of shareholder equity.
ROA
Reaves Utility Income Fund generates $17.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Reaves Utility Income Fund produces operating cash flow of $29.45M, showing steady but balanced cash generation.
Free Cash Flow
Reaves Utility Income Fund generates strong free cash flow of $29.45M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.33 in free cash annually.
FCF Yield
UTG converts 0.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
13.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How UTG Stacks Against Its Sector Peers
| Metric | UTG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.97 | 18.96 | Better (Cheaper) |
| ROE | 23.93% | 797.00% | Weak |
| Net Margin | 278.83% | -7699.00% (disorted) | Strong |
| Debt/Equity | 0.25 | 2.38 | Strong (Low Leverage) |
| Current Ratio | 4.08 | 560.28 | Strong Liquidity |
| ROA | 17.47% | -23967.00% (disorted) | Strong |
UTG outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Reaves Utility Income Fund's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
58.72%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
61.24%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-246.45%
Industry Style: Value, Dividend, Cyclical
Declining