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Canadian Utilities Limited (CU) Fair Value & Analysis

Utilities · CA · Market cap C$14.7B

CU Canadian Utilities Limited CU · TO
PriceC$53.42
Fair ValueC$7.88
Upside-85.3%
Quality57/100
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Expensive Growth
Thin margins · 2.9% net margin
High debt · generates free cash flow
3.42% dividend yield
Trails peers (4/15)
Moderate moat 49/100
Evidence: High Range C$5.91 – C$9.84 Share as image

Fair value as of: Jul 17, 2026

From 13 valuation models · updated 21 days ago

Share price +2.1% over the past month.

A solid business, but screening 85% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (C$9.84). The favourable scenario is already priced in.
  • Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

C$56.60 C$24.76 Fair Value C$7.88 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range C$24.76 – C$56.60 · fair‑value band C$5.91 – C$9.84 · the C$53.42 price screens above the C$7.88 fair value. Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

Canadian Utilities Limited (CU) currently trades at C$53.42, while our model-based Fair Value estimate is C$7.88, implying the stock looks roughly 85.3% overvalued today. We read business quality at 57/100 (solid quality), in the Utilities sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Canadian Utilities Limited generated revenue of C$3.7B at a net margin of 2.9%. Revenue declined 0.1% year over year. It earns a return on equity of 1.7%. Net debt stands at C$11.7B. Fundamentals as of Jul 17, 2026

Our scenario range runs from C$5.91 (bear case) to C$9.84 (bull case); at C$53.42, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades near its 52-week high and 50% above its 52-week low, currently above its 200-day average. For context, the median of 10 Utilities peers we cover trades at -48% fair-value upside, at -85%, CU screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income C$16.58 C$15.95 C$12.58 76
Gordon GGM C$19.41 C$24.52 C$29.81 70
Growth-Adj P/E C$4.64 C$6.63 C$8.62 68
All 13 models by family
DCF Models
5Y EBITDA Exit C$21.76 C$55.29 41
10Y EBITDA Exit C$1.93 C$24.02 37
Earnings-Based
Graham-Dodd C$2.98 C$5.12 C$6.26 54
Dividend Discount
Gordon GGM C$19.41 C$24.52 C$29.81 70
DDM Multi-Stage C$19.41 C$26.22 C$34.54 61
Multiples
P/E Multiple C$6.56 C$8.75 C$10.94 63
P/S Multiple C$5.58 C$7.44 C$9.30 58
P/B Multiple C$5.58 C$7.44 C$9.30 55
EV/EBIT C$6.02 53
EV/EBITDA C$25.56 C$47.84 C$70.13 54
Asset-Based
NCAV (Graham) C$11.73 C$15.72 C$23.47 50
Economic Profit
Residual Income C$16.58 C$15.95 C$12.58 76
Growth Earnings
Growth-Adj P/E C$4.64 C$6.63 C$8.62 68

Widest divergence: Dividend Discount (C$24.52) versus DCF Models (C$1.93). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) C$3.7B
Revenue growth (YoY) -0.1%
Net margin 2.9%
Return on equity 1.7%
Free cash flow C$103M FY2025
P/E ratio 510.2
More key figures
Operating margin 36.3%
EPS (TTM) C$0.1000
Dividend yield 3.6%
EPS growth (YoY) -6.1%
Net debt C$11.7B FY2025

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 39 · Market factors (momentum, volatility) 82

Profitability 15
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 57
Earnings quality: real cash, not paper profit
Fin. Strength 10
Balance sheet, leverage, solvency risk
Investment 60
Disciplined investing over empire-building
Low Volatility 96
Calm price path (market factor)
Momentum 69
Price trend over the last 3–12 months (market factor)
52W Momentum 89
Distance to the 52-week high (market factor)
Net Issuance 79
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Canadian Utilities Limited, together with its subsidiaries, engages in the electricity, natural gas, renewables, pipelines, and liquids businesses in Canada, Australia, and internationally. It operates through ATCO Energy Systems, ATCO EnPower, ATCO Australia, and Financing & Other segments.

Full company description

Canadian Utilities Limited, together with its subsidiaries, engages in the electricity, natural gas, renewables, pipelines, and liquids businesses in Canada, Australia, and internationally. It operates through ATCO Energy Systems, ATCO EnPower, ATCO Australia, and Financing & Other segments. The ATCO Energy Systems segment provides regulated electricity transmission and distribution services in northern and central east Alberta, the Yukon, the Northwest Territories, and in the Lloydminster area of Saskatchewan; and international electricity services, as well as offers integrated natural gas transmission and distribution services throughout Alberta and in the Lloydminster area of Saskatchewan. The ATCO EnPower segment provides electricity generation, natural gas storage, industrial water solutions, and related infrastructure development throughout Alberta, the Northwest Territories, Ontario, Mexico, and Chile. The ATCO Australia segment offers regulated natural gas distribution services in Western Australia and electricity generation services. It also provides home maintenance solutions. The company was incorporated in 1927 and is headquartered in Calgary, Canada. Canadian Utilities Limited is a subsidiary of ATCO Ltd.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Canadian Utilities Limited reported revenue of C$3.7B in FY2025 versus C$3.5B in FY2021, a compound +1.2%/yr. Reported net income was C$119M in FY2025, compounding −25.8%/yr from FY2021.

Growth Quality 46/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
C$3.7B
Latest YoY
−1.4%
Avg. growth/yr (3Y)
−3.0%
Avg. growth/yr (5Y)
+2.7%
Avg. growth/yr (32Y)
+3.1%
Revenue +1.2%/yr
FY21 C$3.5B
FY22 C$4.0B
FY23 C$3.8B
FY24 C$3.7B
FY25 C$3.7B
Net income −25.8%/yr
FY21 C$393M
FY22 C$632M
FY23 C$707M
FY24 C$480M
FY25 C$119M

CU screens 85% overvalued. Compare with Iberdrola, S.A →

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Cite: Fair Value Calculator (2026). "Canadian Utilities Limited Fair Value". https://www.fairvalue-calculator.com/stock/CU

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Utilities - Diversified · 51 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 57 · Top 25%
Fair Value upside −85% · Bottom 25%
Return on equity (TTM) 2% · Bottom 25%
Return on assets 3% · Above median
Net margin (TTM) 3% · Bottom 25%
Operating margin (TTM) 36% · Top 25%
Revenue growth -0% · Above median
Dividend yield (TTM) 3.4% · Below median
Debt / equity 1.87× · Higher than 75% of peers

Valuation Multiples vs Utilities - Diversified median · lower = cheaper

P/E (TTM) 541.6× · Pricier than 75% of peers
P/B 2.31× · Pricier than median
P/S (TTM) 4.00× · Pricier than 75% of peers
P/FCF 102.8× · Pricier than 75% of peers
EV/EBITDA 14.6× · Pricier than 75% of peers
PEG 2.64× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 14
FUTURE 0 · sector 0
PAST 7 · sector 33
HEALTH 7 · sector 49
DIVIDEND 68 · sector 80

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Utilities - Diversified stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
Iberdrola, S.A IBE €21.25 €9.34 -56%
Enel SpA ENEL €10.28 €5.83 -43%
Engie SA 1ENGI €27.14 €21.32 -21%
Sempra SRE $93.15 $47.77 -49%
E.ON SE EOAN €19.34 €11.71 -39%
RWE Aktiengesellschaft generates and 1RWE €56.66 €29.64 -48%
ACWA Power Company 2082 198.20 SAR 25.38 SAR -87%
Brookfield Infrastructure Partners L.P. BIPUN C$55.05 C$17.66 -68%
EnBW Energie Baden-Württemberg AG EBK €69.00 €21.11 -69%
EDP, S.A EDP €4.41 €3.81 -14%

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Frequently asked questions

Is Canadian Utilities Limited (CU) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of C$7.88 versus a price of C$53.42, about −85% (overvalued).
What is the fair value of CU?
Our model-based fair value for Canadian Utilities Limited is C$7.88 (as of Jul 17, 2026), built from audited fundamentals. The current price is C$53.42.
What is the quality score of CU?
Canadian Utilities Limited has a Quality Score of 57/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Canadian Utilities Limited (CU)?
Canadian Utilities Limited reported trailing-twelve-month revenue of about C$3.7B (latest available figure, as of Jul 17, 2026).
What is the net profit margin of CU?
The net profit margin of Canadian Utilities Limited is about 2.9%, meaning it keeps roughly 2.9% of revenue as net income. Based on the latest reported figures.
Does Canadian Utilities Limited pay a dividend?
Canadian Utilities Limited currently shows a dividend yield of about 3.63% relative to its recent price (as of Jul 17, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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