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Caribbean Utilities Company (CUP-U) Fair Value & Analysis

Utilities · CA · Market cap $618M

CU Caribbean Utilities Company CUP-U · TO
Price$14.45
Fair Value$16.71
Upside+15.6%
Quality47/100
Mixed Growth
Solidly profitable · 16.4% net margin
Moderate debt · negative free cash flow
5.26% dividend yield
Ranks above peers (8/13)
Moderate moat 51/100
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Evidence: High Range $11.90 – $20.88 Share as image

Fair value as of: Jul 16, 2026

From 15 valuation models · updated 14 days ago

Share price +1.0% over the past month.

Price vs Fair Value (12 months)

$15.10 $12.20 Fair Value $16.71 Jul 2025 Jul 2026

12‑month range $12.20 – $15.10 · fair‑value band $11.90 – $20.88 · the $14.45 price screens below the $16.71 fair value. As of Jul 16, 2026.

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Analysis

Caribbean Utilities Company (CUP-U) currently trades at $14.45, while our model-based Fair Value estimate is $16.71, implying the stock looks roughly 15.6% undervalued today. We read business quality at 47/100 (below-average quality), in the Utilities sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Caribbean Utilities Company generated revenue of $286M at a net margin of 16.4%. Revenue grew 3.6% year over year. It earns a return on equity of 11.7%. Net debt stands at $414M. Fundamentals as of Jul 16, 2026

Our scenario range runs from $11.90 (bear case) to $20.88 (bull case); at $14.45, the current price sits within that range. The share trades about 4% below its 52-week high and 21% above its 52-week low, currently above its 200-day average. For context, the median of 10 Utilities peers we cover trades at -54% fair-value upside, at 16%, CUP-U screens cheaper than that median.

Key figures & financial health

Revenue (TTM) $286M
Revenue growth (YoY) +3.6%
Net margin 16.4%
Return on equity 11.7%
Free cash flow −$4.3M FY2025
P/E ratio 13.3
More key figures
Operating margin 10.7%
EPS (TTM) $1.09
Dividend yield 5.3%
EPS growth (YoY) -6.0%
Net debt $414M FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100
Profitability 40
Quality Growth 57
Cashflow 50
Fin. Strength 38
Investment 39
Low Volatility 80
Momentum 51
52W Momentum 65
Net Issuance 2

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

Caribbean Utilities Company, Ltd. engages in the electricity generation, transmission, distribution, and telecommunication in Grand Cayman. The company generates electricity using diesel with 166 megawatts total installed capacity.

Full company description

Caribbean Utilities Company, Ltd. engages in the electricity generation, transmission, distribution, and telecommunication in Grand Cayman. The company generates electricity using diesel with 166 megawatts total installed capacity. It also operates eight transformer substations with approximately 387 miles of overhead high-voltage and 53.8 miles of underground high-voltage transmission and distribution lines, as well as 14 miles of high-voltage submarine cables. The company was incorporated in 1966 and is based in Grand Cayman, the Cayman Islands. Caribbean Utilities Company, Ltd. is a subsidiary of Fortis Energy (Bermuda) Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Caribbean Utilities Company reported revenue of $284M in FY2025 versus $198M in FY2021, a compound +9.4%/yr. Reported net income was $47.4M in FY2025, compounding +20.9%/yr from FY2021.

Revenue +9.4%/yr
FY21 $198M
FY22 $267M
FY23 $287M
FY24 $294M
FY25 $284M
Net income +20.9%/yr
FY21 $22.2M
FY22 $33.2M
FY23 $38.7M
FY24 $42.7M
FY25 $47.4M

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Cite: Fair Value Calculator (2026). "Caribbean Utilities Company Fair Value". https://www.fairvalue-calculator.com/stock/CUP-U

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 54 / 6
FUTURE 18 / 32
PAST 47 / 39
HEALTH 57 / 52
DIVIDEND 100 / 56

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 - Regulated Electric stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
NextEra Energy, Inc NEE $86.08 $30.24 -65%
The Southern Company T1SO34 R$454.02 R$210.59 -54%
Duke Energy Corporation DUKB34 R$611.94 R$204.08 -67%
National Grid plc NGG 61,175 ARS 36,339 ARS -41%
American Electric Power Company A1EP34 R$356.40 R$50.26 -86%
Dominion Energy, Inc D1OM34 R$172.15 R$124.65 -28%
Xcel Energy Inc X1EL34 R$201.47 R$18.60 -91%
Exelon Corporation E1XC34 R$232.84 R$151.43 -35%
WEC Energy Group W1EC34 R$282.75 R$172.50 -39%
NTPC Limited NTPC ₹361.65 ₹135.86 -62%

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Frequently asked questions

Is Caribbean Utilities Company (CUP-U) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of $16.71 versus a price of $14.45, about +16% (undervalued).
What is the fair value of CUP-U?
Our model-based fair value for Caribbean Utilities Company is $16.71 (as of Jul 16, 2026), built from audited fundamentals. The current price is $14.45.
What is the quality score of CUP-U?
Caribbean Utilities Company has a Quality Score of 47/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Caribbean Utilities Company (CUP-U)?
Caribbean Utilities Company reported trailing-twelve-month revenue of about $286M (latest available figure, as of Jul 16, 2026).
What is the net profit margin of CUP-U?
The net profit margin of Caribbean Utilities Company is about 16.4%, meaning it keeps roughly 16.4% of revenue as net income. Based on the latest reported figures.
Does Caribbean Utilities Company pay a dividend?
Caribbean Utilities Company currently shows a dividend yield of about 5.20% relative to its recent price (as of Jul 16, 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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