Canadian Utilities Limited Stock Operating Margin
| CU Stock | CAD 35.62 0.48 1.33% |
Canadian Utilities Limited fundamentals help investors to digest information that contributes to Canadian Utilities' financial success or failures. It also enables traders to predict the movement of Canadian Stock. The fundamental analysis module provides a way to measure Canadian Utilities' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Canadian Utilities stock.
| Last Reported | Projected for Next Year | ||
| Operating Profit Margin | 0.35 | 0.22 |
Canadian | Operating Margin |
Canadian Utilities Limited Company Operating Margin Analysis
Canadian Utilities' Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Current Canadian Utilities Operating Margin | 0.21 % |
Most of Canadian Utilities' fundamental indicators, such as Operating Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Canadian Utilities Limited is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Canadian Operating Margin Driver Correlations
Understanding the fundamental principles of building solid financial models for Canadian Utilities is extremely important. It helps to project a fair market value of Canadian Stock properly, considering its historical fundamentals such as Operating Margin. Since Canadian Utilities' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Canadian Utilities' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Canadian Utilities' interrelated accounts and indicators.
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A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
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Canadian Pretax Profit Margin
Pretax Profit Margin |
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Based on the recorded statements, Canadian Utilities Limited has an Operating Margin of 0.2093%. This is 98.95% lower than that of the Electric Utilities sector and significantly higher than that of the Utilities industry. The operating margin for all Canada stocks is 103.8% lower than that of the firm.
Canadian Operating Margin Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Canadian Utilities' direct or indirect competition against its Operating Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Canadian Utilities could also be used in its relative valuation, which is a method of valuing Canadian Utilities by comparing valuation metrics of similar companies.Canadian Utilities is currently under evaluation in operating margin category among its peers.
Canadian Utilities Current Valuation Drivers
We derive many important indicators used in calculating different scores of Canadian Utilities from analyzing Canadian Utilities' financial statements. These drivers represent accounts that assess Canadian Utilities' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Canadian Utilities' important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 10.7B | 8.5B | 9.9B | 9.9B | 8.6B | 5.1B | |
| Enterprise Value | 18.7B | 16.8B | 18.7B | 18.8B | 19.0B | 10.2B |
Canadian Utilities ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Canadian Utilities' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Canadian Utilities' managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Canadian Fundamentals
| Return On Equity | 0.0872 | ||||
| Return On Asset | 0.0266 | ||||
| Profit Margin | 0.16 % | ||||
| Operating Margin | 0.21 % | ||||
| Current Valuation | 21.87 B | ||||
| Shares Outstanding | 204.96 M | ||||
| Shares Owned By Insiders | 37.57 % | ||||
| Shares Owned By Institutions | 14.06 % | ||||
| Number Of Shares Shorted | 2.06 M | ||||
| Price To Earning | 29.45 X | ||||
| Price To Book | 1.85 X | ||||
| Price To Sales | 1.95 X | ||||
| Revenue | 3.8 B | ||||
| Gross Profit | 2.73 B | ||||
| EBITDA | 1.52 B | ||||
| Net Income | 707 M | ||||
| Cash And Equivalents | 911 M | ||||
| Cash Per Share | 2.76 X | ||||
| Total Debt | 10.59 B | ||||
| Debt To Equity | 1.39 % | ||||
| Current Ratio | 1.51 X | ||||
| Book Value Per Share | 19.83 X | ||||
| Cash Flow From Operations | 1.33 B | ||||
| Short Ratio | 2.98 X | ||||
| Earnings Per Share | 1.56 X | ||||
| Price To Earnings To Growth | 3.47 X | ||||
| Target Price | 37.75 | ||||
| Number Of Employees | 9.02 K | ||||
| Beta | 0.66 | ||||
| Market Capitalization | 7.3 B | ||||
| Total Asset | 23.16 B | ||||
| Retained Earnings | 4.08 B | ||||
| Working Capital | 15 M | ||||
| Current Asset | 1.06 B | ||||
| Current Liabilities | 799 M | ||||
| Annual Yield | 0.05 % | ||||
| Five Year Return | 4.72 % | ||||
| Net Asset | 23.16 B |
About Canadian Utilities Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Canadian Utilities Limited's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Canadian Utilities using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Canadian Utilities Limited based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Canadian Utilities
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Canadian Utilities position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Canadian Utilities will appreciate offsetting losses from the drop in the long position's value.Moving against Canadian Stock
The ability to find closely correlated positions to Canadian Utilities could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canadian Utilities when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Canadian Utilities - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Canadian Utilities Limited to buy it.
The correlation of Canadian Utilities is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Canadian Utilities moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canadian Utilities moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Canadian Utilities can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Other Information on Investing in Canadian Stock
Canadian Utilities financial ratios help investors to determine whether Canadian Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Canadian with respect to the benefits of owning Canadian Utilities security.