Canadian Utilities Ltd T.CU

Long term hold

[born2trade]

Good luck to all longs !!

initiated half position at $30.01 today for long term hold.  very rare to find top quality utilities trading at such a steep discount .  

- current price 5.4 times cash flow  vs 5-year average of 7.55 and industry average of 10.1 
- current price 1.6 times book value vs 5-year average of 1.98 and industry average of 1.89 


valuation turns out to be $41.2 /share based on 5-year average multiple of current cash flow = 40% return on capital +6% dividend =46% potential upside .

[Lifeinmexico]

Dump in 100k and sit back and collect a great divi.... every year they increase it and have the best track record in canada for that...... thx covid!!  pipelines are a bargain too... thx covid!! Thx Trudeau and Biden for dumping money into the stock market mo money mo money mo money lol..... I have never been so fortunate in stock market before, what a year..... tax dollars at work!! Thx

[Pingopallie12]

Over valued it is trading at 24 times earnings. utlities trade at 17. EPS is 1.32 x 17 = $ 22 

[Capharnaum]

Stocks trade at forward PE (which is why you'd usually use Adjusted Earnings of $1.96 per class A and Class B shares, MD&A p.44). On that base alone, you'd find the stock value around $34. Note that their Puerto Rico franchise will start later this year and they are looking at other opportunities after the sale of their fossil fuel based electricity generation business. They are also

[GOBOGOH]

Capharaun, Excellent post.  It is rare to read a post so well constructed with facts and logic. Thanks