| CU Stock | | | CAD 35.94 0.08 0.22% |
Based on Canadian Utilities' profitability indicators, Canadian Utilities' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Canadian Utilities' ability to earn profits and add value for shareholders. As of the 29th of November 2024,
Sales General And Administrative To Revenue is likely to grow to 0.13, while
Price To Sales Ratio is likely to drop 1.58. At this time, Canadian Utilities'
Net Income Per Share is very stable compared to the past year. As of the 29th of November 2024,
Income Quality is likely to grow to 1.89, while
Accumulated Other Comprehensive Income is likely to drop (1.1
M).
For Canadian Utilities profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Canadian Utilities to generate income relative to revenue, assets, operating costs, and current equity. These
fundamental indicators attest to how well Canadian Utilities Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Canadian Utilities's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Canadian Utilities Limited over time as well as its relative position and ranking within its peers.
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Please note, there is a significant difference between Canadian Utilities' value and its price as these two are different measures arrived at by different means. Investors typically determine if Canadian Utilities is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Canadian Utilities' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Canadian Utilities Cash And Equivalents vs. Shares Owned By Institutions Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Canadian Utilities's current stock value. Our valuation model uses many indicators to compare Canadian Utilities value to that of its competitors to determine the firm's financial worth.
Canadian Utilities Limited is rated
below average in shares owned by institutions category among its peers. It is rated
second in cash and equivalents category among its peers creating about
64,775,313 of Cash And Equivalents per Shares Owned By Institutions. At this time, Canadian Utilities' Cash And Equivalents is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Canadian Utilities by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Canadian Utilities' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.
Canadian Cash And Equivalents vs. Shares Owned By Institutions
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
Canadian Utilities | Shares Held by Institutions | = | Funds and Banks | + | Firms |
| = | 14.06 % |
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Canadian Utilities | Cash | = | Bank Deposits | + | Liquidities |
| = | 911 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Canadian Cash And Equivalents Comparison
Canadian Utilities is currently under evaluation in cash and equivalents category among its peers.
Canadian Utilities Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Canadian Utilities, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Canadian Utilities will eventually generate negative long term returns. The profitability progress is the general direction of Canadian Utilities' change in net profit over the period of time. It can combine
multiple indicators of Canadian Utilities, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Canadian Profitability Driver Comparison
Profitability drivers are factors that can directly affect your
investment outlook on Canadian Utilities. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Canadian Utilities position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Canadian Utilities' important profitability drivers and their relationship over time.
Use Canadian Utilities in pair-trading
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.
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.
Use Investing Themes to Complement your Canadian Utilities position
In addition to having Canadian Utilities in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.
Software
Companies that develop and distribute software and software systems to individuals or business. The Software theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can
partner with us for reliable portfolio optimization as you plan to utilize
Software Theme or any other
thematic opportunities.
Other Information on Investing in Canadian Stock
To fully project Canadian Utilities'
future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the
financial position of Canadian Utilities at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Canadian Utilities' income statement, its balance sheet, and the statement of cash flows.
Potential Canadian Utilities investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Canadian Utilities investors may work on each financial statement separately, they are all related. The changes in Canadian Utilities's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Canadian Utilities's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
