Canadian UtilitiesCDUAF -0.07%71 Interest Coverage is 2.89 as of Mar. 2026, which is 15% above its 10-year median of 2.51. GuruFocus rates CDUAF with a GF Score™ of 71/100 and a GF Value™ of $26.42 (Significantly Overvalued). The stock has 14 warning signs investors should review. Among 449 Utilities - Regulated companies, Canadian Utilities ranks worse than 87.53% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Canadian Utilities's
Operating Income
for the
three
months ended in Mar. 2026 was $286 Mil. Canadian Utilities's Interest Expense for the
three
months ended in Mar. 2026 was $-99 Mil.
Canadian Utilities's interest coverage for the quarter that ended in Mar. 2026 was 2.89.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Canadian Utilities Ltd interest coverage is 1.61, which is low.
The historical rank and industry rank for Canadian Utilities's Interest Coverage or its related term are showing as below:
CDUAF'
s Interest Coverage Range Over the Past 10 Years
Min: 1.61 Med: 2.51 Max: 3.31
Current: 1.61
CDUAF's Interest Coverage is ranked worse than 87.53% of 449
companies
in the Utilities - Regulated industry
Industry Median: 3.78
vs CDUAF: 1.61
Canadian Utilities (OTCPK:CDUAF) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Canadian Utilities Interest Coverage Related Terms
Canadian Utilities Interest Coverage Historical Data
* Premium members only.
The historical data trend for Canadian Utilities's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Utilities - Diversified subindustry, Canadian Utilities's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Canadian Utilities Interest Coverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Canadian Utilities's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Canadian Utilities's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Canadian Utilities (CDUAF) has a Interest Coverage of 2.89 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Canadian Utilities and its competitors. This is 15% above median its historical median of 2.51. Over the past decade, Canadian Utilities' Interest Coverage has ranged from 1.61 to 3.31. According to the industry distribution chart, Canadian Utilities ranks #393 out of 449 companies in the Utilities - Regulated industry, placing it in the top 87.5%.
Is Canadian Utilities' Interest Coverage too high?
Canadian Utilities' current Interest Coverage of 2.89 is 15% above median its 10-year median of 2.51. Over the past 10 years, this metric has ranged from a low of 1.61 to a high of 3.31. The Utilities - Regulated industry median Interest Coverage is 3.78. Canadian Utilities' value of 2.89 is 23.5% below this industry median. Based on the distribution chart, Canadian Utilities ranks #393 out of 449 companies in the Utilities - Regulated industry, which is in the bottom quartile relative to peers. Overall, Canadian Utilities has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Canadian Utilities' Interest Coverage compare to SRE and AES?
According to the Utilities - Regulated industry distribution chart, Canadian Utilities ranks #393 out of 449 companies for Interest Coverage. This places Canadian Utilities in the lower half of its industry. The industry median Interest Coverage is 3.78. Canadian Utilities' value of 2.89 is 23.5% below this benchmark. Historically, Canadian Utilities' own Interest Coverage has ranged from 1.61 to 3.31 over the past decade. While the company's 10-year median is 2.51 vs. the industry median of 3.78, Canadian Utilities has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.78, based on 449 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Canadian Utilities's current Interest Coverage of 2.89 is 23.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Canadian Utilities and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canadian Utilities's current Interest Coverage is 2.89, which is 15% above median its own 10-year median of 2.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Canadian Utilities stock overvalued right now?
Based on GuruFocus' analysis, Canadian Utilities (CDUAF) is currently considered Significantly Overvalued. The stock's GF Value™ is $26.42, compared to a current price of $36.67 — trading 38.8% above its estimated fair value. The current Interest Coverage is 2.89, which is 15% above median its 10-year median of 2.51 and 23.5% below the Utilities - Regulated industry median of 3.78. Canadian Utilities' overall GF Score™ is 71/100 with 14 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Canadian Utilities (CDUAF), the current Interest Coverage is 2.89 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Canadian Utilities (CDUAF) Overvalued in 2026?
Based on GuruFocus' analysis, Canadian Utilities stock appears to be overvalued.
The current stock price of $36.67 is trading 38.8% above its estimated GF Value™ of $26.42.
GuruFocus considers Canadian Utilities to be Significantly Overvalued.
Key valuation signals for CDUAF:
Interest Coverage: 2.89 (15% above median its 10-year median of 2.51)
GF Value™: $26.42 vs. price of $36.67 (38.8% above fair value)
Industry Position: 23.5% below the Utilities - Regulated median (#393 of 449)
No single metric tells the full story. See the CDUAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Canadian Utilities Ltd, a subsidiary of holding company Atco, offers gas and electricity services. The company is engaged in segments that include ATCO Energy Systems, ATCO EnPower, ATCO Australia, and Corporate & Other. Headquartered in Calgary, Alberta, the firm mainly operates in Canada, Australia, and others. The company generates maximum revenue from Canada. Canadian Utilities launched a large venture called Atco Energy, which provides low-cost and sustainable energy solutions for Alberta.
71GF Score
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