Canadian UtilitiesCDUAF -0.07%71 Operating Margin % is 36.25% as of Mar. 2026, which is 25% above its 10-year median of 29.10. 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 499 Utilities - Regulated companies, Canadian Utilities ranks better than 71.14% on this metric.
Canadian Utilities Ltd has recorded a loss in operating income at least once over the past 3 years.
Canadian Utilities (OTCPK:CDUAF) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Canadian Utilities Operating Margin % Related Terms
Canadian Utilities Operating Margin % Historical Data
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The historical data trend for Canadian Utilities's Operating Margin % 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.
For the Utilities - Diversified subindustry, Canadian Utilities's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Canadian Utilities's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Canadian Utilities's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Canadian Utilities's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Operating Margin % of 36.25% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Canadian Utilities and its competitors. This is 25% above median its historical median of 29.10. Over the past decade, Canadian Utilities' Operating Margin % has ranged from 22.60 to 36.42. According to the industry distribution chart, Canadian Utilities ranks #144 out of 499 companies in the Utilities - Regulated industry, placing it in the top 28.9%.
Is Canadian Utilities' Operating Margin % too high?
Canadian Utilities' current Operating Margin % of 36.25% is 25% above median its 10-year median of 29.10. Over the past 10 years, this metric has ranged from a low of 22.60 to a high of 36.42. The Utilities - Regulated industry median Operating Margin % is 14.97. Canadian Utilities' value of 36.25% is 142.2% above this industry median. Based on the distribution chart, Canadian Utilities ranks #144 out of 499 companies in the Utilities - Regulated industry, which is above the industry midpoint. 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' Operating Margin % compare to SRE and AES?
According to the Utilities - Regulated industry distribution chart, Canadian Utilities ranks #144 out of 499 companies for Operating Margin %. This puts Canadian Utilities in the upper half of its industry. The industry median Operating Margin % is 14.97. Canadian Utilities' value of 36.25% is 142.2% above this benchmark. Historically, Canadian Utilities' own Operating Margin % has ranged from 22.60 to 36.42 over the past decade. While the company's 10-year median is 29.10 vs. the industry median of 14.97, Canadian Utilities has consistently been above 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 Operating Margin % for an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Canadian Utilities's current Operating Margin % of 36.25% is 142.2% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Canadian Utilities and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canadian Utilities's current Operating Margin % is 36.25%, which is 25% above median its own 10-year median of 29.10. 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 Operating Margin % is 36.25%, which is 25% above median its 10-year median of 29.10 and 142.2% above the Utilities - Regulated industry median of 14.97. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Canadian Utilities (CDUAF), the current Operating Margin % is 36.25% 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:
Operating Margin %: 36.25% (25% above median its 10-year median of 29.10)
GF Value™: $26.42 vs. price of $36.67 (38.8% above fair value)
Industry Position: 142.2% above the Utilities - Regulated median (#144 of 499)
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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