CHESAPEAKE UTILITIES CORP (CPK) Stock Fundamental Analysis
NYSE:CPK - New York Stock Exchange, Inc. - US1653031088 - Common Stock - Currency: USD
CPK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 14 industry peers in the Gas Utilities industry. CPK has an excellent profitability rating, but there are concerns on its financial health. CPK is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CPK was profitable.
CPK had a positive operating cash flow in the past year.
In the past 5 years CPK has always been profitable.
In the past 5 years CPK always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.37%, CPK perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Return On Equity of CPK (8.52%) is comparable to the rest of the industry.
CPK has a Return On Invested Capital (5.16%) which is in line with its industry peers.
CPK had an Average Return On Invested Capital over the past 3 years of 4.74%. This is in line with the industry average of 6.29%.
The 3 year average ROIC (4.74%) for CPK is below the current ROIC(5.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 8.52% | ||
| ROIC | 5.16% |
ROA(3y)3.34%
ROA(5y)3.53%
ROE(3y)8.77%
ROE(5y)9.47%
ROIC(3y)4.74%
ROIC(5y)4.78%
1.3 Margins
Looking at the Profit Margin, with a value of 14.68%, CPK belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
CPK's Profit Margin has improved in the last couple of years.
CPK has a Operating Margin of 28.42%. This is in the better half of the industry: CPK outperforms 78.57% of its industry peers.
In the last couple of years the Operating Margin of CPK has grown nicely.
The Gross Margin of CPK (69.66%) is better than 64.29% of its industry peers.
In the last couple of years the Gross Margin of CPK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.42% | ||
| PM (TTM) | 14.68% | ||
| GM | 69.66% |
OM growth 3Y8.64%
OM growth 5Y5.9%
PM growth 3Y0.95%
PM growth 5Y2.08%
GM growth 3Y2.36%
GM growth 5Y1.24%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CPK is destroying value.
The number of shares outstanding for CPK has been increased compared to 1 year ago.
CPK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CPK has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that CPK is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CPK (1.35) is better than 71.43% of its industry peers.
CPK has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
CPK's Debt to Equity ratio of 1.02 is in line compared to the rest of the industry. CPK outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.35 |
ROIC/WACC0.71
WACC7.28%
2.3 Liquidity
A Current Ratio of 0.46 indicates that CPK may have some problems paying its short term obligations.
CPK has a Current ratio of 0.46. This is amonst the worse of the industry: CPK underperforms 85.71% of its industry peers.
CPK has a Quick Ratio of 0.46. This is a bad value and indicates that CPK is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CPK (0.39) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
CPK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.66%, which is quite good.
The Earnings Per Share has been growing slightly by 6.26% on average over the past years.
Looking at the last year, CPK shows a very strong growth in Revenue. The Revenue has grown by 20.33%.
CPK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.42% yearly.
EPS 1Y (TTM)13.66%
EPS 3Y3.67%
EPS 5Y6.26%
EPS Q2Q%6.76%
Revenue 1Y (TTM)20.33%
Revenue growth 3Y11.36%
Revenue growth 5Y10.42%
Sales Q2Q%21.55%
3.2 Future
Based on estimates for the next years, CPK will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.93% on average per year.
The Revenue is expected to grow by 8.28% on average over the next years. This is quite good.
EPS Next Y20.48%
EPS Next 2Y13.63%
EPS Next 3Y11.79%
EPS Next 5Y9.93%
Revenue Next Year11.23%
Revenue Next 2Y7.13%
Revenue Next 3Y5.83%
Revenue Next 5Y8.28%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.42, which indicates a rather expensive current valuation of CPK.
Compared to the rest of the industry, the Price/Earnings ratio of CPK indicates a rather expensive valuation: CPK more expensive than 85.71% of the companies listed in the same industry.
CPK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.17, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.82 indicates a rather expensive valuation of CPK.
78.57% of the companies in the same industry are cheaper than CPK, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, CPK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.42 | ||
| Fwd PE | 17.82 |
4.2 Price Multiples
85.71% of the companies in the same industry are cheaper than CPK, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.2 |
4.3 Compensation for Growth
CPK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CPK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.09
PEG (5Y)3.58
EPS Next 2Y13.63%
EPS Next 3Y11.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.24%, CPK has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.24, CPK pays less dividend than the industry average, which is at 3.98. 85.71% of the companies listed in the same industry pay a better dividend than CPK!
CPK's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
The dividend of CPK is nicely growing with an annual growth rate of 9.78%!
CPK has paid a dividend for at least 10 years, which is a reliable track record.
CPK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.78%
Div Incr Years21
Div Non Decr Years34
5.3 Sustainability
CPK pays out 45.26% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CPK is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP45.26%
EPS Next 2Y13.63%
EPS Next 3Y11.79%
NYSE:CPK (5/29/2025, 1:58:16 PM)
121.28
+0.95 (+0.79%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners88.08%
Inst Owner Change4.58%
Ins Owners1.5%
Ins Owner Change3.35%
Market Cap2.83B
Analysts80
Price Target137.7 (13.54%)
Short Float %1.85%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Yearly Dividend2.4
Dividend Growth(5Y)9.78%
DP45.26%
Div Incr Years21
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.97%
Min EPS beat(2)-5.73%
Max EPS beat(2)-2.22%
EPS beat(4)2
Avg EPS beat(4)2.2%
Min EPS beat(4)-5.73%
Max EPS beat(4)15.07%
EPS beat(8)2
Avg EPS beat(8)-4.79%
EPS beat(12)4
Avg EPS beat(12)-4.52%
EPS beat(16)7
Avg EPS beat(16)-1.11%
Revenue beat(2)1
Avg Revenue beat(2)3.36%
Min Revenue beat(2)-10.5%
Max Revenue beat(2)17.22%
Revenue beat(4)1
Avg Revenue beat(4)-4.12%
Min Revenue beat(4)-15.45%
Max Revenue beat(4)17.22%
Revenue beat(8)1
Avg Revenue beat(8)-8.61%
Revenue beat(12)3
Avg Revenue beat(12)-5.9%
Revenue beat(16)5
Avg Revenue beat(16)-4.82%
PT rev (1m)0.69%
PT rev (3m)1.18%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)-5.45%
EPS NY rev (1m)0.37%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)4.23%
Revenue NQ rev (3m)-8.9%
Revenue NY rev (1m)3.65%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.42 | ||
| Fwd PE | 17.82 | ||
| P/S | 3.37 | ||
| P/FCF | N/A | ||
| P/OCF | 12.46 | ||
| P/B | 1.95 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 13.2 |
EPS(TTM)5.41
EY4.46%
EPS(NY)6.8
Fwd EY5.61%
FCF(TTM)-7.14
FCFYN/A
OCF(TTM)9.74
OCFY8.03%
SpS36.01
BVpS62.04
TBVpS39.65
PEG (NY)1.09
PEG (5Y)3.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 8.52% | ||
| ROCE | 7.39% | ||
| ROIC | 5.16% | ||
| ROICexc | 5.16% | ||
| ROICexgc | 6.08% | ||
| OM | 28.42% | ||
| PM (TTM) | 14.68% | ||
| GM | 69.66% | ||
| FCFM | N/A |
ROA(3y)3.34%
ROA(5y)3.53%
ROE(3y)8.77%
ROE(5y)9.47%
ROIC(3y)4.74%
ROIC(5y)4.78%
ROICexc(3y)4.75%
ROICexc(5y)4.8%
ROICexgc(3y)5.39%
ROICexgc(5y)5.24%
ROCE(3y)6.87%
ROCE(5y)7.04%
ROICexcg growth 3Y5.97%
ROICexcg growth 5Y3.85%
ROICexc growth 3Y1.15%
ROICexc growth 5Y0.9%
OM growth 3Y8.64%
OM growth 5Y5.9%
PM growth 3Y0.95%
PM growth 5Y2.08%
GM growth 3Y2.36%
GM growth 5Y1.24%
F-Score7
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.76 | ||
| Cap/Depr | 552.09% | ||
| Cap/Sales | 46.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.24% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 1.35 |
F-Score7
WACC7.28%
ROIC/WACC0.71
Cap/Depr(3y)338.25%
Cap/Depr(5y)319.58%
Cap/Sales(3y)30.7%
Cap/Sales(5y)31.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.66%
EPS 3Y3.67%
EPS 5Y6.26%
EPS Q2Q%6.76%
EPS Next Y20.48%
EPS Next 2Y13.63%
EPS Next 3Y11.79%
EPS Next 5Y9.93%
Revenue 1Y (TTM)20.33%
Revenue growth 3Y11.36%
Revenue growth 5Y10.42%
Sales Q2Q%21.55%
Revenue Next Year11.23%
Revenue Next 2Y7.13%
Revenue Next 3Y5.83%
Revenue Next 5Y8.28%
EBIT growth 1Y27.87%
EBIT growth 3Y20.99%
EBIT growth 5Y16.94%
EBIT Next Year55.08%
EBIT Next 3Y21.6%
EBIT Next 5Y15.73%
FCF growth 1Y-643.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y32.49%
OCF growth 3Y16.73%
OCF growth 5Y18.37%