CHESAPEAKE UTILITIES CORP (CPK) Stock Fundamental Analysis
NYSE:CPK - New York Stock Exchange, Inc. - US1653031088 - Common Stock - Currency: USD
Overall CPK gets a fundamental rating of 4 out of 10. We evaluated CPK against 86 industry peers in the Gas Utilities industry. While CPK belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, CPK is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CPK was profitable.
CPK had a positive operating cash flow in the past year.
Each year in the past 5 years CPK has been profitable.
Each year in the past 5 years CPK had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CPK (3.37%) is comparable to the rest of the industry.
CPK's Return On Equity of 8.52% is in line compared to the rest of the industry. CPK outperforms 50.00% of its industry peers.
The Return On Invested Capital of CPK (5.16%) is comparable to the rest of the industry.
CPK had an Average Return On Invested Capital over the past 3 years of 4.74%. This is significantly below the industry average of 12.61%.
The last Return On Invested Capital (5.16%) for CPK is above the 3 year average (4.74%), which is a sign of increasing profitability.
| 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
CPK's Profit Margin of 14.68% is amongst the best of the industry. CPK outperforms 85.71% of its industry peers.
In the last couple of years the Profit Margin of CPK has grown nicely.
Looking at the Operating Margin, with a value of 28.42%, CPK is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Operating Margin of CPK has grown nicely.
CPK has a Gross Margin of 69.66%. This is in the better half of the industry: CPK outperforms 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
CPK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CPK has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CPK has more shares outstanding
Compared to 1 year ago, CPK has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.34, we must say that CPK is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.34, CPK is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
CPK has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
CPK has a Debt to Equity ratio of 1.02. This is comparable 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 | 1.34 |
ROIC/WACC0.64
WACC8.03%
2.3 Liquidity
A Current Ratio of 0.46 indicates that CPK may have some problems paying its short term obligations.
CPK has a worse Current ratio (0.46) than 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.
With a Quick ratio value of 0.39, CPK is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.66% over the past year.
CPK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.26% yearly.
CPK shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.33%.
Measured over the past years, CPK shows a quite strong growth in Revenue. The Revenue has been growing by 10.42% on average per year.
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.
CPK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.28% yearly.
EPS Next Y20.48%
EPS Next 2Y13.63%
EPS Next 3Y11.79%
EPS Next 5Y9.93%
Revenue Next Year10.53%
Revenue Next 2Y6.97%
Revenue Next 3Y5.82%
Revenue Next 5Y8.28%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 22.34 indicates a rather expensive valuation of CPK.
Based on the Price/Earnings ratio, CPK is valued expensively inside the industry as 85.71% of the companies are valued cheaper.
When comparing the Price/Earnings ratio of CPK to the average of the S&P500 Index (26.34), we can say CPK is valued inline with the index average.
The Price/Forward Earnings ratio is 17.76, which indicates a rather expensive current valuation of CPK.
71.43% of the companies in the same industry are cheaper than CPK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CPK to the average of the S&P500 Index (22.19), we can say CPK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.34 | ||
| Fwd PE | 17.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CPK is valued expensively inside the industry as 85.71% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.08 |
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)3.57
EPS Next 2Y13.63%
EPS Next 3Y11.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.26%, CPK has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.26, CPK pays less dividend than the industry average, which is at 2.01. 85.71% of the companies listed in the same industry pay a better dividend than CPK!
Compared to an average S&P500 Dividend Yield of 2.40, CPK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
On average, the dividend of CPK grows each year by 9.78%, which is quite nice.
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%
120.85
+2.1 (+1.77%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.35%
Inst Owner Change4.66%
Ins Owners1.36%
Ins Owner Change3.33%
Market Cap2.82B
Analysts80
Price Target137.26 (13.58%)
Short Float %1.78%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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)-0.32%
PT rev (3m)1.07%
EPS NQ rev (1m)1.22%
EPS NQ rev (3m)-0.43%
EPS NY rev (1m)0%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.23%
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.34 | ||
| Fwd PE | 17.76 | ||
| P/S | 3.36 | ||
| P/FCF | N/A | ||
| P/OCF | 12.41 | ||
| P/B | 1.95 | ||
| P/tB | 3.05 | ||
| EV/EBITDA | 13.08 |
EPS(TTM)5.41
EY4.48%
EPS(NY)6.8
Fwd EY5.63%
FCF(TTM)-7.14
FCFYN/A
OCF(TTM)9.74
OCFY8.06%
SpS36.01
BVpS62.04
TBVpS39.65
PEG (NY)1.09
PEG (5Y)3.57
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 | 1.34 |
F-Score7
WACC8.03%
ROIC/WACC0.64
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 Year10.53%
Revenue Next 2Y6.97%
Revenue Next 3Y5.82%
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%