CHESAPEAKE UTILITIES CORP (CPK) Stock Fundamental Analysis
NYSE:CPK - New York Stock Exchange, Inc. - US1653031088 - Common Stock - Currency: USD
Taking everything into account, CPK scores 4 out of 10 in our fundamental rating. CPK was compared to 14 industry peers in the Gas Utilities industry. CPK has an excellent profitability rating, but there are concerns on its financial health. CPK is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CPK had positive earnings in the past year.
CPK had a positive operating cash flow in the past year.
Each year in the past 5 years CPK has been profitable.
In the past 5 years CPK always reported a positive cash flow from operatings.
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.
Looking at the Return On Invested Capital, with a value of 5.16%, CPK is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CPK 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.
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.
CPK's Operating Margin has improved in the last couple of years.
CPK's Gross Margin of 69.66% is fine compared to the rest of the industry. CPK outperforms 64.29% of its industry peers.
CPK's Gross Margin has been stable in the last couple of years.
| 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
CPK has an Altman-Z score of 1.36. This is a bad value and indicates that CPK is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CPK (1.36) 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.
With a Debt to Equity ratio value of 1.02, CPK perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.36 |
ROIC/WACC0.71
WACC7.3%
2.3 Liquidity
CPK has a Current 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.
CPK has a worse Current ratio (0.46) than 85.71% of its industry peers.
A Quick Ratio of 0.39 indicates that CPK may have some problems paying its short term obligations.
CPK has a worse Quick ratio (0.39) 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.
Measured over the past 5 years, CPK shows a small growth in Earnings Per Share. The EPS has been growing by 6.26% on average per year.
CPK shows a strong growth in Revenue. In the last year, 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 9.46% on average per year.
CPK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.09% yearly.
EPS Next Y20.24%
EPS Next 2Y13.74%
EPS Next 3Y11.64%
EPS Next 5Y9.46%
Revenue Next Year10.53%
Revenue Next 2Y6.97%
Revenue Next 3Y5.82%
Revenue Next 5Y5.09%
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 22.44 indicates a rather expensive valuation of CPK.
85.71% of the companies in the same industry are cheaper than CPK, based on the Price/Earnings ratio.
CPK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.81 indicates a rather expensive valuation of CPK.
CPK's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CPK is more expensive than 71.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.33. CPK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.44 | ||
| Fwd PE | 17.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CPK is valued more expensive than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.28 |
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)1.11
PEG (5Y)3.58
EPS Next 2Y13.74%
EPS Next 3Y11.64%
5. Dividend
5.1 Amount
CPK has a Yearly Dividend Yield of 2.22%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.22, CPK pays less dividend than the industry average, which is at 3.95. 92.86% 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 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.26%
EPS Next 2Y13.74%
EPS Next 3Y11.64%
121.41
-2.34 (-1.89%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.35%
Inst Owner Change0.01%
Ins Owners1.36%
Ins Owner Change3.33%
Market Cap2.83B
Analysts82
Price Target137.26 (13.05%)
Short Float %2.31%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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%
PT rev (3m)0.37%
EPS NQ rev (1m)-2.01%
EPS NQ rev (3m)-2.43%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.44 | ||
| Fwd PE | 17.81 | ||
| P/S | 3.37 | ||
| P/FCF | N/A | ||
| P/OCF | 12.47 | ||
| P/B | 1.96 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 13.28 |
EPS(TTM)5.41
EY4.46%
EPS(NY)6.82
Fwd EY5.62%
FCF(TTM)-7.14
FCFYN/A
OCF(TTM)9.74
OCFY8.02%
SpS36.01
BVpS62.04
TBVpS39.65
PEG (NY)1.11
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 | 1.36 |
F-Score7
WACC7.3%
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 Y20.24%
EPS Next 2Y13.74%
EPS Next 3Y11.64%
EPS Next 5Y9.46%
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 5Y5.09%
EBIT growth 1Y27.87%
EBIT growth 3Y20.99%
EBIT growth 5Y16.94%
EBIT Next Year55.08%
EBIT Next 3Y21.6%
EBIT Next 5Y15.98%
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%