CHESAPEAKE UTILITIES CORP (CPK) Stock Fundamental Analysis
USA - NYSE:CPK - US1653031088 - Common Stock
134.08 USD
+2.21 (+1.68%)
134.08 USD
0 (0%)
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. While CPK has a great profitability rating, there are quite some 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
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.
CPK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CPK (3.45%) is better than 64.29% of its industry peers.
Looking at the Return On Equity, with a value of 8.60%, CPK is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
CPK's Return On Invested Capital of 5.23% is in line compared to the rest of the industry. CPK outperforms 57.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CPK is in line with the industry average of 6.32%.
The 3 year average ROIC (4.74%) for CPK is below the current ROIC(5.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.45% | ||
| ROE | 8.6% | ||
| ROIC | 5.23% |
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 has a Profit Margin of 14.88%. This is amongst the best in the industry. CPK outperforms 85.71% of its industry peers.
In the last couple of years the Profit Margin of CPK has grown nicely.
With a decent Operating Margin value of 28.55%, CPK is doing good in 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 has a better Gross Margin (69.40%) 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 | 28.55% | ||
| PM (TTM) | 14.88% | ||
| GM | 69.4% |
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.
CPK has more shares outstanding than it did 5 years ago.
CPK has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.43, we must say that CPK is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CPK (1.43) is better than 85.71% of its industry peers.
CPK has a Debt/Equity ratio of 1.00. This is a neutral value indicating CPK is somewhat dependend on debt financing.
The Debt to Equity ratio of CPK (1.00) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.43 |
ROIC/WACC0.72
WACC7.26%
2.3 Liquidity
CPK has a Current Ratio of 0.42. This is a bad value and indicates that CPK is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.42, CPK is doing worse than 85.71% of the companies in the same industry.
CPK has a Quick Ratio of 0.42. 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 0.36, CPK is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.87% over the past year.
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.
Looking at the last year, CPK shows a quite strong growth in Revenue. The Revenue has grown by 18.90% in the last year.
The Revenue has been growing by 10.42% on average over the past years. This is quite good.
EPS 1Y (TTM)19.87%
EPS 3Y3.67%
EPS 5Y6.26%
EPS Q2Q%24.39%
Revenue 1Y (TTM)18.9%
Revenue growth 3Y11.36%
Revenue growth 5Y10.42%
Sales Q2Q%15.95%
3.2 Future
CPK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.46% yearly.
Based on estimates for the next years, CPK will show a small growth in Revenue. The Revenue will grow by 5.09% on average per year.
EPS Next Y20.29%
EPS Next 2Y13.6%
EPS Next 3Y11.54%
EPS Next 5Y9.46%
Revenue Next Year9.96%
Revenue Next 2Y8.01%
Revenue Next 3Y6.29%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CPK is valuated rather expensively with a Price/Earnings ratio of 23.90.
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 (27.54), we can say CPK is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.71, CPK is valued on the expensive side.
CPK's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CPK is more expensive than 78.57% of the companies in the same industry.
CPK is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.05, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.9 | ||
| Fwd PE | 19.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPK indicates a rather expensive valuation: CPK more expensive than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.73 |
4.3 Compensation for Growth
The 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)1.18
PEG (5Y)3.82
EPS Next 2Y13.6%
EPS Next 3Y11.54%
5. Dividend
5.1 Amount
CPK has a Yearly Dividend Yield of 2.08%.
Compared to an average industry Dividend Yield of 3.91, CPK's dividend is way lower than its industry peers. On top of this 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.78%
Div Incr Years21
Div Non Decr Years34
5.3 Sustainability
44.49% of the earnings are spent on dividend by CPK. This is a bit on the high side, but may be sustainable.
CPK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP44.49%
EPS Next 2Y13.6%
EPS Next 3Y11.54%
134.08
+2.21 (+1.68%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners89.08%
Inst Owner Change0.5%
Ins Owners1.35%
Ins Owner Change0.65%
Market Cap3.16B
Analysts84.44
Price Target138.92 (3.61%)
Short Float %2.21%
Short Ratio4.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
Yearly Dividend2.4
Dividend Growth(5Y)9.78%
DP44.49%
Div Incr Years21
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.2%
Min EPS beat(2)-5.73%
Max EPS beat(2)-0.67%
EPS beat(4)1
Avg EPS beat(4)1.61%
Min EPS beat(4)-5.73%
Max EPS beat(4)15.07%
EPS beat(8)2
Avg EPS beat(8)-3.96%
EPS beat(12)3
Avg EPS beat(12)-5.78%
EPS beat(16)6
Avg EPS beat(16)-2.09%
Revenue beat(2)2
Avg Revenue beat(2)10.92%
Min Revenue beat(2)4.63%
Max Revenue beat(2)17.22%
Revenue beat(4)2
Avg Revenue beat(4)0.9%
Min Revenue beat(4)-10.5%
Max Revenue beat(4)17.22%
Revenue beat(8)2
Avg Revenue beat(8)-6.14%
Revenue beat(12)3
Avg Revenue beat(12)-6.37%
Revenue beat(16)5
Avg Revenue beat(16)-4.75%
PT rev (1m)0.15%
PT rev (3m)1.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.05%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)-1.15%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.9 | ||
| Fwd PE | 19.71 | ||
| P/S | 3.64 | ||
| P/FCF | N/A | ||
| P/OCF | 14.94 | ||
| P/B | 2.11 | ||
| P/tB | 3.23 | ||
| EV/EBITDA | 13.73 |
EPS(TTM)5.61
EY4.18%
EPS(NY)6.8
Fwd EY5.07%
FCF(TTM)-8.5
FCFYN/A
OCF(TTM)8.97
OCFY6.69%
SpS36.82
BVpS63.68
TBVpS41.52
PEG (NY)1.18
PEG (5Y)3.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.45% | ||
| ROE | 8.6% | ||
| ROCE | 7.55% | ||
| ROIC | 5.23% | ||
| ROICexc | 5.23% | ||
| ROICexgc | 6.14% | ||
| OM | 28.55% | ||
| PM (TTM) | 14.88% | ||
| GM | 69.4% | ||
| 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 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.63 | ||
| Cap/Depr | 546.04% | ||
| Cap/Sales | 47.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.45% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 1.43 |
F-Score7
WACC7.26%
ROIC/WACC0.72
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)19.87%
EPS 3Y3.67%
EPS 5Y6.26%
EPS Q2Q%24.39%
EPS Next Y20.29%
EPS Next 2Y13.6%
EPS Next 3Y11.54%
EPS Next 5Y9.46%
Revenue 1Y (TTM)18.9%
Revenue growth 3Y11.36%
Revenue growth 5Y10.42%
Sales Q2Q%15.95%
Revenue Next Year9.96%
Revenue Next 2Y8.01%
Revenue Next 3Y6.29%
Revenue Next 5Y5.09%
EBIT growth 1Y23.36%
EBIT growth 3Y20.99%
EBIT growth 5Y16.94%
EBIT Next Year39.17%
EBIT Next 3Y20.35%
EBIT Next 5Y15.98%
FCF growth 1Y-753.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y14.75%
OCF growth 3Y16.73%
OCF growth 5Y18.37%