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 14 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. 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.
In the past year CPK had a positive cash flow from operations.
CPK had positive earnings in each of the past 5 years.
Each year in the past 5 years CPK had a positive operating cash flow.
1.2 Ratios
CPK's Return On Assets of 3.37% is in line compared to the rest of the industry. CPK outperforms 57.14% of its industry peers.
CPK has a Return On Equity (8.52%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 5.16%, CPK perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
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 6.38%.
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 has a Profit Margin of 14.68%. This is amongst the best in the industry. CPK outperforms 85.71% of its industry peers.
CPK's Profit Margin has improved in the last couple of years.
The Operating Margin of CPK (28.42%) is better than 78.57% of its industry peers.
In the last couple of years the Operating Margin of CPK has grown nicely.
CPK has a better Gross Margin (69.66%) than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CPK is destroying value.
Compared to 1 year ago, CPK has more shares outstanding
The number of shares outstanding for CPK has been increased compared to 5 years ago.
CPK has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.38, we must say that CPK is in the distress zone and has some risk of bankruptcy.
CPK has a Altman-Z score of 1.38. This is in the better half of the industry: CPK outperforms 71.43% of its industry peers.
A Debt/Equity ratio of 1.02 is on the high side and indicates that CPK has dependencies on debt financing.
CPK has a Debt to Equity ratio (1.02) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.38 |
ROIC/WACC0.71
WACC7.22%
2.3 Liquidity
A Current Ratio of 0.46 indicates that CPK may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.46, CPK is doing worse than 78.57% of the companies in the same industry.
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: 71.43% 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 19.87% over the past year.
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 quite strong growth in Revenue. The Revenue has grown by 17.39% 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)17.39%
Revenue growth 3Y11.36%
Revenue growth 5Y10.42%
Sales Q2Q%15.95%
3.2 Future
The Earnings Per Share is expected to grow by 9.46% on average over the next years. This is quite good.
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.
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
With a Price/Earnings ratio of 22.18, CPK is valued on the expensive side.
78.57% of the companies in the same industry are cheaper than CPK, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.73, CPK is valued at the same level.
With a Price/Forward Earnings ratio of 18.25, 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 71.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.61. CPK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.18 | ||
| Fwd PE | 18.25 |
4.2 Price Multiples
CPK's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. CPK is more expensive than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.51 |
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)1.1
PEG (5Y)3.54
EPS Next 2Y13.74%
EPS Next 3Y11.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.22%, CPK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.99, CPK's dividend is way lower than its industry peers. On top of this 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 2.39, CPK has a dividend comparable with the average S&P500 company.
| 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
45.26% 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.
DP45.26%
EPS Next 2Y13.74%
EPS Next 3Y11.64%
124.45
+0.84 (+0.68%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.38%
Inst Owner Change-0.17%
Ins Owners1.36%
Ins Owner Change3.33%
Market Cap2.90B
Analysts82
Price Target138.72 (11.47%)
Short Float %2.16%
Short Ratio3.93
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)1.06%
PT rev (3m)0.74%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-2.42%
EPS NY rev (1m)0%
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)3.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.18 | ||
| Fwd PE | 18.25 | ||
| P/S | 3.46 | ||
| P/FCF | N/A | ||
| P/OCF | 12.78 | ||
| P/B | 2.01 | ||
| P/tB | 3.14 | ||
| EV/EBITDA | 13.51 |
EPS(TTM)5.61
EY4.51%
EPS(NY)6.82
Fwd EY5.48%
FCF(TTM)-7.14
FCFYN/A
OCF(TTM)9.74
OCFY7.82%
SpS36.01
BVpS62.04
TBVpS39.65
PEG (NY)1.1
PEG (5Y)3.54
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 | 1.38 |
F-Score7
WACC7.22%
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)19.87%
EPS 3Y3.67%
EPS 5Y6.26%
EPS Q2Q%24.39%
EPS Next Y20.24%
EPS Next 2Y13.74%
EPS Next 3Y11.64%
EPS Next 5Y9.46%
Revenue 1Y (TTM)17.39%
Revenue growth 3Y11.36%
Revenue growth 5Y10.42%
Sales Q2Q%15.95%
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 Year50.04%
EBIT Next 3Y20.97%
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%