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 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.
In the past 5 years CPK has always been profitable.
CPK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CPK has a Return On Assets of 3.32%. This is comparable to the rest of the industry: CPK outperforms 57.14% of its industry peers.
CPK has a Return On Equity (8.53%) which is in line with its industry peers.
CPK has a Return On Invested Capital of 5.16%. This is comparable to the rest of the industry: CPK outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CPK is below the industry average of 7.79%.
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 | 3.32% | ||
| ROE | 8.53% | ||
| 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 15.07%. 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 (29.50%) is better than 78.57% of its industry peers.
CPK's Operating Margin has improved in the last couple of years.
CPK has a better Gross Margin (72.08%) 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 | 29.5% | ||
| PM (TTM) | 15.07% | ||
| GM | 72.08% |
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.
CPK has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CPK has been increased compared to 5 years ago.
Compared to 1 year ago, CPK has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.40, we must say that CPK is in the distress zone and has some risk of bankruptcy.
CPK's Altman-Z score of 1.40 is fine compared to the rest of the industry. CPK outperforms 78.57% of its industry peers.
CPK has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 1.05, CPK is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.4 |
ROIC/WACC0.71
WACC7.28%
2.3 Liquidity
A Current Ratio of 0.49 indicates that CPK may have some problems paying its short term obligations.
CPK's Current ratio of 0.49 is on the low side compared to the rest of the industry. CPK is outperformed by 78.57% of its industry peers.
A Quick Ratio of 0.41 indicates that CPK may have some problems paying its short term obligations.
CPK has a Quick ratio of 0.41. This is in the lower half of the industry: CPK underperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
CPK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.42%, 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.
Looking at the last year, CPK shows a quite strong growth in Revenue. The Revenue has grown by 17.39% in the last year.
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)11.42%
EPS 3Y3.67%
EPS 5Y6.26%
EPS Q2Q%26.98%
Revenue 1Y (TTM)17.39%
Revenue growth 3Y11.36%
Revenue growth 5Y10.42%
Sales Q2Q%16.01%
3.2 Future
The Earnings Per Share is expected to grow by 9.93% on average over the next years. This is quite good.
Based on estimates for the next years, CPK will show a quite strong growth in Revenue. The Revenue will grow by 8.24% on average per year.
EPS Next Y19.65%
EPS Next 2Y13.75%
EPS Next 3Y11.59%
EPS Next 5Y9.93%
Revenue Next Year11.23%
Revenue Next 2Y8.16%
Revenue Next 3Y7.6%
Revenue Next 5Y8.24%
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 24.74, which indicates a rather expensive current 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 (29.35), we can say CPK is valued inline with the index average.
CPK is valuated rather expensively with a Price/Forward Earnings ratio of 20.68.
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 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.74 | ||
| Fwd PE | 20.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CPK is valued more expensive than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.35 |
4.3 Compensation for Growth
CPK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of CPK may justify a higher PE ratio.
PEG (NY)1.26
PEG (5Y)3.95
EPS Next 2Y13.75%
EPS Next 3Y11.59%
5. Dividend
5.1 Amount
CPK has a Yearly Dividend Yield of 2.01%.
Compared to an average industry Dividend Yield of 3.93, 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 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
The dividend of CPK is nicely growing with an annual growth rate of 9.78%!
CPK has been paying a dividend for at least 10 years, so it has 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
45.70% of the earnings are spent on dividend by CPK. 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.
DP45.7%
EPS Next 2Y13.75%
EPS Next 3Y11.59%
130.37
+3.18 (+2.5%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners88.08%
Inst Owner Change1.61%
Ins Owners1.5%
Ins Owner Change2.7%
Market Cap3.00B
Analysts80
Price Target135.81 (4.17%)
Short Float %1.47%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend2.4
Dividend Growth(5Y)9.78%
DP45.7%
Div Incr Years21
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.42%
Min EPS beat(2)-2.22%
Max EPS beat(2)15.07%
EPS beat(4)2
Avg EPS beat(4)2.78%
Min EPS beat(4)-3.42%
Max EPS beat(4)15.07%
EPS beat(8)2
Avg EPS beat(8)-4.61%
EPS beat(12)5
Avg EPS beat(12)-3.76%
EPS beat(16)8
Avg EPS beat(16)-0.39%
Revenue beat(2)0
Avg Revenue beat(2)-9.12%
Min Revenue beat(2)-10.5%
Max Revenue beat(2)-7.74%
Revenue beat(4)0
Avg Revenue beat(4)-10.04%
Min Revenue beat(4)-15.45%
Max Revenue beat(4)-6.47%
Revenue beat(8)0
Avg Revenue beat(8)-12.42%
Revenue beat(12)3
Avg Revenue beat(12)-6.91%
Revenue beat(16)5
Avg Revenue beat(16)-5.7%
PT rev (1m)-0.21%
PT rev (3m)-1.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.75%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)2.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.74 | ||
| Fwd PE | 20.68 | ||
| P/S | 3.81 | ||
| P/FCF | N/A | ||
| P/OCF | 12.51 | ||
| P/B | 2.16 | ||
| P/tB | 3.45 | ||
| EV/EBITDA | 14.35 |
EPS(TTM)5.27
EY4.04%
EPS(NY)6.31
Fwd EY4.84%
FCF(TTM)-5.04
FCFYN/A
OCF(TTM)10.42
OCFY7.99%
SpS34.26
BVpS60.5
TBVpS37.75
PEG (NY)1.26
PEG (5Y)3.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 8.53% | ||
| ROCE | 7.35% | ||
| ROIC | 5.16% | ||
| ROICexc | 5.17% | ||
| ROICexgc | 6.12% | ||
| OM | 29.5% | ||
| PM (TTM) | 15.07% | ||
| GM | 72.08% | ||
| 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-Score8
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.89 | ||
| Cap/Depr | 540.79% | ||
| Cap/Sales | 45.13% | ||
| Interest Coverage | 3.18 | ||
| Cash Conversion | 80.36% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 1.4 |
F-Score8
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)11.42%
EPS 3Y3.67%
EPS 5Y6.26%
EPS Q2Q%26.98%
EPS Next Y19.65%
EPS Next 2Y13.75%
EPS Next 3Y11.59%
EPS Next 5Y9.93%
Revenue 1Y (TTM)17.39%
Revenue growth 3Y11.36%
Revenue growth 5Y10.42%
Sales Q2Q%16.01%
Revenue Next Year11.23%
Revenue Next 2Y8.16%
Revenue Next 3Y7.6%
Revenue Next 5Y8.24%
EBIT growth 1Y44.08%
EBIT growth 3Y20.99%
EBIT growth 5Y16.94%
EBIT Next Year56.37%
EBIT Next 3Y22.12%
EBIT Next 5Y15.63%
FCF growth 1Y-879.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y17.65%
OCF growth 3Y16.73%
OCF growth 5Y18.37%