CHESAPEAKE UTILITIES CORP (CPK) Stock Fundamental Analysis
USA - NYSE:CPK - US1653031088 - Common Stock
131.8 USD
+0.32 (+0.24%)
131.8 USD
0 (0%)
CPK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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.
In the past year CPK had a positive cash flow from operations.
In the past 5 years CPK has always been profitable.
In the past 5 years CPK always reported a positive cash flow from operatings.
1.2 Ratios
CPK has a Return On Assets of 3.45%. This is in the better half of the industry: CPK outperforms 64.29% of its industry peers.
CPK's Return On Equity of 8.60% is fine compared to the rest of the industry. CPK outperforms 64.29% of its industry peers.
With a Return On Invested Capital value of 5.23%, CPK perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
With an excellent Profit Margin value of 14.88%, CPK belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of CPK has grown nicely.
Looking at the Operating Margin, with a value of 28.55%, 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.
With a decent Gross Margin value of 69.40%, CPK is doing good in the industry, outperforming 64.29% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CPK is destroying value.
The number of shares outstanding for CPK has been increased compared to 1 year ago.
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 1.42, we must say that CPK is in the distress zone and has some risk of bankruptcy.
CPK's Altman-Z score of 1.42 is amongst the best of the industry. CPK outperforms 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.
Looking at the Debt to Equity ratio, with a value of 1.00, CPK is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.42 |
ROIC/WACC0.74
WACC7.11%
2.3 Liquidity
A Current Ratio of 0.42 indicates that CPK may have some problems paying its short term obligations.
With a Current ratio value of 0.42, CPK is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
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.
CPK has a worse Quick ratio (0.36) than 78.57% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 6.26% on average over the past years.
The Revenue has grown by 18.90% in the past year. This is quite good.
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)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
The Earnings Per Share is expected to grow by 10.17% 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 6.33% yearly.
EPS Next Y20.31%
EPS Next 2Y13.72%
EPS Next 3Y11.54%
EPS Next 5Y10.17%
Revenue Next Year9.96%
Revenue Next 2Y8.01%
Revenue Next 3Y6.29%
Revenue Next 5Y6.33%
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
Based on the Price/Earnings ratio of 23.49, the valuation of CPK can be described as rather expensive.
Based on the Price/Earnings ratio, CPK is valued a bit more expensive than 78.57% of the companies in the same industry.
CPK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.00.
With a Price/Forward Earnings ratio of 19.34, CPK is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CPK is valued a bit more expensive than 78.57% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.87. CPK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.49 | ||
| Fwd PE | 19.34 |
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 | 13.56 |
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)1.16
PEG (5Y)3.75
EPS Next 2Y13.72%
EPS Next 3Y11.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.10%, CPK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.79, 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 2.31, CPK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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
CPK pays out 44.49% 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.
DP44.49%
EPS Next 2Y13.72%
EPS Next 3Y11.54%
131.8
+0.32 (+0.24%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners89.08%
Inst Owner Change-0.12%
Ins Owners1.35%
Ins Owner Change0.12%
Market Cap3.10B
Revenue(TTM)866.68M
Net Income(TTM)128.96M
Analysts84.44
Price Target138.92 (5.4%)
Short Float %3.08%
Short Ratio5.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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%
PT rev (3m)-0.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.84%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.49 | ||
| Fwd PE | 19.34 | ||
| P/S | 3.58 | ||
| P/FCF | N/A | ||
| P/OCF | 14.69 | ||
| P/B | 2.07 | ||
| P/tB | 3.17 | ||
| EV/EBITDA | 13.56 |
EPS(TTM)5.61
EY4.26%
EPS(NY)6.82
Fwd EY5.17%
FCF(TTM)-8.5
FCFYN/A
OCF(TTM)8.97
OCFY6.81%
SpS36.82
BVpS63.68
TBVpS41.52
PEG (NY)1.16
PEG (5Y)3.75
Graham Number89.66
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%
ROICexgc growth 3Y5.97%
ROICexgc 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 | 1.42 |
F-Score7
WACC7.11%
ROIC/WACC0.74
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 Y20.31%
EPS Next 2Y13.72%
EPS Next 3Y11.54%
EPS Next 5Y10.17%
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 5Y6.33%
EBIT growth 1Y23.36%
EBIT growth 3Y20.99%
EBIT growth 5Y16.94%
EBIT Next Year39.17%
EBIT Next 3Y20.35%
EBIT Next 5Y14.35%
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%
CHESAPEAKE UTILITIES CORP / CPK FAQ
What is the ChartMill fundamental rating of CHESAPEAKE UTILITIES CORP (CPK) stock?
ChartMill assigns a fundamental rating of 4 / 10 to CPK.
What is the valuation status of CHESAPEAKE UTILITIES CORP (CPK) stock?
ChartMill assigns a valuation rating of 2 / 10 to CHESAPEAKE UTILITIES CORP (CPK). This can be considered as Overvalued.
How profitable is CHESAPEAKE UTILITIES CORP (CPK) stock?
CHESAPEAKE UTILITIES CORP (CPK) has a profitability rating of 7 / 10.
What is the valuation of CHESAPEAKE UTILITIES CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CHESAPEAKE UTILITIES CORP (CPK) is 23.49 and the Price/Book (PB) ratio is 2.07.
How sustainable is the dividend of CHESAPEAKE UTILITIES CORP (CPK) stock?
The dividend rating of CHESAPEAKE UTILITIES CORP (CPK) is 5 / 10 and the dividend payout ratio is 44.49%.