CHESAPEAKE UTILITIES CORP (CPK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CPK - US1653031088 - Common Stock
125.92 USD
-0.35 (-0.28%)
125.92 USD
0 (0%)
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.
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
The Return On Assets of CPK (3.39%) is comparable to the rest of the industry.
The Return On Equity of CPK (8.62%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.18%, CPK is in the better half of the industry, outperforming 64.29% 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 6.27%.
The last Return On Invested Capital (5.18%) for CPK is above the 3 year average (4.74%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 8.62% | ||
| ROIC | 5.18% |
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 better Profit Margin (14.77%) than 78.57% of its industry peers.
CPK's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 28.31%, CPK is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Operating Margin of CPK has grown nicely.
The Gross Margin of CPK (69.59%) is better than 71.43% 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 | 28.31% | ||
| PM (TTM) | 14.77% | ||
| GM | 69.59% |
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.
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.
The debt/assets ratio for CPK has been reduced compared to a year ago.
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 better Altman-Z score (1.38) than 78.57% of its industry peers.
A Debt/Equity ratio of 1.01 is on the high side and indicates that CPK has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.01, CPK is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.38 |
ROIC/WACC0.72
WACC7.16%
2.3 Liquidity
A Current Ratio of 0.62 indicates that CPK may have some problems paying its short term obligations.
CPK's Current ratio of 0.62 is in line compared to the rest of the industry. CPK outperforms 57.14% of its industry peers.
CPK has a Quick Ratio of 0.62. 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 decent Quick ratio value of 0.54, CPK is doing good in the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
CPK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.60%, which is quite good.
CPK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.26% yearly.
CPK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.98%.
The Revenue has been growing by 10.42% on average over the past years. This is quite good.
EPS 1Y (TTM)14.6%
EPS 3Y3.67%
EPS 5Y6.26%
EPS Q2Q%5.13%
Revenue 1Y (TTM)16.98%
Revenue growth 3Y11.36%
Revenue growth 5Y10.42%
Sales Q2Q%12.15%
3.2 Future
The Earnings Per Share is expected to grow by 10.21% on average over the next years. This is quite good.
Based on estimates for the next years, CPK will show a small growth in Revenue. The Revenue will grow by 5.25% on average per year.
EPS Next Y18.1%
EPS Next 2Y13.28%
EPS Next 3Y11.77%
EPS Next 5Y10.21%
Revenue Next Year10.27%
Revenue Next 2Y8.18%
Revenue Next 3Y6.75%
Revenue Next 5Y5.25%
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
The Price/Earnings ratio is 22.29, which indicates a rather expensive current valuation of CPK.
CPK's Price/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.
When comparing the Price/Earnings ratio of CPK to the average of the S&P500 Index (26.92), we can say CPK is valued inline with the index average.
With a Price/Forward Earnings ratio of 18.62, 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 64.29% of the companies in the same industry.
CPK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.29 | ||
| Fwd PE | 18.62 |
4.2 Price Multiples
CPK's Enterprise Value to EBITDA 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.38 |
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)1.23
PEG (5Y)3.56
EPS Next 2Y13.28%
EPS Next 3Y11.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.17%, CPK has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.17, CPK pays less dividend than the industry average, which is at 3.83. 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
On average, the dividend of CPK grows each year by 9.78%, which is quite nice.
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 45.17% of its income as dividend. This is a bit on the high side, but may be sustainable.
CPK's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP45.17%
EPS Next 2Y13.28%
EPS Next 3Y11.77%
125.92
-0.35 (-0.28%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners91.68%
Inst Owner Change1.97%
Ins Owners1.32%
Ins Owner Change-3.14%
Market Cap2.98B
Revenue(TTM)886.15M
Net Income(TTM)130.85M
Analysts82
Price Target150.45 (19.48%)
Short Float %3.39%
Short Ratio5.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Yearly Dividend2.4
Dividend Growth(5Y)9.78%
DP45.17%
Div Incr Years21
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.37%
Min EPS beat(2)-12.07%
Max EPS beat(2)-0.67%
EPS beat(4)0
Avg EPS beat(4)-5.17%
Min EPS beat(4)-12.07%
Max EPS beat(4)-0.67%
EPS beat(8)2
Avg EPS beat(8)-3.41%
EPS beat(12)3
Avg EPS beat(12)-4.5%
EPS beat(16)5
Avg EPS beat(16)-4.17%
Revenue beat(2)2
Avg Revenue beat(2)19.55%
Min Revenue beat(2)4.63%
Max Revenue beat(2)34.47%
Revenue beat(4)3
Avg Revenue beat(4)11.46%
Min Revenue beat(4)-10.5%
Max Revenue beat(4)34.47%
Revenue beat(8)3
Avg Revenue beat(8)-0.7%
Revenue beat(12)3
Avg Revenue beat(12)-3.62%
Revenue beat(16)6
Avg Revenue beat(16)-2.19%
PT rev (1m)0%
PT rev (3m)8.3%
EPS NQ rev (1m)-0.79%
EPS NQ rev (3m)3.56%
EPS NY rev (1m)-1.12%
EPS NY rev (3m)-1.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.86%
Revenue NY rev (1m)1.19%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.29 | ||
| Fwd PE | 18.62 | ||
| P/S | 3.36 | ||
| P/FCF | N/A | ||
| P/OCF | 13.53 | ||
| P/B | 1.96 | ||
| P/tB | 2.99 | ||
| EV/EBITDA | 13.38 |
EPS(TTM)5.65
EY4.49%
EPS(NY)6.76
Fwd EY5.37%
FCF(TTM)-8.37
FCFYN/A
OCF(TTM)9.3
OCFY7.39%
SpS37.47
BVpS64.22
TBVpS42.18
PEG (NY)1.23
PEG (5Y)3.56
Graham Number90.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 8.62% | ||
| ROCE | 7.15% | ||
| ROIC | 5.18% | ||
| ROICexc | 5.18% | ||
| ROICexgc | 6.06% | ||
| OM | 28.31% | ||
| PM (TTM) | 14.77% | ||
| GM | 69.59% | ||
| 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-Score6
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.61 | ||
| Cap/Depr | 511.8% | ||
| Cap/Sales | 47.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.17% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 1.38 |
F-Score6
WACC7.16%
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)14.6%
EPS 3Y3.67%
EPS 5Y6.26%
EPS Q2Q%5.13%
EPS Next Y18.1%
EPS Next 2Y13.28%
EPS Next 3Y11.77%
EPS Next 5Y10.21%
Revenue 1Y (TTM)16.98%
Revenue growth 3Y11.36%
Revenue growth 5Y10.42%
Sales Q2Q%12.15%
Revenue Next Year10.27%
Revenue Next 2Y8.18%
Revenue Next 3Y6.75%
Revenue Next 5Y5.25%
EBIT growth 1Y14.99%
EBIT growth 3Y20.99%
EBIT growth 5Y16.94%
EBIT Next Year40.83%
EBIT Next 3Y20.41%
EBIT Next 5Y14.4%
FCF growth 1Y-616.84%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y6.7%
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 22.29 and the Price/Book (PB) ratio is 1.96.
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 45.17%.