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 quite expensive at the moment. 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.
Each year in the past 5 years CPK had a positive operating cash flow.
1.2 Ratios
CPK has a Return On Assets of 3.37%. This is comparable to the rest of the industry: CPK outperforms 50.00% of its industry peers.
Looking at the Return On Equity, with a value of 8.52%, CPK is in line with its industry, outperforming 50.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.16%, CPK is in line with its industry, outperforming 50.00% 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 6.29%.
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 | 3.37% | ||
| 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 better Profit Margin (14.68%) than 85.71% of its industry peers.
In the last couple of years the Profit Margin of CPK has grown nicely.
CPK's Operating Margin of 28.42% is fine compared to the rest of the industry. CPK outperforms 78.57% of its industry peers.
CPK's Operating Margin has improved in the last couple of years.
The Gross Margin of CPK (69.66%) is better 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 | 28.42% | ||
| 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.
The number of shares outstanding for CPK has been increased compared to 1 year ago.
Compared to 5 years ago, CPK has more shares outstanding
Compared to 1 year ago, CPK has an improved debt to assets ratio.
2.2 Solvency
CPK has an Altman-Z score of 1.35. This is a bad value and indicates that CPK is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.35, CPK is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
CPK has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.02, CPK perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.35 |
ROIC/WACC0.65
WACC7.96%
2.3 Liquidity
A Current Ratio of 0.46 indicates that CPK may have some problems paying its short term obligations.
The Current ratio of CPK (0.46) is worse than 85.71% of its industry peers.
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.
The Quick ratio of CPK (0.39) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
CPK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.66%, 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.
The Revenue has grown by 20.33% in the past year. This is a very strong growth!
The Revenue has been growing by 10.42% on average over the past years. This is quite good.
EPS 1Y (TTM)13.66%
EPS 3Y3.67%
EPS 5Y6.26%
EPS Q2Q%6.76%
Revenue 1Y (TTM)20.33%
Revenue growth 3Y11.36%
Revenue growth 5Y10.42%
Sales Q2Q%21.55%
3.2 Future
The Earnings Per Share is expected to grow by 9.46% 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 5.09% on average per year.
EPS Next Y19.97%
EPS Next 2Y13.71%
EPS Next 3Y11.73%
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
Based on the Price/Earnings ratio of 22.44, the valuation of CPK can be described as rather expensive.
Based on the Price/Earnings ratio, CPK is valued expensively inside the industry as 85.71% of the companies are valued cheaper.
CPK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.81, which indicates a rather expensive current valuation of CPK.
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.
CPK is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.44 | ||
| Fwd PE | 17.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CPK is valued expensively inside the industry as 85.71% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.19 |
4.3 Compensation for Growth
CPK's 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)1.12
PEG (5Y)3.58
EPS Next 2Y13.71%
EPS Next 3Y11.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.26%, CPK has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.26, CPK pays less dividend than the industry average, which is at 4.00. 92.86% of the companies listed in the same industry pay a better dividend than CPK!
Compared to an average S&P500 Dividend Yield of 2.42, CPK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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 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 45.26% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CPK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.26%
EPS Next 2Y13.71%
EPS Next 3Y11.73%
121.39
+1.17 (+0.97%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.35%
Inst Owner Change4.66%
Ins Owners1.36%
Ins Owner Change3.33%
Market Cap2.83B
Analysts80
Price Target137.26 (13.07%)
Short Float %1.92%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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)-0.32%
PT rev (3m)0.43%
EPS NQ rev (1m)-1.19%
EPS NQ rev (3m)-0.43%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.23%
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.44 | ||
| Fwd PE | 17.81 | ||
| P/S | 3.37 | ||
| P/FCF | N/A | ||
| P/OCF | 12.47 | ||
| P/B | 1.96 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 13.19 |
EPS(TTM)5.41
EY4.46%
EPS(NY)6.81
Fwd EY5.61%
FCF(TTM)-7.14
FCFYN/A
OCF(TTM)9.74
OCFY8.02%
SpS36.01
BVpS62.04
TBVpS39.65
PEG (NY)1.12
PEG (5Y)3.58
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 | 1.35 |
F-Score7
WACC7.96%
ROIC/WACC0.65
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)13.66%
EPS 3Y3.67%
EPS 5Y6.26%
EPS Q2Q%6.76%
EPS Next Y19.97%
EPS Next 2Y13.71%
EPS Next 3Y11.73%
EPS Next 5Y9.46%
Revenue 1Y (TTM)20.33%
Revenue growth 3Y11.36%
Revenue growth 5Y10.42%
Sales Q2Q%21.55%
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 Year55.08%
EBIT Next 3Y21.6%
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%