CHESAPEAKE UTILITIES CORP (CPK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CPK - US1653031088 - Common Stock
126.83 USD
-0.52 (-0.41%)
126.83 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to CPK. CPK was compared to 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 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.
In the past year CPK had a positive cash flow from operations.
CPK had positive earnings in each of the past 5 years.
CPK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CPK has a Return On Assets of 3.39%. This is comparable to the rest of the industry: CPK outperforms 42.86% of its industry peers.
CPK has a Return On Equity (8.62%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 5.18%, CPK is doing good in the industry, outperforming 64.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CPK is in line with the industry average of 6.25%.
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
Looking at the Profit Margin, with a value of 14.77%, CPK is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
CPK's Profit Margin has improved in the last couple of years.
CPK's Operating Margin of 28.31% is fine compared to the rest of the industry. CPK outperforms 78.57% of its industry peers.
In the last couple of years the Operating Margin of CPK has grown nicely.
CPK has a Gross Margin of 69.59%. This is in the better half of the industry: CPK outperforms 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.
The number of shares outstanding for CPK has been increased compared to 1 year ago.
CPK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CPK has been reduced compared to a year ago.
2.2 Solvency
CPK has an Altman-Z score of 1.39. This is a bad value and indicates that CPK is not financially healthy and even has some risk of bankruptcy.
CPK's Altman-Z score of 1.39 is fine compared to the rest of the industry. CPK outperforms 78.57% of its industry peers.
CPK has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
CPK has a Debt to Equity ratio (1.01) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.39 |
ROIC/WACC0.72
WACC7.2%
2.3 Liquidity
CPK has a Current 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.
CPK has a Current ratio (0.62) which is in line with 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.
CPK's Quick ratio of 0.54 is in line compared to the rest of the industry. CPK outperforms 57.14% of its industry peers.
| 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.
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 16.98% in the past year. This is quite good.
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)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.
The Revenue is expected to grow by 5.25% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
CPK is valuated rather expensively with a Price/Earnings ratio of 22.45.
Compared to the rest of the industry, the Price/Earnings ratio of CPK indicates a slightly more expensive valuation: CPK is more expensive than 78.57% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CPK to the average of the S&P500 Index (26.55), we can say CPK is valued inline with the index average.
A Price/Forward Earnings ratio of 18.75 indicates a rather expensive valuation of CPK.
CPK's Price/Forward Earnings ratio is in line with the industry average.
CPK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 18.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CPK is valued a bit more expensive than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.48 |
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)1.24
PEG (5Y)3.59
EPS Next 2Y13.28%
EPS Next 3Y11.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.14%, CPK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.84, 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 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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 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
CPK pays out 45.17% 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.
DP45.17%
EPS Next 2Y13.28%
EPS Next 3Y11.77%
126.83
-0.52 (-0.41%)
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-0.64%
Market Cap3.00B
Revenue(TTM)886.15M
Net Income(TTM)130.85M
Analysts82
Price Target150.45 (18.62%)
Short Float %3.13%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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)5.06%
PT rev (3m)8.3%
EPS NQ rev (1m)-0.95%
EPS NQ rev (3m)3.56%
EPS NY rev (1m)-1.12%
EPS NY rev (3m)-1.8%
Revenue NQ rev (1m)-13.17%
Revenue NQ rev (3m)-4.86%
Revenue NY rev (1m)1.19%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 18.75 | ||
| P/S | 3.38 | ||
| P/FCF | N/A | ||
| P/OCF | 13.63 | ||
| P/B | 1.98 | ||
| P/tB | 3.01 | ||
| EV/EBITDA | 13.48 |
EPS(TTM)5.65
EY4.45%
EPS(NY)6.76
Fwd EY5.33%
FCF(TTM)-8.37
FCFYN/A
OCF(TTM)9.3
OCFY7.34%
SpS37.47
BVpS64.22
TBVpS42.18
PEG (NY)1.24
PEG (5Y)3.59
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 | 1.39 |
F-Score6
WACC7.2%
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 22.45 and the Price/Book (PB) ratio is 1.98.
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%.