CHESAPEAKE UTILITIES CORP (CPK) Stock Fundamental Analysis
USA - NYSE:CPK - US1653031088 - Common Stock
126.31 USD
+1.86 (+1.49%)
126.31 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 belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, CPK is valued expensive at the moment.
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.
Each year in the past 5 years CPK had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CPK (3.45%) is better than 64.29% of its industry peers.
The Return On Equity of CPK (8.60%) is better than 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.
The Average Return On Invested Capital over the past 3 years for CPK is in line with the industry average of 6.32%.
The last Return On Invested Capital (5.23%) for CPK is above the 3 year average (4.74%), which is a sign of increasing profitability.
| 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
CPK's Profit Margin of 14.88% is amongst the best of the industry. CPK outperforms 85.71% 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 28.55%, 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.
Looking at the Gross Margin, with a value of 69.40%, CPK is in the better half of 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CPK 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.
Looking at the Altman-Z score, with a value of 1.38, CPK belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
CPK has a Debt/Equity ratio of 1.00. This is a neutral value indicating CPK is somewhat dependend on debt financing.
The Debt to Equity ratio of CPK (1.00) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.38 |
ROIC/WACC0.74
WACC7.1%
2.3 Liquidity
A Current Ratio of 0.42 indicates that CPK may have some problems paying its short term obligations.
CPK has a Current ratio of 0.42. This is amonst the worse of the industry: CPK underperforms 85.71% of its industry peers.
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 Quick ratio of 0.36. This is in the lower half of the industry: CPK underperforms 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.
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 18.90% in the last year.
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
Based on estimates for the next years, CPK will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.46% on average per year.
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 Y20.26%
EPS Next 2Y13.36%
EPS Next 3Y11.18%
EPS Next 5Y9.46%
Revenue Next Year9.96%
Revenue Next 2Y8.01%
Revenue Next 3Y6.29%
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 22.52, the valuation of CPK can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CPK indicates a rather expensive valuation: CPK more expensive than 85.71% of the companies listed in the same industry.
CPK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
With a Price/Forward Earnings ratio of 18.65, CPK is valued on the expensive side.
71.43% of the companies in the same industry are cheaper than CPK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CPK to the average of the S&P500 Index (22.88), we can say CPK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.52 | ||
| Fwd PE | 18.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPK indicates a rather expensive valuation: CPK more expensive than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.16 |
4.3 Compensation for Growth
The 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)1.11
PEG (5Y)3.6
EPS Next 2Y13.36%
EPS Next 3Y11.18%
5. Dividend
5.1 Amount
CPK has a Yearly Dividend Yield of 2.19%.
Compared to an average industry Dividend Yield of 3.95, 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 2.38, CPK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
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 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, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP44.49%
EPS Next 2Y13.36%
EPS Next 3Y11.18%
126.31
+1.86 (+1.49%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.38%
Inst Owner Change0.51%
Ins Owners1.36%
Ins Owner Change0.65%
Market Cap2.97B
Analysts84.44
Price Target138.92 (9.98%)
Short Float %2.21%
Short Ratio4.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
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)0.15%
PT rev (3m)1.21%
EPS NQ rev (1m)2.11%
EPS NQ rev (3m)3.05%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.52 | ||
| Fwd PE | 18.65 | ||
| P/S | 3.43 | ||
| P/FCF | N/A | ||
| P/OCF | 14.08 | ||
| P/B | 1.98 | ||
| P/tB | 3.04 | ||
| EV/EBITDA | 13.16 |
EPS(TTM)5.61
EY4.44%
EPS(NY)6.77
Fwd EY5.36%
FCF(TTM)-8.5
FCFYN/A
OCF(TTM)8.97
OCFY7.1%
SpS36.82
BVpS63.68
TBVpS41.52
PEG (NY)1.11
PEG (5Y)3.6
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%
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 | ||
| 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 | 1.38 |
F-Score7
WACC7.1%
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 Y20.26%
EPS Next 2Y13.36%
EPS Next 3Y11.18%
EPS Next 5Y9.46%
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 5Y5.09%
EBIT growth 1Y23.36%
EBIT growth 3Y20.99%
EBIT growth 5Y16.94%
EBIT Next Year50.04%
EBIT Next 3Y20.97%
EBIT Next 5Y15.98%
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%