CHESAPEAKE UTILITIES CORP (CPK) Stock Fundamental Analysis
NYSE:CPK - New York Stock Exchange, Inc. - US1653031088 - Common Stock - Currency: USD
CPK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 14 industry peers in the Gas Utilities industry. CPK has an excellent profitability rating, but 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
In the past year CPK was profitable.
CPK had a positive operating cash flow in the past year.
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's Return On Assets of 3.32% is in line compared to the rest of the industry. CPK outperforms 57.14% of its industry peers.
CPK has a Return On Equity of 8.53%. This is comparable to the rest of the industry: CPK outperforms 50.00% of its industry peers.
CPK's Return On Invested Capital of 5.16% is in line compared to the rest of the industry. CPK outperforms 50.00% of its industry peers.
CPK had an Average Return On Invested Capital over the past 3 years of 4.74%. This is below the industry average of 7.78%.
The last Return On Invested Capital (5.16%) for CPK is above the 3 year average (4.74%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 8.53% | ||
| 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's Profit Margin of 15.07% 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.
With a decent Operating Margin value of 29.50%, CPK is doing good in 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.
Looking at the Gross Margin, with a value of 72.08%, 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 | 29.5% | ||
| PM (TTM) | 15.07% | ||
| GM | 72.08% |
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.
CPK has more shares outstanding than it did 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
Based on the Altman-Z score of 1.43, we must say that CPK is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.43, CPK belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
A Debt/Equity ratio of 1.05 is on the high side and indicates that CPK has dependencies on debt financing.
CPK's Debt to Equity ratio of 1.05 is fine compared to the rest of the industry. CPK outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.43 |
ROIC/WACC0.7
WACC7.34%
2.3 Liquidity
A Current Ratio of 0.49 indicates that CPK may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.49, CPK is doing worse than 78.57% of the companies in the same industry.
CPK has a Quick Ratio of 0.49. 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 (0.41) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.42% over the past year.
The Earnings Per Share has been growing slightly by 6.26% on average over the past years.
Looking at the last year, CPK shows a quite strong growth in Revenue. The Revenue has grown by 17.39% 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)11.42%
EPS 3Y3.67%
EPS 5Y6.26%
EPS Q2Q%26.98%
Revenue 1Y (TTM)17.39%
Revenue growth 3Y11.36%
Revenue growth 5Y10.42%
Sales Q2Q%16.01%
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 9.93% on average per year.
CPK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.28% yearly.
EPS Next Y20.04%
EPS Next 2Y13.71%
EPS Next 3Y11.64%
EPS Next 5Y9.93%
Revenue Next Year7.25%
Revenue Next 2Y5.84%
Revenue Next 3Y4.95%
Revenue Next 5Y8.28%
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 25.71, the valuation of CPK can be described as expensive.
CPK's Price/Earnings ratio is rather expensive when compared to the industry. CPK is more expensive than 85.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. CPK is around the same levels.
With a Price/Forward Earnings ratio of 21.42, CPK is valued on the expensive side.
78.57% of the companies in the same industry are cheaper than CPK, based on the Price/Forward Earnings ratio.
CPK is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 21.42 |
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 92.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.76 |
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)1.28
PEG (5Y)4.11
EPS Next 2Y13.71%
EPS Next 3Y11.64%
5. Dividend
5.1 Amount
CPK has a Yearly Dividend Yield of 1.89%.
Compared to an average industry Dividend Yield of 3.87, 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 slightly below the S&P500 average, which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
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 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 45.70% 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.
DP45.7%
EPS Next 2Y13.71%
EPS Next 3Y11.64%
135.5
+2.01 (+1.51%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners88.08%
Inst Owner Change0.71%
Ins Owners1.5%
Ins Owner Change2.7%
Market Cap3.12B
Analysts80
Price Target136.75 (0.92%)
Short Float %1.51%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
Yearly Dividend2.4
Dividend Growth(5Y)9.78%
DP45.7%
Div Incr Years21
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.42%
Min EPS beat(2)-2.22%
Max EPS beat(2)15.07%
EPS beat(4)2
Avg EPS beat(4)2.78%
Min EPS beat(4)-3.42%
Max EPS beat(4)15.07%
EPS beat(8)2
Avg EPS beat(8)-4.61%
EPS beat(12)5
Avg EPS beat(12)-3.76%
EPS beat(16)8
Avg EPS beat(16)-0.39%
Revenue beat(2)0
Avg Revenue beat(2)-9.12%
Min Revenue beat(2)-10.5%
Max Revenue beat(2)-7.74%
Revenue beat(4)0
Avg Revenue beat(4)-10.04%
Min Revenue beat(4)-15.45%
Max Revenue beat(4)-6.47%
Revenue beat(8)0
Avg Revenue beat(8)-12.42%
Revenue beat(12)3
Avg Revenue beat(12)-6.91%
Revenue beat(16)5
Avg Revenue beat(16)-5.7%
PT rev (1m)0.7%
PT rev (3m)-1.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.73%
EPS NY rev (1m)0.33%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.85%
Revenue NY rev (1m)-3.58%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 21.42 | ||
| P/S | 3.96 | ||
| P/FCF | N/A | ||
| P/OCF | 13.02 | ||
| P/B | 2.24 | ||
| P/tB | 3.59 | ||
| EV/EBITDA | 14.76 |
EPS(TTM)5.27
EY3.89%
EPS(NY)6.33
Fwd EY4.67%
FCF(TTM)-5.04
FCFYN/A
OCF(TTM)10.4
OCFY7.68%
SpS34.21
BVpS60.42
TBVpS37.7
PEG (NY)1.28
PEG (5Y)4.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 8.53% | ||
| ROCE | 7.35% | ||
| ROIC | 5.16% | ||
| ROICexc | 5.17% | ||
| ROICexgc | 6.12% | ||
| OM | 29.5% | ||
| PM (TTM) | 15.07% | ||
| GM | 72.08% | ||
| 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-Score8
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.89 | ||
| Cap/Depr | 540.79% | ||
| Cap/Sales | 45.13% | ||
| Interest Coverage | 3.18 | ||
| Cash Conversion | 80.36% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 1.43 |
F-Score8
WACC7.34%
ROIC/WACC0.7
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)11.42%
EPS 3Y3.67%
EPS 5Y6.26%
EPS Q2Q%26.98%
EPS Next Y20.04%
EPS Next 2Y13.71%
EPS Next 3Y11.64%
EPS Next 5Y9.93%
Revenue 1Y (TTM)17.39%
Revenue growth 3Y11.36%
Revenue growth 5Y10.42%
Sales Q2Q%16.01%
Revenue Next Year7.25%
Revenue Next 2Y5.84%
Revenue Next 3Y4.95%
Revenue Next 5Y8.28%
EBIT growth 1Y44.08%
EBIT growth 3Y20.99%
EBIT growth 5Y16.94%
EBIT Next Year55.3%
EBIT Next 3Y21.63%
EBIT Next 5Y15.73%
FCF growth 1Y-879.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y17.65%
OCF growth 3Y16.73%
OCF growth 5Y18.37%