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Chesapeake Utilities
(NYSE:CPK)
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Rating:70Outperform
Price Target:
$147.00
â–²(8.26% Upside)
Action:Upgraded
Date:08/07/26
The score is primarily driven by solid operating performance and a positive, target-reaffirming earnings outlook, alongside constructive technical momentum. The main constraint is financial quality from materially negative free cash flow during a heavy capex cycle (and associated funding needs), with valuation only modestly supportive via the dividend.
Positive Factors
Regulated + Unregulated Diversification
Chesapeake earns from rate‑regulated distribution (stable, rate‑based margins) and expanding unregulated services (marketing, pipelines, compression). This durable mix smooths overall cash flow volatility while allowing higher incremental margins from midstream and services, supporting multi‑year earnings resilience.
Negative Factors
Negative free cash flow from heavy capex
Sustained negative free cash flow from an elevated capex program forces reliance on external financing until rate base recovery or capex normalization. That increases refinancing, dilution and interest risks, constraining discretionary spending and making capital allocation more dependent on markets and regulators.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated + Unregulated Diversification
Chesapeake earns from rate‑regulated distribution (stable, rate‑based margins) and expanding unregulated services (marketing, pipelines, compression). This durable mix smooths overall cash flow volatility while allowing higher incremental margins from midstream and services, supporting multi‑year earnings resilience.
Read all positive factors
Chesapeake Utilities (CPK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.19B
Dividend Yield2.1%
Average Volume (3M)140.54K
Price to Earnings (P/E)23.1
Beta (1Y)0.03
Revenue Growth17.14%
EPS Growth15.65%
CountryUS
Employees1,300
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)5.74
Shares Outstanding24,004,760
10 Day Avg. Volume154,570
30 Day Avg. Volume140,545
Financial Highlights & Ratios
PEG Ratio1.52
Price to Book (P/B)1.83
Price to Sales (P/S)3.14
P/FCF Ratio-13.58
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$146.00Price Target Upside7.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)6.45
Revenue Forecast (FY)$1.02B
Chesapeake Utilities Business Overview & Revenue Model
Company Description
Chesapeake Utilities Corporation (CPK) operates as a diversified energy enterprise, delivering a range of energy solutions to its customers. The company's operations are distinctly divided into two primary segments: Regulated Energy and Unregulate...
How the Company Makes Money
Chesapeake Utilities makes money primarily through a mix of regulated utility earnings and unregulated energy and infrastructure services.
1) Regulated utility revenue (core, rate-based earnings)
- Natural gas distribution: The company earns reve...
Chesapeake Utilities Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
Overall the call was positive: the company reported solid year-over-year revenue and earnings growth, demonstrated strong segment-level performance, maintained liquidity and capital plans, increased the dividend, and reaffirmed long-term EPS guidance. Notable execution risks include a schedule delay on the WRU LNG project that reduces 2026 EPS by ~ $0.10, higher operating and financing costs, and pending regulatory timing for Florida City Gas rates. Despite these headwinds, management presented clear mitigation actions, ongoing capital deployment, and expected future margin contributions from projects.Positive Updates
Strong Quarter Financial Performance
Adjusted net income increased 16% year-over-year to approximately $59 million; adjusted earnings per share rose 11% to $2.47. Adjusted gross margin was ~$206 million, up 13% versus Q1 2025.
Negative Updates
WRU LNG Project Schedule Delay and 2026 Impact
WRU (LNG storage facility) experienced construction slowdowns due to extended FERC timeline, severe winter weather and design modifications. As a result, margin contributions from WRU to 2026 are significantly reduced and full-year EPS is expected to be lowered by approximately $0.10. Project still expected online early next year and to generate ~$17 million of margin in 2027.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Quarter Financial Performance
Adjusted net income increased 16% year-over-year to approximately $59 million; adjusted earnings per share rose 11% to $2.47. Adjusted gross margin was ~$206 million, up 13% versus Q1 2025.
Read all positive updates
Company Guidance
Chesapeake reaffirmed 2026 capital spending of $450–$500 million (with $122 million invested through Q1) and said major projects are forecast to add about $31 million of gross margin in 2026 and another $20 million in 2027, though WRU schedule changes will materially reduce 2026 margin (and lower full‑year EPS by roughly $0.10) while still targeting $17 million of WRU margin in 2027; the company plans to issue about $60 million of equity in 2026, reported equity capitalization of 50% with 107,000 shares issued in Q1, and has liquidity/capacity representing ~74% of total debt capital of $793 million. Management reaffirmed a long‑term EPS CAGR target of 8% through 2028 and 2028 EPS guidance of $7.75–$8.00, will revisit capital guidance by Feb 2027, and the Board approved a $0.20 (7.3%) dividend increase to $2.94 annualized (66th consecutive year of dividends, 23rd consecutive increase) with a payout target of 45–50% (retaining ~50–55% of earnings). Q1 results supporting this outlook included adjusted gross margin of ~$206 million (up 13%), adjusted net income of ~$59 million (up 16%), adjusted EPS of $2.47 (up 11%), regulated gross margin of ~$148 million (up 15%) and unregulated gross margin of ~$59 million (up 8%); quarter‑to‑quarter EPS drivers cited were ~$0.27 from demand ($0.21 transmission, $0.06 distribution), $0.17 from infrastructure, $0.13 from permanent rate cases, $0.14 from cold weather and $0.07 from off‑system sales, partially offset by ~$0.20 higher payroll/benefits, ~$0.29 higher operating expenses, ~$0.04 higher credit/customer costs, ~$0.05 higher depreciation & amortization and ~$0.05 financing drag.Chesapeake Utilities Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
68
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 984.50M | 930.00M | 787.20M | 670.60M | 680.70M | 569.97M |
| Gross Profit | 375.70M | 294.10M | 334.80M | 255.30M | 237.50M | 217.93M |
| EBITDA | 384.40M | 373.40M | 311.70M | 229.60M | 228.00M | 205.72M |
| Net Income | 148.70M | 140.30M | 118.60M | 87.20M | 89.80M | 83.47M |
Balance Sheet | ||||||
| Total Assets | 4.10B | 4.04B | 3.58B | 3.30B | 2.22B | 2.11B |
| Cash, Cash Equivalents and Short-Term Investments | 4.70M | 1.80M | 7.90M | 4.90M | 6.20M | 4.98M |
| Total Debt | 1.67B | 1.64B | 1.49B | 1.40B | 814.42M | 798.07M |
| Total Liabilities | 2.44B | 2.44B | 2.19B | 2.06B | 1.38B | 1.34B |
| Stockholders Equity | 1.65B | 1.60B | 1.39B | 1.25B | 832.80M | 774.13M |
Cash Flow | ||||||
| Free Cash Flow | -297.50M | -214.90M | -115.90M | 14.86M | 30.61M | -36.42M |
| Operating Cash Flow | 266.70M | 233.70M | 239.40M | 203.48M | 158.88M | 150.50M |
| Investing Cash Flow | -464.30M | -435.70M | -349.90M | -1.11B | -136.45M | -223.02M |
| Financing Cash Flow | 201.60M | 195.90M | 113.50M | 906.61M | -21.21M | 74.00M |
Chesapeake Utilities Technical Analysis
Positive
135.78
Price Trends
126.98
Positive
126.64
Positive
127.56
Positive
Market Momentum
1.95
Positive
55.39
Neutral
26.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPK, the sentiment is Positive. The current price of 135.78 is above the 20-day moving average (MA) of 133.63, above the 50-day MA of 126.98, and above the 200-day MA of 127.56, indicating a neutral trend. The MACD of 1.95 indicates Positive momentum. The RSI at 55.39 is Neutral, neither overbought nor oversold. The STOCH value of 26.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPK.
Chesapeake Utilities Risk Analysis
Chesapeake Utilities disclosed 36 risk factors in its most recent earnings report. Chesapeake Utilities reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Chesapeake Utilities Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $3.19B | 23.13 | 9.49% | 2.05% | 17.14% | 15.65% | |
69 Neutral | $5.84B | 17.08 | 14.42% | 3.16% | 8.52% | -18.44% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $7.74B | 12.12 | 12.77% | 4.07% | 0.52% | 20.56% | |
60 Neutral | $5.42B | 18.45 | 7.60% | 3.66% | 3.58% | -1.83% | |
58 Neutral | $4.87B | 17.45 | 8.42% | 3.35% | 2.81% | 7.01% | |
55 Neutral | $4.72B | 13.99 | 15.87% | 3.95% | 4.53% | 40.51% |
* Utilities Sector Average
CPK
Chesapeake Utilities
133.50
14.84
12.51%
BKH
Black Hills
72.75
14.75
25.44%
SR
Spire
80.84
8.10
11.13%
NJR
New Jersey Resources
54.47
9.01
19.83%
UGI
UGI
34.28
0.27
0.78%
OGS
ONE Gas
79.62
6.97
9.59%
Chesapeake Utilities Corporate Events
Business Operations and StrategyFinancial Disclosures
Chesapeake Utilities Boosts Capex, Highlights Strong Earnings Growth
Positive
Aug 6, 2026
On August 6, 2026, Chesapeake Utilities reported second-quarter 2026 net income of $25.4 million and diluted EPS of $1.05, with year-to-date net income of $84.7 million and EPS of $3.51, reflecting 8% growth in adjusted EPS once Florida City Gas t...
Executive/Board ChangesShareholder Meetings
Chesapeake Utilities Shareholders Approve Directors and Governance Items
Positive
May 8, 2026
Chesapeake Utilities Corporation reported the results of its 2026 Annual Meeting of Stockholders, held on May 6, 2026, where 22,393,765 of 23,989,243 eligible common shares were represented, constituting a quorum. Shareholders elected one Class II...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.