Chesapeake Utilities (CPK) AI Stock Analysis

• Market Cap: $2.81B
• Dividend Yield: 2.21%
• Average Volume (3M): 120.73K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 0.25
• Revenue Growth: 20.41%
• EPS Growth: 13.64%
• Country: US
• Employees: 1,200
• Sector: Utilities
• Sector Strength: 75
• Industry: Regulated Gas
• EPS (TTM): 2.22
• Shares Outstanding: 23,327,358
• 10 Day Avg. Volume: 159,899
• 30 Day Avg. Volume: 120,727
• PEG Ratio: 3.46
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 68.43
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 10.14
• Enterprise Value/Ebitda: 2.80
• 1Y Price Target: $132.40
• Price Target Upside: 9.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: $135.00 ▲(11.17%Upside)

Chesapeake Utilities' strong financial performance, solid earnings growth, and strategic capital investments drive its overall positive stock score. While technical indicators suggest a lack of momentum, the company's fair valuation and positive corporate events bolster its investment appeal.

Positive Factors

Acquisition Impact

The acquisition of Florida City Gas in December 2023 led to more natural gas customers and increased revenue.

Credit Rating

CPK received a BBB+ rating from Fitch, indicating a stable credit outlook.

Dividend Increase

CPK raised the dividend by 7.0%, representing an annualized yield of 2.2%.

Revenue Growth

1Q25 revenue was $298.7M, up 21.6% y/y, above estimates due to colder weather, leading to more consumption of natural gas.

Negative Factors

Higher Expenses

EPS growth was below revenue growth due to higher interest expense and share count to fund the acquisition.

Project Delay

A delay in the start of a liquefied natural gas storage project is expected to negatively impact EPS in 2025 and 2026.

Chesapeake Utilities Business Overview & Revenue Model

Company Description

Chesapeake Utilities Corporation (CPK) is a diversified energy company engaged in the distribution and transmission of natural gas, electricity, and propane. The company operates primarily on the East Coast of the United States, serving residential, commercial, and industrial customers. Chesapeake Utilities is committed to providing safe, reliable, and efficient energy solutions, with a focus on sustainability and innovation in its core operations.

How the Company Makes Money

Chesapeake Utilities generates revenue through several key streams. The primary source is the distribution and sale of natural gas to residential, commercial, and industrial customers. This involves charging for the volume of gas delivered as well as associated service fees. Additionally, the company earns income from the transmission of natural gas through its pipeline infrastructure. Electricity generation and distribution is another significant revenue stream, where Chesapeake Utilities provides electricity to its customers and charges based on usage. The company also makes money from its propane distribution operations, catering to customers who require propane for heating and other applications. Furthermore, Chesapeake Utilities may engage in strategic partnerships and investments to enhance its capabilities and expand its market reach, contributing to its overall financial performance.

Chesapeake Utilities Financial Statement Overview

Summary

Chesapeake Utilities demonstrates strong financial health with impressive revenue and profit growth, efficient operations, and a solid balance sheet with low leverage. Cash flow generation is robust, although high capital expenditures may pose liquidity challenges.

Income Statement

Chesapeake Utilities shows strong revenue growth with a significant increase from $670.60M in 2023 to $787.20M in 2024, marking a growth rate of 17.40%. The EBIT margin is robust at 28.98%, and the EBITDA margin stands at 37.58%, indicating efficient operations. Net profit margin improved to 15.07%, reflecting enhanced profitability. Overall, the company demonstrates a strong trajectory in revenue and profit growth.

Balance Sheet

The company's balance sheet is solid with a debt-to-equity ratio of 0.02, showcasing low leverage. The equity ratio is not available for 2024, but previous years indicate a healthy equity position. Return on equity is approximately 8.53%, suggesting reasonable returns for shareholders. Risks include potential fluctuations in equity due to unavailable asset data for 2024.

Cash Flow

Chesapeake Utilities' cash flow is strong with a substantial increase in free cash flow from $14.86M in 2023 to $239.40M in 2024. The operating cash flow to net income ratio is 2.02, indicating robust cash generation relative to net income. However, investing cash flow remains negative, suggesting ongoing capital expenditures which may impact future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	839.99M	787.20M	670.60M	680.70M	569.97M	488.20M
Gross Profit	328.65M	334.80M	255.28M	237.52M	217.93M	192.62M
EBITDA	316.42M	311.70M	230.20M	224.06M	205.69M	180.09M
Net Income	123.33M	118.60M	87.21M	89.80M	83.47M	71.50M
Balance Sheet
Total Assets	0.00	3.58B	3.30B	2.22B	2.11B	1.93B
Cash, Cash Equivalents and Short-Term Investments	0.00	7.90M	4.90M	6.20M	4.98M	3.50M
Total Debt	33.90M	1.49B	1.40B	814.42M	798.07M	707.62M
Total Liabilities	754.40M	2.19B	2.06B	1.38B	1.34B	1.24B
Stockholders Equity	1.45B	1.39B	1.25B	832.80M	774.13M	697.09M
Cash Flow
Free Cash Flow	206.92M	-115.90M	14.86M	30.61M	-36.42M	-6.59M
Operating Cash Flow	227.12M	239.40M	203.48M	158.88M	150.50M	158.92M
Investing Cash Flow	-388.29M	-349.90M	-1.11B	-136.45M	-223.02M	-181.63M
Financing Cash Flow	160.18M	113.50M	906.61M	-21.21M	74.00M	19.23M

Chesapeake Utilities Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 121.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPK, the sentiment is Negative. The current price of 121.44 is above the 20-day moving average (MA) of 120.29, below the 50-day MA of 124.91, and below the 200-day MA of 123.09, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 46.70 is Neutral, neither overbought nor oversold. The STOCH value of 76.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPK.

Chesapeake Utilities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPK	74 Outperform	$2.81B	22.97	9.04%	2.21%	20.41%	13.64%
MGEE	71 Outperform	$3.23B	25.25	10.62%	2.02%	6.03%	6.15%
NWE	68 Neutral	$3.12B	13.21	8.27%	5.20%	4.31%	19.33%
Sector *	67 Neutral	$16.25B	17.12	4.62%	3.55%	4.77%	6.10%
AVA	67 Neutral	$3.03B	16.20	7.25%	5.15%	3.14%	-2.66%
AWR	64 Neutral	$2.97B	24.35	13.95%	2.41%	6.79%	5.96%
CWT	63 Neutral	$2.72B	20.03	8.67%	2.63%	3.83%	-8.75%

Chesapeake Utilities Corporate Events

Chesapeake Utilities to Present at 2025 AGA Forum

Chesapeake Utilities Corporation announced that its management will meet with investors, analysts, and other financial community members at the 2025 American Gas Association Financial Forum from May 18 to 20, 2025. The company will present its investor presentation, which includes forward-looking information, showcasing its leadership’s focus on business transformation, growth, and operational health.

The most recent analyst rating on (CPK) stock is a Hold with a $124.00 price target. To see the full list of analyst forecasts on Chesapeake Utilities stock, see the CPK Stock Forecast page.

Chesapeake Utilities Amends Certificate to Boost Governance

On May 8, 2025, Chesapeake Utilities Corporation filed an Amended and Restated Certificate of Incorporation, effective immediately, which includes significant changes such as declassifying the Board of Directors over three years starting in 2026, increasing authorized common stock from 50 million to 75 million shares, and limiting officer liability under certain conditions. These amendments, approved by stockholders at the May 7, 2025, Annual Meeting, aim to enhance corporate governance and operational flexibility, potentially impacting the company’s strategic direction and shareholder value.

Chesapeake Utilities Reports Q1 2025 Financial Results

On May 7, 2025, Chesapeake Utilities Corporation announced its financial results for the first quarter of 2025, reporting a net income of $50.9 million, up from $46.2 million in the same period of 2024. The growth was driven by increased customer consumption due to colder temperatures, regulatory initiatives, and infrastructure programs. The company also reaffirmed its earnings guidance for 2025 and 2028, projecting continued growth through strategic capital investments and regulatory management.