Chesapeake Utilities (CPK) AI Stock Analysis

• Market Cap: $2.93B
• Dividend Yield: 2.12%
• Average Volume (3M): 105.56K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.22
• Revenue Growth: 19.02%
• EPS Growth: 20.13%
• Country: US
• Employees: 1,200
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 1.04
• Shares Outstanding: 23,544,480
• 10 Day Avg. Volume: 123,840
• 30 Day Avg. Volume: 105,563
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 5.01
• Enterprise Value/Gross Profit: 12.85
• Enterprise Value/Ebitda: 12.86
• 1Y Price Target: $133.67
• Price Target Upside: 7.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 70 Outperform
• Price Target: $137.00 ▲(10.08% Upside)

Chesapeake Utilities' overall stock score reflects strong financial performance and positive earnings call insights, which are slightly offset by moderate technical indicators and valuation metrics. The company's robust growth in earnings and strategic investments, along with a stable financial position, are significant strengths. However, challenges in cost management and specific operational areas present potential risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Capital Investment

Higher capital investments reflect confidence in growth opportunities and commitment to infrastructure expansion, enhancing future earnings potential.

Regulatory Success

Successful regulatory outcomes ensure stable revenue streams and support strategic growth, reinforcing the company's competitive position.

Negative Factors

Depreciation Study Uncertainty

Uncertainty in regulatory outcomes can impact financial projections and strategic planning, posing a risk to future earnings stability.

Propane Margin Decline

Declining margins in propane may affect profitability, highlighting challenges in managing commodity costs and demand fluctuations.

Increased Operating Expenses

Rising operating expenses can pressure margins and reduce profitability, necessitating efficient cost management to maintain financial health.

Chesapeake Utilities Business Overview & Revenue Model

Company Description

Chesapeake Utilities Corporation operates as an energy delivery company. The company operates through two segments, Regulated Energy and Unregulated Energy. The Regulated Energy segment engages in the natural gas distribution operations in central and southern Delaware, Maryland's eastern shore, and Florida; regulated natural gas transmission in the Delmarva Peninsula and Florida; and regulated electric distribution in northeast and northwest Florida. The Unregulated Energy segment engages in the propane operations in the Mid-Atlantic region, North Carolina, South Carolina, and Florida; unregulated natural gas transmission/supply operation in central and eastern Ohio; generation of electricity and steam; and provision of compressed natural gas, liquefied natural gas, and renewable natural gas transportation and pipeline solutions primarily to utilities and pipelines in the eastern United States. This segment also provides other unregulated energy services, such as energy-related merchandise sales; heating, ventilation, and air conditioning services; and plumbing and electrical services. The company was founded in 1859 and is headquartered in Dover, Delaware.

How the Company Makes Money

Chesapeake Utilities generates revenue through its regulated utility operations, which include the distribution of natural gas and electricity to residential and commercial customers. The company earns revenue by charging customers for the consumption of these utilities, with rates regulated by state public utility commissions. Additionally, Chesapeake Utilities has significant revenue streams from its non-regulated operations, including propane distribution and energy marketing services. The company also engages in infrastructure projects, such as pipeline development, which further contribute to its earnings. Strategic partnerships with local governments and investments in renewable energy projects enhance its revenue-generating capabilities.

Chesapeake Utilities Financial Statement Overview

Summary

Chesapeake Utilities demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet reflects a balanced leverage position, while cash flow improvements indicate enhanced financial flexibility. Despite some fluctuations in margins and free cash flow, the company maintains a stable financial trajectory.

Income Statement

Chesapeake Utilities shows a solid revenue growth rate of 3.18% in the TTM, with strong gross and net profit margins at 38.99% and 14.88% respectively. The EBIT and EBITDA margins are also robust, indicating efficient operations. However, the slight decline in gross profit margin compared to the previous year suggests some pressure on cost management.

Balance Sheet

The company's debt-to-equity ratio of 1.02 indicates moderate leverage, which is typical for the regulated gas industry. Return on equity is healthy at 9.07%, showing effective use of equity. However, the equity ratio of 40.10% suggests a balanced but cautious approach to financing.

Cash Flow

Chesapeake Utilities has shown a significant improvement in free cash flow growth at 71.47% in the TTM, recovering from previous negative figures. The operating cash flow to net income ratio of 0.46 indicates a moderate conversion of income to cash, while the free cash flow to net income ratio of 0.76 suggests a strong cash generation capability. However, the volatility in free cash flow over the years poses a potential risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	866.68M	787.20M	670.60M	680.70M	569.97M	488.20M
Gross Profit	338.00M	334.80M	255.28M	237.52M	217.93M	192.62M
EBITDA	337.64M	311.70M	230.20M	228.00M	205.69M	180.09M
Net Income	128.96M	118.60M	87.21M	89.80M	83.47M	71.50M
Balance Sheet
Total Assets	3.74B	3.58B	3.30B	2.22B	2.11B	1.93B
Cash, Cash Equivalents and Short-Term Investments	1.50M	7.90M	4.90M	6.20M	4.98M	3.50M
Total Debt	1.53B	1.49B	1.40B	814.42M	798.07M	707.62M
Total Liabilities	2.24B	2.19B	2.06B	1.38B	1.34B	1.24B
Stockholders Equity	1.50B	1.39B	1.25B	832.80M	774.13M	697.09M
Cash Flow
Free Cash Flow	159.67M	-115.90M	14.86M	30.61M	-36.42M	-6.59M
Operating Cash Flow	211.22M	239.40M	203.48M	158.88M	150.50M	158.92M
Investing Cash Flow	-406.81M	-349.90M	-1.11B	-136.45M	-223.02M	-181.63M
Financing Cash Flow	190.66M	113.50M	906.61M	-21.21M	74.00M	19.23M

Chesapeake Utilities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 124.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 124.45 is above the 20-day moving average (MA) of 123.67, above the 50-day MA of 122.46, and above the 200-day MA of 123.07, indicating a bullish trend. The MACD of 0.40 indicates Positive momentum. The RSI at 54.61 is Neutral, neither overbought nor oversold. The STOCH value of 47.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPK.

Chesapeake Utilities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SR	71 Outperform	4.49B	16.22	8.21%	4.13%	-6.65%	11.47%
NWN	71 Outperform	1.73B	16.44	7.08%	4.65%	8.40%	17.90%
CPK	70 Outperform	$2.93B	21.89	9.25%	2.12%	19.02%	20.13%
OGS	68 Neutral	4.52B	17.82	7.78%	3.55%	13.43%	6.49%
SWX	67 Neutral	5.69B	29.22	5.27%	3.13%	-10.07%	5.98%
UGI	61 Neutral	7.06B	17.46	8.58%	4.56%	-0.52%	-39.42%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

Chesapeake Utilities Corporate Events

Chesapeake Utilities Expands Board, Appoints New Director

On September 12, 2025, Chesapeake Utilities Corporation expanded its Board of Directors from seven to eight members, appointing Elisabeth A. Eden as a Class II director effective September 15, 2025. Ms. Eden, who qualifies as an independent director and an audit committee financial expert, will also serve on the Audit Committee and receive standard non-employee director compensation. Her appointment is expected to enhance the board’s expertise and governance capabilities.

The most recent analyst rating on (CPK) stock is a Buy with a $133.00 price target. To see the full list of analyst forecasts on Chesapeake Utilities stock, see the CPK Stock Forecast page.

Chesapeake Utilities Reports Strong Q2 2025 Results

On August 7, 2025, Chesapeake Utilities Corporation announced its financial results for the second quarter and the first half of 2025, reporting significant growth in net income and adjusted earnings per share compared to the previous year. The company attributed this growth to regulatory initiatives, infrastructure programs, and increased demand for natural gas services. Chesapeake Utilities also increased its 2025 capital expenditure guidance due to progress in capital projects and reaffirmed its earnings and capital investment guidance for the upcoming years, highlighting its strategic focus on growth and operational efficiency.

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 Secures $200M Note Purchase Agreement

On August 1, 2025, Chesapeake Utilities executed a Note Purchase Agreement for $200 million in unsecured senior notes, with $150 million closing on the same day and $50 million expected to close on September 15, 2025. The notes are divided into three series with varying maturity dates and interest rates, and include provisions for optional prepayment and acceleration upon default. Additionally, the company extended the maturity date of its $250 million 364-Day Revolver to August 4, 2026, maintaining all other terms.

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.