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Chesapeake Utilities (CPK)
:CPK
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Chesapeake Utilities
(NYSE:CPK)
Rating:67Neutral
Price Target:
$133.00
▲( 9.13% Upside)
Positive Factors
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%.
Future Demand
Future rocket launches by Blue Origin, NASA, and SpaceX may require more natural gas, which could increase demand for CPK's pipeline services.
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
Interest Expense
EPS growth was below revenue growth due to higher interest expense and share count to fund the acquisition.
Project Delay Impact
A delay in the start of a liquefied natural gas storage project is expected to negatively impact EPS in 2025 and 2026.
Chesapeake Utilities (CPK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.84B
Dividend Yield2.1%
Average Volume (3M)131.94K
Price to Earnings (P/E)22.6
Beta (1Y)0.25
Revenue Growth20.41%
EPS Growth13.64%
CountryUS
Employees1,200
SectorUtilities
Sector Strength87
IndustryRegulated Gas
Share Statistics
EPS (TTM)2.22
Shares Outstanding23,327,358
10 Day Avg. Volume123,518
30 Day Avg. Volume131,935
Financial Highlights & Ratios
PEG Ratio8.56
Price to Book (P/B)1.93
Price to Sales (P/S)0.00
P/FCF Ratio13.74
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue0.92
Enterprise Value/Gross Profit8.75
Enterprise Value/Ebitda2.42
Forecast
1Y Price Target
$132.40Price Target Upside8.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Chesapeake Utilities Business Overview & Revenue Model
Company DescriptionChesapeake 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 MoneyChesapeake Utilities makes money primarily through its natural gas and electric distribution segments, which generate revenue from delivering energy to customers via regulated utility operations. The company earns income by charging customers for the consumption of natural gas and electricity, which is regulated by state public service commissions. Additionally, Chesapeake Utilities generates revenue from its unregulated energy businesses, such as propane distribution and energy solutions, which include wholesale marketing and transmission services. The company also benefits from strategic partnerships and investments in energy infrastructure projects, enhancing its ability to provide reliable energy services and contributing to its overall earnings.
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.85
Very Positive
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 2024.78
Positive
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.72
Positive
| 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 | EBIT |
| 236.58M | 228.20M | 150.80M | 142.93M | 131.11M | 112.72M | EBITDA |
| 316.42M | 311.70M | 230.20M | 224.06M | 205.69M | 180.09M | Net Income Common Stockholders |
| 123.33M | 118.60M | 87.21M | 89.80M | 83.47M | 71.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 7.90M | 7.90M | 4.90M | 6.20M | 4.98M | 3.50M | Total Assets |
| 3.58B | 3.58B | 3.30B | 2.22B | 2.11B | 1.93B | Total Debt |
| 1.49B | 1.49B | 1.40B | 814.42M | 798.07M | 707.62M | Net Debt |
| 1.48B | 1.48B | 1.39B | 808.22M | 793.09M | 704.12M | Total Liabilities |
| 2.19B | 2.19B | 2.06B | 1.38B | 1.34B | 1.24B | Stockholders Equity |
| 1.39B | 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
Negative
121.87
Price Trends
128.27
Negative
125.54
Negative
123.08
Negative
Market Momentum
-2.33
Positive
41.27
Neutral
51.08
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 121.87 is below the 20-day moving average (MA) of 126.66, below the 50-day MA of 128.27, and below the 200-day MA of 123.08, indicating a bearish trend. The MACD of -2.33 indicates Positive momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 51.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPK.
Chesapeake Utilities Risk Analysis
Chesapeake Utilities disclosed 37 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $3.37B | 14.30 | 7.94% | 4.75% | 4.31% | 19.33% | |
67 Neutral | $2.84B | 22.56 | 9.04% | 2.10% | 20.41% | 13.64% | |
67 Neutral | $3.10B | 16.38 | 7.25% | 4.98% | 3.14% | -2.66% | |
67 Neutral | $3.02B | 24.21 | 13.95% | 2.33% | 6.79% | 5.96% | |
67 Neutral | $3.29B | 25.48 | 10.62% | 1.98% | 6.03% | 6.15% | |
64 Neutral | $8.54B | 10.24 | 4.67% | 4.36% | 4.12% | -13.19% | |
63 Neutral | $2.80B | 20.64 | 8.67% | 2.42% | 3.83% | -8.75% |
* Utilities Sector Average
Performance Comparison
CPK
Chesapeake Utilities
121.87
16.00
15.11%
AWR
American States Water
78.50
8.22
11.70%
AVA
Avista
38.47
3.79
10.93%
CWT
California Water Service
47.02
-0.76
-1.59%
MGEE
MGE Energy
89.99
13.40
17.50%
NWE
Northwestern
54.98
6.59
13.62%
Chesapeake Utilities Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -9.09%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call demonstrated strong financial and operational performance with significant growth in customer base, capital investments, and regulatory successes. However, the delay and increased costs of the WRU project, alongside heightened operating and depreciation expenses, present challenges. Overall, the positive aspects outweigh the negatives, indicating a healthy outlook.Q1-2025 Updates
Positive Updates
Strong Earnings Growth
Chesapeake Utilities reported adjusted earnings per share of $2.22 for Q1 2025, a 6% increase from Q1 2024.
Robust Capital Investment
The company invested $113 million in the first quarter of 2025 towards its capital growth plan, part of a $325 million to $375 million annual goal.
Record Customer Growth
Delmarva region saw nearly 4% customer growth, and Florida experienced a 3% increase, driven by population migration and new residential communities.
Successful Regulatory Outcomes
A base rate increase of $3.5 million was approved in Maryland, and a settlement for an $8.6 million revenue increase in Florida was reached.
Unregulated Segment Expansion
The Unregulated Energy segment grew adjusted gross margin by 18% to approximately $54 million, with strong performance from propane operations and Marlin Gas Services.
Dividend Increase
The company announced a 7% increase in its annualized dividend, raising it from $2.56 to $2.74 per share.
Negative Updates
WRU Project Delays
The Worcester Resiliency Upgrade project faced a $20 million cost increase, with its completion delayed from October 2025 to the second quarter of 2026.
Increased Operating Costs
Operations and maintenance expenses increased by $0.20 per share due to business growth and higher prices.
Higher Depreciation Expenses
A $0.17 per share increase in depreciation and amortization expense was recorded, with the absence of previous RSAM depreciation benefits.
Company Guidance
In the first quarter of 2025, Chesapeake Utilities Corporation reported impressive financial growth, with adjusted earnings per share (EPS) of $2.22, marking a 6% increase from the prior year's first quarter. The company reaffirmed its full-year 2025 adjusted EPS guidance of $6.15 to $6.35, highlighting strong momentum. Capital investments are progressing well, with $113 million invested in the first three months, contributing to a capital growth plan of $325 million to $375 million for the year. Key drivers of performance include a 4% customer growth in Delmarva and a 3% increase in Florida, underpinned by population migration, new residential construction, and expansion projects. Gross margin from infrastructure investments and gas transmission businesses further supported growth, with reliability infrastructure generating $5.8 million in the first quarter and expected to yield $27 million for the year. Despite a $20 million cost increase and delay in the Worcester Resiliency Upgrade project, overall strategic initiatives in regulatory management and business transformation continue to drive sustainable earnings and shareholder value.Chesapeake Utilities Corporate Events
Business Operations and Strategy
Chesapeake Utilities to Present at 2025 AGA Forum
Neutral
May 16, 2025
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.
Shareholder MeetingsBusiness Operations and StrategyRegulatory Filings and Compliance
Chesapeake Utilities Amends Certificate to Boost Governance
Neutral
May 9, 2025
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.
Business Operations and StrategyFinancial Disclosures
Chesapeake Utilities Reports Q1 2025 Financial Results
Positive
May 7, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.