Chesapeake Utilities (CPK)
NYSE:CPK
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Chesapeake Utilities
(NYSE:CPK)
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Rating:67Neutral
Price Target:
$137.00
â–²(8.27% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by solid operating performance and a constructive earnings outlook/dividend policy, balanced against the key risk of sustained negative free cash flow from heavy investment (and associated funding needs). Valuation is supportive, while technicals are neutral-to-soft and add limited near-term momentum support.
Positive Factors
Regulated utility business model
A predominantly regulated rate-base business provides durable, contract-like cash flows and predictable allowed returns. Regulatory cost recovery and riders support steady revenue and margin visibility, underpinning multi-year capital plans, dividend sustainability and lower demand cyclicality versus merchant exposures.
Negative Factors
Negative free cash flow
Persistent negative free cash flow driven by heavy capital spending reduces internal funding for growth and dividends, increasing reliance on external financing and equity issuance. Over the medium term this constrains financial flexibility, raises refinancing risk and could pressure returns if rate recovery lags project spending.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated utility business model
A predominantly regulated rate-base business provides durable, contract-like cash flows and predictable allowed returns. Regulatory cost recovery and riders support steady revenue and margin visibility, underpinning multi-year capital plans, dividend sustainability and lower demand cyclicality versus merchant exposures.
Read all positive factors
Chesapeake Utilities (CPK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.05B
Dividend Yield2.15%
Average Volume (3M)140.54K
Price to Earnings (P/E)12.8
Beta (1Y)0.03
Revenue Growth17.14%
EPS Growth15.65%
CountryUS
Employees1,200
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 Ratio1.53
Price to Book (P/B)1.83
Price to Sales (P/S)3.14
P/FCF Ratio-13.58
Enterprise Value/Market Cap1.55
Enterprise Value/Revenue4.78
Enterprise Value/Gross Profit12.54
Enterprise Value/Ebitda12.25
Forecast
1Y Price Target
$144.67Price Target Upside14.33% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)6.49
Revenue Forecast (FY)$1.02B
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...
How the Company Makes Money
Chesapeake Utilities makes money primarily through (1) regulated utility operations and (2) non-regulated/energy services activities. In its regulated natural gas distribution utilities, the company earns revenue by delivering natural gas to resid...
Chesapeake Utilities Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 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
126.53
Price Trends
127.19
Positive
127.78
Negative
127.94
Negative
Market Momentum
-0.27
Negative
52.82
Neutral
51.66
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 126.53 is above the 20-day moving average (MA) of 126.49, below the 50-day MA of 127.19, and below the 200-day MA of 127.94, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 52.82 is Neutral, neither overbought nor oversold. The STOCH value of 51.66 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $3.05B | 12.75 | 9.49% | 2.15% | 17.14% | 15.65% | |
66 Neutral | $6.49B | 11.37 | 11.86% | 3.07% | -48.15% | 105.44% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $5.20B | 10.53 | 8.20% | 3.45% | 2.81% | 7.01% | |
62 Neutral | $5.13B | 4.73 | 10.45% | 3.82% | 4.53% | 40.51% | |
62 Neutral | $7.41B | 3.76 | 12.77% | 3.92% | 0.52% | 20.56% | |
52 Neutral | $2.10B | 5.58 | 8.27% | 4.18% | 5.90% | 16.54% |
* Utilities Sector Average
CPK
Chesapeake Utilities
126.95
7.29
6.09%
SR
Spire
86.71
15.39
21.58%
NWN
Northwest Gas
49.92
10.68
27.22%
SWX
Southwest Gas
89.66
22.63
33.76%
UGI
UGI
35.11
0.95
2.78%
OGS
ONE Gas
82.80
10.47
14.47%
Chesapeake Utilities Corporate Events
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...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Chesapeake Utilities Posts Strong Q1 2026 Earnings Growth
Positive
May 6, 2026
Chesapeake Utilities reported strong first-quarter 2026 results on May 6, 2026, with net income rising to $59.3 million, or $2.47 per share, an 11.8% EPS increase versus a year earlier, driven by organic customer growth, transmission system expans...
Business Operations and StrategyExecutive/Board Changes
Chesapeake Utilities Announces CFO Retirement and Successor
Positive
Mar 24, 2026
Chesapeake Utilities Corporation announced on March 24, 2026, that longtime chief financial officer, executive vice president, treasurer and assistant secretary Beth W. Cooper will retire on June 30, 2026, after a 36-year career in which she helpe...
Business Operations and StrategyFinancial Disclosures
Chesapeake Utilities Posts Strong 2025 Results, Reaffirms Outlook
Positive
Feb 25, 2026
Chesapeake Utilities Corporation reported strong fiscal 2025 results on February 25, 2026, with net income rising to $140.3 million, or $5.97 per share, from $118.6 million, or $5.26 per share, in 2024. Adjusted EPS reached $6.01, up 11.5 percent ...
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.