Chesapeake Utilities (CPK) AI Stock Analysis

• Market Cap: $2.86B
• Dividend Yield: 2.23%
• Average Volume (3M): 134.66K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.23
• Revenue Growth: 20.41%
• EPS Growth: 13.64%
• Country: US
• Employees: 1,200
• Sector: Utilities
• Sector Strength: 71
• Industry: Regulated Gas
• EPS (TTM): 2.22
• Shares Outstanding: 23,327,358
• 10 Day Avg. Volume: 98,875
• 30 Day Avg. Volume: 134,664
• PEG Ratio: 8.69
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.95
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 8.88
• Enterprise Value/Ebitda: 2.46
• 1Y Price Target: $132.40
• Price Target Upside: 9.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 77 Outperform
• Price Target: $138.00 ▲(13.63%Upside)

Chesapeake Utilities' strong financial performance and positive earnings call insights are the primary drivers of its score. While technical analysis and valuation are moderate, the company's strategic growth initiatives and regulatory achievements present a favorable outlook.

Positive Factors

Dividend Increase

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

Natural Gas 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

EPS Growth Challenges

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 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 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 exhibits strong financial health characterized by robust revenue growth, efficient operational margins, and stable balance sheet metrics. The improvements in free cash flow and effective leverage management underscore financial resilience, though slight declines in gross profit margin and free cash flow to net income ratio present areas for enhancement.

Income Statement

Chesapeake Utilities has demonstrated strong revenue growth with a notable increase in Total Revenue from $670.6M in 2023 to $839.986M in the TTM period. The Gross Profit Margin and Net Profit Margin are healthy, at approximately 39.12% and 14.68% respectively in the TTM. The EBIT and EBITDA margins are robust, indicating efficient operational management. However, the Gross Profit has slightly decreased from the previous year, suggesting a potential area for improvement.

Balance Sheet

The company has a solid equity base with Stockholders' Equity at $1.447B, leading to an Equity Ratio of 39.49%, which suggests a stable financial structure. The Debt-to-Equity Ratio is low at approximately 0.023, indicating prudent leverage management. Return on Equity (ROE) stands at a satisfactory 8.52%, reflecting decent profitability relative to equity. The balance sheet suggests financial stability, though the reliance on equity may limit aggressive expansion.

Cash Flow

Chesapeake Utilities shows a strong Operating Cash Flow to Net Income ratio of 1.84, highlighting effective cash generation from operations. Free Cash Flow has improved significantly to $206.916M in the TTM from negative figures in prior years, indicating better capital spending control. However, Free Cash Flow to Net Income ratio is 1.68, which, while positive, suggests room for optimizing free cash generation relative to net income.

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	3.66B	3.58B	3.30B	2.22B	2.11B	1.93B
Cash, Cash Equivalents and Short-Term Investments	700.00K	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	2.22B	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: 121.45
• 50DMA: Positive
• 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 121.45 is below the 20-day moving average (MA) of 122.15, below the 50-day MA of 121.61, and below the 200-day MA of 123.29, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 50.22 is Neutral, neither overbought nor oversold. The STOCH value of 40.54 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	77 Outperform	$2.86B	22.48	9.04%	2.23%	20.41%	13.64%
UGI	76 Outperform	$7.71B	14.83	10.84%	4.17%	-4.30%	―
SR	72 Outperform	$4.48B	18.61	7.30%	4.13%	-7.10%	2.54%
NWN	72 Outperform	$1.69B	16.58	7.36%	4.67%	3.88%	11.80%
OGS	71 Outperform	$4.37B	17.67	8.08%	3.67%	7.73%	2.36%
SWX	68 Neutral	$5.54B	24.68	6.49%	3.22%	-10.78%	16.27%
Sector *	67 Neutral	$16.46B	16.85	4.47%	3.80%	4.76%	6.06%

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.