Chesapeake Utilities (CPK) AI Stock Analysis

• Market Cap: $2.93B
• Dividend Yield: 2.1%
• Average Volume (3M): 108.51K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.21
• Revenue Growth: 19.02%
• EPS Growth: 20.13%
• Country: US
• Employees: 1,200
• Sector: Utilities
• Sector Strength: 75
• Industry: Regulated Gas
• EPS (TTM): 1.04
• Shares Outstanding: 23,544,480
• 10 Day Avg. Volume: 88,172
• 30 Day Avg. Volume: 108,508
• 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: $134.00
• Price Target Upside: 8.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: $136.00 ▲(9.68% Upside)

Chesapeake Utilities' overall stock score is driven by its strong financial performance and positive earnings call outcomes. The company's stable financial health and strategic growth initiatives are significant strengths. Technical analysis and valuation provide additional support, although they are less impactful. Challenges such as cost pressures and specific operational risks are noted but do not significantly detract from the overall positive outlook.

Positive Factors

Customer Growth

CPK reported customer growth above forecast, with EPS above consensus, and maintained guidance through 2028.

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.

Negative Factors

EPS Growth

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

Equity-to-Capitalization Ratio

CPK ended 2Q25 with an equity-to-capitalization ratio below the typical target for utility companies.

Project Delays

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 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 robust revenue growth and efficient operational margins. The balance sheet is stable with prudent leverage management, though there is room for improvement in gross profit margin and free cash flow to net income ratio.

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	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: 124.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 124 is above the 20-day moving average (MA) of 123.08, above the 50-day MA of 122.29, and above the 200-day MA of 123.87, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 52.49 is Neutral, neither overbought nor oversold. The STOCH value of 48.01 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	$4.52B	16.55	8.37%	4.06%	-6.65%	11.47%
NWN	71 Outperform	$1.69B	16.62	7.36%	4.77%	8.40%	17.90%
CPK	71 Outperform	$2.93B	22.69	9.25%	2.10%	19.02%	20.13%
UGI	68 Neutral	$7.55B	18.62	8.75%	4.31%	-0.52%	-39.42%
OGS	68 Neutral	$4.52B	17.99	8.24%	3.54%	13.43%	6.49%
Sector *	67 Neutral	$17.66B	18.14	5.33%	3.65%	7.33%	12.21%
SWX	65 Neutral	$5.58B	28.55	5.41%	3.20%	-10.07%	5.98%

Chesapeake Utilities Corporate Events

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.

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.

Chesapeake Utilities Announces Board Member Resignation

On July 25, 2025, Chesapeake Utilities Corporation announced the resignation of Stephanie N. Gary from its Board of Directors and Audit Committee. Her resignation, due to a change in her employment, was in line with the company’s Corporate Governance Guidelines and was not due to any disagreements with the company.