Unitil (UTL) AI Stock Analysis

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Unitil

(NYSE:UTL)

68Neutral

Unitil Corporation shows strong operational cash flows and strategic growth through acquisitions. However, financial performance concerns, such as declining profitability and increased operational costs, partially offset these strengths. The stock's fair valuation and positive technical trends support a moderately positive outlook.

Unitil (UTL) vs. S&P 500 (SPY)

Market Cap

$947.47M

Dividend Yield2.95%

Average Volume (3M)64.17K

Price to Earnings (P/E)20.0

Beta (1Y)0.31

Revenue Growth-11.18%

EPS Growth3.64%

CountryUS

Employees544

SectorUtilities

Sector Strength90

IndustryDiversified Utilities

Share Statistics

EPS (TTM)2.92

Shares Outstanding16,246,136

10 Day Avg. Volume54,232

30 Day Avg. Volume64,166

Financial Highlights & Ratios

PEG Ratio5.49

Price to Book (P/B)N/A

Price to Sales (P/S)1.81

Price to Cash Flow (P/CF)9.60

P/FCF Ratio4.40

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$55.00

Price Target Upside-5.69% Downside

Rating ConsensusHold

Number of Analyst Covering0

Unitil Business Overview & Revenue Model

Company DescriptionUnitil Corporation (UTL) is a public utility holding company that provides energy for the New England region of the United States. Operating primarily in New Hampshire, Maine, and Massachusetts, Unitil is engaged in the distribution of electricity and natural gas. The company serves residential, commercial, and industrial customers, focusing on delivering reliable and efficient energy solutions. Unitil is committed to maintaining a balance between environmental responsibility and meeting the energy demands of its customers.

How the Company Makes MoneyUnitil makes money primarily through the distribution and sale of electricity and natural gas to its customers. The company's revenue model is based on regulated utility rates approved by state public utility commissions. These rates are designed to cover the costs of maintaining and operating the energy infrastructure, as well as providing a return on investment. Unitil's key revenue streams include charges for energy distribution, customer service fees, and other related services. Partnerships with local government and regulatory bodies play a significant role in ensuring stable earnings through approved rate adjustments and infrastructure development projects.

Unitil Financial Statement Overview

Summary

Unitil's financial performance shows strong operational cash flows and a stable balance sheet, but recent income challenges, including zero net income and negative EBITDA, indicate potential risks. Continued investment is evident, but profitability needs improvement.

Income Statement

Neutral

The income statement shows a declining revenue trend, with a notable dip in 2023. Gross profit margin was approximately 32.83% in 2023, indicating strong cost control. However, net income dropped to zero in 2024, raising concerns about profitability. Previously, EBIT and EBITDA margins were around 15.63% and 28.85% in 2023 respectively, showing efficient operations, but the recent zero EBIT and negative EBITDA indicate financial struggles.

Balance Sheet

Neutral

The balance sheet reveals a moderate debt-to-equity ratio of 1.39 in 2023, suggesting some financial leverage but manageable levels. The equity ratio was 29.29%, indicating a stable asset base. However, the absence of data for 2024 limits a comprehensive assessment of recent financial health.

Cash Flow

Positive

Cash flow analysis shows a positive operating cash flow trend, with $125.9M in 2024. However, free cash flow remains negative due to high capital expenditures, suggesting heavy investment or expansion. The operating cash flow to net income ratio was robust in prior years, but net income concerns in 2024 need attention.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
494.80M	557.10M	563.20M	473.30M	418.60M
	Gross Profit
196.60M	183.00M	169.00M	161.80M	149.80M
	EBIT
90.60M	87.10M	80.50M	77.80M	71.40M
	EBITDA
174.90M	160.70M	143.50M	134.30M	123.30M
	Net Income Common Stockholders
47.10M	45.20M	41.40M	36.10M	32.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.30M	6.50M	9.00M	6.50M	6.00M
	Total Assets
1.79B	1.67B	1.59B	1.54B	1.48B
	Total Debt
755.80M	681.60M	611.80M	570.10M	586.30M
	Net Debt
749.50M	675.10M	602.80M	563.60M	580.30M
	Total Liabilities
1.28B	1.18B	1.12B	1.09B	1.09B
	Stockholders Equity
512.50M	489.30M	467.60M	448.50M	389.20M
Cash Flow		Free Cash Flow
-44.00M	-34.00M	-24.40M	-7.20M	-46.90M
	Operating Cash Flow
125.90M	107.00M	97.70M	107.80M	75.70M
	Investing Cash Flow
-169.90M	-141.00M	-122.10M	-115.00M	-122.60M
	Financing Cash Flow
43.80M	31.50M	26.90M	7.70M	47.70M

Unitil Technical Analysis

Technical Analysis Sentiment

Positive

Last Price58.32

Price Trends

50DMA

56.63

Positive

100DMA

55.57

Positive

200DMA

56.75

Positive

Market Momentum

MACD

0.67

Negative

RSI

57.35

Neutral

STOCH

80.28

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UTL, the sentiment is Positive. The current price of 58.32 is above the 20-day moving average (MA) of 57.57, above the 50-day MA of 56.63, and above the 200-day MA of 56.75, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 57.35 is Neutral, neither overbought nor oversold. The STOCH value of 80.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UTL.

Unitil Risk Analysis

Unitil disclosed 17 risk factors in its most recent earnings report. Unitil reported the most risks in the “Macro & Political” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Unitil Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OTTR	71 Outperform	$3.31B	11.04	19.39%	2.44%	-1.38%	2.28%
UTL	68 Neutral	$947.47M	19.97	9.40%	2.95%	-11.18%	3.64%
MGEE	68 Neutral	$3.32B	27.29	10.17%	1.96%	-1.95%	2.33%
NWE	68 Neutral	$3.57B	16.02	7.94%	4.46%	6.45%	13.95%
Sector *	63 Neutral	$8.54B	12.48	6.34%	4.37%	3.06%	-9.41%
AVA	56 Neutral	$3.30B	18.07	7.09%	4.64%	10.64%	2.28%
HE	47 Neutral	$1.79B	―	-68.17%	―	-4.21%	-760.85%

* Utilities Sector Average

Performance Comparison

UTL

Unitil

58.32

9.88

20.40%

AVA

Avista

41.10

7.27

21.49%

Hawaiian Electric

10.06

0.18

1.82%

MGEE

MGE Energy

89.85

13.78

18.11%

NWE

Northwestern

58.28

11.12

23.58%

OTTR

Otter Tail

77.89

-4.78

-5.78%

Unitil Earnings Call Summary

Earnings Call Date: Feb 10, 2025 | % Change Since: 7.28% | Next Earnings Date: May 6, 2025

Earnings Call Sentiment Positive

Unitil Corporation's earnings call highlighted strong financial performance and strategic advancements, including a successful acquisition and infrastructure improvements. However, increased operational costs and regulatory challenges present ongoing concerns.

Highlights

Strong Financial Performance

Unitil Corporation reported adjusted earnings of $47.8 million or $2.97 per share, a 5.3% increase over 2023.

Successful Acquisition

Completed the acquisition of Bangor Natural Gas, expected to be earnings accretive over the long term.

Customer Satisfaction and Operational Excellence

90% customer satisfaction rating, highest among 23 eastern utilities, strong electric reliability, and top-tier gas emergency response.

Infrastructure Modernization

Completed a 14-year gas infrastructure modernization program in Maine and ongoing advanced metering infrastructure upgrade.

Dividend Increase

Board of directors increased the quarterly dividend by $0.025 per share, resulting in an annual dividend of $1.80 per share, a 5.9% increase from 2024.

Lowlights

Increased Operational Costs

Operation and maintenance expenses increased by $2 million or 2.6%, partially due to higher labor costs and transaction costs associated with the Bangor Natural Gas acquisition.

Higher Depreciation and Interest Expenses

Depreciation and amortization increased by $8.7 million due to higher depreciation rates, and interest expense increased by $0.6 million.

Regulatory Challenges

Plans to file a distribution rate case for New Hampshire Electric subsidiary due to current earned ROE being less than the allowed ROE.

Company Guidance

During the fourth-quarter 2024 earnings call, Unitil Corporation provided comprehensive guidance on their financial and operational performance. They reported adjusted earnings of $47.8 million, or $2.97 per share, marking a 5.3% increase over 2023. The company achieved a consolidated return on equity of 9.4% and completed the acquisition of Bangor Natural Gas, which is expected to be earnings accretive in the long term. Operational excellence was highlighted, with 90% customer satisfaction and top quartile electric reliability. The company reaffirmed its long-term guidance for earnings growth of 5% to 7%, and projected a five-year investment plan totaling approximately $980 million. For 2025, Unitil provided adjusted earnings guidance in the range of $3.01 to $3.17 per share, with a focus on strategic investments and regulatory engagements. The board approved a 5.9% increase in the annual dividend to $1.80 per share, aligning with their growth in earnings.

Unitil Corporate Events

M&A TransactionsBusiness Operations and Strategy

Unitil Announces Acquisition of Maine Natural Gas

Positive

Apr 4, 2025

On March 31, 2025, Unitil Corporation announced a definitive agreement to acquire Maine Natural Gas Company from Avangrid Enterprises, Inc. for $86 million, with the transaction expected to close by the end of 2025. Maine Natural Gas, serving about 6,300 customers in Maine, will become a wholly owned subsidiary of Unitil, pending regulatory approval. This acquisition aligns with Unitil’s strategy to expand its service area in Maine, enhancing its market position by covering over 40% of Maine’s population and is expected to be earnings accretive, supporting long-term growth.

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy

Unitil Expands Market and Enhances Financial Flexibility

Positive

Feb 4, 2025

On January 29, 2025, Unitil Corporation amended its credit agreement, increasing its borrowing limit to $275 million and extending its term to September 2028. This change strengthens Unitil’s financial flexibility and relationships with key lenders like Bank of America and TD Bank. Additionally, on January 31, 2025, Unitil completed the acquisition of Bangor Natural Gas Company for $70.9 million, expanding its customer base in Maine by approximately 8,500 customers. This acquisition enhances Unitil’s market presence and service capabilities, aligning with its strategic growth objectives.

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.