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Unitil Corp (UTL)
NYSE:UTL
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Unitil
(NYSE:UTL)
67Neutral
Unitil (UTL) vs. S&P 500 (SPY)
Market Cap
$948.61M
Dividend Yield2.95%
Average Volume (3M)67.17K
Price to Earnings (P/E)20.0
Beta (1Y)0.37
Revenue Growth-11.18%
EPS Growth3.64%
CountryUS
Employees544
SectorUtilities
Sector Strength93
IndustryDiversified Utilities
Share Statistics
EPS (TTM)2.92
Shares Outstanding16,246,136
10 Day Avg. Volume67,756
30 Day Avg. Volume67,174
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
$57.00Price Target Upside-0.02% Downside
Rating ConsensusHold
Number of Analyst Covering2
Unitil Business Overview & Revenue Model
Company DescriptionUnitil Corporation, a public utility holding company, engages in the distribution of electricity and natural gas. It operates through three segments: Utility Electric Operations, Utility Gas Operations, and Non-Regulated. The company distributes electricity in the southeastern seacoast and state capital regions of New Hampshire, and the greater Fitchburg area of north central Massachusetts; and distributes natural gas in southeastern New Hampshire and portions of southern and central Maine, including the city of Portland and the Lewiston-Auburn area, as well as the greater Fitchburg area of north central Massachusetts. It also operates 86 miles of interstate underground natural gas transmission pipeline that provides interstate natural gas pipeline access and transportation services primarily in Maine and New Hampshire. In addition, the company provides energy brokering and advisory services to commercial and industrial customers; and real estate management services. It serves approximately 107,700 electric customers and 86,600 natural gas customers. Unitil Corporation was incorporated in 1984 and is headquartered in Hampton, New Hampshire.
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
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.60
Neutral
Balance Sheet
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.55
Neutral
Cash Flow
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.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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
Positive
57.01
Price Trends
55.60
Positive
55.75
Positive
56.26
Positive
Market Momentum
0.55
Negative
64.25
Neutral
87.91
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 57.01 is above the 20-day moving average (MA) of 56.46, above the 50-day MA of 55.60, and above the 200-day MA of 56.26, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 64.25 is Neutral, neither overbought nor oversold. The STOCH value of 87.91 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $24.65B | 22.21 | 9.00% | 2.16% | 5.90% | 11.85% | |
76 Outperform | $6.96B | 12.72 | 12.22% | 4.63% | -14.01% | ― | |
74 Outperform | $34.28B | 22.49 | 12.64% | 3.13% | -3.30% | 14.40% | |
67 Neutral | $948.61M | 19.97 | 9.40% | 2.95% | -11.18% | 3.64% | |
66 Neutral | $4.99B | 14.98 | 15.15% | 3.56% | 9.18% | 36.67% | |
65 Neutral | $12.17B | 16.15 | 5.32% | 4.37% | 5.50% | -9.06% | |
64 Neutral | $1.74B | 21.37 | 5.91% | 4.51% | -3.71% | -21.36% |
* Utilities Sector Average
Performance Comparison
UTL
Unitil
57.01
7.74
15.71%
ATO
Atmos Energy
147.81
34.34
30.26%
NJR
New Jersey Resources
47.86
6.53
15.80%
NWN
Northwest Gas
41.21
6.20
17.71%
UGI
UGI
31.02
7.61
32.51%
WEC
WEC Energy Group
104.36
25.94
33.08%
Unitil Earnings Call Summary
Earnings Call Date: Feb 10, 2025 | % Change Since: 4.87% | 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
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.