Chesapeake Utilities Corp (CPK) stock analysis

P/E below its 5-year median

Chesapeake Utilities's P/E of 17.2 is below its own 5-year median of 24.0.

P/E below the industry

Chesapeake Utilities's P/E of 17.2 is below the Gas Production and Distribution median of 17.3.

EV/EBITDA below its 5-year median

Chesapeake Utilities's EV/EBITDA of 10.2 is below its 5-year median of 14.5.

P/B below the industry

Chesapeake Utilities's price-to-book of 1.99 is below the Gas Production and Distribution median of 2.10.

Trading below fair value

The share price of $140.67 is below our fair value estimate of $168.01.

Margin of safety under 20%

The price is 16.3% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 11.0% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew 5.8% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 58.7% over the last twelve months, against a 5-year average of 14.4% a year.

Growing faster than the industry

Revenue grew 64.5% over the last twelve months; the Gas Production and Distribution median is 13.6%.

Guidance raised

Chesapeake Utilities raised its 2026 capital expenditure guidance outlook on Aug 6, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 12.4% over the last twelve months and averaged 9.9% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 8.4%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Chesapeake Utilities's return on equity of 12.4% is above the Gas Production and Distribution median of 12.1%.

Earnings grew over 5 years

Net income grew 14.4% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 14.2% over the last twelve months, against a 5-year average of 14.2%.

Net margin above the industry

Chesapeake Utilities's net margin of 14.2% is above the Gas Production and Distribution median of 13.1%.

High debt

Debt is 104% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 100% five years ago to 104%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 25.5% of total debt.

Interest not well covered

Operating income covers interest expense 3.3 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.28 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.46; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Chesapeake Utilities paid dividends worth 2.0% of the share price over the last twelve months.

Yield below Treasuries

The 2.0% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Chesapeake Utilities yields 2.0%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 49.1% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.