CHESAPEAKE UTILITIES CORP (CPK) Stock Analysis
CHESAPEAKE UTILITIES CORP (CPK) Stock Analysis
Analysis from 10-Q filed 2025-11-06. Data as of Q4 2025.
Overall Grade: F (Concerning)
CHESAPEAKE UTILITIES CORP faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 5.8% | Below expectations |
| FCF Margin | -23.1% | Cash flow pressure |
| Debt/Equity | 1.0x | Moderate leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore CHESAPEAKE UTILITIES CORP: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: CHESAPEAKE UTILITIES CORP earns 5.8% ROIC, Bottom 50% in Utilities
CHESAPEAKE UTILITIES CORP's trailing-twelve-month ROIC of 5.8% ranks Bottom 50% in Utilities companies (sector median: 5.8%), driven by NOPAT margin of 20.0% combined with asset turnover of 0.2x. Source: 10-Q filed 2025-11-06. Gross margin of 68.7% with operating margin at 27.5% reflects strong pricing power.
| Metric | CPK | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 5.8% | Warning | Below sector median of 5.8% |
| Return on Equity (ROE) | 9.4% | Adequate | Moderate equity returns |
| Gross Margin | 68.7% | Excellent | Strong pricing power |
| Operating Margin | 27.5% | Excellent | Efficient operations |
Cash Flow: CHESAPEAKE UTILITIES CORP generates $-214.9M FCF at -23.1% margin, positive NaN/8 quarters
CHESAPEAKE UTILITIES CORP generated $-214.9M in free cash flow (TTM), a -23.1% FCF margin, a margin that ranks Top 50% in Utilities. Operating cash flow exceeds net income by 1.7x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-06.
| Metric | CPK | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | -23.1% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-214.9M | Red flag | Cash burn |
| OCF/Net Income | 1.7x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: CHESAPEAKE UTILITIES CORP at 1.0x leverage
CHESAPEAKE UTILITIES CORP's debt-to-equity ratio of 1.0x reflects elevated leverage. Total debt of $1.6B offset by $1.8M in cash. Source: 10-Q filed 2025-11-06.
| Metric | CPK | Rating | Context |
|---|---|---|---|
| Debt to Equity | 1.0x | Adequate | Moderate leverage |
| Net Cash Position | $-1.6B | Warning | Net debt position |
Valuation: CHESAPEAKE UTILITIES CORP trades at 20.7x earnings
CHESAPEAKE UTILITIES CORP trades at a P/E of 20.7x. Free cash flow yield of -7.4% reflects market expectations for growth.
| Metric | CPK | Rating | Context |
|---|---|---|---|
| P/E Ratio | 20.7x | Adequate | Premium valuation |
| EV/Sales | 4.8x | Good | Growth premium priced in |
| FCF Yield | -7.4% | Warning | Lower cash yield |
| Dividend Yield | 2.2% | Adequate | Growth focus over income |
Capital Allocation: CHESAPEAKE UTILITIES CORP returns 2.2% shareholder yield
CHESAPEAKE UTILITIES CORP's total shareholder yield is 2.2% (dividends 2.2% + buybacks). Source: 10-Q filed 2025-11-06.
| Metric | CPK | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 2.2% | Adequate | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $60.7M | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 5.8% | Bottom 50% | 1.0x below |
| Free Cash Flow Margin | -23.1% | Top 50% | - |
| Gross Margin | 68.7% | Top 50% | 1.1x above |
| Operating Margin | 27.5% | Top 25% | 1.4x above |
| Return on Equity (ROE) | 9.4% | Bottom 50% | 1.0x below |
| P/E Ratio | 20.7x | N/A | - |
Financial Scorecard
| Metric | CPK | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 5.8% | Warning | Bottom 50% of sector (median: 5.8%) |
| Free Cash Flow Margin | -23.1% | Red flag | Top 50% of sector (median: 0.0%) |
| Gross Margin | 68.7% | Excellent | Top 50% of sector (median: 63.3%) |
| Debt to Equity Ratio | 101.3% | Adequate | Elevated but manageable |
| P/E Ratio (Price-to-Earnings) | 20.7x | Adequate | Fair value |
| Free Cash Flow Yield | -7.4% | Red flag | Growth-focused valuation |
Frequently Asked Questions
Q: What is CHESAPEAKE UTILITIES CORP's Return on Invested Capital (ROIC)?
CHESAPEAKE UTILITIES CORP (CPK) has a trailing twelve-month Return on Invested Capital (ROIC) of 5.8%. This compares below the sector median of 5.8%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is CHESAPEAKE UTILITIES CORP's Free Cash Flow Margin?
CHESAPEAKE UTILITIES CORP (CPK) has a free cash flow margin of -23.1%, generating $-214.9 million in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is CHESAPEAKE UTILITIES CORP stock overvalued or undervalued?
CHESAPEAKE UTILITIES CORP (CPK) trades at a P/E ratio of 20.7x, which is above the sector median of N/A. The EV/Sales multiple is 4.8x.
Q: Does CHESAPEAKE UTILITIES CORP pay a dividend?
CHESAPEAKE UTILITIES CORP (CPK) currently pays a dividend yield of 2.2%. Including share buybacks, the total shareholder yield is 2.2%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: How much debt does CHESAPEAKE UTILITIES CORP have?
CHESAPEAKE UTILITIES CORP (CPK) has a debt-to-equity ratio of 1.0x with total debt of $1.6 billion. Net debt position is $1.6 billion.
Q: What is CHESAPEAKE UTILITIES CORP's revenue and earnings growth?
CHESAPEAKE UTILITIES CORP (CPK) grew revenue by 18.1% year-over-year. Earnings per share increased by 13.7% compared to the prior year. Solid growth above 10% suggests healthy business momentum.
Q: How does CHESAPEAKE UTILITIES CORP compare to competitors in Utilities?
Compared to other companies in Utilities, CHESAPEAKE UTILITIES CORP (CPK) shows: ROIC of 5.8% is below the sector median of 5.8% (Bottom 49%). FCF margin of -23.1% trails the sector median of 0.0% (Top 39% of sector). Gross margin at 68.7% is 5.3 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Utilities companies with available SEC filings.
Q: What warning signs should I watch for with CHESAPEAKE UTILITIES CORP?
Investors in CHESAPEAKE UTILITIES CORP (CPK) should monitor these potential warning signs: 1) FCF margin is thin at -23.1%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-06. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.