Chesapeake Utilities Corporation (CPK)
Valuation Overview•Is Chesapeake Utilities Corporation Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Fragile underlying quality score of 44/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is highly bullish, projecting significant upside with steady expected earnings growth. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
CPK struggles with subpar profitability and pressured margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company demonstrates solid revenue growth (11.0% 3Y CAGR) paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 27.3% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $353.2M | +18.1% | +11.0% | +13.8% | +7.3% | |
| EBITDA | $125.2M | — | +17.9% | — | — | |
| Net Income | $59.3M | +18.3% | +16.0% | — | +13.1% | |
| EPS (Diluted) | $2.47 | +13.5% | +5.8% | +7.0% | +8.2% | |
| Free Cash Flow | -$23.9M | -85.4% | — | -100.7% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 38.2% | 37.4% | 37.1% | 33.1% |
| Operating Margin | 27.3% | 26.4% | 24.6% | 21.2% |
| Net Margin | 15.1% | 14.4% | 14.2% | 12.5% |
| FCF Margin | -30.2% | -57.7% | -35.0% | -23.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $2.38 | $2.47 | +3.8% | ||
| Q1'26 | $1.94 | $1.94 | +0.0% | ||
| Q4'25 | $0.90 | $0.82 | -8.9% | ||
| Q3'25 | $1.00 | $1.04 | +4.0% | ||
| Q2'25 | $2.28 | $2.22 | -2.6% | ||
| Q1'25 | $1.67 | $1.63 | -2.4% | ||
| Q4'24 | $0.67 | $0.78 | +16.4% | ||
| Q3'24 | $0.80 | $0.82 | +2.5% |
Total return is +2.1% (1Y), lagging the benchmark by -22.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -1.8% | -11.1% | — |
| 1Y | +2.1% | -22.9% | +2.3% |
| 3YCAGR | +0.8% | -18.9% | +6.2% |
| 5YCAGR | +2.5% | -10.8% | +10.2% |
| 10YCAGR | +9.1% | -4.7% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Chesapeake Utilities Corporation (CPK) valuation, health, and returns.
Chesapeake Utilities Corporation is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Slightly expensive versus peers compared to industry peers. overvalued (implying -55.4% downside from DCF intrinsic value of $53.81)
Chesapeake Utilities Corporation has multiple valuation anchors: DCF Intrinsic Value: $53.81 | Peer Relative Fair Value: $112.04 | Wall Street Analyst Target: $142.00 (implying +17.7% upside). A convergence of these signals offers higher conviction.
Chesapeake Utilities Corporation displays fair financial health with a composite quality score of 44/100, supported by a Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 6.3%.
Chesapeake Utilities Corporation pays a 2.1% dividend yield, covered by a 43% payout ratio with 22 years of growth, supplemented by a 0.0% buyback yield.
Chesapeake Utilities Corporation's current growth trajectory is Accelerating. The company achieved +18.1% 1Y revenue growth and +13.5% 1Y EPS growth, compared to its 3Y revenue CAGR of +11.0%.
Wall Street consensus is Buy based on 12 analysts, beating EPS expectations in 33% of recent quarters with a 1-quarter streak. The consensus price target represents a +17.7% change from current levels.
Investment risks for Chesapeake Utilities Corporation include: -13.7% 1-year max drawdown. Volatility risk is characterized by a beta of -0.01x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.