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CPK Stock Analysis - CHESAPEAKE UTILITIES CORP AI Rating

CPK NYSE Natural Gas Transmisison & Distribution DE CIK: 0000019745
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-12-31
AI Rating
HOLD
62% Confidence

📊 CPK Key Takeaways

Revenue: $930.0M
Net Margin: 15.1%
Free Cash Flow: $-214.9M
Current Ratio: 0.45x
Debt/Equity: 0.94x
EPS: $5.97
AI Rating: HOLD with 62% confidence

Investment Thesis

Chesapeake Utilities demonstrates solid profitability with 15.1% net margins and strong operating income, but faces significant headwinds from negative free cash flow of -$214.9M and capital intensity (CapEx at 48% of revenue). The company's utility business model provides stable revenues, though growth is minimal and leverage at 0.94x debt-to-equity warrants monitoring given the capital requirements.

CPK Strengths

  • + Strong net margin of 15.1% with 18.3% YoY net income growth
  • + Solid operating margin of 27.5% indicating operational efficiency
  • + Manageable leverage with 0.94x debt-to-equity ratio
  • + Robust operating cash flow of $233.7M supporting capital investments
  • + Interest coverage ratio of 3.5x provides adequate debt service capacity

CPK Risks

  • ! Significant negative free cash flow of -$214.9M indicating capital intensity exceeds cash generation
  • ! Very low liquidity with 0.45x current ratio creating potential refinancing risks
  • ! Minimal revenue growth (0.0% YoY) limiting organic expansion potential
  • ! High capital expenditure needs ($448.6M) may constrain flexibility and returns
  • ! Modest ROE of 8.8% and ROA of 3.5% suggest suboptimal asset utilization

Key Metrics to Watch

CPK Financial Metrics

Revenue
$930.0M
Net Income
$140.3M
EPS (Diluted)
$5.97
Free Cash Flow
$-214.9M
Total Assets
$4.0B
Cash Position
$1.8M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

CPK Profitability Ratios

Gross Margin N/A
Operating Margin 27.5%
Net Margin 15.1%
ROE 8.8%
ROA 3.5%
FCF Margin -23.1%

CPK vs Energy Sector

How CHESAPEAKE UTILITIES CORP compares to Energy sector averages

Net Margin
CPK 15.1%
vs
Sector Avg 12.0%
CPK Sector
ROE
CPK 8.8%
vs
Sector Avg 14.0%
CPK Sector
Current Ratio
CPK 0.4x
vs
Sector Avg 1.3x
CPK Sector
Debt/Equity
CPK 0.9x
vs
Sector Avg 0.6x
CPK Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CPK Balance Sheet & Liquidity

Current Ratio
0.45x
Quick Ratio
0.45x
Debt/Equity
0.94x
Debt/Assets
0.0%
Interest Coverage
3.53x
Long-term Debt
$1.5B

CPK 5-Year Financial Trend

CPK 5-year financial data: Year 2021: Revenue $570.0M, Net Income $65.2M, EPS $3.96. Year 2022: Revenue $680.7M, Net Income $71.5M, EPS $4.26. Year 2023: Revenue $680.7M, Net Income $83.5M, EPS $4.73. Year 2024: Revenue $787.2M, Net Income $89.8M, EPS $5.04. Year 2025: Revenue $930.0M, Net Income $87.2M, EPS $4.73.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: CHESAPEAKE UTILITIES CORP's revenue has grown significantly by 63% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.73 reflects profitable operations.

CPK Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-23.1%
Free cash flow / Revenue

CPK Quarterly Performance

Quarterly financial performance data for CHESAPEAKE UTILITIES CORP including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $160.2M $17.5M $0.78
Q2 2025 $166.3M $18.2M $0.82
Q1 2025 $245.7M $46.2M $2.07
Q3 2024 $131.5M $9.4M $0.53
Q2 2024 $135.6M $16.1M $0.82
Q1 2024 $218.1M $36.3M $2.04
Q3 2023 $131.1M $9.4M $0.53
Q2 2023 $135.6M $16.1M $0.90

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CPK Capital Allocation

Operating Cash Flow
$233.7M
Cash generated from operations
Stock Buybacks
-$4.5M
Shares repurchased (TTM)
Capital Expenditures
$448.6M
Investment in assets
Dividends Paid
$60.7M
Returned to shareholders

CPK SEC Filings

Access official SEC EDGAR filings for CHESAPEAKE UTILITIES CORP (CIK: 0000019745)

📋 Recent SEC Filings

Date Form Document Action
Feb 26, 2026 4 xslF345X05/wk-form4_1772155968.xml View →
Feb 26, 2026 4 xslF345X05/wk-form4_1772150100.xml View →
Feb 26, 2026 4 xslF345X05/wk-form4_1772149854.xml View →
Feb 26, 2026 4 xslF345X05/wk-form4_1772149622.xml View →
Feb 26, 2026 4 xslF345X05/wk-form4_1772148898.xml View →

Frequently Asked Questions about CPK

What is the AI rating for CPK?

CHESAPEAKE UTILITIES CORP (CPK) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CPK's key strengths?

Strong net margin of 15.1% with 18.3% YoY net income growth. Solid operating margin of 27.5% indicating operational efficiency.

What are the risks of investing in CPK?

Significant negative free cash flow of -$214.9M indicating capital intensity exceeds cash generation. Very low liquidity with 0.45x current ratio creating potential refinancing risks.

What is CPK's revenue and growth?

CHESAPEAKE UTILITIES CORP reported revenue of $930.0M.

Does CPK pay dividends?

CHESAPEAKE UTILITIES CORP pays dividends, with $60.7M distributed to shareholders in the trailing twelve months.

Where can I find CPK SEC filings?

Official SEC filings for CHESAPEAKE UTILITIES CORP (CIK: 0000019745) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CPK's EPS?

CHESAPEAKE UTILITIES CORP has a diluted EPS of $5.97.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-12-31 | Powered by Claude AI