DB:CH5

Stock Analysis Report

Chesapeake Utilities

Executive Summary

Chesapeake Utilities Corporation, a diversified energy company, engages in regulated and unregulated energy businesses.


Snowflake Analysis

Established dividend payer with limited growth.


Similar Companies

Share Price & News

How has Chesapeake Utilities's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CH5 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.3%

CH5

-4.4%

DE Gas Utilities

-4.7%

DE Market


1 Year Return

11.3%

CH5

2.8%

DE Gas Utilities

8.3%

DE Market

Return vs Industry: CH5 exceeded the German Gas Utilities industry which returned 2.8% over the past year.

Return vs Market: CH5 exceeded the German Market which returned 8.3% over the past year.


Shareholder returns

CH5IndustryMarket
7 Day-3.3%-4.4%-4.7%
30 Day2.9%-1.3%-4.0%
90 Day6.6%2.5%-1.4%
1 Year13.2%11.3%7.6%2.8%11.7%8.3%
3 Year42.9%35.7%45.2%25.6%11.4%1.6%
5 Year134.6%113.5%47.6%10.3%15.1%-0.7%

Price Volatility Vs. Market

How volatile is Chesapeake Utilities's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Chesapeake Utilities undervalued compared to its fair value and its price relative to the market?

25.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CH5 (€89) is trading above our estimate of fair value (€40.32)

Significantly Below Fair Value: CH5 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CH5 is poor value based on its PE Ratio (25.7x) compared to the Gas Utilities industry average (17.9x).

PE vs Market: CH5 is poor value based on its PE Ratio (25.7x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: CH5 is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: CH5 is overvalued based on its PB Ratio (2.9x) compared to the XE Gas Utilities industry average (1.3x).


Next Steps

Future Growth

How is Chesapeake Utilities forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CH5's forecast earnings growth (7.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: CH5's earnings (7.7% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: CH5's earnings are forecast to grow, but not significantly.

Revenue vs Market: CH5's revenue (6.9% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: CH5's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CH5's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has Chesapeake Utilities performed over the past 5 years?

12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CH5 has high quality earnings.

Growing Profit Margin: CH5's current net profit margins (8.7%) are lower than last year (12.2%).


Past Earnings Growth Analysis

Earnings Trend: CH5's earnings have grown by 12.3% per year over the past 5 years.

Accelerating Growth: CH5's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CH5 had negative earnings growth (-5.8%) over the past year, making it difficult to compare to the Gas Utilities industry average (10.6%).


Return on Equity

High ROE: CH5's Return on Equity (11.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Chesapeake Utilities's financial position?


Financial Position Analysis

Short Term Liabilities: CH5's short term assets ($114.9M) do not cover its short term liabilities ($446.2M).

Long Term Liabilities: CH5's short term assets ($114.9M) do not cover its long term liabilities ($723.3M).


Debt to Equity History and Analysis

Debt Level: CH5's debt to equity ratio (124.1%) is considered high.

Reducing Debt: CH5's debt to equity ratio has increased from 81.3% to 124.1% over the past 5 years.

Debt Coverage: CH5's debt is not well covered by operating cash flow (18.1%).

Interest Coverage: CH5's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet

Inventory Level: CH5 has a high level of physical assets or inventory.

Debt Coverage by Assets: CH5's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Chesapeake Utilities's current dividend yield, its reliability and sustainability?

1.68%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.4%markettop25%3.7%industryaverage5.1%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: CH5's dividend (1.68%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: CH5's dividend (1.68%) is low compared to the top 25% of dividend payers in the German market (3.73%).


Stability and Growth of Payments

Stable Dividend: CH5's dividends per share have been stable in the past 10 years.

Growing Dividend: CH5's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.4%), CH5's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CH5's dividends in 3 years are forecast to be well covered by earnings (46.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Jeff Householder (61yo)

1.1yrs

Tenure

US$792,774

Compensation

Mr. Jeffry M. Householder, also known as Jeff, has been President, Chief Executive Officer and Director of Chesapeake Utilities Corporation since January 1, 2019. Mr. Householder served as President of Flo ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD792.77K) is below average for companies of similar size in the German market ($USD1.62M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jeffry Householder
President1.1yrsUS$792.77k0.020% $290.0k
Beth Cooper
Executive VP11.4yrsUS$802.24k0.34% $5.0m
James Moriarty
Executive VP4.9yrsUS$912.22k0.030% $432.6k
Michael Galtman
VP & Chief Accounting Officer0.8yrsno datano data
Vikrant Gadgil
VP & Chief Information Officer0yrsno datano data
Heidi Watkins
Investor Relations Administrator0yrsno datano data
Sydney Davis
Communications Manager12.4yrsno datano data
Louis Anatrella
VP & Chief Human Resources Officer2.7yrsno datano data
Kevin Webber
Senior Vice President of Unregulated Energy Delivery & Business Development0.9yrsno data0.0013% $18.3k
Jeffrey Sylvester
Senior Vice President of Pipeline Transmission and Regulated Gas & Electric Distribution0.2yrsno datano data

1.9yrs

Average Tenure

56.5yo

Average Age

Experienced Management: CH5's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jeffry Householder
President1.1yrsUS$792.77k0.020% $290.0k
John Schimkaitis
Independent Chairman of the Board4.8yrsUS$230.00k0.70% $10.3m
Thomas Bresnan
Independent Director19.1yrsUS$174.00k0.065% $952.8k
Calvert Morgan
Independent Director20.1yrsUS$175.00k0.28% $4.1m
Paul Maddock
Independent Director10.3yrsUS$145.00k0.30% $4.4m
Dennis Hudson
Independent Director10.3yrsUS$150.00k0.083% $1.2m
Dianna Morgan
Independent Director11.4yrsUS$172.00k0.092% $1.3m
Eugene Bayard
Independent Director13.8yrsUS$145.00k0.20% $2.9m
Thomas Hill
Independent Director13.8yrsUS$145.00k0.14% $2.1m
Ronald Forsythe
Independent Director5.3yrsUS$145.00k0.011% $155.7k

10.9yrs

Average Tenure

68yo

Average Age

Experienced Board: CH5's board of directors are seasoned and experienced ( 10.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Chesapeake Utilities Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chesapeake Utilities Corporation
  • Ticker: CH5
  • Exchange: DB
  • Founded: 1859
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: US$1.579b
  • Listing Market Cap: US$1.455b
  • Shares outstanding: 16.40m
  • Website: https://www.chpk.com

Number of Employees


Location

  • Chesapeake Utilities Corporation
  • 909 Silver Lake Boulevard
  • Dover
  • Delaware
  • 19904
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPKNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
CH5DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
CPKSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1969

Biography

Chesapeake Utilities Corporation, a diversified energy company, engages in regulated and unregulated energy businesses. The company operates in two segments, Regulated Energy and Unregulated Energy. The Regulated Energy segment engages in the distribution of natural gas in Delaware, Maryland, and Florida; distribution of electricity in Florida; and transmission of natural gas on the Delmarva Peninsula and in Florida. The Unregulated Energy segment distributes propane in Delaware, Maryland, Virginia, Pennsylvania, and Florida; markets natural gas in Florida, Delaware, Maryland, Ohio, and other states; supplies, gathers, and processes unregulated natural gas in central and eastern Ohio; and generates electricity and steam. This segment also provides other unregulated energy services, such as energy-related merchandise sales; heating, ventilation, and air conditioning services; and plumbing and electrical services. It serves residential, commercial, industrial, and wholesale customers. The company was founded in 1859 and is headquartered in Dover, Delaware. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 21:49
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.