OTCPK:CPKF

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Chesapeake Financial Shares

Executive Summary

Chesapeake Financial Shares, Inc. operates as the bank holding company for Chesapeake Bank that provides various banking products and services for corporate and individual clients in Virginia.


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.4%

CPKF

2.3%

US Banks

1.5%

US Market


1 Year Return

-16.5%

CPKF

-26.8%

US Banks

6.9%

US Market

Return vs Industry: CPKF exceeded the US Banks industry which returned -26.2% over the past year.

Return vs Market: CPKF underperformed the US Market which returned 5.3% over the past year.


Shareholder returns

CPKFIndustryMarket
7 Day0.4%2.3%1.5%
30 Day-2.8%-5.6%5.9%
90 Day1.8%6.8%17.9%
1 Year-14.6%-16.5%-24.2%-26.8%9.2%6.9%
3 Year-14.3%-19.5%-15.8%-22.6%36.4%27.5%
5 Year44.5%29.4%5.9%-7.0%64.9%47.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CPKF ($18.33) is trading below our estimate of fair value ($37.67)

Significantly Below Fair Value: CPKF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CPKF is good value based on its PE Ratio (7.7x) compared to the US Banks industry average (9.2x).

PE vs Market: CPKF is good value based on its PE Ratio (7.7x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: CPKF is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: CPKF's PB Ratio (0.9x) is in line with the US Banks industry average.


Next Steps

Future Growth

How is Chesapeake Financial Shares forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPKF's forecast earnings growth (3.3% per year) is above the savings rate (2.2%).

Earnings vs Market: CPKF's earnings (3.3% per year) are forecast to grow slower than the US market (22.5% per year).

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

Revenue vs Market: CPKF's revenue (2.8% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: CPKF's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CPKF's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Chesapeake Financial Shares performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPKF has high quality earnings.

Growing Profit Margin: CPKF's current net profit margins (23.1%) are lower than last year (23.8%).


Past Earnings Growth Analysis

Earnings Trend: CPKF's earnings have grown by 11.5% per year over the past 5 years.

Accelerating Growth: CPKF's earnings growth over the past year (8.4%) is below its 5-year average (11.5% per year).

Earnings vs Industry: CPKF earnings growth over the past year (8.4%) exceeded the Banks industry 1.7%.


Return on Equity

High ROE: CPKF's Return on Equity (11.2%) is considered low.


Next Steps

Financial Health

How is Chesapeake Financial Shares's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: CPKF's Assets to Equity ratio (9.1x) is low.

Allowance for Bad Loans: CPKF has a sufficient allowance for bad loans (125%).

Low Risk Liabilities: 99% of CPKF's liabilities are made up of primarily low risk sources of funding.

Loan Level: CPKF has an appropriate level of Loans to Assets ratio (56%).

Low Risk Deposits: CPKF's Loans to Deposits ratio (64%) is appropriate.

Level of Bad Loans: CPKF has an appropriate level of bad loans (0.8%).


Next Steps

Dividend

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

2.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CPKF's dividend (2.73%) is higher than the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: CPKF's dividend (2.73%) is low compared to the top 25% of dividend payers in the US market (4.59%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.6%), CPKF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

14.5yrs

Average board tenure


CEO

Jeff Szyperski (59yo)

30yrs

Tenure

US$224,823

Compensation

Mr. Jeffrey M. Szyperski, also known as Jeff, is Chairman and President of Chesapeake Financial Shares and Chesapeake Bank. Mr. Szyperski is Chief Executive Officer of Chesapeake Financial Shares, Inc. sin ...


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Szyperski
Chairman30yrsUS$224.82k4.08% $3.6m
Craig Kelly
Director7.5yrsno data0.25% $226.6k
Douglas Monroe
Vice Chairman of the Boardno dataUS$394.06k23.45% $20.9m
Eugene Hudnall
Director Emeritusno datano datano data
Bruce Robertson
Director21.5yrsno data0.59% $526.8k
William Shumadine
Director23.5yrsno data1.07% $952.1k
John Hunt
Director5.5yrsUS$134.61k2.85% $2.5m
Thomas Tingle
Director13.25yrsno data0.67% $593.3k
Robert Singley
Director16.5yrsno data0.40% $357.4k
Thomas Kellum
Director14.5yrsno data0.22% $194.0k
David Bush
Director of Chesapeake Bank17.5yrsno datano data
R. Altaffer
Director2.25yrsno data0.037% $33.2k

14.5yrs

Average Tenure

71yo

Average Age

Experienced Board: CPKF's board of directors are seasoned and experienced ( 14.5 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Chesapeake Financial Shares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chesapeake Financial Shares, Inc.
  • Ticker: CPKF
  • Exchange: OTCPK
  • Founded: 1900
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$89.078m
  • Shares outstanding: 4.86m
  • Website: https://www.chesapeakefinancialshares.com

Number of Employees


Location

  • Chesapeake Financial Shares, Inc.
  • 97 North Main Street
  • PO Box 1419
  • Kilmarnock
  • Virginia
  • 22482
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPKFOTCPK (Pink Sheets LLC)YesCommon Stock VotingUSUSDSep 1995

Biography

Chesapeake Financial Shares, Inc. operates as the bank holding company for Chesapeake Bank that provides various banking products and services for corporate and individual clients in Virginia. It operates through Commercial, Commercial – Real Estate, Consumer – Non Real Estate, and Residential – Real Estate segments. The company accepts interest and noninterest checking, savings, and money market accounts, as well as certificates of deposit. It also offers mortgage loans, single-family residential and residential construction loans, lines of credit, and consumer loans; and commercial loans, including owner-occupied commercial development, retail, builders/contractors, medical, service and professional, hospitality, nonprofits, marine industry, and agricultural and seafood loans. In addition, the company provides merchant processing services, accounts receivable financing, wealth management and trust, and cash management services. It operates through 15 branches, including 4 in Northern Neck, 3 in Middle Peninsula, 5 in Williamsburg, and 3 in Richmond. The company was founded in 1900 and is based in Kilmarnock, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 00:10
End of Day Share Price2020/07/13 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.