Chesapeake Utilities (CPK): Valuation Spotlight After Earnings Miss and Executive Stock Sale

Chesapeake Utilities reported quarterly earnings that did not meet analyst predictions for earnings per share, while revenue surpassed expectations. On the same day, a senior executive sold company stock, drawing increased attention from investors.

See our latest analysis for Chesapeake Utilities.

Chesapeake Utilities has enjoyed some positive momentum lately, with a 7.7% share price return over the past month and a strong 12% rise in the last 90 days. While the 1-year total shareholder return stands at 7.3%, its three- and five-year total returns of 26% and 46% show that long-term investors have been rewarded, even as recent executive stock sales and earnings have added some complexity to the narrative.

If Chesapeake’s steady long-term growth and this week’s executive moves have you thinking about what else might be out there, it could be the perfect time to broaden your search and discover fast growing stocks with high insider ownership

With steady share price gains this year and a slight discount to analyst targets, investors are left to wonder if Chesapeake Utilities is undervalued, or if the market has already priced in expectations for future growth.

Most Popular Narrative: 6.2% Undervalued

With Chesapeake Utilities trading at $138.38 compared to the narrative's fair value estimate of $147.50, there is still room for upside if the market aligns with these growth-driven assumptions.

Substantial capital investment in energy infrastructure modernization (approximately $213M in the first half of 2025 and increased annual guidance to $375M to $425M) positions Chesapeake Utilities to capture growing demand and supports durable future rate base growth, directly boosting long-term revenue and earnings potential.

Read the complete narrative.

Want to know the growth blueprint behind this valuation? The driving force here is aggressive infrastructure bets and margin expansion forecasts that rival the broader market. Curious how ambitious earnings projections turn into a premium price target? Tap in to see which bold financial leap powers this narrative’s fair value call.

Result: Fair Value of $147.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained capital spending and the company’s reliance on key regional markets could limit margin growth and expose Chesapeake Utilities to unforeseen volatility.

Find out about the key risks to this Chesapeake Utilities narrative.

Another View: What Do Market Multiples Say?

Looking through a different lens, Chesapeake Utilities trades at a price-to-earnings ratio of 24.9 times, which is noticeably higher than its US peer average of 21.3 times and well above the fair ratio of 18.4 times that the market could eventually move toward. This premium suggests investors may be pricing in optimism for future growth, but it also raises real questions about valuation risk if growth does not accelerate as expected. Is the stock more expensive than it first appears?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Chesapeake Utilities Narrative

If you want to take a different approach or would rather run the numbers your own way, you can build a custom narrative in just a few minutes. Do it your way

A great starting point for your Chesapeake Utilities research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

Looking for More Investment Ideas?

Don’t wait until tomorrow to grab standout opportunities. Today, you can target stocks making waves in rapidly evolving sectors, all using the Simply Wall Street Screener.

• Capitalize on hidden gems and up-and-comers by checking out these 3579 penny stocks with strong financials poised for surprising growth potential.
• Boost your portfolio's income stream and stability by reviewing these 15 dividend stocks with yields > 3% offering attractive yields above 3%.
• Seize progress in revolutionary healthcare innovation when you review these 30 healthcare AI stocks transforming the future of medicine and patient care.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com