NYSE:UTL

Stock Analysis Report

Executive Summary

Unitil Corporation, a public utility holding company, engages in the distribution of electricity and natural gas in the United States.

Snowflake

Fundamentals

Established dividend payer with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.3%

UTL

-1.2%

US Integrated Utilities

0.6%

US Market


1 Year Return

29.8%

UTL

19.9%

US Integrated Utilities

6.2%

US Market

Return vs Industry: UTL exceeded the US Integrated Utilities industry which returned 19.9% over the past year.

Return vs Market: UTL exceeded the US Market which returned 6.2% over the past year.


Share holder returns

UTLIndustryMarket
7 Day-2.3%-1.2%0.6%
30 Day3.8%1.7%-1.8%
90 Day6.1%4.3%-2.0%
1 Year33.4%29.8%24.1%19.9%8.6%6.2%
3 Year80.7%65.3%47.5%32.7%45.7%36.3%
5 Year120.8%87.2%78.2%43.1%68.5%50.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Unitil undervalued based on future cash flows and its price relative to the stock market?

21.09x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: UTL ($62.85) is trading above our estimate of fair value ($31.79)

Significantly Undervalued: UTL is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: UTL is good value based on its PE Ratio (21.1x) compared to the Integrated Utilities industry average (21.7x).

PE vs Market: UTL is poor value based on its PE Ratio (21.1x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: UTL is poor value based on its PEG Ratio (6.9x)


Price Based on Value of Assets

PB vs Industry: UTL is overvalued based on its PB Ratio (2.5x) compared to the US Integrated Utilities industry average (2.2x).


Next Steps

Future Growth

How is Unitil expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: UTL's forecast earnings growth (3% per year) is above the savings rate (2.7%).

Earnings vs Market: UTL's earnings (3% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: UTL's revenue (6.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: UTL's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: UTL's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has Unitil performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: UTL's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: UTL's earnings growth over the past year (35.5%) exceeds its 5-year average (10.4% per year).

Earnings vs Industry: UTL earnings growth over the past year (35.5%) exceeded the Integrated Utilities industry -11.4%.


Return on Equity

High ROE: UTL's Return on Equity (11.9%) is considered low.


Return on Assets

ROA vs Industry: UTL has a higher Return on Assets than the Integrated Utilities industry average last year.


Return on Capital Employed

ROCE Improving: UTL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Unitil's financial position?


Financial Position Analysis

Short Term Liabilities: UTL's short term assets ($107.4M) do not cover its short term liabilities ($156.0M)

Long Term Liabilities: UTL's short term assets ($107.4M) do not cover its long term liabilities ($750.3M)


Debt to Equity History and Analysis

Debt Level: UTL's debt to equity ratio (122.6%) is considered high

Reducing Debt: UTL's debt to equity ratio has increased from 119% to 122.6% over the past 5 years.

Debt Coverage: UTL's debt is not well covered by operating cash flow (19.1%).

Interest Coverage: UTL's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet

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

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


Next Steps

Dividend

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

2.41%

Expected Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.5%markettop25%3.8%industryaverage2.7%forecastin3Years2.4%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: UTL's dividend (2.35%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: UTL's dividend (2.35%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.5%), UTL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UTL's dividends in 3 years are forecast to be covered by earnings (58.4% payout ratio).


Next Steps

Management

What is the CEO of Unitil's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Tom Meissner (57yo)

1.5yrs

Tenure

US$2,441,144

Compensation

Mr. Thomas P. Meissner, Jr., also known as Tom, has been Chairman, President and Chief Executive Officer of Unitil Corp. since April 25, 2018. Mr. Meissner also served as its Senior Vice President of Opera ...


CEO Compensation Analysis

Compensation vs. Market: Tom has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Tom's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.5yrs

Average Tenure

56.5yo

Average Age

Experienced Management: UTL's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

17.8yrs

Average Tenure

69yo

Average Age

Experienced Board: UTL's board of directors are seasoned and experienced ( 17.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$28,52721 May 19
Todd Black
EntityIndividual
Role
Senior Key Executive
Senior Vice President
Shares500
Max PriceUS$57.09

Ownership Breakdown


Management Team

  • Tom Meissner (57yo)

    Chairman

    • Tenure: 1.5yrs
    • Compensation: US$2.44m
  • Sandra Whitney (56yo)

    Corporate Secretary & Secretary of the Board

    • Tenure: 16.7yrs
  • George Long (62yo)

    Vice President of Administration - Unitil Service

    • Tenure: 16.7yrs
    • Compensation: US$728.26k
  • Laurence Brock (65yo)

    Controller & Chief Accounting Officer

    • Tenure: 0yrs
    • Compensation: US$432.98k
  • Todd Black (55yo)

    Senior Vice President

    • Tenure: 1.5yrs
    • Compensation: US$585.86k
  • Christine Vaughan (52yo)

    Senior VP

    • Tenure: 0.6yrs
  • Todd Diggins

    Investor Relations Officer

    • Tenure: 0yrs

Board Members

  • Eben Moulton (72yo)

    Director

    • Tenure: 19.6yrs
    • Compensation: US$133.39k
  • Mark Collin (60yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: US$1.03m
  • Chip Elfner (74yo)

    Director

    • Tenure: 20.8yrs
    • Compensation: US$160.54k
  • M. O’Shaughnessy (76yo)

    Director

    • Tenure: 21.1yrs
    • Compensation: US$133.39k
  • David Brownell (75yo)

    Director

    • Tenure: 18.3yrs
    • Compensation: US$138.39k
  • Michael Green (69yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$139.64k
  • Edward Godfrey (69yo)

    Director

    • Tenure: 17.8yrs
    • Compensation: US$135.39k
  • Dave Whiteley (62yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$135.39k
  • Tom Meissner (57yo)

    Chairman

    • Tenure: 1.5yrs
    • Compensation: US$2.44m
  • Lisa Crutchfield (55yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$139.14k

Company Information

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


Key Information

  • Name: Unitil Corporation
  • Ticker: UTL
  • Exchange: NYSE
  • Founded: 1984
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: US$937.815m
  • Shares outstanding: 14.92m
  • Website: https://unitil.com

Number of Employees


Location

  • Unitil Corporation
  • 6 Liberty Lane West
  • Hampton
  • New Hampshire
  • 3842
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UTLNYSE (New York Stock Exchange)YesCommon SharesUSUSDMar 1985

Biography

Unitil Corporation, a public utility holding company, engages in the distribution of electricity and natural gas in the United States. It operates through three segments: Utility Gas Operations, Utility El ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 00:32
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

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