Chesapeake Utilities Corporation (CPK) AI Stock Analysis
CPK AI stock analysis summary
AI ResearchChesapeake Utilities Corporation (CPK) is a diversified energy delivery utility operating across regulated and unregulated natural gas, propane, and electricity services. Revenue reached $993.5M over the trailing twelve months with a net profit margin of 15.1%. While earnings continue to expand, high capital expenditures of $448.6M in FY2025 resulted in negative free cash flow of -$214.9M and net debt of $1.69B.
- Market cap
- $3.34B
- Revenue (TTM)
- $993.5M
- P/E
- 21.1x fwd 17.9x
- 1Y return
- 1.6% S&P 500 16.8%
- Avg. target
- $147.58 11.7% vs last close
Bull case
- Revenue achieved a 5-year CAGR of 13.8% through FY2025, supported by continued regulated utility expansion.
- The company maintains a 43-year track record of continuous dividend payments paired with a 9.3% 5-year annualized dividend growth rate.
- Trailing twelve-month operating margin of 26.2% exceeds the US-listed Utilities peer median of 22.6%.
Bear case
- Heavy capital expenditures of $448.6M in FY2025 resulted in negative free cash flow of -$214.9M.
- Liquidity is constrained with cash of $400,000, total debt of $1.69B, and a current ratio of 0.32 as of June 30, 2026.
- Shareholder dilution has been substantial, with share count increasing 36.6% over 5 years following $123.0M in FY2025 share issuance.
What Chesapeake Utilities does
Chesapeake Utilities Corporation operates as a diversified energy delivery company through regulated and unregulated segments. Its Regulated Energy segment distributes natural gas in central and southern Delaware, Maryland's eastern shore, and Florida, along with regulated gas transmission and electric distribution services. The Unregulated Energy segment conducts propane operations in the Mid-Atlantic and Southeast, and manages gas transmission in Ohio. It also generates electricity and steam, transports compressed and renewable natural gas, and offers energy-related merchandise, HVAC, plumbing, and electrical services.
Growth and profitability
Between FY2021 and FY2025, Chesapeake Utilities increased revenue from $570.0M to $930.0M, generating a 5-year revenue CAGR of 13.8%. Net income expanded from $83.5M in FY2021 to $140.3M in FY2025, with net margin improving from 14.6% to 15.1%. In FY2025, revenue grew 18.1% and operating margin stood at 27.7%. Over the trailing twelve months, revenue totaled $993.5M with an operating margin of 26.2% and EPS of $6.27. In the latest quarter ended June 30, 2026, quarterly revenue grew 4.7% year-over-year while quarterly earnings rose 2.9%.
Balance sheet and cash flow
As of June 30, 2026, Chesapeake Utilities held $400,000 in cash and short-term investments against total debt of $1.69B, resulting in net debt of $1.69B and a debt-to-equity ratio of 1.01. The current ratio was 0.32 against total assets of $4.17B. In FY2025, operating cash flow was $233.7M, but capital expenditures of $448.6M produced free cash flow of -$214.9M. The company funded needs in part through $123.0M in share issuance, contributing to a 36.6% increase in share count over 5 years, while paying $60.7M in dividends.
Valuation and performance
At $132.18, Chesapeake Utilities carries a market capitalization of $3.34B and an enterprise value of $4.82B. The stock trades at a trailing P/E of 21.1x and a forward P/E of 17.9x, compared to medians of 20.6x and 17.2x for its US-listed Utilities peers. Its price-to-sales multiple of 3.4x is above the peer median of 2.4x, while EV/EBITDA is 12.4x versus 12.1x for peers. Over the past year, CPK returned 1.6% and over 5 years returned 14.7%, trailing the S&P 500 (SPY) gains of 16.8% and 83.0%, respectively.
CPK dividend
Chesapeake Utilities pays a quarterly dividend with a forward annualized rate of $2.94, representing a 2.22% dividend yield at the last close. The payout ratio stands at 45.2%. The company has paid dividends for 43 consecutive years and achieved a 5-year annualized dividend growth rate of 9.3%. The last ex-dividend date occurred on September 14, 2026.
What analysts expect
Wall Street coverage consists of 3 Strong Buy, 1 Buy, and 3 Hold ratings, with 0 Sell or Strong Sell recommendations. The mean price target of $147.58 implies an upside of 11.7% from the last close of $132.18. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.03B and EPS of $6.43, representing 7.0% earnings growth. Over the last four quarters, the company beat EPS estimates 1 time. The next earnings date is November 5, 2026.
Key risks and what to watch
- Net debt of $1.69B and a debt-to-equity ratio of 1.01 leave the balance sheet vulnerable to financing costs.
- Free cash flow has been negative in three of the last five years, including -$115.9M in FY2024 and -$214.9M in FY2025.
- The company missed EPS estimates in 3 of the last 4 quarters, beating consensus only 1 time.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this CPK AI stock analysis
This page is an AI-written research summary of Chesapeake Utilities Corporation (CPK). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: CPK income statement, CPK balance sheet, CPK key metrics, CPK analyst forecast, CPK chart. See the CPK stock overview for the latest quote and news.
CPK AI stock analysis FAQ
What is Chesapeake Utilities' dividend yield and payout history?
Chesapeake Utilities offers a forward dividend yield of 2.22% with an annual payout of $2.94. The company has paid dividends for 43 consecutive years and holds a payout ratio of 45.2%.
How does CPK's valuation compare to utility peers?
CPK trades at a trailing P/E of 21.1x and forward P/E of 17.9x, slightly above the median of its US-listed Utilities peers at 20.6x and 17.2x. Its price-to-sales of 3.4x is also higher than the peer median of 2.4x.
What are analysts forecasting for Chesapeake Utilities' earnings?
Analysts expect EPS of $6.43 on revenue of $1.03B for FY2026, followed by EPS of $7.36 on revenue of $1.08B in FY2027.
When does Chesapeake Utilities report its next earnings?
Chesapeake Utilities is scheduled to report its next earnings on November 5, 2026.