📊 CPK Key Takeaways
Is Chesapeake Utilities Corp. (CPK) a Good Investment?
Chesapeake Utilities demonstrates solid profitability with 15.1% net margins and strong operating income, but faces significant headwinds from negative free cash flow of -$214.9M and capital intensity (CapEx at 48% of revenue). The company's utility business model provides stable revenues, though growth is minimal and leverage at 0.94x debt-to-equity warrants monitoring given the capital requirements.
Chesapeake Utilities shows solid underlying profitability, with strong operating margins and double-digit growth in net income and diluted EPS, which points to a healthy regulated utility earnings base. However, growth quality is constrained by very weak free cash flow, heavy capital spending, thin liquidity, and only moderate interest coverage, making the business fundamentally stable but balance-sheet-sensitive.
Why Buy Chesapeake Utilities Corp. Stock? CPK Key Strengths
- Strong net margin of 15.1% with 18.3% YoY net income growth
- Solid operating margin of 27.5% indicating operational efficiency
- Manageable leverage with 0.94x debt-to-equity ratio
- Robust operating cash flow of $233.7M supporting capital investments
- Interest coverage ratio of 3.5x provides adequate debt service capacity
- Operating margin of 27.5% and net margin of 15.1% indicate strong core profitability for a utility
- Net income grew 18.3% YoY and diluted EPS rose 13.5% YoY, showing continued earnings expansion
- Debt-to-equity of 0.94x is elevated but still manageable relative to the company's equity base and utility business model
CPK Stock Risks: Chesapeake Utilities Corp. Investment Risks
- Significant negative free cash flow of -$214.9M indicating capital intensity exceeds cash generation
- Very low liquidity with 0.45x current ratio creating potential refinancing risks
- Minimal revenue growth (0.0% YoY) limiting organic expansion potential
- High capital expenditure needs ($448.6M) may constrain flexibility and returns
- Modest ROE of 8.8% and ROA of 3.5% suggest suboptimal asset utilization
- Free cash flow of -$214.9M shows the company is not self-funding its capital program
- Current and quick ratios of 0.45x indicate weak near-term liquidity
- Interest coverage of 3.5x suggests limited cushion if borrowing costs stay high or earnings soften
Key Metrics to Watch
- Free cash flow trajectory and ability to self-fund capital programs
- Current ratio trend and liquidity position amid capital-intensive operations
- Revenue growth acceleration and organic expansion rates
- Operating cash flow sustainability relative to dividend and debt obligations
- Return on equity improvement and capital efficiency metrics
- Free cash flow and capital expenditure intensity
- Interest coverage and short-term liquidity ratios
Chesapeake Utilities Corp. (CPK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
CPK Profit Margin, ROE & Profitability Analysis
CPK vs Energy Sector: How Chesapeake Utilities Corp. Compares
How Chesapeake Utilities Corp. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Chesapeake Utilities Corp. Stock Overvalued? CPK Valuation Analysis 2026
Based on fundamental analysis, Chesapeake Utilities Corp. has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Chesapeake Utilities Corp. Balance Sheet: CPK Debt, Cash & Liquidity
CPK Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Chesapeake Utilities Corp.'s revenue has grown significantly by 63% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.73 reflects profitable operations.
CPK Revenue Growth, EPS Growth & YoY Performance
CPK Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $160.2M | $17.5M | $0.78 |
| Q2 2025 | $166.3M | $18.2M | $0.82 |
| Q1 2025 | $245.7M | $46.2M | $2.07 |
| Q3 2024 | $131.5M | $9.4M | $0.53 |
| Q2 2024 | $135.6M | $16.1M | $0.82 |
| Q1 2024 | $218.1M | $36.3M | $2.04 |
| Q3 2023 | $131.1M | $9.4M | $0.53 |
| Q2 2023 | $135.6M | $16.1M | $0.90 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Chesapeake Utilities Corp. Dividends, Buybacks & Capital Allocation
CPK SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Chesapeake Utilities Corp. (CIK: 0000019745)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CPK
What is the AI rating for CPK?
Chesapeake Utilities Corp. (CPK) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CPK's key strengths?
Claude: Strong net margin of 15.1% with 18.3% YoY net income growth. Solid operating margin of 27.5% indicating operational efficiency. ChatGPT: Operating margin of 27.5% and net margin of 15.1% indicate strong core profitability for a utility. Net income grew 18.3% YoY and diluted EPS rose 13.5% YoY, showing continued earnings expansion.
What are the risks of investing in CPK?
Claude: Significant negative free cash flow of -$214.9M indicating capital intensity exceeds cash generation. Very low liquidity with 0.45x current ratio creating potential refinancing risks. ChatGPT: Free cash flow of -$214.9M shows the company is not self-funding its capital program. Current and quick ratios of 0.45x indicate weak near-term liquidity.
What is CPK's revenue and growth?
Chesapeake Utilities Corp. reported revenue of $930.0M.
Does CPK pay dividends?
Chesapeake Utilities Corp. pays dividends, with $60.7M distributed to shareholders in the trailing twelve months.
Where can I find CPK SEC filings?
Official SEC filings for Chesapeake Utilities Corp. (CIK: 0000019745) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CPK's EPS?
Chesapeake Utilities Corp. has a diluted EPS of $5.97.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CPK a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Chesapeake Utilities Corp. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CPK stock overvalued or undervalued?
Valuation metrics for CPK: ROE of 8.8% (sector avg: 14%), net margin of 15.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy CPK stock in 2026?
Our dual AI analysis gives Chesapeake Utilities Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CPK's free cash flow?
Chesapeake Utilities Corp.'s operating cash flow is $233.7M, with capital expenditures of $448.6M. FCF margin is -23.1%.
How does CPK compare to other Energy stocks?
Vs Energy sector averages: Net margin 15.1% (avg: 12%), ROE 8.8% (avg: 14%), current ratio 0.45 (avg: 1.3).