Chesapeake Utilities Corporation Common Stock (CPK)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses bought at sensible prices. Chesapeake is a regulated utility with a modest unregulated arm, serving gas and electric customers across Delaware, Maryland, Florida and nearby markets. Its latest filed results show growth: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $201.9M and net income $25.4M, or $1.05 per diluted share. For fiscal year 2025, the year ended 2025-12-31, revenue was $930.0M, net income $140.3M, and diluted EPS $5.97, up from fiscal year 2024, the year ended 2024-12-31, revenue $787.2M, net income $118.6M, and EPS $5.26. That is a steady regulated gas-utility profile. The Lynch screen calls it a stalwart, with five-year profit growth of 14.4% and revenue growth of 13.8%. A beta of 0.68 and 2.24% dividend yield fit the low-volatility profile. But financial quality is mixed. FairStock calculations put ROE at 9.47% and ROCE at 4.29%, while debt-to-equity is 1.01; FairStock Altman Z is 0.95 and Piotroski is 5/9, suggesting a balance sheet and cash flow that need watching. The overall FairStock Score is 58/100. Trailing free cash flow is -$193.5M, a FCF yield of -6.2%, because capital spending is heavy. The moat is regulatory: protected service territories with limited competition, but returns are capped by regulators. Valuation is not generous: at the 2026-10-13 close of $129.76, FairStock P/E is 20.76, P/B 1.87, PEG 1.26, and EV/EBITDA 12.42. The FairStock Graham Number is $98.80, leaving a -31.34% margin of safety, meaning price is above that conservative asset-earnings benchmark. This is a decent, growing regulated utility, but not a bargain; returns depend on rate-base investment earning an adequate return without stretching the balance sheet further.

In plain English: Chesapeake Utilities delivers natural gas and electricity to homes and businesses in parts of Delaware, Maryland, Florida and nearby areas. Sales and profits have grown, and the dividend is modest, but the company currently spends more cash on its systems than it brings in. At the recent price, the shares look closer to full or slightly expensive compared with the company's earnings and accounting value, not clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer