Analysts Recommend ‘Hold’ Rating for Chesapeake Utilities Co.

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Analysts have recently given Chesapeake Utilities ($NYSE:CPK) Co. a consensus recommendation of “Hold”, suggesting that investors should maintain their current positions in the company. Chesapeake Utilities Co. is a leading energy provider headquartered in Dover, Delaware. They provide natural gas, electricity, propane, and other related energy services to residential, commercial, industrial, and public authority customers mainly in Delaware, Maryland, Pennsylvania, and Florida. The company also owns and operates several subsidiaries, including Chesapeake Utilities Corporation and Eastern Shore Natural Gas Company. Chesapeake Utilities Co. has a strong financial performance and a solid dividend history. They have reported consistent growth in revenue year-on-year and their balance sheet remains strong. They have a long track record of paying dividends and have increased their dividend payments for the past four consecutive years.

Additionally, they have a moderate debt burden, which has enabled them to remain financially stable. Despite the company’s promising fundamentals, analysts have issued a “Hold” rating for their stock. This suggests that investors should stick to their existing positions in the company and wait for better entry points before making new investments. While the “Hold” rating may be an indication of short term market volatility, the company’s long term prospects remain promising.

Stock Price

Analysts have given CHESAPEAKE UTILITIES Co. a ‘hold’ rating, after the stock opened at $106.7 on Wednesday and closed at $106.1, down by 0.5% from the previous closing price of 106.6. Investors do not seem to be too optimistic about the company’s performance, given its downward trend over the past few days. The analysts recommend taking a wait-and-see approach, until the company’s potential can be better evaluated. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Chesapeake Utilities. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Chesapeake Utilities. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Chesapeake Utilities. More…

Key Ratios Snapshot

Some of the financial key ratios for Chesapeake Utilities are shown below. More…

Analysis

At GoodWhale, we provide a thorough financial analysis of CHESAPEAKE UTILITIES‘ performance to aid investors in making decisions. Our Star Chart reveals that CHESAPEAKE UTILITIES is strong in asset, dividend, profitability, and medium in growth. Furthermore, the company has an intermediate health score of 4/10 with regard to its cashflows and debt, indicating that it might be able to safely ride out any crisis without the risk of bankruptcy. We classify CHESAPEAKE UTILITIES as ‘Rhino’, which means that the company has achieved moderate revenue or earnings growth. Investors who are looking for stable, long-term growth may be interested in investing in CHESAPEAKE UTILITIES’ stocks. As the company is strong in asset and dividend, investors looking for a steady return can find a good value in its dividend yield. Additionally, the moderate growth of CHESAPEAKE UTILITIES may still offer an opportunity for investors looking for a future earnings potential. More…

Peers

The competition between Chesapeake Utilities Corp and its competitors is fierce. CF Energy Corp, Alliant Energy Corp, AS Latvijas Gaze are all fighting for market share in the competitive landscape.

– CF Energy Corp ($TSXV:CFY)

Calgary-based Cenovus Energy Inc. is a Canadian integrated oil and gas company. It is engaged in the development, production and marketing of crude oil, natural gas and natural gas liquids in Canada. Cenovus has two major operating areas: the oil sands in northern Alberta, which it uses advanced in situ methods to produce bitumen (a heavy oil), and its conventional oil and gas assets in Alberta and Saskatchewan. The company also has a 50% interest in two U.S. refineries.

– Alliant Energy Corp ($NASDAQ:LNT)

Alliant Energy Corporation is a public utility holding company that owns two electric and natural gas utilities, serving more than one million customers in Iowa and Wisconsin. Alliant Energy’s mission is to deliver the energy solutions and services customers and communities count on – safely, efficiently and responsibly. The company’s ROE is 10.06%.

– AS Latvijas Gaze ($LTS:0J4R)

Latvijas Gaze is a Latvian natural gas utility company. It is the largest Latvian gas supplier, with a market share of around 70%. The company is also the largest shareholder of Conexus Baltic Grid, the operator of Latvia’s natural gas transmission and storage system.

Latvijas Gaze has a market capitalization of 319.2 million as of 2022. The company’s return on equity was 12.15% as of the same year.

Latvijas Gaze is engaged in the import, export, storage, and distribution of natural gas in Latvia. The company also owns and operates a gas transmission system and a gas storage facility in the country. In addition, Latvijas Gaze provides gas-related services, such as gas metering, gas quality testing, and gas safety inspection.

Summary

Analysts are recommending a “Hold” rating for Chesapeake Utilities Co. Investors are advised to stay on the sidelines and not make any drastic moves or new investments. Analysts have noted the company’s above-average dividend payout, solid financial position and growth opportunities. However, analysts have also highlighted that the company’s stock has underperformed the overall market in the past year. They suggest exercising caution when considering any new investments in the stock, as they view it as a relatively low-risk, value-based play at the moment.