MeritValue

CHESAPEAKE UTILITIES CORP

CPKdata completeness 100%17 fiscal years on file
The thesis, from the filings

CHESAPEAKE UTILITIES CORP earns about 4% on invested capital, but has diluted owners by 33% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $39.62 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$570M1$680.7M2$670.6M3$787.2M3$930M3
Net income$83.5M4$89.8M5$87.2M6$118.6M6$140.3M6
Operating cash flow$150.5M7$158.9M8$203.5M9$239.4M9$233.7M9
Capital expenditure$186.9M10$128.3M11$188.6M12$355.3M12$448.6M12
Free cash flow (derived)−$36.4M7$30.6M8$14.9M9−$115.9M9−$214.9M9
Total debt$1.36B13$1.4B14$2.59B15$2.78B16$3.12B16
Cash & equivalents$4.98M17$6.2M18$4.9M19$7.9M20$1.8M20
Diluted shares17.6M17.8M18.4M22.5M23.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$680.56
your share of equity
Profit it earned you last year
$59.73
Free cash flow it threw off
−$91.49
Debt you’d be carrying
$1,328.21

10 shares is a claim on $680.56 of net worth that earned you $59.73 and generated −$91.49 of cash last year, against $1,328.21 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
4% avg · 5y
FY21 5%FY22 5%FY23 3%FY24 4%FY25 4%

It earned an average 4% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+33% shares · 5y

Share count is up 33% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 130% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$39.62
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$89.8M
  • growthAssumed0.0%
Graham Number
$95.61
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001628280-24-005944 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001628280-25-008213 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001628280-26-011753 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001628280-24-005944 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001628280-25-008213 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001628280-26-011753 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001628280-24-005944 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001628280-25-008213 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001628280-26-011753 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001628280-24-005944 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001628280-25-008213 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001628280-26-011753 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001628280-23-004607 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0001628280-24-005944 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0001628280-25-008213 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0001628280-26-011753 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0001628280-23-004607 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001628280-24-005944 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001628280-25-008213 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001628280-26-011753 (CashAndCashEquivalentsAtCarryingValue)