We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Add Unitil (UTL) to Your Portfolio Now
Read MoreHide Full Article
Unitil Corporation’s (UTL - Free Report) strategic investments and long-term sustainable growth should continue to drive its bottom line. Given its growth opportunities, Unitil makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a promising investment pick at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for UTL’s 2024 earnings per share (EPS) has increased 0.3% to $2.92 in the past 60 days.
The Zacks Consensus Estimate for 2024 sales is pinned at $579 million, indicating a year-over-year improvement of 3.9%.
The company delivered an average earnings surprise of 12.8% in the last four quarters.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, Unitil’s ROE is 9.32%, higher than the industry’s average of 8.67%. This indicates that the company has been utilizing its funds more constructively than its peers in the electric power utility industry.
Debt Position
Currently, Unitil’s total debt to capital is 51.23%, better than the industry’s average of 62.44%.
The time-to-interest earned ratio at the end of the fourth quarter of 2023 was 3. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
Dividend History
Unitil has been increasing shareholders’ value through dividend payments. Currently, its quarterly dividend is 42.5 cents per share, resulting in an annual dividend of $1.7 per share, up 4.9% from the previous level of $1.62. The company’s current dividend yield is 3.48%, better than the Zacks S&P 500 Composite’s 1.32%.
Systematic Investments
UTL’s long-term investment plans are aimed toward system modernization and expansion of its operations. It now expects capital investments of $910 million through 2028, 47% higher than that in the prior five years. For 2024, capital expenditure is expected to be $168 million. These investments can drive its long-term rate base growth between 6.5% and 8.5%.
Price Performance
In the past six months, shares of the company have risen 4.8% compared with the industry’s growth of 2.9%.
NI’s long-term (three to five years) earnings growth rate is 6%. The company delivered an average earnings surprise of 5.6% in the last four quarters.
PNW’s long-term earnings growth rate is 7.6%. The Zacks Consensus Estimate for Pinnacle West Capital’s 2024 EPS implies a year-over-year improvement of 7.9%.
DTE’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for DTE Energy’s 2024 EPS implies a year-over-year increase of 16.9%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why You Should Add Unitil (UTL) to Your Portfolio Now
Unitil Corporation’s (UTL - Free Report) strategic investments and long-term sustainable growth should continue to drive its bottom line. Given its growth opportunities, Unitil makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a promising investment pick at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for UTL’s 2024 earnings per share (EPS) has increased 0.3% to $2.92 in the past 60 days.
The Zacks Consensus Estimate for 2024 sales is pinned at $579 million, indicating a year-over-year improvement of 3.9%.
The company delivered an average earnings surprise of 12.8% in the last four quarters.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, Unitil’s ROE is 9.32%, higher than the industry’s average of 8.67%. This indicates that the company has been utilizing its funds more constructively than its peers in the electric power utility industry.
Debt Position
Currently, Unitil’s total debt to capital is 51.23%, better than the industry’s average of 62.44%.
The time-to-interest earned ratio at the end of the fourth quarter of 2023 was 3. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
Dividend History
Unitil has been increasing shareholders’ value through dividend payments. Currently, its quarterly dividend is 42.5 cents per share, resulting in an annual dividend of $1.7 per share, up 4.9% from the previous level of $1.62. The company’s current dividend yield is 3.48%, better than the Zacks S&P 500 Composite’s 1.32%.
Systematic Investments
UTL’s long-term investment plans are aimed toward system modernization and expansion of its operations. It now expects capital investments of $910 million through 2028, 47% higher than that in the prior five years. For 2024, capital expenditure is expected to be $168 million. These investments can drive its long-term rate base growth between 6.5% and 8.5%.
Price Performance
In the past six months, shares of the company have risen 4.8% compared with the industry’s growth of 2.9%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are NiSource (NI - Free Report) , Pinnacle West Capital Corporation (PNW - Free Report) and DTE Energy (DTE - Free Report) , each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NI’s long-term (three to five years) earnings growth rate is 6%. The company delivered an average earnings surprise of 5.6% in the last four quarters.
PNW’s long-term earnings growth rate is 7.6%. The Zacks Consensus Estimate for Pinnacle West Capital’s 2024 EPS implies a year-over-year improvement of 7.9%.
DTE’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for DTE Energy’s 2024 EPS implies a year-over-year increase of 16.9%.