Unitil Corporation: Adding Customers But Not Profits
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Crimson And Gold Research194 FollowersFollow5ShareSavePlay(11min)CommentsSummaryUnitil Corporation is rated Hold, balancing below-sector valuation and potential EPS growth against lackluster performance and geographic headwinds.UTL projects 8–10% total shareholder return driven by recent gas and water utility acquisitions and 5–7% annual EPS and dividend growth targets.Recent acquisitions have the potential to add over 15,000 gas and roughly 23,000 water customers, but integration risks and regulatory uncertainties remain material.UTL's service areas face economic contraction, and recent share issuance diluted shareholders by 10% to support capital needs and de-risk the balance sheet. Luis Alvarez/DigitalVision via Getty Images As a utility stock investor, Unitil Corporation (UTL) is a company that I have followed for some time. The decade of the 2010s was a good time to be a UTL shareholder, as the stockThis article was written byCrimson And Gold Research194 FollowersFollowI have been involved in the financial world for over 20 years with experience as an advisor, teacher, and writer. I am a full believer in the free-market system and that financial markets are efficient with most stocks reflecting their real current value. The best opportunities for profits on individual stocks come from stocks that are less-widely followed by the average investor or from stocks that may not accurately reflect the opportunities that currently exist in their markets.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You