Investment Thesis
Unitil Corp exhibits deteriorated financial health with critically low interest coverage (1.3x), weak liquidity (0.57x current ratio), and zero revenue growth, leaving minimal cushion for debt service and operational stress. Poor capital returns (5.2% ROE, 1.5% ROA) and high leverage (1.05x D/E) compound concerns about the company's ability to fund operations and service obligations.
Strengths
- Stable operating margin of 25.8% reflects regulated utility economics with predictable cash flows
- Positive free cash flow generation of $17.7M demonstrates ongoing operational performance
- Net margin of 15.3% maintains reasonable profitability on revenue base
Risks
- Interest coverage ratio of 1.3x is critically low with virtually no margin for operational decline or rate pressures
- Current ratio of 0.57x signals severe liquidity constraints and potential working capital stress
- Stagnant revenue growth (0.0% YoY) and minimal earnings growth (0.6% YoY) with no identified growth catalysts
Key Metrics to Watch
- Interest coverage ratio stability and debt service capacity
- Working capital management and liquidity improvement trajectory
- Revenue growth inflection and regulatory rate case approval outcomes
Financial Metrics
Revenue
216.9M
Net Income
33.2M
EPS (Diluted)
$1.85
Free Cash Flow
17.7M
Total Assets
2.2B
Cash
16.9M
Profitability Ratios
Gross Margin
N/A
Operating Margin
25.8%
Net Margin
15.3%
ROE
5.2%
ROA
1.5%
FCF Margin
8.2%
Balance Sheet & Liquidity
Current Ratio
0.57x
Quick Ratio
0.57x
Debt/Equity
1.05x
Debt/Assets
0.0%
Interest Coverage
1.28x
Long-term Debt
669.3M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-06T21:10:21.727131 |
Data as of: 2026-03-31 |
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