CH Energy Group, Inc. provides three different services in the northeast region of the United States: electric, natural gas, and fuel distribution.
Investment Impacts (help)
USA Country Analysis ► (edit / improve) The United States (US) has a highly productive, capitalist economy and is the largest and most diverse market in the world. Currency: the US dollar (USD) has the potential to increase in value especially versus the Australian and Canadian dollar because of the significant potential of undervalued companies. Investor Survey: the economic environment is very favorable for long term economic growth due to high scores on economic freedom and economic diversity. Trade: China, Japan, Mexico, and Canada are the top US trading partners, while the leading export and import are electrical machinery and vehicles, respectively. Commodity: The US produces a significant amount of coal and wheat for use at home and as an export. However, the US consumes a larger amount of oil, which contributes to their trade deficit. SWOT Analysis: The leading US strength is its entrepreneurial culture, while the main weakness is high health care cost. Energy independence has the opportunity to propel growth, while the major threat is the housing crisis, which will lower growth. Trading Strategy: An undervalued currency, high investment flow potential and favorable business environment lead to a positive outlook for US investments, which will also benefit from positive international actions.
Commodity Investment Impact
Natural Gas Commodity Analysis ► (edit / improve) Natural gas is a significant fuel source used to produce electricity in the world. It primarily consists of methane gas. Commodity: Natural is rated a hold. Natural gas demanders have a high potential to increase in value, while natural gas suppliers also have high potential in increase in value. Investor Survey: Natural gas’s long term growth potential is favorable due to high scores on difficulty to expand in the short term and sensitivity to price changes. SWOT Analysis: Strength: Natural gas is a cheap fuel source, especially in the US; Weakness: natural gas produces considerable pollution. Opportunity to grow: natural gas could produce hydrogen fuel, which is a substitute for gas in cars; Threats to growth: alternative forms of clean energy may compete with natural gas. Trading Strategy: The commodity analysis hold rating indicates that natural gas should stay the same price over the short term, whereas a moderately favorable investor survey means natural gas should increase in price over the long term.
Gasoline Commodity Analysis ► (edit / improve) Gasoline is primarily used as a fuel for internal combustion engines. It is a significant source of carbon dioxide. Commodity: Gasoline is rated a Sell. Gasoline demanders have a potential to increase in value, while gasoline suppliers have very high potential to increase. Investor Survey: Gasoline’s long term growth potential is very favorable due to high scores on sensitivity to price changes and lack of good substitutes. SWOT Analysis: Strength: Gasoline is a limited natural resource; Weakness: gasoline produces considerable pollution. Opportunity to grow: Gasoline’s use increases with increases in cars; Threats to growth: environmental friendly awareness may curb the growth of gasoline. Trading Strategy: The commodity analysis sell rating indicates that gasoline should decrease in price over the short term, whereas a very favorable investor survey means gasoline should increase in price over the long term.
Heating Oil Commodity Analysis ► (edit / improve) Heating oil is mostly used to heat building furnaces and as an industrial fuel for power generation. Commodity: Heating oil is rated a Sell. Heating oil demanders have a high potential to increase in value, while heating oil suppliers have a very high potential to increase in value. The net difference means that heating oil may decrease in price over the short term. Investor Survey: Heating oil’s long term growth potential is moderately favorable due to high scores on the SWOT analysis. SWOT Analysis: Strength: Heating oil has high market demand for its products; Opportunity to grow: weather affects heating oil prices. Cold winters have the opportunity to increase demand. Trading Strategy: The commodity analysis sell rating indicates that heating oil should decrease in price over the short term, whereas a moderately favorable investor survey means heating oil should increase in price over the long term.
Industry Analysis evaluates the major industry characteristics that affect investments. Company specific factors drive the performance of individual companies, but macro-economic factors can affect the performance, stock prices, growth rates, and chart movements of any stock, currency, or commodity. All stock traders should review industry research before trading.
Warren Buffett Quote: "When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact." No matter the quality of your business, industry economics is an important factor in any value investing decision.
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Value Investing Importance?
A professional evaluations can cost between $150 to $15,000. In order to understand an investment, traders must research industry margins, stock prices, multiples, news, growth rates, stock chart, and any other relevant measurement to avoid mistakes.
Description: The utility industry includes companies whose sales come from the administration of public services such as water and power. ... Read more.
Profit Analysis: The best way to profit from utilities stock investments is to find the most undervalued investments (Wall Street and Main Street buy ratings) before economic recessions. Those investments should be undervalued (see Wall Street on left side), and have high Main Street Common Sense investment ratings (see Main Street on right side). When an economic recovery occurs, utility stocks tend to underperform the general stock market, because consumers quickly resume spending on items they wanted, but resisted buying during tougher economic times. Utilities are generally items that consumers bought during a recession, but don't increase purchases during economic expansions. Eventually other stock investments become overvalued, because profits and stock prices increase past their fair values. During the last stages of an economic business cycle, just before a recession, it is best to buy utilities stocks, because they are the least risky equity investments in a declining stock market. As investors search for safe (less risky) stock investments, they tend to buy utilities. Expensive (overvalued) stocks with low Main Street Common Sense ratings should be sold at any time to invest in better stocks. Two buys ratings are the best and two sell ratings are the worst possible stock investments.
Trading Strategy: Utilities tend to be less sensitive to economic changes. During economic recessions, consumers tend to decrease discretionary expenses to save money, but they can not decrease utility purchases, because they are needed for everyday living. Spending on utilities generally remains constant, so during economic recessions, investors tend to buy utility stocks, which causes stock prices to increase. During economic recoveries, utilities stock prices generally underperform the general stock market. Investor who bought utilities stocks during the recession, tend to make new investments in faster growing industries. During longer economic expansions, utilities tend to grow at the same rate as the general stock market.
| Utility Financial Statistic |
Stat |
Notes |
| Stock Research Rating |
Hold |
… |
| Potential (safety margin) |
40% |
High ~ Good for investors |
| WACC Discount Rate |
6% |
Low ~ Good for investors |
| Comparative Multiples |
Stat |
Notes |
| Revenue EV Multiple |
2.3x |
… |
| EBITDA EV Multiple |
8.5x |
… |
| EBIT EV Multiple |
7.3x |
… |
| Cash Flow EV Multiple |
-5.3x |
Low ~ Bad for investors |
| Book Value EV Multiple |
1.9x |
… |
| Discounted Cash Flow |
Stat |
Notes |
| Revenue Growth |
10% |
… |
| EBITDA Margin |
30% |
High ~ Good for investors |
| EBIT Margin |
20% |
High ~ Good for investors |
| Cash Flow Margin |
5% |
… |
| Taxes Rate |
23% |
… |
| Debt-Equity Ratio |
96% |
High ~ Bad for investors |
| ROIC |
5% |
… |
| Reinvestment Rate |
13% |
Low ~ Good for investors |
| WACC Discount Rate |
Stat |
Notes |
| Risk Free Rate |
4% |
Low ~ Good for Investors |
| Cost of Debt |
7% |
Low ~ Good for Investors |
| Equity Risk Premium |
5% |
… |
| Debt Required Return of Debt |
5% |
Low ~ Good for Investors |
| Required Return of Equity |
7% |
Low ~ Good for Investors |
1 WikiWealth only uses the largest 30 companies in each industry for the basis of these financial measures. Each statistic is the market weighted average of the 30 companies.
2 Investment potential (margin of safety) is a weighted average of the discounted cash flow (DCF), comparative value, and the Warren Buffett investment.
3 The weighted average cost of capital (WACC) for the industry is a broad representation of the WACC for each individual company. A sub-industry WACC offers both stability and accuracy for each individual company.
What is a SWOT Analysis? The SWOT Analysis evaluates the strengths, weaknesses, opportunities, and threats involved in a business or project. The SWOT analysis is essential to understanding the many different risk and rewards of any investment. Add your content to the SWOT Analysis, below. Also see our SWOT Analysis Tutorial for help.
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Quickly add a comment below to improve the SWOT analysis. WikiWealth professionals happily review each comment and improve upon the initial ideas. Think of a useful statement, enter a title, press "Add Your Input", enter something in the new page (optional), then press "SAVE." Feel free to add your comments or improve upon other comments. We all deserve free SWOT analysis of the highest quality.
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The quality and quantify of SWOT statements has a direct impact on stock research ratings, and thus, company investments. A professional SWOT analysis cost a minimum of $150. WikiWealth's SWOT analysis is free and open to improve / edit.
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Strength (helpful to business - internal origin)
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Weakness (harmful to business / internal origin)
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Threat (harmful to business - external origin)
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How does this work? The WACC Discount Rate (weighted average cost of capital) is used to determine business risk. WikiWealth uses an industry WACC analysis to increase stability and accuracy. Real time stock price and financial data equal real time WACC calculations. Click above to experimental and form your own investing conclusions (see tutorial & definition).
Value Investing Importance?
The result of this calculation is an essential input for the discounted cash flow (DCF) analysis. The real time stock price and interactive financial data create the world's only fully real-time WACC calculation. This method is widely used by investment professionals to determine the correct price for investments before they make value investing decisions.
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How does this work? The Discounted Cash Flow (DCF) investment analysis computes a value based on the present value of all future cash flows generated by the business. The DCF incorporates information from financial news and share data to stock price and growth rates. Click above to experimental. Form your own investing conclusions (see tutorial & definition).
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This analysis is never given away freely, because it is expensive and complicated. Many investment professionals charge hundred of dollars just to see the results from this approach, but WikiWealth allows everyone to view and manipulate this analysis freely. This is one of the most important elements of WikiWealth's three Wall Street approaches used to determine the correct fair value of an investment for stock research purposes.
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How does this work? The Comparative Investment Analysis determines the value of a company by comparing their financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups. Combine with news, charts and other stock research to form a complete. Click above to experimental and form your own investing conclusions (see tutorial & definition).
Value Investing Importance?
This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of an investment for stock research purposes.
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How does this work? The Warren Buffett Intrinsic Value Analysis, developed exclusively by WikiWealth, tries to mimic the value investing approach used by Warren Buffett, arguably the greatest value investor of all time. Click above to experimental and form your own investing conclusions (see tutorial & definition).
Value Investing Importance?
This method is unique and experimental, but extensive testing on over 3,200 companies confirms the results to be surprisingly accurate and consistent with more advanced approaches. If the greatest value investor of all time can consistently beat the stock market, then his methods are worth your attention. WikiWealth is the first and only company to utilize this value investing approach. Warren Buffett relies less on every day stock price, financial news, stock charts, trading tips, and price data. He focuses on fundamental value investment analysis as highlight below.
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