Unitil's 15min chart: Bollinger Bands Narrowing, Bearish Marubozu signal detected.
PorAinvest
jueves, 25 de septiembre de 2025, 1:48 pm ET1 min de lectura
UTL--
Intrinsic Value Analysis
Unitil's estimated intrinsic value is $57.36 based on the Dividend Discount Model (DDM), indicating that the stock is undervalued by approximately 21% relative to its current share price of $45.31 [1]. The DDM uses expected dividends per share, discounted at a cost of equity of 6.8%, to estimate the company's future cash flows. The model assumes a perpetual growth rate equal to the 5-year average of the 10-year government bond yield, which is 3.1%.
Key Assumptions and Limitations
The calculation of intrinsic value is highly dependent on assumptions, such as the discount rate and the growth rate of dividends. Adjusting these assumptions can significantly alter the intrinsic value estimate. Additionally, the DDM does not account for cyclicality in the industry or future capital requirements, providing a limited view of the company's potential performance.
Financial Indicators
Unitil's financial indicators show several concerns. Earnings have declined over the past year, interest payments on debt are not well covered, and the dividend is low compared to the top 25% of dividend payers in the integrated utilities market. Moreover, the company's debt is not well covered by operating cash flow, and it pays a dividend but has no free cash flows.
Conclusion
While the intrinsic value of Unitil suggests the stock is undervalued, the technical indicators and financial metrics raise concerns about the company's current performance and future prospects. Investors should consider these factors when evaluating Unitil as a potential investment.
References
[1] https://finance.yahoo.com/news/unitil-corporations-nyse-utl-intrinsic-135442491.html
Unitil's 15-minute chart exhibited a narrowing of Bollinger Bands and a bearish Marubozu pattern at 09/25/2025 13:45, indicating a decrease in the magnitude of stock price fluctuations. This suggests that sellers are currently controlling the market and that bearish momentum is likely to persist.
On September 12, 2025, Unitil Corporation (NYSE: UTL) has seen a narrowing of Bollinger Bands and a bearish Marubozu pattern on its 15-minute chart, indicating a decrease in stock price fluctuations and potential bearish momentum [1]. This technical analysis suggests that sellers are currently controlling the market.Intrinsic Value Analysis
Unitil's estimated intrinsic value is $57.36 based on the Dividend Discount Model (DDM), indicating that the stock is undervalued by approximately 21% relative to its current share price of $45.31 [1]. The DDM uses expected dividends per share, discounted at a cost of equity of 6.8%, to estimate the company's future cash flows. The model assumes a perpetual growth rate equal to the 5-year average of the 10-year government bond yield, which is 3.1%.
Key Assumptions and Limitations
The calculation of intrinsic value is highly dependent on assumptions, such as the discount rate and the growth rate of dividends. Adjusting these assumptions can significantly alter the intrinsic value estimate. Additionally, the DDM does not account for cyclicality in the industry or future capital requirements, providing a limited view of the company's potential performance.
Financial Indicators
Unitil's financial indicators show several concerns. Earnings have declined over the past year, interest payments on debt are not well covered, and the dividend is low compared to the top 25% of dividend payers in the integrated utilities market. Moreover, the company's debt is not well covered by operating cash flow, and it pays a dividend but has no free cash flows.
Conclusion
While the intrinsic value of Unitil suggests the stock is undervalued, the technical indicators and financial metrics raise concerns about the company's current performance and future prospects. Investors should consider these factors when evaluating Unitil as a potential investment.
References
[1] https://finance.yahoo.com/news/unitil-corporations-nyse-utl-intrinsic-135442491.html
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