What Every Investor Must Know About CMCSA Stock

Today we're going to take a closer look at large-cap Telecommunications company Comcast, whose shares are currently trading at $43.12. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!

A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:

Comcast Corporation operates as a media and technology company worldwide. The company belongs to the Telecommunications sector, which has an average price to earnings (P/E) ratio of 18.85 and an average price to book (P/B) ratio of 3.12. In contrast, Comcast has a trailing 12 month P/E ratio of 27.1 and a P/B ratio of 2.12.

Comcast's PEG ratio is 1.47, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.

The Company May Be Profitable, but Its Balance Sheet Is Highly Leveraged:

2018-01-31 2019-01-31 2020-01-30 2021-02-04 2022-02-02 2023-02-03
Revenue (MM) $85,029 $94,507 $108,942 $103,564 $116,385 $121,427
Gross Margins 70.0% 69.0% 68.0% 68.0% 67.0% 69.0%
Operating Margins 21% 20% 19% 17% 18% 19%
Net Margins 27.0% 12.0% 12.0% 10.0% 12.0% 4.0%
Net Income (MM) $22,735 $11,731 $13,057 $10,534 $14,159 $5,370
Net Interest Expense (MM) -$3,086 -$3,542 -$4,567 -$4,588 -$4,281 -$3,896
Depreciation & Amort. (MM) -$9,688 -$10,676 -$12,953 -$13,100 -$13,804 -$13,821
Earnings Per Share $4.75 $2.53 $2.83 $2.28 $3.04 $1.15
EPS Growth n/a -46.74% 11.86% -19.43% 33.33% -62.17%
Diluted Shares (MM) 4,786 4,640 4,610 4,624 4,665 4,654
Free Cash Flow (MM) $32,834 $36,006 $38,125 $36,371 $41,204 $40,180
Capital Expenditures (MM) -$11,573 -$11,709 -$12,428 -$11,634 -$12,057 -$13,767
Net Current Assets (MM) -$100,303 -$156,018 -$152,776 -$154,110 -$153,090 -$153,409
Long Term Debt (MM) $59,422 $107,345 $102,931 $105,782 $97,888 $98,240
Net Debt / EBITDA 2.21 3.64 2.99 3.18 2.64 2.61
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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