Comcast Stock in Brief

Now trading at a price of $40.47, Comcast has moved 2.1% so far today.

Comcast returned gains of 28.0% last year, with its stock price reaching a high of $47.46 and a low of $30.04. Over the same period, the stock outperformed the S&P 500 index by 20.0%. More recently, the company's 50-day average price was $44.55. Comcast Corporation operates as a media and technology company worldwide. Based in Philadelphia, PA, the large-cap Telecommunications company has 186,000 full time employees. Comcast has offered a 2.9% dividend yield over the last 12 months.

Increasing Revenues but Narrowing Margins:

2018 2019 2020 2021 2022 2023
Revenue (MM) $94,507 $108,942 $103,564 $116,385 $121,427 $120,605
Gross Margins 20% 19% 17% 18% 12% 12%
Operating Margins 20.0% 19.0% 17.0% 18.0% 12.0% 12.0%
Net Margins 13.0% 12.0% 10.0% 12.0% 4.0% 5.0%
Net Income (MM) $11,862 $13,323 $10,701 $14,159 $5,370 $6,507
Net Interest Expense (MM) $3,542 $4,567 $4,588 $4,281 $3,896 $3,943
Depreciation & Amort. (MM) $8,281 $8,663 $8,320 $13,804 $13,821 $14,050
Earnings Per Share $2.53 $2.83 $2.28 $3.04 $1.21 $1.6
EPS Growth n/a 11.86% -19.43% 33.33% -60.2% 32.23%
Diluted Shares (MM) 4,640 4,610 4,624 4,654 4,430 3,800
Free Cash Flow (MM) $14,523 $15,744 $15,558 $19,972 $15,787 $15,821
Capital Expenditures (MM) $9,774 $9,953 $9,179 $9,174 $10,626 $11,434
Net Current Assets (MM) -$21,084 -$21,665 -$20,277 -$25,161 -$26,456 -$28,283
Long Term Debt (MM) $107,345 $97,765 $100,614 $92,718 $93,068 $94,972
Net Debt / EBITDA 3.95 3.25 3.63 2.54 3.3 3.41

Comcast has slimmer gross margins than its peers, declining EPS growth, and a highly leveraged balance sheet. On the other hand, the company has growing revenues and a flat capital expenditure trend working in its favor. Furthermore, Comcast has average net margins with a negative growth trend and irregular cash flows.

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

Comcast has a trailing twelve month P/E ratio of 12.4, compared to an average of 18.85 for the Telecommunications sector. Based on its EPS guidance of $4.2, the company has a forward P/E ratio of 10.6. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is -7.4%. On this basis, the company's PEG ratio is -1.69, which indicates that its shares are overpriced. In contrast, the market is likely undervaluing Comcast in terms of its equity because its P/B ratio is 1.99 while the sector average is 3.12. The company's shares are currently trading 43.3% above their Graham number.

There's an Analyst Consensus of Some Upside Potential for Comcast:

The 26 analysts following Comcast have set target prices ranging from $41.0 to $55.0 per share, for an average of $49.27 with a buy rating. As of April 2023, the company is trading -9.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Comcast has a very low short interest because 1.5% of the company's shares are sold short. Institutions own 87.9% of the company's shares, and the insider ownership rate stands at 0.74%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $15,795,923,529.

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.