Market Inference Overview -- CMCSA Stock

Now trading at a price of $40.73, Comcast has moved 1.5% so far today.

Comcast returned losses of -7.9% last year, with its stock price reaching a high of $47.11 and a low of $36.43. Over the same period, the stock underperformed the S&P 500 index by -41.7%. AThe company's 50-day average price was $39.59. 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 3.0% dividend yield over the last 12 months.

Growing Revenues but Not Enough Current Assets to Cover Current Liabilities:

2018 2019 2020 2021 2022 2023
Revenue (M) $94,507 $108,942 $103,564 $116,385 $121,427 $121,572
Operating Margins 20% 19% 17% 18% 12% 19%
Net Margins 12% 12% 10% 12% 4% 13%
Net Income (M) $11,731 $13,057 $10,534 $14,159 $5,370 $15,388
Net Interest Expense (M) $3,542 $4,567 $4,588 $4,281 $3,896 $4,087
Depreciation & Amort. (M) $8,281 $8,663 $8,320 $8,628 $8,724 $8,854
Diluted Shares (M) 4,640 4,610 4,624 4,654 4,430 4,148
Earnings Per Share $2.53 $2.83 $2.28 $3.04 $1.21 $3.71
EPS Growth n/a 11.86% -19.43% 33.33% -60.2% 206.61%
Avg. Price $31.83 $38.38 $39.87 $51.89 $43.51 $40.73
Free Cash Flow (M) $14,523 $15,744 $15,558 $19,972 $15,787 $16,259
CAPEX (M) $9,774 $9,953 $9,179 $9,174 $10,626 $12,242
EV / EBITDA 5267895.95 5854138.96 10.64 10.91 12.42 8.16
Total Debt (M) $111,743 $102,217 $103,760 $94,850 $94,811 $97,090
Net Debt / EBITDA 3.95 3.25 3.56 2.93 3.96 2.83
Current Ratio 0.79 0.84 0.93 0.85 0.78 0.6

Comcast has growing revenues and increasing reinvestment in the business, positive EPS growth, and generally positive cash flows. However, the firm has not enough current assets to cover current liabilities because its current ratio is 0.6. Finally, we note that Comcast has decent operating margins with a stable trend and significant leverage levels.

Comcast Is Reasonably Valued:

Comcast has a trailing twelve month P/E ratio of 10.5, compared to an average of 20.19 for the Telecommunications sector. Based on its EPS guidance of $4.43, the company has a forward P/E ratio of 8.9. The 8.3% compound average growth rate of Comcast's historical and projected earnings per share yields a PEG ratio of 1.26. This implies that the shares are fairly valued. Additionally, the market is possibly undervaluing Comcast in terms of its equity because its P/B ratio is 1.9 whereas the sector average is 2.29. The company's shares are currently trading -0.2% below their Graham number.

Comcast Has an Average Rating of Buy:

The 26 analysts following Comcast have set target prices ranging from $35.0 to $57.0 per share, for an average of $46.34 with a buy rating. The company is trading -12.1% 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 1.4% of the company's shares are sold short. Institutions own 87.9% of the company's shares, and the insider ownership rate stands at 0.71%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $15,166,644,022.

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.

IN FOCUS