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Comcast Corp Class A CMCSA

Morningstar Rating
$39.69 +1.45 (3.79%)
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Company Report

Comcast Earnings: Shares Remain Attractive Despite Another Tough Quarter

Comcast reported a 2.7% revenue decline during the second quarter and a sharp drop in free cash flow, primarily related to tax payments, sending shares lower. The firm faces several uncertainties, including the long-term impact of the NBA rights agreement that management expects to close shortly and the ultimate level of competition in the broadband business. We’ve trimmed our fair value estimate modestly to $54 from $56, but we still believe the current stock price reflects too much pessimism around these issues.

Price vs Fair Value

CMCSA is trading at a 415% premium.
Price
$39.69
Fair Value
$13.00
Uncertainty
Medium
1-Star Price
$46.90
5-Star Price
$65.50
Economic Moat
Ylf
Capital Allocation
Hccrqxl

Bulls Say, Bears Say

Bulls

Comcast’s cable networks provide a platform to easily meet customers’ growing bandwidth demands, which should allow for relatively stable market share, ensuring that recurring revenue and cash flow remain strong.

Bears

Comcast’s businesses are heavily exposed to the traditional TV model. As more consumers turn to online alternatives, the firm will struggle to post any revenue growth in either of its two primary segments, the US cable and media businesses.

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News

Trading Information

Previous Close Price
$38.24
Day Range
$38.5440.11
52-Week Range
$36.4347.46
Bid/Ask
$39.66 / $39.70
Market Cap
$153.70 Bil
Volume/Avg
24.6 Mil / 20.1 Mil

Key Statistics

Price/Earnings (Normalized)
9.52
Price/Sales
1.32
Dividend Yield (Trailing)
3.02%
Dividend Yield (Forward)
3.12%
Total Yield
10.83%

Company Profile

Comcast is made up of three parts. The core cable business owns networks capable of providing television, internet access, and phone services to 63 million US homes and businesses, or nearly half of the country. About 50% of the locations in this territory subscribe to at least one Comcast service. Comcast acquired NBCUniversal from General Electric in 2011. NBCU owns several cable networks, including CNBC, MSNBC, and USA, the NBC network, the Peacock streaming platform, several local NBC affiliates, Universal Studios, and several theme parks. Sky, acquired in 2018, is a large television provider in the UK and has invested heavily in proprietary content to build this position. Sky is also a large pay-television provider in Italy and has a presence in Germany and Austria.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Large Value
Total Number of Employees
186,000

Competitors

Valuation

Metric
CMCSA
VZ
DIS
Price/Earnings (Normalized)
9.528.7221.01
Price/Book Value
1.851.771.65
Price/Sales
1.321.261.85
Price/Cash Flow
5.764.3111.89
Price/Earnings
CMCSA
VZ
DIS

Financial Strength

Metric
CMCSA
VZ
DIS
Quick Ratio
0.540.460.57
Current Ratio
0.660.630.75
Interest Coverage
5.823.542.64
Quick Ratio
CMCSA
VZ
DIS

Profitability

Metric
CMCSA
VZ
DIS
Return on Assets (Normalized)
6.39%4.55%4.53%
Return on Equity (Normalized)
20.23%18.30%9.22%
Return on Invested Capital (Normalized)
10.84%7.96%6.24%
Return on Assets
CMCSA
VZ
DIS
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