Chesapeake Energy Corp

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CHK : NYSE : Basic Materials
$5.51 up 0.13 | 2.4%
Today's Range: 5.25 - 5.53
Avg. Daily Volume: 3.9034E7
04/25/17 - 4:00 PM ET

Financial Analysis


CHESAPEAKE ENERGY CORP's gross profit margin for the fourth quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. CHESAPEAKE ENERGY CORP has weak liquidity. Currently, the Quick Ratio is 0.53 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 168.28% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)2021.02649.0
EBITDA ($mil)-55.0-2544.0
EBIT ($mil)-291.0-2900.0
Net Income ($mil)-388.0-2185.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)882.0825.0
Total Assets ($mil)13028.017357.0
Total Debt ($mil)10441.010764.0
Equity ($mil)-1460.02138.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin0.64-93.73
EBITDA Margin-2.72-96.03
Operating Margin-14.4-109.48
Sales Turnover0.60.74
Return on Assets-33.78-84.6
Return on Equity0.0-694.85
Debt Q4 FY16 Q4 FY15
Current Ratio0.590.67
Debt/Capital1.160.83
Interest Expense159.0195.0
Interest Coverage-1.83-14.87


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)895.06663.36
Div / share0.00.0
EPS-0.88-3.36
Book value / share-1.633.22
Institutional Own % n/a n/a
Avg Daily Volume3.8994672E75.124952E7

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CHK NM Peers 145.46   CHK NM Peers 11.69

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

CHK's P/E is negative making this valuation measure meaningless.

 

Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

CHK's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CHK 4.83 Peers 26.05   CHK NA Peers 0.64

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

CHK is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CHK NM Peers 38.31   CHK 70.67 Peers 41.17

Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CHK's P/B is negative making this valuation measure meaningless.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

CHK is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CHK 0.63 Peers 2.53   CHK -38.33 Peers -9.44

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

CHK is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

CHK significantly trails its peers on the basis of sales growth

 

 

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