Chesapeake Energy CorpFind Ratings Reports
CHESAPEAKE ENERGY CORP's gross profit margin for the second quarter of its fiscal year 2017 has significantly increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. CHESAPEAKE ENERGY CORP has very weak liquidity. Currently, the Quick Ratio is 0.48 which clearly 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 2,831.25% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q2 FY17||Q2 FY16|
|Net Sales ($mil)||2281.0||1622.0|
|Net Income ($mil)||494.0||-1776.0|
|Balance Sheet||Q2 FY17||Q2 FY16|
|Cash & Equiv. ($mil)||13.0||4.0|
|Total Assets ($mil)||11920.0||13487.0|
|Total Debt ($mil)||9853.0||9649.0|
|Profitability||Q2 FY17||Q2 FY16|
|Gross Profit Margin||32.27||-82.43|
|Return on Assets||-9.19||-71.78|
|Return on Equity||0.0||0.0|
|Debt||Q2 FY17||Q2 FY16|
|Share Data||Q2 FY17||Q2 FY16|
|Shares outstanding (mil)||905.64||775.4|
|Div / share||0.0||0.0|
|Book value / share||-1.04||-0.04|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3.5051912E7||4.1161216E7|
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. 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.
|CHK NM||Peers 64.34||CHK 32.23||Peers 15.89|
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.
Premium. 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 is trading at a significant premium to its peers.
|CHK 4.87||Peers 34.73||CHK NA||Peers 0.55|
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.
|CHK NM||Peers 541.69||CHK 85.56||Peers 154.68|
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.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, CHK is expected to significantly trail its peers on the basis of its earnings growth rate.
|CHK 0.40||Peers 2.03||CHK -2.81||Peers 19.70|
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