Chesapeake Energy CorpFind Ratings Reports
CHESAPEAKE ENERGY CORP's gross profit margin for the second 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 very weak liquidity. Currently, the Quick Ratio is 0.25 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 100.35% 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 FY16||Q2 FY15|
|Net Sales ($mil)||1622.0||3521.0|
|Net Income ($mil)||-1750.0||-4108.0|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||4.0||2089.0|
|Total Assets ($mil)||13487.0||28598.0|
|Total Debt ($mil)||9649.0||11573.0|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||-80.89||-124.62|
|Return on Assets||-70.5||-22.88|
|Return on Equity||0.0||-74.98|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||775.4||663.48|
|Div / share||0.0||0.09|
|Book value / share||-0.04||13.5|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4.543798E7||4.1160768E7|
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.
|CHK NM||Peers 80.60||CHK 20.88||Peers 10.97|
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 9.16||Peers 49.84||CHK NA||Peers 3.87|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
CHK's ratio is negative making this valuation measure meaningless.
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 15.56||CHK -31.50||Peers -227.20|
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.
|CHK 0.55||Peers 2.58||CHK -45.12||Peers -26.14|
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