Chesapeake Energy Corp

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CHK : NYSE : Basic Materials
$4.565 up 0.045 | 1.0%
Today's Range: 4.55 - 4.63
Avg. Daily Volume: 4.12191E7
06/22/17 - 1:54 PM ET

Financial Analysis


CHESAPEAKE ENERGY CORP's gross profit margin for the first 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 0.43 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, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 211.28% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)2753.01953.0
EBITDA ($mil)848.0-740.0
EBIT ($mil)630.0-1032.0
Net Income ($mil)140.0-1068.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)249.016.0
Total Assets ($mil)11699.015357.0
Total Debt ($mil)9524.010434.0
Equity ($mil)-1459.01311.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin33.16-35.43
EBITDA Margin30.8-37.89
Operating Margin22.88-52.84
Sales Turnover0.740.75
Return on Assets-28.54-78.23
Return on Equity0.0-929.44
Debt Q1 FY17 Q1 FY16
Current Ratio0.490.53
Debt/Capital1.180.89
Interest Expense146.0130.0
Interest Coverage4.32-7.94


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)905.68683.18
Div / share0.00.0
EPS0.08-1.66
Book value / share-1.611.92
Institutional Own % n/a n/a
Avg Daily Volume4.0601644E73.890048E7

Valuation


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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CHK NM Peers 51.24   CHK 10.05 Peers 14.91

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.

 

Discount. 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 discount to its peers.

 
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 23.97   CHK NA Peers 0.57

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 81.35   CHK 72.46 Peers 98.97

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CHK 0.52 Peers 2.16   CHK -24.59 Peers 6.96

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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