Chesapeake Energy Corp.

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CHK : NYSE : Energy Minerals
$3.11 -0.12 | -3.72%
Today's Range: 3.08 - 3.2
Avg. Daily Volume: 3.73495E7
03/22/18 - 4:00 PM ET

Financial Analysis

CHESAPEAKE ENERGY CORP's gross profit margin for the fourth quarter of its fiscal year 2017 has significantly increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. CHESAPEAKE ENERGY CORP has weak liquidity. Currently, the Quick Ratio is 0.56 which 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 greatly increased by 66.02% 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 FY17 Q4 FY16
Net Sales ($mil)2519.02021.0
EBITDA ($mil)630.0-12.0
EBIT ($mil)324.0-245.0
Net Income ($mil)333.0-342.0

Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)5.0882.0
Total Assets ($mil)12425.013028.0
Total Debt ($mil)9973.010441.0
Equity ($mil)-496.0-1460.0

Profitability Q4 FY17 Q4 FY16
Gross Profit Margin27.912.77
EBITDA Margin25.0-0.59
Operating Margin12.86-12.12
Sales Turnover0.760.6
Return on Assets7.63-33.69
Return on Equity0.00.0
Debt Q4 FY17 Q4 FY16
Current Ratio0.650.59
Interest Expense171.0159.0
Interest Coverage1.89-1.54

Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)906.49895.06
Div / share0.00.0
Book value / share-0.55-1.63
Institutional Own % n/a n/a
Avg Daily Volume3.6000008E72.5443132E7


SELL. CHESAPEAKE ENERGY CORP's P/E ratio indicates a significant discount compared to an average of 44.17 for the Oil, Gas & Consumable Fuels industry and a significant discount compared to the S&P 500 average of 25.66. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, CHESAPEAKE ENERGY CORP proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CHK 3.64 Peers 44.17   CHK 3.67 Peers 8.37

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

CHK is trading at a significant discount to its peers.


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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
CHK 3.82 Peers 20.30   CHK NM Peers 0.58

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.

CHK's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CHK NM Peers 24.41   CHK 112.57 Peers 514.44

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CHK 0.29 Peers 1.94   CHK 20.63 Peers 30.87

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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