Comcast Corp (CCZ) stock analysis

P/E below its 5-year median

Comcast's P/E of 7.2 is below its own 5-year median of 11.0.

P/E below the industry

Comcast's P/E of 7.2 is below the Communications median of 13.5.

EV/EBITDA below its 5-year median

Comcast's EV/EBITDA of 4.7 is below its 5-year median of 6.8.

P/B below the industry

Comcast's price-to-book of 0.88 is below the Communications median of 1.74.

Trading below fair value

The share price of $22.27 is below our fair value estimate of $49.94.

Margin of safety over 20%

The price is 55.4% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 0.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 64.5% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -51.1% over the last twelve months, against a 5-year average of 13.7% a year.

Growing faster than the industry

Revenue grew 0.6% over the last twelve months; the Communications median is -1.3%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 12.0% over the last twelve months and averaged 16.2% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 7.8%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Comcast's return on equity of 12.0% is above the Communications median of -2.4%.

Earnings grew over 5 years

Net income grew 13.7% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 9.0% over the last twelve months, against a 5-year average of 11.7%.

Net margin above the industry

Comcast's net margin of 9.0% is above the Communications median of -1.5%.

High debt

Debt is 101% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 115% five years ago to 101%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 36.0% of total debt.

Interest not well covered

Operating income covers interest expense 4.2 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.80 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.30; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Comcast paid dividends worth 5.9% of the share price over the last twelve months.

Yield above Treasuries

The 5.9% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 4.0% or more; Comcast yields 5.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 43.4% of net income.

Covered by free cash flow

Dividends take 23.8% of free cash flow.