CHESAPEAKE ENERGY CORP (CHK) Stock Fundamental Analysis
NASDAQ:CHK - Nasdaq - US1651677353 - Common Stock - Currency: USD
Overall CHK gets a fundamental rating of 5 out of 10. We evaluated CHK against 212 industry peers in the Oil, Gas & Consumable Fuels industry. While CHK has a great health rating, its profitability is only average at the moment. CHK is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CHK was profitable.
CHK had a positive operating cash flow in the past year.
In multiple years CHK reported negative net income over the last 5 years.
Each year in the past 5 years CHK had a positive operating cash flow.
1.2 Ratios
CHK's Return On Assets of 3.22% is on the low side compared to the rest of the industry. CHK is outperformed by 65.07% of its industry peers.
CHK's Return On Equity of 4.22% is on the low side compared to the rest of the industry. CHK is outperformed by 70.33% of its industry peers.
With a Return On Invested Capital value of 2.57%, CHK is not doing good in the industry: 75.60% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for CHK is significantly below the industry average of 28.73%.
The last Return On Invested Capital (2.57%) for CHK is well below the 3 year average (13.76%), which needs to be investigated, but indicates that CHK had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 4.22% | ||
| ROIC | 2.57% |
ROA(3y)35.26%
ROA(5y)-8.99%
ROE(3y)62.5%
ROE(5y)N/A
ROIC(3y)13.76%
ROIC(5y)9.96%
1.3 Margins
CHK has a Profit Margin (8.94%) which is in line with its industry peers.
CHK's Profit Margin has improved in the last couple of years.
CHK's Operating Margin of 8.56% is on the low side compared to the rest of the industry. CHK is outperformed by 69.86% of its industry peers.
In the last couple of years the Operating Margin of CHK has grown nicely.
With an excellent Gross Margin value of 78.39%, CHK belongs to the best of the industry, outperforming 88.52% of the companies in the same industry.
In the last couple of years the Gross Margin of CHK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.56% | ||
| PM (TTM) | 8.94% | ||
| GM | 78.39% |
OM growth 3Y60.28%
OM growth 5Y26.63%
PM growth 3YN/A
PM growth 5Y88.94%
GM growth 3Y5.78%
GM growth 5Y0.58%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CHK is still creating some value.
The number of shares outstanding for CHK has been reduced compared to 1 year ago.
Compared to 5 years ago, CHK has more shares outstanding
The debt/assets ratio for CHK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.46 indicates that CHK is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.46, CHK belongs to the best of the industry, outperforming 85.17% of the companies in the same industry.
The Debt to FCF ratio of CHK is 9.53, which is on the high side as it means it would take CHK, 9.53 years of fcf income to pay off all of its debts.
CHK has a Debt to FCF ratio (9.53) which is in line with its industry peers.
CHK has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CHK (0.19) is better than 69.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 9.53 | ||
| Altman-Z | 4.46 |
ROIC/WACC0.33
WACC7.73%
2.3 Liquidity
A Current Ratio of 2.16 indicates that CHK has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.16, CHK is in the better half of the industry, outperforming 73.21% of the companies in the same industry.
CHK has a Quick Ratio of 2.16. This indicates that CHK is financially healthy and has no problem in meeting its short term obligations.
CHK has a better Quick ratio (2.16) than 75.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
The earnings per share for CHK have decreased strongly by -74.81% in the last year.
The Earnings Per Share has been decreasing by -8.65% on average over the past years.
Looking at the last year, CHK shows a very negative growth in Revenue. The Revenue has decreased by -58.30% in the last year.
The Revenue has been decreasing by -5.46% on average over the past years.
EPS 1Y (TTM)-74.81%
EPS 3YN/A
EPS 5Y-8.65%
EPS Q2Q%-98.44%
Revenue 1Y (TTM)-58.3%
Revenue growth 3Y13.87%
Revenue growth 5Y-5.46%
Sales Q2Q%-73.29%
3.2 Future
The Earnings Per Share is expected to grow by 27.56% on average over the next years. This is a very strong growth
Based on estimates for the next years, CHK will show a quite strong growth in Revenue. The Revenue will grow by 19.77% on average per year.
EPS Next Y-74.18%
EPS Next 2Y2.06%
EPS Next 3Y18.26%
EPS Next 5Y27.56%
Revenue Next Year-42.93%
Revenue Next 2Y20.29%
Revenue Next 3Y19.77%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.43, which means the current valuation is very expensive for CHK.
Based on the Price/Earnings ratio, CHK is valued a bit more expensive than 70.81% of the companies in the same industry.
When comparing the Price/Earnings ratio of CHK to the average of the S&P500 Index (28.47), we can say CHK is valued inline with the index average.
A Price/Forward Earnings ratio of 15.93 indicates a correct valuation of CHK.
The rest of the industry has a similar Price/Forward Earnings ratio as CHK.
When comparing the Price/Forward Earnings ratio of CHK to the average of the S&P500 Index (92.74), we can say CHK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.43 | ||
| Fwd PE | 15.93 |
4.2 Price Multiples
63.16% of the companies in the same industry are cheaper than CHK, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHK indicates a slightly more expensive valuation: CHK is more expensive than 64.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 87.19 | ||
| EV/EBITDA | 10.11 |
4.3 Compensation for Growth
A more expensive valuation may be justified as CHK's earnings are expected to grow with 18.26% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.06%
EPS Next 3Y18.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.82%, CHK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.57, CHK has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, CHK pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
5.2 History
The dividend of CHK decreases each year by -27.58%.
CHK has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-27.58%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CHK pays out 74.89% of its income as dividend. This is not a sustainable payout ratio.
DP74.89%
EPS Next 2Y2.06%
EPS Next 3Y18.26%
CHESAPEAKE ENERGY CORP
NASDAQ:CHK (10/1/2024, 8:00:00 PM)
After market: 81.46 0 (0%)81.46
-0.79 (-0.96%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners69.55%
Inst Owner Change2.07%
Ins Owners34.93%
Ins Owner Change0%
Market Cap18.48B
Analysts75.83
Price Target97.71 (19.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
Yearly Dividend3.66
Dividend Growth(5Y)-27.58%
DP74.89%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)228.74%
Min EPS beat(2)-6.54%
Max EPS beat(2)464.01%
EPS beat(4)3
Avg EPS beat(4)153.85%
Min EPS beat(4)-6.54%
Max EPS beat(4)464.01%
EPS beat(8)7
Avg EPS beat(8)90.83%
EPS beat(12)10
Avg EPS beat(12)68.05%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-20.53%
Min Revenue beat(2)-36.48%
Max Revenue beat(2)-4.59%
Revenue beat(4)2
Avg Revenue beat(4)7.45%
Min Revenue beat(4)-36.48%
Max Revenue beat(4)45.81%
Revenue beat(8)6
Avg Revenue beat(8)42.17%
Revenue beat(12)8
Avg Revenue beat(12)36.68%
Revenue beat(16)9
Avg Revenue beat(16)22.86%
PT rev (1m)-7.14%
PT rev (3m)-8.21%
EPS NQ rev (1m)-60.96%
EPS NQ rev (3m)-69.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.9%
Revenue NQ rev (1m)-5.86%
Revenue NQ rev (3m)-17.02%
Revenue NY rev (1m)-2.47%
Revenue NY rev (3m)-6.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.43 | ||
| Fwd PE | 15.93 | ||
| P/S | 3.77 | ||
| P/FCF | 87.19 | ||
| P/OCF | 10.64 | ||
| P/B | 1.78 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 10.11 |
EPS(TTM)2.97
EY3.65%
EPS(NY)5.11
Fwd EY6.28%
FCF(TTM)0.93
FCFY1.15%
OCF(TTM)7.66
OCFY9.4%
SpS21.58
BVpS45.7
TBVpS45.7
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 4.22% | ||
| ROCE | 3.31% | ||
| ROIC | 2.57% | ||
| ROICexc | 2.79% | ||
| ROICexgc | 2.79% | ||
| OM | 8.56% | ||
| PM (TTM) | 8.94% | ||
| GM | 78.39% | ||
| FCFM | 4.33% |
ROA(3y)35.26%
ROA(5y)-8.99%
ROE(3y)62.5%
ROE(5y)N/A
ROIC(3y)13.76%
ROIC(5y)9.96%
ROICexc(3y)14.49%
ROICexc(5y)10.54%
ROICexgc(3y)14.49%
ROICexgc(5y)10.54%
ROCE(3y)17.73%
ROCE(5y)12.84%
ROICexcg growth 3Y17.67%
ROICexcg growth 5Y15.1%
ROICexc growth 3Y17.67%
ROICexc growth 5Y15.1%
OM growth 3Y60.28%
OM growth 5Y26.63%
PM growth 3YN/A
PM growth 5Y88.94%
GM growth 3Y5.78%
GM growth 5Y0.58%
F-Score5
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 9.53 | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 101.13% | ||
| Cap/Sales | 31.14% | ||
| Interest Coverage | 4.46 | ||
| Cash Conversion | 90.14% | ||
| Profit Quality | 48.4% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 | ||
| Altman-Z | 4.46 |
F-Score5
WACC7.73%
ROIC/WACC0.33
Cap/Depr(3y)99.31%
Cap/Depr(5y)100.4%
Cap/Sales(3y)17.38%
Cap/Sales(5y)20.06%
Profit Quality(3y)28.9%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-74.81%
EPS 3YN/A
EPS 5Y-8.65%
EPS Q2Q%-98.44%
EPS Next Y-74.18%
EPS Next 2Y2.06%
EPS Next 3Y18.26%
EPS Next 5Y27.56%
Revenue 1Y (TTM)-58.3%
Revenue growth 3Y13.87%
Revenue growth 5Y-5.46%
Sales Q2Q%-73.29%
Revenue Next Year-42.93%
Revenue Next 2Y20.29%
Revenue Next 3Y19.77%
Revenue Next 5YN/A
EBIT growth 1Y-91.23%
EBIT growth 3Y82.51%
EBIT growth 5Y19.71%
EBIT Next Year-4.53%
EBIT Next 3Y38.42%
EBIT Next 5Y39.9%
FCF growth 1Y-86.46%
FCF growth 3Y192.58%
FCF growth 5YN/A
OCF growth 1Y-37.25%
OCF growth 3Y26.92%
OCF growth 5Y6.59%