81.46 USD
-0.79 (-0.96%)
81.46 USD
0 (0%)
CHK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. CHK is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. CHK is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- CHK had positive earnings in the past year.
- CHK had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: CHK reported negative net income in multiple years.
- CHK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 3.22%, CHK is not doing good in the industry: 65.07% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of 4.22%, CHK is doing worse than 70.33% of the companies in the same industry.
- 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 21.94%.
- The 3 year average ROIC (13.76%) for CHK is well above the current ROIC(2.57%). The reason for the recent decline needs to be investigated.
| 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's Profit Margin of 8.94% is in line compared to the rest of the industry. CHK outperforms 40.67% of its industry peers.
- CHK's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 8.56%, CHK is doing worse than 69.86% of the companies in the same industry.
- CHK's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 78.39%, CHK belongs to the top of the industry, outperforming 88.52% of the companies in the same industry.
- CHK's Gross Margin has been stable in the last couple of years.
| 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.
- CHK has less shares outstanding than it did 1 year ago.
- CHK has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.46 indicates that CHK is not in any danger for bankruptcy at the moment.
- CHK has a Altman-Z score of 4.46. This is amongst the best in the industry. CHK outperforms 85.17% of its industry peers.
- 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 of 9.53. This is comparable to the rest of the industry: CHK outperforms 43.06% of its industry peers.
- A Debt/Equity ratio of 0.19 indicates that CHK is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.19, CHK is in the better half of the industry, outperforming 69.38% of the companies in the same industry.
| 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.
- With a decent Current ratio value of 2.16, CHK is doing good in 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's Quick ratio of 2.16 is fine compared to the rest of the industry. CHK outperforms 75.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
- CHK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -74.81%.
- 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
- Based on estimates for the next years, CHK will show a very strong growth in Earnings Per Share. The EPS will grow by 27.56% on average per year.
- 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
- Based on the Price/Earnings ratio of 27.43, the valuation of CHK can be described as expensive.
- Based on the Price/Earnings ratio, CHK is valued a bit more expensive than the industry average as 70.81% of the companies are valued more cheaply.
- CHK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 15.93, CHK is valued correctly.
- CHK's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. CHK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.43 | ||
| Fwd PE | 15.93 |
4.2 Price Multiples
- CHK's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CHK is more expensive than 63.16% of the companies in the same industry.
- 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
- CHK has a Yearly Dividend Yield of 2.82%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.75, CHK has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, CHK pays a better dividend.
| 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 / CHK FAQ
What is the ChartMill fundamental rating of CHESAPEAKE ENERGY CORP (CHK) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CHK.
Can you provide the valuation status for CHESAPEAKE ENERGY CORP?
ChartMill assigns a valuation rating of 2 / 10 to CHESAPEAKE ENERGY CORP (CHK). This can be considered as Overvalued.
What is the profitability of CHK stock?
CHESAPEAKE ENERGY CORP (CHK) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for CHK stock?
The Price/Earnings (PE) ratio for CHESAPEAKE ENERGY CORP (CHK) is 27.43 and the Price/Book (PB) ratio is 1.78.
What is the earnings growth outlook for CHESAPEAKE ENERGY CORP?
The Earnings per Share (EPS) of CHESAPEAKE ENERGY CORP (CHK) is expected to decline by -74.18% in the next year.