CHESAPEAKE ENERGY CORP (CHK) Fundamental Analysis & Valuation

NASDAQ:CHK • US1651677353

Current stock price

81.46 USD
-0.79 (-0.96%)
At close:
81.46 USD
0 (0%)
After Hours:

This CHK fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. CHK Profitability Analysis

1.1 Basic Checks

  • CHK had positive earnings in the past year.
  • 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.
CHK Yearly Net Income VS EBIT VS OCF VS FCFCHK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B

1.2 Ratios

  • CHK has a Return On Assets of 3.22%. This is in the lower half of the industry: CHK underperforms 65.07% of its industry peers.
  • CHK has a worse Return On Equity (4.22%) than 70.33% of its industry peers.
  • CHK has a Return On Invested Capital of 2.57%. This is in the lower half of the industry: CHK underperforms 75.60% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for CHK is significantly below the industry average of 22.77%.
  • 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 RankSector 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%
CHK Yearly ROA, ROE, ROICCHK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 100 -100 200 300

1.3 Margins

  • With a Profit Margin value of 8.94%, CHK perfoms like the industry average, outperforming 40.67% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CHK has grown nicely.
  • CHK has a Operating Margin of 8.56%. This is in the lower half of the industry: CHK underperforms 69.86% of its industry peers.
  • CHK's Operating Margin has improved in the last couple of years.
  • CHK has a Gross Margin of 78.39%. This is amongst the best in the industry. CHK outperforms 88.52% of its industry peers.
  • In the last couple of years the Gross Margin of CHK has remained more or less at the same level.
Industry RankSector 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%
CHK Yearly Profit, Operating, Gross MarginsCHK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 100 -100 -150

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7

2. CHK Health Analysis

2.1 Basic Checks

  • CHK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • CHK has less shares outstanding than it did 1 year ago.
  • Compared to 1 year ago, CHK has an improved debt to assets ratio.
CHK Yearly Shares OutstandingCHK Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
CHK Yearly Total Debt VS Total AssetsCHK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 4.46 indicates that CHK is not in any danger for bankruptcy at the moment.
  • CHK's Altman-Z score of 4.46 is amongst the best of 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 (9.53) which is comparable to the rest of the industry.
  • 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 RankSector Rank
Debt/Equity 0.19
Debt/FCF 9.53
Altman-Z 4.46
ROIC/WACC0.33
WACC7.73%
CHK Yearly LT Debt VS Equity VS FCFCHK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B 10B

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.
  • A Quick Ratio of 2.16 indicates that CHK has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 2.16, CHK is in the better half of the industry, outperforming 75.12% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.16
Quick Ratio 2.16
CHK Yearly Current Assets VS Current LiabilitesCHK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. CHK Growth Analysis

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.
  • CHK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.46% yearly.
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

  • CHK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.56% yearly.
  • 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.
CHK Yearly Revenue VS EstimatesCHK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B 10B
CHK Yearly EPS VS EstimatesCHK Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 5 10 15 20

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2

4. CHK Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 27.43, CHK can be considered very expensive at the moment.
  • Based on the Price/Earnings ratio, CHK is valued a bit more expensive than 70.81% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, CHK is valued at the same level.
  • The Price/Forward Earnings ratio is 15.93, which indicates a correct valuation of CHK.
  • CHK's Price/Forward Earnings is on the same level as the industry average.
  • CHK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.24.
Industry RankSector Rank
PE 27.43
Fwd PE 15.93
CHK Price Earnings VS Forward Price EarningsCHK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHK indicates a slightly more expensive valuation: CHK is more expensive than 63.16% of the companies listed 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 RankSector Rank
P/FCF 87.19
EV/EBITDA 10.11
CHK Per share dataCHK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. CHK Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.82%, CHK has a reasonable but not impressive dividend return.
  • CHK's Dividend Yield is comparable with the industry average which is at 3.23.
  • CHK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
Industry RankSector 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
CHK Yearly Dividends per shareCHK Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 2 4 6 8

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%
CHK Yearly Income VS Free CF VS DividendCHK Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B
CHK Dividend Payout.CHK Dividend Payout, showing the Payout Ratio.CHK Dividend Payout.PayoutRetained Earnings

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CHK Fundamentals: All Metrics, Ratios and Statistics

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)07-29
Earnings (Next)10-29
Inst Owners69.55%
Inst Owner Change1.19%
Ins Owners34.93%
Ins Owner Change0%
Market Cap18.48B
Revenue(TTM)4.90B
Net Income(TTM)438.00M
Analysts75.83
Price Target97.71 (19.95%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Graham Number0 (-100%)
Profitability
Industry RankSector 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%
ROICexgc growth 3Y17.67%
ROICexgc 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 RankSector 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%

CHESAPEAKE ENERGY CORP / CHK Fundamental Analysis 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.


How profitable is CHESAPEAKE ENERGY CORP (CHK) stock?

CHESAPEAKE ENERGY CORP (CHK) has a profitability rating of 4 / 10.


What is the valuation of CHESAPEAKE ENERGY CORP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for CHESAPEAKE ENERGY CORP (CHK) is 27.43 and the Price/Book (PB) ratio is 1.78.


Is the dividend of CHESAPEAKE ENERGY CORP sustainable?

The dividend rating of CHESAPEAKE ENERGY CORP (CHK) is 3 / 10 and the dividend payout ratio is 74.89%.