CHESAPEAKE ENERGY CORP (CHK) Stock Fundamental Analysis

NASDAQ:CHK • US1651677353

81.46 USD
-0.79 (-0.96%)
At close: Oct 1, 2024
81.46 USD
0 (0%)
After Hours: 10/1/2024, 8:00:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall CHK gets a fundamental rating of 5 out of 10. We evaluated CHK against 206 industry peers in the Oil, Gas & Consumable Fuels industry. CHK has an excellent financial health rating, but there are some minor concerns on its profitability. CHK is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

4

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.
  • 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 worse Return On Assets (3.22%) than 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.
  • The Average Return On Invested Capital over the past 3 years for CHK is significantly below the industry average of 21.97%.
  • 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 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

  • CHK has a Profit Margin (8.94%) which is in line with its industry peers.
  • 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.
  • 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 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

7

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 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.
  • 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.
  • CHK has a debt to FCF ratio of 9.53. This is a negative value and a sign of low solvency as CHK would need 9.53 years to pay back of all of its debts.
  • With a Debt to FCF ratio value of 9.53, CHK perfoms like the industry average, outperforming 43.06% of the companies in the same industry.
  • CHK has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
  • CHK's Debt to Equity ratio of 0.19 is fine compared to the rest of the industry. CHK outperforms 69.38% of its industry peers.
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.
  • CHK's Current ratio of 2.16 is fine compared to the rest of the industry. CHK outperforms 73.21% of its industry peers.
  • 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 Quick ratio of 2.16. This is in the better half of the industry: CHK outperforms 75.12% of its industry peers.
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

More info and screens

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

4

3. Growth

3.1 Past

  • The earnings per share for CHK have decreased strongly by -74.81% in the last year.
  • CHK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.65% yearly.
  • CHK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -58.30%.
  • 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

  • CHK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.56% yearly.
  • The Revenue is expected to grow by 19.77% on average over the next years. This is quite good.
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

More info and screens

Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 27.43, which means the current valuation is very expensive for CHK.
  • 70.81% of the companies in the same industry are cheaper than CHK, based on the Price/Earnings ratio.
  • CHK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.67, 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 27.69. CHK is valued slightly cheaper when compared to this.
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

  • Based on the Enterprise Value to EBITDA ratio, CHK is valued a bit more expensive than the industry average as 63.16% of the companies are valued more cheaply.
  • Based on the Price/Free Cash Flow ratio, CHK is valued a bit more expensive than the industry average as 64.59% of the companies are valued more cheaply.
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

  • CHK's earnings are expected to grow with 18.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.06%
EPS Next 3Y18.26%

More info and screens

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

3

5. Dividend

5.1 Amount

  • CHK has a Yearly Dividend Yield of 2.82%.
  • Compared to an average industry Dividend Yield of 3.63, CHK has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.80, CHK pays a better dividend.
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

  • 74.89% of the earnings are spent on dividend by CHK. 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

More info and screens

Find the best dividend stocksShow peers with best dividend

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 Change0.64%
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 NumberN/A
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 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.