CHESAPEAKE ENERGY CORP (CHK)
US1651677353 - Common Stock
CHK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 204 industry peers in the Oil, Gas & Consumable Fuels industry. While CHK has a great health rating, its profitability is only average at the moment. While showing a medium growth rate, CHK is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CHK was profitable.
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.
Each year in the past 5 years CHK had a positive operating cash flow.
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.
CHK has a worse Return On Equity (4.22%) than 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.
CHK had an Average Return On Invested Capital over the past 3 years of 13.76%. This is significantly below the industry average of 22.54%.
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
The Profit Margin of CHK (8.94%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CHK has grown nicely.
CHK has a worse Operating Margin (8.56%) than 69.86% of its industry peers.
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.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CHK is 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
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.
Looking at the Altman-Z score, with a value of 4.46, CHK belongs to the top 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.
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 9.53 | ||
| Altman-Z | 4.46 |
ROIC/WACC0.33
WACC7.73%
2.3 Liquidity
CHK has a Current Ratio of 2.16. This indicates that CHK is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of CHK (2.16) is better than 73.21% of its industry peers.
A Quick Ratio of 2.16 indicates that CHK has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.16, CHK is doing good in the industry, outperforming 75.12% of the companies in the same industry.
| 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%.
Measured over the past years, CHK shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.65% on average per year.
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
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.
CHK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.77% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
CHK is valuated quite expensively with a Price/Earnings ratio of 27.43.
Compared to the rest of the industry, the Price/Earnings ratio of CHK indicates a slightly more expensive valuation: CHK is more expensive than 70.81% of the companies listed in the same industry.
CHK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.96, 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.
CHK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.43 | ||
| Fwd PE | 15.93 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 87.19 | ||
| EV/EBITDA | 10.11 |
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%
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 6.45, CHK has a dividend in line with its industry peers.
CHK's Dividend Yield is a higher than the S&P500 average which is at 2.23.
| 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 Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap18.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.43 | ||
| Fwd PE | 15.93 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 4.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.56% | ||
| PM (TTM) | 8.94% | ||
| GM | 78.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-74.81%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-74.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-58.3%
Revenue growth 3Y13.87%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y