CHESAPEAKE ENERGY CORP (CHK) Stock Fundamental Analysis
USA - NASDAQ:CHK - US1651677353 - Common Stock
81.46 USD
-0.79 (-0.96%)
81.46 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to CHK. CHK was compared to 211 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
CHK had positive earnings in the past year.
In the past year CHK had a positive cash flow from operations.
In multiple years CHK reported negative net income over the last 5 years.
In the past 5 years CHK always reported a positive cash flow from operatings.
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.
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.
The Return On Invested Capital of CHK (2.57%) is worse than 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 21.54%.
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
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.
With a Operating Margin value of 8.56%, CHK is not doing good in the industry: 69.86% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of CHK has grown nicely.
CHK has a Gross Margin of 78.39%. This is amongst the best in the industry. CHK outperforms 88.52% of its industry peers.
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.
The number of shares outstanding for CHK has been increased compared to 5 years ago.
Compared to 1 year ago, CHK has an improved debt to assets ratio.
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.
CHK has a better Current ratio (2.16) than 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.
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%.
The Earnings Per Share has been decreasing by -8.65% on average over the past years.
CHK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -58.30%.
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
The Earnings Per Share is expected to grow by 27.56% on average over the next years. This is a very strong growth
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.
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
CHK is valuated quite expensively with a Price/Earnings ratio of 27.43.
CHK's Price/Earnings ratio is a bit more expensive when compared to the industry. CHK is more expensive than 70.81% of the companies in the same industry.
CHK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.83.
CHK is valuated correctly with a Price/Forward Earnings ratio of 15.93.
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 22.82, 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
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 6.30, 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 2.34.
| 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%
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 Change0.56%
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 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
Graham NumberN/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%
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 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%
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.
What is the valuation status for CHK stock?
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.
What is the financial health of CHESAPEAKE ENERGY CORP (CHK) stock?
The financial health rating of CHESAPEAKE ENERGY CORP (CHK) is 7 / 10.
Can you provide the dividend sustainability for CHK stock?
The dividend rating of CHESAPEAKE ENERGY CORP (CHK) is 3 / 10 and the dividend payout ratio is 74.89%.