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CHESAPEAKE ENERGY CORP (CHK) Stock Fundamental Analysis

NASDAQ:CHK - Nasdaq - US1651677353 - Common Stock - Currency: USD

81.46  -0.79 (-0.96%)

After market: 81.46 0 (0%)

Fundamental Rating

5

Taking everything into account, CHK scores 5 out of 10 in our fundamental rating. CHK was compared to 213 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

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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B -10B

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 worse Return On Invested Capital (2.57%) than 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 25.70%.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200 -200 -400 -600

1.3 Margins

CHK has a Profit Margin of 8.94%. This is comparable 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.
CHK's Operating Margin of 8.56% is on the low side compared to the rest of the industry. CHK is outperformed by 69.86% of its industry peers.
In the last couple of years the Operating Margin of CHK has grown nicely.
CHK has a better Gross Margin (78.39%) than 88.52% of its industry peers.
CHK's Gross Margin has been stable in the last couple of years.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 100 -100 -150

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.
Compared to 1 year ago, CHK has less shares outstanding
CHK has more shares outstanding than it did 5 years ago.
CHK has a better debt/assets ratio than last year.
CHK Yearly Shares OutstandingCHK Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 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.
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.
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.
A Debt/Equity ratio of 0.19 indicates that CHK is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.19, CHK is doing good in 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 2015 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.
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.
The Quick ratio of CHK (2.16) is better than 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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%.
Measured over the past years, CHK shows a decrease in Revenue. The Revenue has been decreasing by -5.46% on average per year.
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
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.
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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5B 10B 15B 20B
CHK Yearly EPS VS EstimatesCHK Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 5 10 15 20

2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 27.43 indicates a quite expensive valuation of CHK.
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.
Compared to an average S&P500 Price/Earnings ratio of 28.10, CHK is valued at the same level.
A Price/Forward Earnings ratio of 15.93 indicates a correct valuation of CHK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHK is on the same level as its industry peers.
CHK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.74, which is the current average of the S&P500 Index.
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 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CHK is valued a bit 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 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%

3

5. Dividend

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 7.27.
Compared to an average S&P500 Dividend Yield of 2.43, CHK has a dividend comparable with the average S&P500 company.
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 2015 2021 2022 2023 2024 10 20 30

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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B -10B
CHK Dividend Payout.CHK Dividend Payout, showing the Payout Ratio.CHK Dividend Payout.PayoutRetained Earnings

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 2024-07-29/amc
Earnings (Next)10-29 2024-10-29/amc
Inst Owners69.55%
Inst Owner Change-1.99%
Ins Owners34.93%
Ins Owner Change0%
Market Cap18.48B
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
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%
ROICexcg growth 3Y17.67%
ROICexcg 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%