CHESAPEAKE ENERGY CORP (CHK)
US1651677353 - Common Stock
CHK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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.
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.
The reported net income has been mixed in the past 5 years: CHK reported negative net income in multiple years.
CHK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CHK's Return On Assets of 16.83% is amongst the best of the industry. CHK outperforms 82.08% of its industry peers.
Looking at the Return On Equity, with a value of 22.55%, CHK is in the better half of the industry, outperforming 66.98% of the companies in the same industry.
With a decent Return On Invested Capital value of 13.08%, CHK is doing good in the industry, outperforming 69.34% of the companies in the same industry.
CHK had an Average Return On Invested Capital over the past 3 years of 13.76%. This is significantly below the industry average of 46.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.83% | ||
| ROE | 22.55% | ||
| ROIC | 13.08% |
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
Looking at the Profit Margin, with a value of 31.11%, CHK is in the better half of the industry, outperforming 72.17% of the companies in the same industry.
In the last couple of years the Profit Margin of CHK has grown nicely.
Looking at the Operating Margin, with a value of 28.31%, CHK is in line with its industry, outperforming 55.19% of the companies in the same industry.
In the last couple of years the Operating Margin of CHK has grown nicely.
With an excellent Gross Margin value of 82.30%, CHK belongs to the best of the industry, outperforming 90.09% 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 | 28.31% | ||
| PM (TTM) | 31.11% | ||
| GM | 82.3% |
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.
CHK has more shares outstanding than it did 5 years ago.
CHK has a better debt/assets ratio than last year.
2.2 Solvency
CHK has an Altman-Z score of 3.51. This indicates that CHK is financially healthy and has little risk of bankruptcy at the moment.
CHK has a Altman-Z score of 3.51. This is in the better half of the industry: CHK outperforms 77.83% of its industry peers.
CHK has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as CHK would need 3.68 years to pay back of all of its debts.
CHK's Debt to FCF ratio of 3.68 is fine compared to the rest of the industry. CHK outperforms 62.26% 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 69.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 3.51 |
ROIC/WACC1.6
WACC8.19%
2.3 Liquidity
CHK has a Current Ratio of 1.99. This is a normal value and indicates that CHK is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CHK (1.99) is better than 75.47% of its industry peers.
A Quick Ratio of 1.99 indicates that CHK should not have too much problems paying its short term obligations.
CHK has a better Quick ratio (1.99) than 76.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
The earnings per share for CHK have decreased strongly by -71.52% in the last year.
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.
Looking at the last year, CHK shows a very negative growth in Revenue. The Revenue has decreased by -32.05% in the last year.
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)-71.52%
EPS 3YN/A
EPS 5Y-8.65%
EPS growth Q2Q-68.96%
Revenue 1Y (TTM)-32.05%
Revenue growth 3Y13.87%
Revenue growth 5Y-5.46%
Revenue growth Q2Q-56.13%
3.2 Future
CHK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.37% yearly.
CHK is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.30% yearly.
EPS Next Y-42.57%
EPS Next 2Y28.27%
EPS Next 3Y27.07%
EPS Next 5Y28.37%
Revenue Next Year-6.96%
Revenue Next 2Y38.31%
Revenue Next 3Y20.3%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 17.78, which indicates a rather expensive current valuation of CHK.
71.70% of the companies in the same industry are cheaper than CHK, based on the Price/Earnings ratio.
CHK is valuated rather cheaply when we compare the Price/Earnings ratio to 24.80, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 30.97 indicates a quite expensive valuation of CHK.
Based on the Price/Forward Earnings ratio, CHK is valued a bit more expensive than the industry average as 68.87% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of CHK to the average of the S&P500 Index (21.27), we can say CHK is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.78 | ||
| Fwd PE | 30.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHK is valued cheaply inside the industry as 86.32% of the companies are valued more expensively.
CHK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.73 | ||
| EV/EBITDA | 3.31 |
4.3 Compensation for Growth
CHK has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CHK's earnings are expected to grow with 27.07% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y28.27%
EPS Next 3Y27.07%
5. Dividend
5.1 Amount
CHK has a Yearly Dividend Yield of 2.59%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.80, CHK has a dividend in line with its industry peers.
CHK's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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
20.13% of the earnings are spent on dividend by CHK. This is a low number and sustainable payout ratio.
DP20.13%
EPS Next 2Y28.27%
EPS Next 3Y27.07%
CHESAPEAKE ENERGY CORP
NASDAQ:CHK (4/18/2024, 5:47:17 PM)
After market: 87.32 0 (0%)87.32
+0.17 (+0.2%)
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 Cap11.42B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 17.78 | ||
| Fwd PE | 30.97 | ||
| 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 | 16.83% | ||
| ROE | 22.55% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.31% | ||
| PM (TTM) | 31.11% | ||
| GM | 82.3% | ||
| 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 Turnover0.54
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 | 1.99 | ||
| Quick Ratio | 1.99 | ||
| 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)
Growth
EPS 1Y (TTM)-71.52%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-42.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-32.05%
Revenue growth 3Y13.87%
Revenue growth 5Y
Revenue growth 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