CMCSK  Comcast Corporation

Exchange

NASDAQ

Sector

Consumer Services

Industry

Television Services

Market Cap.

142.52B

Vuru Grade

55.31/100

Current Price

$58.00
+0.00 (+0.00%)

Growth Price

$32.58
Overvalued by 43.83%

Stability Price

$1.23
Overvalued by 97.88%

Company Metrics

  • P/E 18.19
  • P/S 1.95
  • P/B 2.76
  • EPS 3.19
  • Cash ROIC 5.76%
  • Cash Ratio 0.16
  • Dividend 1 / 0%
  • Avg. Vol. 3.58M
  • Shares 4.79B
  • Market Cap. 142.52B

Company Description

Comcast Corporation, together with its subsidiaries, provides consumer entertainment, information, and communication products and services to the residential and commercial customers in the United States. The company operates in two segments, Cable and Programming. The Cable segment manages and operates cable systems, including video, high-speed Internet, and phone services, as well as regional sp... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

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Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CMCSK to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate CMCSK's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$58.00 Current Price

$32.58 Growth Price (DCF)

Overvalued by 43.83%


Growth Rate Assumed by Market: 28.38%


Future Free Cash Flow Growth Rate: 7.4%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$1.23 Stability Price (EPV)

Overvalued by 97.88%


Discount Rate: 15.0%

$21.36 Book Price

Overvalued by 63.17%


Poor Cash Return on Invested Capital over the past 5 years

CMCSK has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

CMCSK has only created $5.76 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20132014201520162017
Free Cash Flow 6.56B 8.40B 8.91B 8.42B 10.11B
divided by
Invested Capital 134.61B 137.42B 146.00B 153.89B 161.95B
Cash ROIC 4.87% 6.11% 6.10% 5.47% 6.24%

Excellent Return on Equity over the past 5 years

Over the past 5 years, CMCSK has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

CMCSK has generated $19.32 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20132014201520162017
Net Income 7.14B 8.59B 8.41B 9.05B 22.90B
divided by
Stockholders' Equity 50.69B 52.71B 52.27B 53.94B 68.61B
Return on Equity 14.07% 16.30% 16.10% 16.77% 33.38%

Excellent Business Performance over the past 10 years

CMCSK has been able to maintain profitability in good times and bad. This could mean CMCSK has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

CMCSK has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2008200920102011201220132014201520162017
Free Cash Flow 4.48B 5.16B 6.22B 8.08B 8.22B 6.56B 8.40B 8.91B 8.42B 10.11B

Weak Balance Sheet

CMCSK's financial position is not ideal. The key is to check whether CMCSK is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2008200920102011201220132014201520162017
Cash 1.25B 721.00M 6.07B 1.62B 12.42B 5.29B 4.51B 2.40B 5.07B 3.44B
Current Assets 3.72B 3.22B 8.89B 8.57B 19.99B 14.08B 13.53B 12.30B 16.36B 16.06B
Total Assets 113.02B 112.73B 118.53B 157.82B 164.97B 158.81B 159.34B 166.57B 180.50B 186.95B
Current Liabilities 8.94B 7.25B 8.23B 13.24B 16.71B 18.91B 17.41B 18.18B 21.54B 21.56B
Total Liabilities 72.57B 70.01B 74.18B 110.54B 115.62B 108.12B 106.63B 114.31B 126.56B 118.34B
Stockholder' Equity 40.45B 42.72B 44.35B 47.27B 49.36B 50.69B 52.71B 52.27B 53.94B 68.61B
Current Ratio 0.42 0.44 1.08 0.65 1.20 0.74 0.78 0.68 0.76 0.74
TL-to-TA 0.64 0.62 0.63 0.70 0.70 0.68 0.67 0.69 0.70 0.63

Consistent Reinvestment of Profits over the past 10 years

CMCSK has consistently retained profits. This may put CMCSK in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, CMCSK can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2008200920102011201220132014201520162017
Retained Earnings 7.43B 10.01B 12.16B 13.97B 16.28B 19.24B 21.54B 21.41B 23.08B 38.19B
Retained Earnings Growth - 34.71% 21.52% 14.91% 16.53% 18.15% 11.98% -0.58% 7.77% 65.51%

Growing Competitive Advantage over the past 10 years

CMCSK has a growing competitive advantage. This could be due to strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at its future prospects to determine sustainability and whether the economic moat will continue to strengthen.

$12.04 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2008200920102011201220132014201520162017
Net Income 2.55B 3.64B 3.64B 4.16B 7.87B 7.14B 8.59B 8.41B 9.05B 22.90B
divided by
Revenue 34.26B 35.76B 37.94B 55.84B 62.57B 64.66B 68.78B 74.51B 80.40B 84.53B
Net Profit Margin 7.44% 10.17% 9.58% 7.45% 12.57% 11.04% 12.49% 11.29% 11.25% 27.09%

Strong Pricing Power over the past 10 years

CMCSK has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$69.68 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2008200920102011201220132014201520162017
Gross Profit 20.78B 21.36B 22.69B 55.84B 42.64B 44.99B 47.86B 51.96B 55.94B 59.14B
divided by
Revenue 34.26B 35.76B 37.94B 55.84B 62.57B 64.66B 68.78B 74.51B 80.40B 84.53B
Gross Margin 60.67% 59.74% 59.80% 100.00% 68.15% 69.58% 69.59% 69.74% 69.57% 69.97%

High Capital Intensity over the past 10 years

CMCSK spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

123.01% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2008200920102011201220132014201520162017
Capital Expenditure 5.75B 5.12B 4.96B 6.26B 6.64B 7.61B 8.54B 9.87B 10.82B 11.30B
divided by
Net Income 2.55B 3.64B 3.64B 4.16B 7.87B 7.14B 8.59B 8.41B 9.05B 22.90B
Capital Expenditure Ratio 225.76% 140.65% 136.48% 150.50% 84.39% 106.59% 99.42% 117.31% 119.64% 49.33%

Very Strong Dividend History over the past 10 years

CMCSK has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests CMCSK is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2008200920102011201220132014201520162017
Dividend Paid 547.00M 761.00M 1.06B 1.51B 2.30B 2.18B 2.47B 2.67B 2.60B 2.88B
divided by
Shares Outstanding 2.95B 2.89B 2.82B 2.78B 2.72B 2.67B - 2.52B 2.44B 4.79B
Dividend Paid Per Share 0.19 0.26 0.38 0.54 0.85 0.82 - 1.06 1.07 0.60
Price at Year End 14.79 15.46 20.28 23.56 35.21 49.73 58.55 59.69 59.69 59.69
Dividend Yield 1.25% 1.71% 1.86% 2.31% 2.40% 1.64% - 1.78% 1.79% 1.01%

Strong History of Stock Buybacks over the past 10 years

CMCSK has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2008200920102011201220132014201520162017
Shares Outstanding 2.95B 2.89B 2.82B 2.78B 2.72B 2.67B - 2.52B 2.44B 4.79B
Stock Bought Back - 2.32% 2.30% 1.51% 2.25% 1.95% - -100.00% 3.28% -49.06%
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