Chesapeake Energy Stock Analysis, Valuation (NYSE:CHK)

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$3 $0.03 (0.99%) CHK stock closing price Apr 20, 2018 (Closing)
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Chesapeake Energy
Updated on : Apr 20, 2018
previous close
CHK 3 (0%)
S&P 500 2670.1 (0%)
Closing Price On: Apr 20, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Oil and Gas-US exploration and production
Sector :
Oils-Energy
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-5.1%
Operating Profit
Operating Margin:
12%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$472M
Net Income:
$332M
PROS      CONS
Operating Margins
Net Margins
ROIC
FCF Margin
PE Valuation
PS Valuation
Long Term Growth
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
CHK PS :
0.3
Industry PS :
1.7
Sector:   Oils-Energy.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
12%
Free Cash Flow Margin:
20.4%
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Chesapeake Energy Stock Analysis

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Investors can watch the Amigobulls Chesapeake Energy stock analysis video here. This is our analyst opinion covering the buy and sell arguments for CHK stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Chesapeake Energy Corporation Stock Rating 3.5/5

Amigobulls CHK stock analysis uses latest quarter 2017 Q4 financial data like Chesapeake Energy revenue growth, profit margins and cash flows. Chesapeake Energy valuation forms a crucial part of our stock analysis. Chesapeake Energy stock rating is our opinion about the business fundamentals of the company.

Should you buy CHK stock?

  • Chesapeake Energy's average operating margin of 12% was exceptional.
  • LTM Net margins were good at 9.7% for Chesapeake Energy.
  • CHK stock is trading at an earnings multiple of 3.6 which is better than the industry average of 24.1.
  • CHK stock is trading at a favorable price to sales multiple of 0.3 as against the Oil and Gas-US exploration and production industry average multiple of 1.7.
  • Chesapeake Energy generates a high return on invested capital of 12%.
  • The company has a healthy free cash flow margin of 20.4%.

Should you sell CHK stock?

  • Revenue declined at a CAGR of -5.1% over the last 5 years.

Comments on this video and Chesapeake Energy stock

Amigobulls Chesapeake Energy stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of CHK stock. The fundamentals of a company are vital to identify long-term investment opportunities.

Among the financials of the company, Chesapeake Energy revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.