Chesapeake Energy Stock Analysis, Valuation (NYSE:CHK)

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$4.67 $0.01 (0.21%) CHK stock closing price Jul 19, 2018 (Closing)

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 3.3/5

Amigobulls CHK stock analysis uses latest quarter 2018 Q1 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 had a healthy average operating margin of 12.74 over the last 4 quarters.
  • Net margins came in at average 11.7% for Chesapeake Energy over the last twelve months.
  • The company has an operating cash flow which is 2.2389 times the net income. We see this as a positive signal.
  • CHK stock is trading at an earnings multiple of 5 which is better than the sector average of 22.3.
  • CHK stock is trading at a favorable price to sales multiple of 0.5 as against the Oils-Energy sector average multiple of 1.8.
  • Chesapeake Energy has an attractive ROIC (Return on Invested Capital) of 12.2
  • Chesapeake Energy has a healthy FCF (Free Cash Flow) margin of 39.3.

Should you sell CHK stock?

  • Sales declined by -7.1 annually 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.