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Comcast (CMCSA)
NASDAQ:CMCSA
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Comcast
(NASDAQ:CMCSA)77Outperform
Positive Factors
Operational Performance
The company reported record revenue and EBITDA in its history, showing some positive operational performance.
Valuation
The current trading multiple of 5.7x EV/EBITDA is low, suggesting there’s potential upside for patient investors.
Negative Factors
Advertising Market Challenges
The advertising market remains challenging for the majority of categories with difficult political comparisons extending to Connectivity & Platforms as well as Media.
Broadband Growth Challenges
Comcast stock fell largely in reaction to a mildly worse broadband unit growth result vs. consensus expectations and implications of potential broadband pricing adjustments.
Market Competition
Intense competition is expected to result in a significant increase in broadband subscriber losses, which raises concerns about Comcast's ability to maintain its market share.
Comcast (CMCSA) vs. S&P 500 (SPY)
Market Cap
$134.23B
Dividend Yield3.45%
Average Volume (3M)28.06M
Price to Earnings (P/E)8.6
Beta (1Y)0.65
Revenue Growth1.78%
EPS Growth11.62%
CountryUS
Employees182,000
SectorCommunication Services
Sector Strength85
IndustryTelecommunications
Share Statistics
EPS (TTM)4.15
Shares Outstanding3,771,578,100
10 Day Avg. Volume26,440,217
30 Day Avg. Volume28,059,458
Financial Highlights & Ratios
PEG Ratio0.74
Price to Book (P/B)N/A
Price to Sales (P/S)1.10
Price to Cash Flow (P/CF)4.20
P/FCF Ratio4.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$41.82Price Target Upside17.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering20
Comcast Business Overview & Revenue Model
Company DescriptionComcast is a media and technology company with three primary businesses: Comcast Cable, NBCUniversal, and Sky. The Comcast Cable/Cable Communications business provides high-speed internet, video, voice, wireless, as well as security and automation services. NBCUniversal develops, produces and distributes entertainment, news and information, sports, and other content and also operates theme parks. Sky is one of Europe’s leading entertainment companies and includes a direct-to-consumer business, providing video, high-speed internet, voice and wireless phone services, and a content business, operating entertainment networks, the Sky News broadcast network and Sky Sports networks. The company was founded by Ralph J. Roberts in 1963 and is headquartered in Philadelphia, PA.
How the Company Makes MoneyComcast makes money through a diverse range of revenue streams. The Cable Communications segment generates revenue by providing broadband, video, voice, and wireless services to residential and business customers, with broadband being a significant growth driver. The Media segment, which includes NBCUniversal, earns revenue from advertising, distribution of content, and subscription fees for cable networks and streaming services. The Studios segment contributes through the production and distribution of films and television content. The Theme Parks segment generates income from admissions, food, and merchandise sales at its theme park locations. Additionally, the Sky segment in Europe provides revenue through direct-to-consumer services, content, and advertising sales. Strategic partnerships, such as content sharing agreements and technology collaborations, further bolster Comcast's revenue generation capabilities.
Comcast Financial Statement Overview
Summary
Comcast shows strong financial performance with consistent revenue and profit growth, efficient cost management, and solid cash flow generation. The balance sheet is stable with prudent leverage, though the declining asset base warrants attention.Income Statement
Comcast shows a strong financial performance with a consistent revenue growth from 2020 to 2024, evident from the TTM revenue increase to $123.731 billion. The gross profit margin is robust, and the net profit margin reflects solid profitability, especially with the TTM net income reaching $16.193 billion. The EBIT and EBITDA margins are strong, indicating efficient operations and cost management. However, the pace of revenue growth has slowed slightly in recent years which could be an area to monitor.85
Very Positive
Balance Sheet
The balance sheet indicates a stable financial position with a healthy equity base of $86.038 billion as of TTM. The debt-to-equity ratio is low, showing prudent leverage management, and the equity ratio reflects a solid capitalization structure. However, the decline in total assets over recent years suggests potential divestitures or asset write-downs, which should be assessed further.78
Positive
Cash Flow
Comcast demonstrates strong cash flow generation with a healthy free cash flow, growing to $13.45 billion in TTM. The operating cash flow remains robust, supporting net income effectively. The cash flow management appears efficient with a favorable free cash flow to net income ratio, ensuring liquidity and operational flexibility. Nonetheless, the capital expenditure remains significant, which may impact future cash reserves if not managed carefully.88
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 123.73B | 121.57B | 121.43B | 116.39B | 103.56B | Gross Profit |
| 86.70B | 84.81B | 83.21B | 77.94B | 70.44B | EBIT |
| 23.30B | 23.31B | 22.08B | 20.82B | 17.49B | EBITDA |
| 29.34B | 38.90B | 36.45B | 34.62B | 30.59B | Net Income Common Stockholders |
| 16.19B | 15.39B | 5.37B | 14.16B | 10.53B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 7.32B | 6.21B | 4.75B | 8.71B | 11.74B | Total Assets |
| 266.21B | 264.81B | 257.27B | 275.90B | 273.87B | Total Debt |
| 99.09B | 97.09B | 94.81B | 94.85B | 103.76B | Net Debt |
| 91.77B | 90.88B | 90.06B | 86.14B | 92.02B | Total Liabilities |
| 179.94B | 181.34B | 175.24B | 177.90B | 180.85B | Stockholders Equity |
| 85.56B | 82.70B | 80.94B | 96.09B | 90.32B |
| Cash Flow | Free Cash Flow | |||
| 15.49B | 12.96B | 12.65B | 17.09B | 13.10B | Operating Cash Flow |
| 27.67B | 28.50B | 26.41B | 29.15B | 24.74B | Investing Cash Flow |
| -15.67B | -7.16B | -14.14B | -13.45B | -12.05B | Financing Cash Flow |
| -10.88B | -19.85B | -16.18B | -18.62B | -6.51B |
Comcast Technical Analysis
Negative
35.50
Price Trends
36.24
Negative
39.04
Negative
38.81
Negative
Market Momentum
-0.14
Negative
46.62
Neutral
39.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMCSA, the sentiment is Negative. The current price of 35.5 is above the 20-day moving average (MA) of 35.36, below the 50-day MA of 36.24, and below the 200-day MA of 38.81, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 46.62 is Neutral, neither overbought nor oversold. The STOCH value of 39.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMCSA.
Comcast Risk Analysis
Comcast disclosed 19 risk factors in its most recent earnings report. Comcast reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Comcast Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $25.29B | 11.57 | 19.01% | 0.99% | 4.29% | 177.70% | |
77 Outperform | $134.23B | 8.57 | 18.92% | 3.45% | 1.78% | 11.62% | |
76 Outperform | $188.21B | 17.58 | 9.26% | 4.00% | -0.08% | -24.48% | |
74 Outperform | $58.37B | 10.47 | 38.11% | ― | 0.88% | 16.44% | |
73 Outperform | $181.44B | 10.40 | -224.44% | 6.12% | 0.61% | 50.39% | |
59 Neutral | $30.54B | 0.25 | -13.23% | 4.04% | 2.36% | -49.53% |
* Communication Services Sector Average
Performance Comparison
CMCSA
Comcast
35.50
-5.26
-12.90%
T
AT&T
26.22
9.99
61.55%
CHTR
Charter Communications
368.36
87.51
31.16%
VZ
Verizon
42.87
5.07
13.41%
FOX
Fox
52.61
26.47
101.26%
Comcast Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -4.98% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
Comcast reported a strong financial performance with record revenue and earnings, driven by growth in wireless, business services, and streaming. However, the company faces challenges in broadband subscriber growth due to intense competition. The overall sentiment reflects a balanced outlook with significant achievements but also notable challenges that need to be addressed.Highlights
Record Revenue and EBITDA
Comcast achieved record revenue of $124 billion and record adjusted EBITDA of $38 billion in 2024.
Strong EPS Growth
Adjusted EPS grew by 9% and Comcast generated substantial free cash flow of $12.5 billion.
Wireless and Business Services Growth
Wireless revenue grew at a mid-teens rate with 1.2 million new lines added, reaching 7.8 million total. Business Services revenue grew at mid-single digit rates, reaching nearly $10 billion.
Streaming and Studio Success
Peacock's EBITDA losses improved by $1 billion. The Studio business ranked second in global box office for the third consecutive year.
Theme Parks and New Developments
Strong performance across global parks and preparation for the opening of Epic Universe in May.
Lowlights
Broadband Subscriber Decline
Net broadband subscriber additions were negative 139,000 in the fourth quarter, worse than expected.
Intense Broadband Competition
Facing intense competition from fiber and fixed wireless, posing challenges for subscriber growth.
Impact of Competitive Environment
The competitive environment remains challenging, affecting pricing and market share, particularly in broadband.
Company Guidance
During Comcast's Fourth Quarter and Full-Year 2024 Earnings Conference Call, the company shared impressive financial results and strategic guidance for 2025. They reported record revenue of $124 billion and adjusted EBITDA of $38 billion for 2024, with adjusted EPS growing by 9% and free cash flow reaching $12.5 billion. Despite a competitive environment, broadband revenue grew by 3%, and convergence revenue increased by nearly 5%. For 2025, Comcast plans to focus on expanding its wireless offerings and enhancing its broadband network capabilities, which include boosting Xfinity Mobile speeds and implementing AI in their network. The company also announced the creation of SpinCo, which will spin off cable TV networks and digital assets, allowing NBCUniversal to focus on streaming and broadcast. Comcast continues to invest in its growth drivers, with an emphasis on maintaining a healthy balance sheet and returning capital to shareholders, as demonstrated by their $13.5 billion capital return in 2024.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.