Comcast (CMCSA) AI Stock Analysis

• Market Cap: $127.77B
• Dividend Yield: 3.63%
• Average Volume (3M): 20.72M
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.56
• Revenue Growth: 1.33%
• EPS Growth: 7.69%
• Country: US
• Employees: 182,000
• Sector: Communication Services
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): 1.09
• Shares Outstanding: 3,724,259,500
• 10 Day Avg. Volume: 19,537,419
• 30 Day Avg. Volume: 20,722,235
• PEG Ratio: -4.85
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.53
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 2.74
• Enterprise Value/Ebitda: 1.52
• 1Y Price Target: $40.86
• Price Target Upside: 17.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

• Rating: 75 Outperform
• Price Target: $39.00 ▲(12.39%Upside)

Comcast's overall stock score is driven by its strong financial performance and strategic initiatives like the SpinCo announcement. Valuation metrics suggest the stock is potentially undervalued, offering a good entry point for investors. Despite some technical weakness and challenges highlighted in the earnings call, the company's solid fundamentals and strategic focus on growth areas mitigate these concerns.

Positive Factors

Mobile Trends

New converged offers have shown some early success in driving mobile line growth in 1Q25.

Theme Parks

Epic Universe will provide a significant boost to Comcast’s Theme Park segment as its five themed worlds offer state-of-art attractions and interactive experiences.

Negative Factors

Broadband Challenges

The challenges in broadband will persist as new pricing and packaging will take time to improve subscriber results while pressuring ARPU.

Market Share

Comcast has been losing market share since 2021 and the pace of share loss is accelerating.

Comcast Business Overview & Revenue Model

Company Description

Comcast Corporation (CMCSA) is a leading global media and technology company that operates primarily through three segments: Cable Communications, Media, and Studios. The company is known for providing broadband, video, and voice services to residential and business customers under the Xfinity brand. In addition, Comcast owns NBCUniversal, which encompasses a wide range of media properties, including broadcast television networks, cable networks, and film studios. Comcast is also involved in theme parks and digital media, further diversifying its portfolio.

How the Company Makes Money

Comcast generates revenue through multiple streams, with a significant portion coming from its Cable Communications segment, which offers broadband internet, cable television, and telephone services to consumers and businesses. The company also earns from advertising and distribution fees through its Media segment, which includes NBCUniversal's television networks and digital platforms. The Studios segment contributes to revenue through the production and distribution of films and television content. Additional income is derived from its theme park operations and strategic partnerships. Comcast's earnings are bolstered by its investments in technology and infrastructure, enabling high-speed internet and innovative content delivery.

Comcast Financial Statement Overview

Summary

Comcast's financial performance is strong, with high profitability and efficient operations. The income statement reflects robust margins, while the balance sheet shows manageable debt levels despite high liabilities. Cash flow is solid, supporting strategic investments and shareholder returns.

Income Statement

Comcast's income statement shows strong profitability and consistent growth. The TTM Gross Profit Margin is approximately 71.16%, indicating efficient cost management. The Net Profit Margin is 12.72%, reflecting solid bottom-line performance. Revenue growth has been steady, with a slight increase in TTM revenue compared to the previous annual period. The EBIT and EBITDA margins of 18.73% and 25.81% respectively demonstrate robust operational efficiency.

Balance Sheet

The balance sheet highlights Comcast's stable financial structure, with a Debt-to-Equity ratio of 0.08, showing a manageable level of debt. The Return on Equity (ROE) stands at 18.13%, indicating effective use of shareholder equity to generate profits. The Equity Ratio is 32.36%, reflecting a solid proportion of equity financing. However, the relatively high level of total liabilities suggests a need to monitor leverage closely.

Cash Flow

Cash flow analysis reveals a healthy cash generation capability, with a Free Cash Flow growth rate of -3.48% compared to the previous year, affected by increased capital expenditures. The Operating Cash Flow to Net Income Ratio of 1.79 signifies strong cash conversion from earnings. The Free Cash Flow to Net Income Ratio is 0.95, indicating that nearly all net income is converted to free cash flow, supporting dividend payments and reinvestment opportunities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
123.56B	123.73B	121.57B	121.43B	116.39B	103.56B
	Gross Profit
79.52B	86.70B	84.81B	83.21B	77.94B	70.44B
	EBIT
23.14B	23.30B	23.31B	22.08B	20.82B	17.49B
	EBITDA
31.91B	29.34B	38.90B	36.45B	34.62B	30.59B
	Net Income Common Stockholders
15.71B	16.19B	15.39B	5.37B	14.16B	10.53B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.59B	7.32B	6.21B	4.75B	8.71B	11.74B
	Total Assets
267.77B	266.21B	264.81B	257.27B	275.90B	273.87B
	Total Debt
99.12B	99.09B	97.09B	99.98B	100.02B	108.93B
	Net Debt
90.53B	91.77B	90.88B	95.23B	91.31B	97.19B
	Total Liabilities
180.47B	179.94B	181.34B	175.24B	177.90B	180.85B
	Stockholders Equity
86.64B	85.56B	82.70B	80.94B	96.09B	90.32B
Cash Flow		Free Cash Flow
14.95B	15.49B	12.96B	12.65B	17.09B	13.10B
	Operating Cash Flow
28.12B	27.67B	28.50B	26.41B	29.15B	24.74B
	Investing Cash Flow
-15.12B	-15.67B	-7.16B	-14.14B	-13.45B	-12.05B
	Financing Cash Flow
-10.94B	-10.88B	-19.85B	-16.18B	-18.62B	-6.51B

Comcast Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.70
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMCSA, the sentiment is Positive. The current price of 34.7 is below the 20-day moving average (MA) of 34.76, above the 50-day MA of 34.58, and below the 200-day MA of 37.52, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 47.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMCSA.

Comcast Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DIS	78 Outperform	$204.76B	23.26	8.75%	0.83%	5.33%	431.28%
CHTR	76 Outperform	$108.10B	10.99	36.94%	―	0.93%	16.06%
VZ	76 Outperform	$182.56B	10.29	18.23%	6.16%	0.93%	56.97%
CMCSA	75 Outperform	$127.77B	8.40	18.57%	3.63%	1.33%	7.69%
T	69 Neutral	$199.75B	17.05	11.38%	3.95%	0.50%	-12.66%
WBD	63 Neutral	$23.87B	―	-27.69%	―	-5.58%	-254.85%
Sector *	61 Neutral	$14.59B	5.85	-4.31%	3.69%	2.76%	-30.36%

Comcast Corporate Events

Comcast Completes $2.5 Billion Notes Issuance

On May 8, 2025, Comcast Corporation completed the issuance and sale of $2.5 billion in notes with varying maturity dates and interest rates, under an underwriting agreement with major financial institutions. These notes are guaranteed by Comcast’s subsidiaries and are part of a strategic financial maneuver to potentially strengthen its market position and operational funding.

Comcast Announces Redemption of $1.5 Billion Notes

On May 5, 2025, Comcast Corporation announced its decision to redeem all outstanding amounts of its $1.5 billion 3.375% Notes due on August 15, 2025. The redemption, scheduled for June 5, 2025, will be executed at the redemption price as per the indenture, plus accrued and unpaid interest, indicating a strategic financial move by Comcast to manage its debt obligations.

Comcast Announces David Novak as SpinCo Chairman

Comcast announced on March 19, 2025, that David Novak will become the non-executive Chairman of the Board of Directors for SpinCo, a planned spin-off of Comcast’s cable channels and digital assets, expected to be completed by the end of 2025. SpinCo will be a leading independent media company with brands such as USA Network, CNBC, and MSNBC, aiming to reach over 65 million U.S. households with a diverse content offering. Novak’s appointment is seen as a strategic move to leverage his extensive experience in brand development and capital markets, positioning SpinCo for growth and value creation.