Chesapeake Energy Corporation
Chesapeake Energy Corporation Fundamental Analysis
Chesapeake Energy Corporation (CHKEW) shows moderate financial fundamentals with a PE ratio of 14.29, profit margin of 15.29%, and ROE of 10.13%. The company generates $6.5B in annual revenue with weak year-over-year growth of -45.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 9.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CHKEW's fundamental strength across five key dimensions:
Efficiency Score
WeakCHKEW struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCHKEW trades at attractive valuation levels.
Growth Score
WeakCHKEW faces weak or negative growth trends.
Financial Health Score
ExcellentCHKEW maintains a strong and stable balance sheet.
Profitability Score
ModerateCHKEW maintains healthy but balanced margins.
Key Financial Metrics
Is CHKEW Expensive or Cheap?
P/E Ratio
CHKEW trades at 14.29 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CHKEW's PEG of 0.13 indicates potential undervaluation.
Price to Book
The market values Chesapeake Energy Corporation at 1.40 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.07 times EBITDA. This is generally considered low.
How Well Does CHKEW Make Money?
Net Profit Margin
For every $100 in sales, Chesapeake Energy Corporation keeps $15.29 as profit after all expenses.
Operating Margin
Core operations generate 19.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.13 in profit for every $100 of shareholder equity.
ROA
Chesapeake Energy Corporation generates $6.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Chesapeake Energy Corporation generates strong operating cash flow of $2.52B, reflecting robust business health.
Free Cash Flow
Chesapeake Energy Corporation generates strong free cash flow of $1.01B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.71 in free cash annually.
FCF Yield
CHKEW converts 7.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.18
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.005
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How CHKEW Stacks Against Its Sector Peers
| Metric | CHKEW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.29 | 20.19 | Better (Cheaper) |
| ROE | 10.13% | 1019.00% | Weak |
| Net Margin | 15.29% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.27 | -0.65 (disorted) | Distorted |
| Current Ratio | 1.01 | 4.60 | Neutral |
| ROA | 6.43% | -11655350.00% (disorted) | Weak |
CHKEW outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Chesapeake Energy Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-97.36%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
87.71%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-94.89%
Industry Style: Cyclical, Value, Commodity
Declining