Chesapeake Energy Corporation
Chesapeake Energy Corporation Fundamental Analysis
Chesapeake Energy Corporation (CHKEZ) shows moderate financial fundamentals with a PE ratio of 0.01, profit margin of 15.00%, and ROE of 10.13%. The company generates $6674.6B 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 15.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CHKEZ's fundamental strength across five key dimensions:
Efficiency Score
WeakCHKEZ struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCHKEZ trades at attractive valuation levels.
Growth Score
WeakCHKEZ faces weak or negative growth trends.
Financial Health Score
ExcellentCHKEZ maintains a strong and stable balance sheet.
Profitability Score
ModerateCHKEZ maintains healthy but balanced margins.
Key Financial Metrics
Is CHKEZ Expensive or Cheap?
P/E Ratio
CHKEZ trades at 0.01 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CHKEZ's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Chesapeake Energy Corporation at 0.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.88 times EBITDA. This is generally considered low.
How Well Does CHKEZ Make Money?
Net Profit Margin
For every $100 in sales, Chesapeake Energy Corporation keeps $15.00 as profit after all expenses.
Operating Margin
Core operations generate 20.38 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 $2.52T, reflecting robust business health.
Free Cash Flow
Chesapeake Energy Corporation generates strong free cash flow of $1.01T, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7711.47 in free cash annually.
FCF Yield
CHKEZ converts 21.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
0.008
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.001
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
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
0.10
vs 25 benchmark
How CHKEZ Stacks Against Its Sector Peers
| Metric | CHKEZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 0.01 | 20.19 | Better (Cheaper) |
| ROE | 10.13% | 1019.00% | Weak |
| Net Margin | 15.00% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.00 | -0.65 (disorted) | Distorted |
| Current Ratio | 1.01 | 4.60 | Neutral |
| ROA | 6.43% | -11655350.00% (disorted) | Weak |
CHKEZ 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
-100.00%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
100.00%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-100.00%
Industry Style: Cyclical, Value, Commodity
Declining