Attractive Price-to-Earnings Ratio
Low Price-to-Sales Ratio
Strong Gross Profit Margin
Solid Return on Equity
Good Interest Coverage Ratio
Strong Cash Flow Generation
Strong Revenue Growth and Profitability
Diverse Growth Drivers
Leading Position in Streaming and Content
Strategic Shift to Wireless Integration
Investment in Network Upgrades
Strong Content Pipeline for Future Growth
Moderate Price-to-Book Ratio
High EV/EBITDA Ratio
Declining Net Profit Margin
Concerns with Current Ratio
High Debt Levels
Decline in Broadband Subscribers
Intense Competitive Landscape
Short-Term Challenges in Streaming Costs
Comcast demonstrates a strong business quality with record financial results and a robust growth strategy across diverse segments. However, it faces challenges with subscriber losses and intense competition. Future prospects look promising with strategic investments and a focus on wireless integration, although short-term cost pressures in streaming may impact margins.
Analysis Date: January 30, 2025
Last Updated: March 11, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$162.27
Current Market Price: $32.77
IV/P Ratio: 4.95x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
80.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for CMCSA
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (7.92)
P/B ratio ≤ 1.5 (1.50)
Current ratio ≥ 2.0 (0.68x)
Long-term debt < Net current assets (-7.37x)
Margin of safety (80.0%)
CMCSA does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
CMCSA boasts a gross profit margin of 64.08%, highlighting its efficiency in managing production costs relative to its sales.
A return on equity (ROE) of 19.21% indicates that CMCSA is effectively generating profit from its shareholders' investments.
The net profit margin of 13.09% is decent but shows some room for improvement, indicating that the company may need to enhance its operational efficiency.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
19.21%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
1.79%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
70.07%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
13.09%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
With an interest coverage ratio of 5.64, CMCSA is well-positioned to manage its debt obligations without strain, indicating good financial stability.
The free cash flow per share of 3.50 suggests that the company generates ample cash, which can be used for dividends, reinvestment, or debt repayment.
The current ratio of 0.68 indicates potential liquidity issues, suggesting that the company may struggle to meet its short-term liabilities.
A debt-to-equity ratio of 1.16 shows that CMCSA is leveraging debt to finance growth, which may pose risks if not managed carefully.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
1.15x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.68x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Comcast achieved record revenue of $124 billion and adjusted EBITDA of $38 billion in 2024, demonstrating solid financial performance despite competitive pressures. The company also grew adjusted EPS by 9% and generated substantial free cash flow of $12.5 billion.
Comcast is focused on six growth areas, including broadband, wireless, business services, streaming, media, and theme parks, which together comprise nearly 60% of total revenue.
Comcast's NBCUniversal ranks second in global box office and has a strong streaming service, Peacock, which has 36 million subscribers. The integration of content across platforms is expected to enhance viewer engagement and revenue.
The company reported a loss of 139,000 broadband subscribers in Q4, highlighting challenges in a competitive market characterized by overbuilding and increased competition from fiber and fixed wireless services.
Comcast faces ongoing competition in its broadband and wireless segments, with no immediate signs of improvement expected. The competitive dynamics are shifting as new entrants continue to challenge Comcast's market position.
Comcast plans to leverage its wireless offerings to enhance broadband products, which could drive growth in convergence revenue, expected to outpace broadband revenue growth in 2025.
Project Genesis aims to enhance Comcast's broadband network, providing multi-gigabit symmetrical speeds. This will enable better service delivery and competitive positioning against fiber operators.
Upcoming major releases and strategic partnerships, such as the NBA deal, are expected to boost Peacock's performance, driving subscriber growth and resulting in improved EBITDA for the platform.
While Peacock is expected to improve, initial costs related to the NBA and marketing could put pressure on margins in the short term, potentially impacting profitability until the content matures.