Chesapeake Energy Corporation (CHK)’s Financial Analyses.
Chesapeake Energy Corporation (CHK)’s Financial Analyses.
Chesapeake Energy Corporation (CHK)
-Earnings Call ; 21 Feb 2018
-Last one year going down, But I am considering this stock as a low risky stock and can be invested with a ideal stop loss.
-Estimates of investors about CHK is good and high. Considering CHK is good in beating the estimates up, estimated EPS is %54 higher than last 3Q earnings.
Company’s last P/E ratio is 3.43, which is positive.
Since, estimated revenue is high, automatically we expect better P/E ratio for next earning.
2015 and 2016 were not good years for the company, but, since we have good earnings results last 3 quarters, we can expect that 2017 was a good year for the company.
Even though yearly earnings did not look good, quarterly is not as bad as yearly is. When we add up all profits, if last quarter come out good, we should be making some money with this stock as a short term investment.
-With the great hope, Company will touch 3 or 4, but my expectations is 3.500 in 3–4 months if earnings keeps coming out positive.
- 200-day average and 50-average is way higher than current price. Investors keep their eye on the company and hold their stocks until next Earning reports.
-Looking into details, when we look at the gross profit, they are terrible. Company lost %65 profit from 2014 to 2015, and %78 from 2015 to 2016.
-But, Operating Lost got 76 lower.
-Better operations, worse profit margin.
Looking at their Assets;
-Current assets comparing 2016 with 2015 got 8% lower
-Total assets got 24% lower. The gap in between Current assets and total assets’ changes is because of company lost 28% property. That means company getting smaller.
-But it does not mean company is not successful.
-We are analyzing company’s liabilities;
-Company’s current liabilities got only 1% lower, but as long as it’s getting lower, it’s always better than getting higher.
-Company’s long term debt got %3.6 lower and pays %0.77 less interest.
-We see huge differences in Deferred Long Term Liability Charges ratios. It got %98.6 lower from 2014 to 2015 and got %75 lower from 2015 to 2016
-While company’s assets getting lower and company getting smaller, Liabilities in both short-term and long-term getting better.
-There is a possibility for the company to get smaller and get more successful.
-Company’s retained earnings got %25 lower, which is negative and affects investors and shareholders in a bad way.
-Company’s treasury stocks are being sold and getting less in hold, which is positive move, but still negative.
-The worst part of this Balance sheet is Total Stockholder Equity. It got %168.2 lower which is really bad. And it got %87 lower from 2014 to 2015.
Lastly, We are going into Cash Flow;
-Company is having their worst time ever, but it can be saved. This stock should be followed and kept eyes on.
Now 2.85
Target 3.5
Stop Loss 2.6
