As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it’s a ‘buy’ based on key fundamentals.
One of the cheapest stocks in our Stock Screeners is:
Comcast Corp (CMCSA)
Comcast is made up of three parts. The core cable business owns networks capable of providing television, internet access, and phone services to 62 million U.S. homes and businesses, or nearly half of the country. About 55% of the homes in this territory subscribe to at least one Comcast service. Comcast acquired NBCUniversal from General Electric in 2011. NBCU owns several cable networks, including CNBC, MSNBC, and USA, the NBC broadcast network, the Peacock streaming platform, several local NBC affiliates, Universal Studios, and several theme parks. Sky, acquired in 2018, is the dominant television provider in the U.K. and has invested heavily in proprietary content to build this position. Sky is also the largest pay-television provider in Italy and has a presence in Germany and Austria.
A quick look at the share price history (below) over the past twelve months shows that the price is up 31.82%. Here’s why the company is undervalued.
Key Stats
Market Cap: $169.73 Billion
Enterprise Value: $266.56 Billion
Operating Earnings
Operating Earnings: $23.36 Billion
Acquirer’s Multiple
Acquirer’s Multiple: 11.40
Free Cash Flow (TTM)
Free Cash Flow: $12.58 Billion
FCF/EV Yield %:
FCF/EV Yield: 7.41
Shareholder Yield %:
Shareholder Yield: 9.50
Other Indicators
Piotroski F Score (TTM): 7.00
Altman Z-Score (TTM): 1.617
ROA (5 Year Avge%): 9
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