CMCSA Comcast Corporation - Fundamental Analysis
NEUTRAL
CMCSA Stock | Fundamental Analysis & Investment Insights
NYSE
•
Communication Services
•
Telecom Services
Current Price
$27.51
Analyst Target
$35.1
+27.6% Upside
52W High
$44.03
52W Low
$25.75
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
Comcast Corporation (CMCSA) trades at deeply discounted valuations relative to both its sector and close peers, supported by solid profitability metrics including an 18.33% profit margin and 24.19% ROE. However, the stock faces persistent headwinds from declining revenue and earnings, with YoY revenue down 2.7% and Q/Q earnings falling 8.2%, reflecting structural challenges in its legacy cable and broadband businesses. Despite a compelling 4.80% dividend yield and a low payout ratio of 21.59%, the lack of earnings momentum and weak price performance—down 34.3% over the past year—undermine investor sentiment. Analysts concur with a 'hold' rating and a $35.10 target price, implying ~27.6% upside, but near-term catalysts remain limited.
Key Strengths
Attractive valuation with P/E of 4.57, significantly below sector average of 17.65 and peer AT&T's 8.34
High profitability: 18.33% net margin and 24.19% ROE, exceeding sector average ROE of 25.89% and peer AT&T's 19.14%
Strong dividend yield of 4.80% with a sustainable 21.59% payout ratio, indicating capital return discipline
Price/Sales of 0.83 suggests undervaluation relative to revenue base, especially compared to sector average margins
ROE of 24.19% reflects efficient use of equity capital despite macro headwinds
Key Risks
Revenue declining YoY by 2.7% and earnings down 4.2%, indicating fundamental erosion in core operations
Poor price performance: -34.3% over 1Y and -36.1% over 5Y, significantly underperforming peers like AT&T (+20.2% 1Y)
Weak liquidity profile with current ratio of 0.88 and quick ratio of 0.69, below the sector average leverage comfort zone
Debt/Equity of 1.01 is above sector average of 0.75, raising refinancing and interest rate sensitivity concerns
Zero earnings beats in the last four quarters with no recent positive surprises, signaling deteriorating execution
AI Fair Value Estimate
Based on comprehensive analysis
$35.1
+27.6% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
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Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
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Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
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Insider Trading & Analyst Ratings
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