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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

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Nov 15, 2025
Market cap
$101.92B
P/E
4.57
ROE
24.2%
Profit margin
18.3%
Debt/Equity
1.01
Dividend yield
4.8%

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 analysis across 5 key categories

Overall
66
Strong
Value
92
Future
40
Past
58
Health
50
Dividend
88
AI Verdict
CMCSA presents a value-oriented profile with best-in-class ROE and a high, well-covered dividend, yet its future growth trajectory remains impaired by secular declines in pay-TV and broadband subscriber stagnation, which offset valuation appeal. While priced well below peers like AT&T and far below growth leaders like Meta, the lack of earnings inflection and weak price momentum constrain upside despite a 27.6% gap to the $35.10 analyst target.
Key drivers: Deep value discount (P/E 4.57 vs sector 17.65), Deteriorating revenue and earnings trends, High-yield, low-payout dividend sustainability
Confidence
75%
Value
92/100

CMCSA is dramatically cheaper than both the Communication Services sector average and peer AT&T on earnings and sales multiples, but this reflects justified concerns about structural decline rather than pure undervaluation.

Positives
  • P/E of 4.57 is less than one-third of the sector average (17.65)
  • Price/Sales of 0.83 indicates sub-replacement valuation, suggesting margin of safety
Watchpoints
  • Lack of forward growth undermines low multiple justification
  • EV/EBITDA and other enterprise metrics unavailable, limiting full valuation context
Future
40/100

The company's growth trajectory remains negative across all recent horizons, with no inflection in price momentum—down 20.9% over 6M and 34.3% over 1Y—while peers like AT&T show mixed but less dire trends.

Positives
  • Analyst target implies 27.6% upside, suggesting some expectation of stabilization
  • Potential for streaming profitability improvement in Peacock over medium term
Watchpoints
  • Revenue growth at -2.7% YoY and Q/Q earnings down 8.2% signal ongoing deterioration
  • No recent earnings beats or positive guidance to support turnaround narrative
Past
58/100

While CMCSA has maintained strong historical margins and returns on capital, its stock has lost significant value over 5Y and 3Y periods, and recent earnings misses have eroded trust in execution consistency.

Positives
  • Consistently high ROE of 24.19% and stable gross margin of 71.88% reflect operational efficiency
  • Historical profitability has remained resilient despite industry disruption
Watchpoints
  • Five-year share price return of -36.1% reflects long-term underperformance and loss of investor confidence
  • Zero earnings surprises in the last four quarters, indicating declining earnings quality
Health
50/100

CMCSA’s leverage is higher than the sector average (1.01 vs 0.75), and weak liquidity ratios raise caution, though its core business generates predictable cash flows that partially offset balance sheet risks.

Positives
  • Debt/Equity of 1.01 is manageable given stable cash flows from utility-like broadband business
  • Operating margin of 17.73% supports debt servicing capacity
Watchpoints
  • Current ratio of 0.88 and quick ratio of 0.69 indicate potential short-term liquidity pressure
  • Total debt and cash figures unavailable, limiting full solvency assessment
Dividend
88/100

The dividend is a standout feature, offering high income with low payout risk, making it a reliable income vehicle even amid broader operational challenges.

Positives
  • Dividend yield of 4.80% is highly attractive in current rate environment
  • Payout ratio of 21.59% indicates strong earnings coverage and room for future increases
Watchpoints
  • Dividend growth trajectory unknown due to missing 5-year average yield data
  • Sustainability could be pressured if free cash flow deteriorates amid capex needs

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$27.51
Analyst Target
$35.1
Upside/Downside
+27.6%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for CMCSA and closest competitors.

Updated 2025-11-14
Company 5Y 3Y 1Y 6M 1M 1W
CMCSA
Comcast Corporation
Primary
-36.1% -11.7% -34.3% -20.9% -7.4% +0.6%
VZ
Verizon Communications Inc.
Peer
-9.0% +33.3% +7.4% -3.5% +1.7% +2.6%
CHTR
Charter Communications, Inc.
Peer
-68.3% -48.2% -48.5% -52.5% -23.2% -7.6%
T
AT&T Inc.
Peer
+63.7% +59.3% +20.2% -5.8% -1.8% +3.1%
APP
AppLovin Corporation
Peer
+755.4% +3493.4% +96.0% +53.9% -7.4% -10.0%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
4.57
Forward P/E
6.28
PEG Ratio
N/A
P/B Ratio
1.04
P/S Ratio
0.83
EV/Revenue
1.54
EV/EBITDA
5.01
Market Cap
$101.92B

Profitability

Profit margins and return metrics

Profit Margin 18.33%
Operating Margin 17.73%
Gross Margin 71.88%
ROE 24.19%
ROA 5.11%

Growth

Revenue and earnings growth rates

Revenue Growth -2.7%
Earnings Growth -4.2%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth -8.2%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
1.01
Moderate
Current Ratio
0.88
Weak
Quick Ratio
0.69
Poor
Cash/Share
$2.56

Quarterly Earnings History

EPS performance vs analyst estimates

2026-01-29
$N/A
2025-10-30
$1.12
+1.7% surprise
2025-07-31
$1.25
+5.9% surprise
2025-04-24
$1.09
+9.9% surprise

Communication Services Sector Comparison

Comparing CMCSA against 7 companies in the Communication Services sector (2 bullish, 4 neutral, 1 bearish)
P/E Ratio
4.57
This Stock
vs
20.12
Sector Avg
-77.3% (Discount)
Return on Equity (ROE)
24.19%
This Stock
vs
55.44%
Sector Avg
-56.4% (Below Avg)
Profit Margin
18.33%
This Stock
vs
21.36%
Sector Avg
-14.2% (Weaker)
Debt to Equity
1.01
This Stock
vs
1.93
Sector Avg
-47.5% (Less Debt)
Revenue Growth
-2.7%
This Stock
vs
14.69%
Sector Avg
-118.4% (Slower)
Current Ratio
0.88
This Stock
vs
1.3
Sector Avg
-32.4% (Weaker)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
CMCSA
Comcast Corporation
NEUTRAL $101.92B 4.57 24.2% 18.3% $27.51
VZ
Verizon Communications Inc.
NEUTRAL $173.34B 8.75 19.9% 14.4% $41.06
CHTR
Charter Communications, Inc.
BEARISH $26.5B 5.63 31.3% 9.3% $203.1
T
AT&T Inc.
NEUTRAL $182.55B 8.34 19.1% 17.9% $25.59
APP
AppLovin Corporation
BULLISH $187.95B 65.77 241.9% 44.9% $557.7

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2025-11-04 ROBERTS BRIAN L Chief Executive Officer Gift 1,702,431 -
2025-09-30 NOVAK DAVID C Director Stock Award 1,075 -
2025-09-30 BALTIMORE THOMAS J JR. Director Stock Award 1,075 -
2025-09-30 HONICKMAN JEFFREY A Director Stock Award 1,393 -
2025-09-30 BRADY LOUISE F Director Stock Award 1,075 -
2025-09-30 BREEN EDWARD D. Director Stock Award 637 -
2025-06-30 NOVAK DAVID C Director Stock Award 946 -
2025-06-30 BALTIMORE THOMAS J JR. Director Stock Award 946 -
2025-06-30 HONICKMAN JEFFREY A Director Stock Award 1,226 -
2025-06-30 BRADY LOUISE F Director Stock Award 946 -
2025-06-30 BREEN EDWARD D. Director Stock Award 561 -
2025-06-18 MURDOCK DANIEL C Officer Stock Award 6,824 -
2025-06-05 ARMSTRONG JASON S Chief Financial Officer Stock Award 9,504 -
2025-05-22 KHOURY JENNIFER Officer Stock Award 15,488 -
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
HOLD
24 analysts
Citigroup
2025-11-03
main
Buy Buy
Goldman Sachs
2025-11-03
main
Neutral Neutral
Barclays
2025-11-03
main
Equal-Weight Equal-Weight
JP Morgan
2025-10-31
main
Neutral Neutral
TD Cowen
2025-10-31
main
Buy Buy
Bernstein
2025-10-31
main
Market Perform Market Perform
Scotiabank
2025-10-31
main
Sector Perform Sector Perform
Benchmark
2025-10-31
main
Buy Buy
Evercore ISI Group
2025-10-31
main
Outperform Outperform
Seaport Global
2025-10-31
down
Buy Neutral