Comcast: A 10x P/E 'Value' Stock After Weak Q2-Q3 Results

Nov. 21, 2022 11:30 AM ETComcast Corporation (CMCSA)CHTR8 Comments
Librarian Capital profile picture
Librarian Capital
7.81K Followers

Summary

  • Comcast stock has fallen back to what it was five years ago, and now has a 10x P/E, a 10% Free Cash Flow Yield and a 3.1% Dividend Yield.
  • The core Cable business has slowed significantly, with broadband subscriber net adds falling to close to zero since Q2 2022.
  • However, this is largely due to macro, Cable's current earnings are not at risk and will likely still grow at low-single-digits.
  • In NBC Universal, good growth in Theme Parks and Studios is offsetting weakness in Media (including rising losses in Peacock).
  • With shares at $34.50, our forecasts indicate a total return of 68% (18.8% annualized) by 2025 year-end. Buy.

A View Of The Comcast Center

Cindy Ord

Introduction

In this article we review our investment case on Comcast Corporation (NASDAQ:CMCSA).

Comcast’s share price is below what it was five years ago, having fallen 44% from its peak last September. Compared to when we initiated

This article was written by

Librarian Capital profile picture
7.81K Followers
Global, long-term, fundamentally-oriented & concentrated investing. With more than 10 years' buy-side experience, I look at stocks globally and across industries, with a focus on the U.S. and U.K.. My investing style can best be described as "Quality Growth" or "Growth At a Reasonable Price". (previously writing under the name "Blue Sky Capital" until December 2019)

Disclosure: I/we have a beneficial long position in the shares of CMCSA,CHTR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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