Comcast (CMCSA) AI Stock Analysis

• Market Cap: $128.18B
• Dividend Yield: 3.66%
• Average Volume (3M): 27.85M
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.56
• Revenue Growth: 1.33%
• EPS Growth: 7.69%
• Country: US
• Employees: 182,000
• Sector: Communication Services
• Sector Strength: 83
• Industry: Telecommunications Services
• EPS (TTM): 4.07
• Shares Outstanding: 3,771,578,100
• 10 Day Avg. Volume: 25,777,715
• 30 Day Avg. Volume: 27,853,930
• PEG Ratio: 1.06
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.12
• Price to Cash Flow (P/CF): 4.30
• P/FCF Ratio: 4.30
• Enterprise Value/Market Cap: 1.80
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.66
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $41.07
• Price Target Upside: 21.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22

Comcast demonstrates a strong financial performance with effective cost management and robust cash flow, which are significant strengths. While the technical indicators suggest caution, the stock appears undervalued with a low P/E ratio and solid dividend yield. Recent corporate events such as the appointment of David Novak for SpinCo add potential for future value creation. The earnings call reflects both opportunities and challenges, with growth in certain segments contrasted by competitive pressures.

Positive Factors

Mobile Trends

New converged offers have shown some early success in driving mobile line growth in 1Q25.

Theme Park Operations

Epic will provide a significant boost and management noted theme park bookings 'are strong'.

Negative Factors

Broadband Challenges

The challenges in broadband will persist as new pricing and packaging will take time to improve subscriber results while pressuring ARPU.

Market Share Loss

Despite all this, it has been losing market share since 2021 and the pace of share loss is accelerating.

Comcast Business Overview & Revenue Model

Company Description

Comcast Corporation (CMCSA) is a global media and technology company with operations primarily in the United States. It operates through several segments including Cable Communications, Media, Studios, Theme Parks, and Sky. Comcast provides broadband, video, voice, wireless, and other services to residential and business customers under the Xfinity brand. It also owns NBCUniversal, which encompasses television networks, film studios, and theme parks, and Sky, a leading media and entertainment company in Europe.

How the Company Makes Money

Comcast makes money through a diverse range of revenue streams. The Cable Communications segment generates revenue by providing broadband, video, voice, and wireless services to residential and business customers, with broadband being a significant growth driver. The Media segment, which includes NBCUniversal, earns revenue from advertising, distribution of content, and subscription fees for cable networks and streaming services. The Studios segment contributes through the production and distribution of films and television content. The Theme Parks segment generates income from admissions, food, and merchandise sales at its theme park locations. Additionally, the Sky segment in Europe provides revenue through direct-to-consumer services, content, and advertising sales. Strategic partnerships, such as content sharing agreements and technology collaborations, further bolster Comcast's revenue generation capabilities.

Comcast Financial Statement Overview

Summary

Comcast's financial performance is strong, with high profitability and efficient operations. The income statement reflects robust margins, while the balance sheet shows manageable debt levels despite high liabilities. Cash flow is solid, supporting strategic investments and shareholder returns.

Income Statement

Comcast's income statement shows strong profitability and consistent growth. The TTM Gross Profit Margin is approximately 71.16%, indicating efficient cost management. The Net Profit Margin is 12.72%, reflecting solid bottom-line performance. Revenue growth has been steady, with a slight increase in TTM revenue compared to the previous annual period. The EBIT and EBITDA margins of 18.73% and 25.81% respectively demonstrate robust operational efficiency.

Balance Sheet

The balance sheet highlights Comcast's stable financial structure, with a Debt-to-Equity ratio of 0.08, showing a manageable level of debt. The Return on Equity (ROE) stands at 18.13%, indicating effective use of shareholder equity to generate profits. The Equity Ratio is 32.36%, reflecting a solid proportion of equity financing. However, the relatively high level of total liabilities suggests a need to monitor leverage closely.

Cash Flow

Cash flow analysis reveals a healthy cash generation capability, with a Free Cash Flow growth rate of -3.48% compared to the previous year, affected by increased capital expenditures. The Operating Cash Flow to Net Income Ratio of 1.79 signifies strong cash conversion from earnings. The Free Cash Flow to Net Income Ratio is 0.95, indicating that nearly all net income is converted to free cash flow, supporting dividend payments and reinvestment opportunities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
123.73B	121.57B	121.43B	116.39B	103.56B
	Gross Profit
86.70B	84.81B	83.21B	77.94B	70.44B
	EBIT
23.30B	23.31B	22.08B	20.82B	17.49B
	EBITDA
29.34B	38.90B	36.45B	34.62B	30.59B
	Net Income Common Stockholders
16.19B	15.39B	5.37B	14.16B	10.53B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.32B	6.21B	4.75B	8.71B	11.74B
	Total Assets
266.21B	264.81B	257.27B	275.90B	273.87B
	Total Debt
99.09B	97.09B	99.98B	100.02B	108.93B
	Net Debt
91.77B	90.88B	95.23B	91.31B	97.19B
	Total Liabilities
179.94B	181.34B	175.24B	177.90B	180.85B
	Stockholders Equity
85.56B	82.70B	80.94B	96.09B	90.32B
Cash Flow		Free Cash Flow
15.49B	12.96B	12.65B	17.09B	13.10B
	Operating Cash Flow
27.67B	28.50B	26.41B	29.15B	24.74B
	Investing Cash Flow
-15.67B	-7.16B	-14.14B	-13.45B	-12.05B
	Financing Cash Flow
-10.88B	-19.85B	-16.18B	-18.62B	-6.51B

Comcast Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMCSA, the sentiment is Negative. The current price of 33.9 is below the 20-day moving average (MA) of 34.47, below the 50-day MA of 35.24, and below the 200-day MA of 38.07, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 62.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMCSA.

Comcast Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHTR	76 Outperform	$59.20B	10.36	36.94%	―	0.93%	16.06%
VZ	75 Outperform	$184.54B	10.55	18.23%	6.41%	0.93%	56.97%
CMCSA	75 Outperform	$128.18B	8.15	18.57%	3.66%	1.33%	7.69%
T	73 Outperform	$192.45B	16.91	11.38%	4.14%	0.50%	-12.66%
DIS	73 Outperform	$153.46B	27.56	5.54%	1.05%	3.97%	89.53%
Sector *	59 Neutral	$13.71B	6.83	-3.41%	3.82%	2.31%	-35.16%
WBD	50 Neutral	$21.25B	―	-28.54%	―	-4.91%	-259.71%

Comcast Corporate Events

Comcast Announces David Novak as SpinCo Chairman

Comcast announced on March 19, 2025, that David Novak will become the non-executive Chairman of the Board of Directors for SpinCo, a planned spin-off of Comcast’s cable channels and digital assets, expected to be completed by the end of 2025. SpinCo will be a leading independent media company with brands such as USA Network, CNBC, and MSNBC, aiming to reach over 65 million U.S. households with a diverse content offering. Novak’s appointment is seen as a strategic move to leverage his extensive experience in brand development and capital markets, positioning SpinCo for growth and value creation.