Fact based stock research
Chesapeake (NYSE:CHK)
US1651677353
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Chesapeake stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 94 (better than 94% compared with investment alternatives), Chesapeake (Oil & Gas Production, USA) shares have much better financial characteristics than comparable stocks. Shares of Chesapeake are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives). But they show above-average growth (Growth Rank of 91) and are safely financed (Safety Rank of 94, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 94, is a strong buy recommendation based on Chesapeake's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Chesapeake exhibits low value (Obermatt Value Rank of 45), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 91). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 94) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Oil & Gas Production |
| Index | Diversity USA, Human Rights, Oil & Gas |
| Size class | X-Large |
This stock has achievements: Top 10 Stock.
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Chesapeake
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 38 |
|
83 |
|
46 |
|
45 |
|
| GROWTH | ||||||||
| GROWTH | 1 |
|
85 |
|
1 |
|
91 |
|
| SAFETY | ||||||||
| SAFETY | 15 |
|
11 |
|
74 |
|
94 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
75 |
|
37 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
73 |
|
27 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 94 (better than 94% compared with investment alternatives), Chesapeake (Oil & Gas Production, USA) shares have much better financial characteristics than comparable stocks. Shares of Chesapeake are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives). But they show above-average growth (Growth Rank of 91) and are safely financed (Safety Rank of 94, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 94, is a strong buy recommendation based on Chesapeake's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Chesapeake exhibits low value (Obermatt Value Rank of 45), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 91). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 94) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 38 |
|
83 |
|
46 |
|
45 |
|
| GROWTH | ||||||||
| GROWTH | 1 |
|
85 |
|
1 |
|
91 |
|
| SAFETY | ||||||||
| SAFETY | 15 |
|
11 |
|
74 |
|
94 |
|
| COMBINED | ||||||||
| COMBINED | 1 |
|
75 |
|
29 |
|
94 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 45 (worse than 55% compared with alternatives), Chesapeake shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Chesapeake. Expected dividend yields are higher than for 51% of comparable companies (a Dividend Yield rank of 51), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 90, which means that the stock price is lower compared with invested capital than for 90% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 37 which means that the stock price compared with what market professionals expect for future profits is higher than for 63% of comparable companies, indicating a low value concerning Chesapeake's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Chesapeake with a rank of 7. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 93% of comparable companies, indicating a low value concerning Chesapeake's profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 45, is a hold recommendation based on Chesapeake's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Chesapeake may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 31 |
|
74 |
|
47 |
|
37 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 98 |
|
45 |
|
5 |
|
7 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 12 |
|
69 |
|
74 |
|
90 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 33 |
|
69 |
|
67 |
|
51 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 38 |
|
83 |
|
46 |
|
45 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 91 (better than 91% compared with alternatives) for 2024, Chesapeake shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Chesapeake. Sales Growth has a rank of 100 which means that currently, professionals expect the company to grow more than 100% of its competitors. Capital Growth is also above 6% of competitors with a rank of 96, and Stock Returns with the rank of 79 is also an outperformance. Only Profit Growth is low with a rank of 6 which means that currently, professionals expect the company to grow its profits less than 94% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 91, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Chesapeake is a good growth stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 7 |
|
82 |
|
4 |
|
100 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 87 |
|
97 |
|
27 |
|
6 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
62 |
|
4 |
|
96 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 6 |
|
23 |
|
27 |
|
79 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 1 |
|
85 |
|
1 |
|
91 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 94 (better than 94% compared with alternatives) for 2024, the company Chesapeake has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Chesapeake is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Chesapeake. Leverage is at 74, meaning the company has a below-average debt-to-equity ratio. It has less debt than 74% of its competitors. Refinancing is at a rank of 90, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 90% of its competitors. Finally, Liquidity is also good at a rank of 84, which means that the company generates more profit to service its debt than 84% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 94 (better than 94% compared with alternatives), Chesapeake has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Chesapeake but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 88 |
|
10 |
|
60 |
|
74 |
|
| REFINANCING | ||||||||
| REFINANCING | 6 |
|
1 |
|
98 |
|
90 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 1 |
|
65 |
|
63 |
|
84 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 15 |
|
11 |
|
74 |
|
94 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
94 |
|
57 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
6 |
|
36 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
79 |
|
8 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
40 |
|
83 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
75 |
|
37 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Chesapeake from November 14, 2024.
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