Image Source: Pixabay

As part of an ongoing series, we will take a closer look at one of the stocks from our stock screeners and briefly review why it’s a ‘buy’ based on key fundamentals. One of the cheapest stocks in our screens is Comcast Corporation.

Comcast Corporation (CMCSA)

Comcast is made up of three parts. The core cable business owns networks capable of providing television, internet access, and phone services to 63 million US homes and businesses, or nearly half of the country. About 50% of the locations in this territory subscribe to at least one Comcast service.

Comcast acquired NBCUniversal from General Electric in 2011. NBCU owns several cable networks, including CNBC, MSNBC, the NBC network, the Peacock streaming platform, several local NBC affiliates, Universal Studios, and several theme parks. Sky, acquired in 2018, is a large television provider in the UK and has invested heavily in proprietary content to build this position. Sky is also a large pay-television provider in Italy and has a presence in Germany and Austria.

A quick look at the share price history (provided below) over the past twelve months shows that the price has moved down approximately 13.47%. Here’s a brief review of why the company is undervalued.

Source: Google Finance

Key Stats

• Market cap: $153.59 billion
• Enterprise value: $253.77 billion

Operating Earnings

• Operating earnings: $23.40 billion

Acquirer’s Multiple

• Acquirer’s multiple: 10.80

Free Cash Flow (TTM)

• Free cash flow: $11.62 billion

FCF/MC Yield Percentage

• FCF/MC yield percentage: 7.56

Shareholder Yield Percentage

• Shareholder yield percentage: 10.90

Other Indicators

• Piotroski F score: 7.00
• Buyback yield percentage: 7.80
• ROA (five-year average percentage): 9

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