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1. Company Snapshot

1.a. Company Description

Comcast Corporation operates as a media and technology company worldwide.It operates through Cable Communications, Media, Studios, Theme Parks, and Sky segments.The Cable Communications segment offers broadband, video, voice, wireless, and other services to residential and business customers under the Xfinity brand; and advertising services.


The Media segment operates NBCUniversal's television and streaming platforms, including national, regional, and international cable networks, the NBC and Telemundo broadcast, and Peacock networks.The Studios segment operates NBCUniversal's film and television studio production and distribution operations.The Theme Parks segment operates Universal theme parks in Orlando, Florida; Hollywood, California; Osaka, Japan; and Beijing, China.


The Sky segment offers direct-to-consumer services, such as video, broadband, voice and wireless phone services, and content business operates entertainment networks, the Sky News broadcast network, and Sky Sports networks.The company also owns the Philadelphia Flyers, as well as the Wells Fargo Center arena in Philadelphia, Pennsylvania; and provides streaming service, such as Peacock.Comcast Corporation was founded in 1963 and is headquartered in Philadelphia, Pennsylvania.

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1.b. Last Insights on CMCSA

Negative drivers behind Comcast Corporation's recent performance include escalating competition in the streaming market, as evident from the recent report of MLB deals and the sports streaming war. Additionally, the company's theme park business faces stiff competition from Disney, which has a stronger growth runway. Furthermore, the opening of the Universal Epic Universe, a potential growth driver, has not yet materialized, and its impact on the company's performance remains uncertain.

1.c. Company Highlights

2. Comcast's Q3 Earnings: A Strong Performance Amidst a Challenging Landscape

Comcast reported total company revenue of $29.73 billion, a decline of about 3% year-over-year, primarily due to the tough comparison to last year's Paris Olympics. However, excluding that impact, revenue increased nearly 3%, driven by strong performance across the company's six growth businesses. Adjusted EPS came in at $1.12, beating estimates of $1.1. EBITDA and adjusted EPS were both consistent with last year, while free cash flow increased 45% to $4.9 billion.

Publication Date: Nov -01

📋 Highlights
  • Wireless Growth Acceleration: Added over 400,000 wireless lines, achieving 14% broadband penetration in Q3.
  • Video Performance Improvement: Subscribers lost decreased by 100,000 YoY, with churn at record lows.
  • Free Cash Flow Surge: Generated $4.9 billion in free cash flow, up 45% YoY, with net leverage at 2.3x.
  • Content & Experiences Growth: Parks revenue rose 19%, driven by Epic Universe, with EBITDA up 13%.
  • Network & Pricing Strategy: Xfinity ranked top in WiFi reliability by Opensignal, with 5-year price locks adopted by 40% of new customers.

Segment Performance

In Connectivity & Platforms, the competitive environment for broadband remains intense. Comcast has made a significant pivot in its go-to-market strategy, focusing on simplifying pricing, improving transparency, and enhancing the customer experience. The company has seen continued stabilization in voluntary churn and a healthy mix of customers opting into its 5-year price guarantee. In Business Services, revenue was up 6%, and EBITDA grew by nearly 5% in the quarter.

Wireless and Video Performance

Comcast has accelerated momentum in wireless, reaching more than 14% penetration of its broadband base and adding over 400,000 lines in the quarter. In video performance, the company has seen meaningful improvement, with subscriber losses down more than 100,000 year-over-year, its best result in nearly 5 years. Churn is at record lows, supported by the company's focus on delivering the right products for each customer segment.

Content & Experiences

In Content & Experiences, Comcast delivered another strong quarter with revenue up 19% and EBITDA growth of 13% in Parks. The company's new Epic park is driving higher per-cap spending and attendance, and it is holding back on increasing ride capacity to ensure a smooth experience. In Studios, the company had solid theatrical results, led by the strong performance of Jurassic World Rebirth.

Valuation and Outlook

Comcast's current valuation metrics suggest a relatively attractive profile, with a P/E Ratio of 4.6, P/B Ratio of 1.07, and EV/EBITDA of 2.09. The company's dividend yield stands at 4.67%, and its free cash flow yield is 20.45%. With analysts estimating revenue growth of 3.3% next year, Comcast appears well-positioned to drive value on the back of its people, business assets, and strategies. The company's focus on cost rationalization, investing in sales channels, marketing, and customer experience improvements, should support its strategy and drive future growth.

3. NewsRoom

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Market Today: WBD Sale Bids, Meta Cuts, Apple Shake-Up

Dec -04

Source: gurufocus.com

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Dow Jones Today: Major Stock Indexes Little Changed; Weekly Jobless Claims Unexpectedly Fall; Inflation Data on Tap Tomorrow

Dec -04

Source: investopedia.com

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CNBC signs deal with Kalshi to add prediction data from next year

Dec -04

Source: reuters.com

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Paramount Drops $5 Billion Bomb to Beat Netflix in Warner Bros. Bidding War

Dec -04

Source: gurufocus.com

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Comcast Expands Ultra-Fast, Reliable Internet to More Than 2,600 Homes and Businesses in Okeechobee County, Florida

Dec -04

Source: prnewswire.com

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Bids for WBD are in. Here's what Paramount, Comcast and Netflix could do with the assets

Dec -04

Source: cnbc.com

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Bad Bunny Beats Taylor Swift On 2025 Spotify Top List―Is That Why He's Playing Super Bowl LX Halftime?

Dec -04

Source: feeds.benzinga.com

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Comcast Board Approves Separation Of Cable Networks Into New Versant Media Group In January

Dec -03

Source: deadline.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.25%)

6. Segments

Connectivity & Platforms - Residential Connectivity & Platforms

Expected Growth: 1.2%

Comcast's Residential Connectivity & Platforms growth of 1.2 is driven by increasing demand for high-speed internet, expanding customer base, and rising adoption of streaming services. The company's Xfinity brand and technological advancements in DOCSIS 3.1 and fiber-optic networks enable it to maintain market share and drive growth in the residential connectivity market.

Content & Experiences - Media

Expected Growth: 1.0%

The 1.0 growth in Comcast's Content & Experiences - Media segment is driven by increased demand for streaming services, growth in theme park attendance, and higher revenue from film and television productions. Additionally, the segment benefits from Comcast's expanding customer base and premium content offerings, including sports and news, which attract and retain viewers, driving advertising and subscription revenue.

Content & Experiences - Studios

Expected Growth: 1.3%

The 1.3 growth in Content & Experiences - Studios from Comcast Corporation is driven by increased demand for streaming services, successful releases of popular content, and strategic partnerships. The segment's growth is also fueled by the company's expanding slate of original programming, growing international distribution, and rising advertising revenue.

Connectivity & Platforms - Business Services Connectivity

Expected Growth: 1.1%

Comcast's Connectivity & Platforms - Business Services Connectivity growth of 1.1 is driven by increasing demand for high-speed internet, rising adoption of cloud-based services, and expansion of digital transformation initiatives among businesses, leading to higher connectivity needs and platform utilization.

Content & Experiences - Theme Parks

Expected Growth: 1.5%

The 1.5 growth in Comcast's Content & Experiences - Theme Parks segment is driven by increased attendance, particularly at Universal Studios, due to new attractions and experiences. Additionally, higher consumer spending on food, merchandise, and hotel stays contribute to revenue growth, while effective pricing strategies and cost management also play a role.

Unallocated Other Revenue

Expected Growth: 0.8%

The 0.8 growth in Unallocated Other Revenue from Comcast Corporation is driven by increased advertising revenue, growth in licensing and other business services. This uptick is likely due to diversified revenue streams and expanded content offerings, capitalizing on consumer demand for digital services and advertising opportunities.

Eliminations

Expected Growth: 0.0%

The 0.0% growth in eliminations from Comcast Corporation suggests that there are no significant changes in inter-segment transactions or costs eliminations. This stability implies that the company's business segments are likely operating with consistent internal dynamics, and there are no major shifts in revenue or expense allocations between segments.

7. Detailed Products

Xfinity TV

A cable television service providing access to live TV, on-demand content, and DVR capabilities

Xfinity Internet

A high-speed internet service providing fast and reliable connectivity for browsing, streaming, and online gaming

Xfinity Mobile

A wireless phone service providing unlimited data, talk, and text plans

Comcast Business Internet

A high-speed internet service designed for businesses, providing fast and reliable connectivity

Comcast Business TV

A cable television service designed for businesses, providing access to live TV, on-demand content, and digital signage

Sky Broadband

A high-speed internet service providing fast and reliable connectivity in the UK

Sky TV

A satellite television service providing access to live TV, on-demand content, and DVR capabilities in the UK

Comcast Cable

A cable television service providing access to live TV, on-demand content, and DVR capabilities in various markets

Xfinity Home

A home security and automation service providing customers with control over their home's security, lighting, and temperature

Comcast Enterprise

A suite of services designed for large businesses, providing internet, TV, and voice services

8. Comcast Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Comcast Corporation faces a moderate threat of substitutes. While traditional cable and satellite TV services are being replaced by streaming services, Comcast has its own streaming platform, Xfinity Stream, and has also invested in emerging technologies such as Xfinity Mobile. However, the rise of cord-cutting and competition from popular streaming services like Netflix, Hulu, and Amazon Prime Video still poses a threat.

Bargaining Power Of Customers

Comcast's customers have relatively low bargaining power due to the company's large customer base and the essential nature of its services. While customers can choose from various service providers, switching costs can be high, and Comcast's diverse offerings, including internet, TV, and phone services, make it a one-stop-shop for many customers.

Bargaining Power Of Suppliers

Comcast has a large and diversified supplier base, which reduces the bargaining power of individual suppliers. The company also has significant negotiating power due to its large volume of purchases and long-term contracts. This enables Comcast to maintain control over its supply chain and costs.

Threat Of New Entrants

The threat of new entrants in the industry is relatively low due to high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for extensive infrastructure investments. Comcast's established brand and large customer base also make it difficult for new entrants to compete.

Intensity Of Rivalry

The intensity of rivalry in the industry is high, with Comcast competing against established players such as AT&T, Verizon, and Charter Communications. The competition is fueled by the increasing demand for streaming services, the need for faster internet speeds, and the convergence of telecommunications and media services. This intense rivalry drives innovation, pricing competition, and marketing efforts.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.66%
Debt Cost 4.28%
Equity Weight 46.34%
Equity Cost 9.05%
WACC 6.49%
Leverage 115.82%

11. Quality Control: Comcast Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AT&T

A-Score: 7.0/10

Value: 7.1

Growth: 2.6

Quality: 5.7

Yield: 9.0

Momentum: 8.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Verizon

A-Score: 6.9/10

Value: 7.0

Growth: 3.1

Quality: 5.5

Yield: 10.0

Momentum: 5.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Comcast

A-Score: 6.5/10

Value: 8.4

Growth: 5.2

Quality: 8.0

Yield: 7.0

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

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Alphabet

A-Score: 5.9/10

Value: 1.8

Growth: 8.3

Quality: 8.4

Yield: 0.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
T-Mobile US

A-Score: 5.7/10

Value: 4.2

Growth: 7.1

Quality: 5.6

Yield: 2.0

Momentum: 6.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Charter

A-Score: 4.6/10

Value: 7.6

Growth: 7.8

Quality: 5.2

Yield: 0.0

Momentum: 2.0

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

27.31$

Current Price

27.31$

Potential

-0.00%

Expected Cash-Flows