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Comcast: High Earnings, Low Dividends?

Updated on February 18, 2014

Comcast Corporation (CMCSA) is the biggest communication and mass media company around the world in terms of revenue. In addition to this, the company is a leading company that provides services in Internet, telephone, cable television, home security, and many others. The growth of Comcast Corporation is unprecedented as it acquires NBCUniversal, a movie and TV producer. The company is traded as CMCSA in NASDAQ. It was founded by Ralph J. Roberts, Daniel Aaron, and Julian Brodsky in Tupelo, Mississippi, United States. Today, it is headquartered in Philadelphia. The main products of Comcast Corporation are cable television, digital voice, home networking, broadband Internet, Comcast-Spectacor, Radio, and Comcast Interactive Media Broadcasting as mentioned by Comcast Corp stock news.

Revenue Overview of Comcast

The annual revenue of Comcast Corp is more than $62.570 billion and has an operating income of $12.179 billion. The CMCSA estimates net income of the company is $6.203 billion and its total asset is $164.971 billion. The total equity is $49.356 billion while having 129,000 employees worldwide. With these figures, it is not difficult to conceive that CMCSA estimates are part of S&P 500 in the New York Stock Exchange. Comcast Corp stock is one of the most favorite companies of investors both local and abroad.

Analysis of Comcast Corporation’s investment

For many investors, Comcast is one of the best companies to buy shares from because of its stable Comcast Corp stock price. Because of the stability, sustainability, and growth of the company each year, many investors are very confident in purchasing shares from the company.

CMCSA stock has been rated to as Strong Buy in the Analyst Rating of NASDAQ. This means that it has the highest implication that investing in this company is a very good idea according to CMCSA stock analysis.

There is a positive earnings estimate for the company as shown in CMCSA stock news. According to one source, the average estimate of Comcast will increase from $0.64 in the first quarter to $0.73 to the last quarter of the year. The number of Comcast Corp stock analysis would be 15 in the first quarter, while 14 in the last quarter. The high estimate is $0.69 in the first quarter while $0.78 in the last quarter. Low estimate of Comcast Corp stock price is $0.59 in the first quarter and $0.71 in the last quarter. Overall, there is a growth rate of 25.88% for the first quarter, but 12.86% in the last quarter. The earnings estimate of Comcast in 2013 is $2.47, but it is expected to increase by the end of 2014 reaching up to $2.89. It will continue to climb up to $3.32 in 2015.

The revenue growth of Comcast Corp stock is also in good condition. In 1 year it will increase 12%, 18.69% in 3 years, and 16.16% in 5 years. The EPS Growth is also encouraging. Comcast’s EPS Growth will be 15% in one year, 28.11% in 3 years, and 23.47% in 5 years. The Dividend Growth of Comcast is 0.90% in the one year, 30.03% in 3 years, and 37.68% in 5 years according to CMCSA stock analysis.

When it comes to revenue, Comcast Corp is steadily growing. This is very evident as an investor will compare the total revenue of Comcast from 2011. In 2011, Comcast has total revenue of $55.84 billion; in 2012, it is $62.57 billion; and finally, $64.66 billion in 2013.

Another area worth looking if a person is an investor is the earnings per share of CMCSA stock price. In 2011, the total EPS is 1.51; in 2012, the EPS is 2.32; and in 2013, the EPS is 2.62. The dividend is also a good indication to determine whether a company is worth your investment or not. In 2011, the total dividend id 0.54; in 2012, the total Dividend is 0.66; and in 2013, the total dividend is 0.79.

With all these data, information, and analysis, there is no doubt that Comcast can certainly grow an investor’s capital in the most secured and fastest way possible depending upon the Comcast Corp stock analysis.

Additional information

Aside from the information mentioned above, there are other factors that an investor should know. This is necessary to make the right decision and to know whether it is a good idea to invest in Comcast or not.

The current P/E Ratio of CMCSA stock is 22.3162; estimated P/E is 19.1806; Relative P/E vs SPX is 1.3230; earnings per share is 2.4753; est. EPS is 2.8800; est. PEG Ratio is 1.4612; Market Cap is 143,389.42; shares outstanding is 2,138.08; 30 day average volume is 11,701,845; price of book is 2.8500; price of sale is 2.2512; dividend gross yield is 1.63%; cash dividend is 0.2250; and 5 year dividend growth is 25.55%. So far, the trend and statistics reveal that Comsat is in good shape and confirm that Comsat is a great investment as shown in Comcast Corp stock news.

To get a general glimpse of the overall success of Comcast, it is imperative that one should look at the services and products that the company offers along with Comcast Corp stock analysis.

Xfinity

Xfinity is the flagship product of Comcast Corp. It refers to the combined triple major services of the company. These include the cable telephone services, radio, cable internet access, and digital cable. Due to the increased demand of the public, Comsat made some exceptional improvement on its services according to CMCSA stock news. This includes addition of more HD channels, video on demand programming, Xfinity TV Online, and more improved Internet bandwidth speed. Recently, the Xfinity concept was push further to change the names of its cable brands and increase CMCSA stock price. Thus, Comsat now has Xfinity TV, Xfinity Voice, and Xfinity Internet.

Internet

As of June 2013, there are almost 20 million subscribers to Comcast’s Internet services. As powerful and successful the Internet services of Comcast, it has various controversies and issues with customers and its Comcast Corp stock price. One of the most controversial issues is the bandwidth cap on their Internet services. A subscriber is only allowed to use 250 GB of data within a month. According to Comcast Corp stock news, this has led to dissatisfaction of many customers as Comcast is so strict with its rules and regulation. Not complying with the monthly bandwidth limit means termination of contract.

The main features of the Internet Service of CMCSA are the “PowerBoost” which allows subscribers to have the fastest speed on Internet connectivity according to the plan they subscribed to. The company’s Internet service also includes dynamic IP Addresses.

The Xfinity Voice is a telephone service brought about Comcast and is currently the third largest telephone provider in residential areas. Xfinity Voice caters more than 9 million telephone lines thereby increasing CMCSA earnings.

The Xfinity Home is a security service of Comcast. It includes burglar alarm, fire alarm, home automation, and close circuit television (CCTV).

Aside from residential zones, Comcast recently expanded their market to serve commercial areas as well to further improve CMCSA stock analysis. As of now, Comcast is only focusing on small to mid-size companies, 20 to 500 employees at the most. Thankfully, Comcast did not attach any bandwidth cap for its commercial customers unlike with residential customers, as stated in one of the CMCSA stock news.

Though the main focus of CMCSA stock is to deliver programs to its customers, it also has the ability to produce its own program. This strategy of Comcast is seen to monopolize the market of television and to diversify its revenue-creating methods. As of now, Comcast own or hold a certain ownership of various companies which include FEARnet, The Golf Channel, Esquire Network, Southeast Charter Sports, MLB Network, Comcast SportsNet, Comcast Newsmaker, Comcast Network, SportsNet New York, E! Entertainment, NBC Sports Network, and AZN Television.

Through acquisition of smaller and other competing cable companies, Comcast Corp was able to transform itself as a major player in cable programming. There are significant purchases that Comcast made throughout its history. The CMCSA estimates includes the acquisition of Group W Cable, American Cellular Network Corporation, Maclean-Hunter, QVC (an electronic retailer), Microsoft, AT&T Broadband, National Digital Television, G4techTV, MGM studio, United Artists, Susquehanna Communications, and the Spectrum Equity Investors. To further strengthen the monopolizing power of CMCSA earnings, it has acquired Adephia, thePlatform, and Plaxo. All these addition to the assets of Comcast has made the company an unrelenting mogul in the corporate world.

Recently, in February 2013, Comsat made an historic purchase. Comsat acquired NBCUniversal to increase CMCSA stock price.

Theme Parks

CMCSA owns theme parks in Hollywood and in Orlando. There are two segments of Universal Studio. These include the Universal Studios in Florida and the Islands of Adventure. On the other hand, the theme park of Comcast in the Hollywood is known as the Universal Studios Hollywood.

Filming industry

The primary filming product of Comcast Corp stock is the Universal Pictures. There are many ways Universal Pictures generates profit and some of these are producing movies and films distributed in different media formats to be shown in homes, theaters, televisions, and others.

Financial analysis of Comcast performance

After reading the information above, it is no great wonder to find the financial performance of Comcast increasing and skyrocketing. The book value of Comcast Corp stock price almost doubled from its $8.19 per share in 1999 to $15 per share in 2010. In addition to this, the revenue grew in a staggering $36 billion in 2009, which is only $6 a decade ago.

It is predicted that the CMCSA earnings will continue to increase as more and more people subscribe to its high-speed Internet services; even though a 7% price increase of its Internet bandwidth rate has been pushed to effect.

Because of the tremendous success of CMCSA stock, it is regularly featured in many lists of “great places to work”. The Philadelphia Business Journal awards the company in a regular basis together with its partners. Even The Boston Globe recognizes the good employee relation within the organization.

Key facts about Comcast performance

According to CMCSA stock news, the overall revenue of Comsat increased by 5.8% together with an increase of 8.3% cash flow. This value did not even include the revenue coming from the 2012 Super Bowl, 2012 London Olympics, and Pension Termination costs in 2013. The earnings per share dramatically increased by 28.6% and the Cable Communication Revenues increased up to 5.2%. The customers for video increased as well by 43,000 subscribers.

The capital expenditure of the CMCSA stock price also increases by 19.9%. The Cable Communication department of the company took the biggest expenditure which amounts to $260 million. This reflects the increasing number of subscribers and the need for additional equipment, tools, and labor force. For example, cable Communication Department of CMCSA stock analysis has to buy digital boxes, wireless gateway, and X1. Moreover, the increased investment in theme parks, real estate, facilities, and equipment has led to the exponential increase in expenditure of NBCUniversal, from $66 million to $353 million during the year 2013 based on Comcast Corp stock news.

According to Comcast Corp stock analysis, when it comes to share repurchases and dividends, Comcast made a payment of $510 million for its share holders as a form of dividend, while the company had to repurchase $10.8 million. This figure only accounted the fourth quarter of 2013. However, during the full year of 2013, the repurchase of Comcast reached to $48.7 million and its dividend payment was $4.0 billion. With this in mind, it is clear that investors have a good future in the hands of CMCSA estimates.

For the year 2014, new plans and strategies had been already laid out to improve Comcast Corp stock. The Board of Directors expresses its desire to maximize the stock repurchase which hopefully will reach up to $7.5 billion. Another good thing for share holders because the company will increase its dividend rate up to 15.4% or $.90 per share.

Conclusion

In the final analysis, there are other remarkable companies that investors can work with in the Stock Exchange arena. However, with the CMCSA earnings, information, and statistics mentioned here, Comcast is shown to be a strong player that can give your investments the highest dividends possible.

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