The market has priced this media and technology giant like a business in terminal decline, yet its financial statements tell a story of relentless cash generation.
Comcast (CMCSA) connects millions of American homes to the internet and creates the movies and shows they watch
Yet the market has treated its stock like a relic. Shares trade about 41% below their two-year high, a markdown that suggests a fundamental breakdown in the business. The company’s cash flow statement, however, keeps disagreeing with the stock chart.
Over the last twelve months, Comcast generated free cash flow equal to 21.1% of its entire market value. For context, the median S&P 500 company has a free cash flow yield of 4.1%. This isn’t a shrinking business bleeding cash; its revenue over the same period grew 1.4%.