CMCSA Financial Analysis

Analysis Date: 1/31/2025

Business Model

Comcast generates revenue through multiple segments including Connectivity & Platforms (broadband, wireless, business services) and Content & Experiences (media, studios, theme parks)

Revenue Sources

• Residential Connectivity & Platforms ($18B, 56% of revenue) - Includes broadband, wireless, video and advertising
• Business Services Connectivity ($2.4B, 8% of revenue) - Enterprise and small business solutions
• Content & Experiences ($12.1B, 38% of revenue) - Media, Studios, Theme Parks

Revenue Distribution by Channel

• Residential Connectivity: $9.1B (45% of segment revenue)
• Business Services: $2.4B (12% of segment revenue)

Income Statement Analysis

• Revenue grew 2.1% to $31.9B driven by growth in Connectivity & Platforms and Content & Experiences segments
• Operating income increased 11.4% to $5.0B reflecting higher revenue and cost management
• Net income jumped 46.6% to $4.8B including a $1.9B tax benefit from corporate reorganization

Balance Sheet Analysis

• Strong balance sheet with total assets of $266.2B
• Net leverage ratio maintained at 2.3x

Cash Flow Analysis

• Generated strong free cash flow of $3.3B in Q4
• Full year free cash flow of $12.5B despite $2B increase in cash taxes

Capital Allocation

Returned $13.5B to shareholders in 2024 through $8.6B in share repurchases and $4.8B in dividends. Increased dividend by 6.5% to $1.32 per share annually for 2025, marking 17th consecutive annual increase. Maintained investment grade credit rating with net leverage at 2.3x.

Management Commentary

Best financial performance in company's 60-year history with record revenue, EBITDA and EPS

Strong execution across six growth businesses including 5% connectivity revenue growth

Competitive pressures remain intense in broadband business

Overall Sentiment: Positive but acknowledging competitive challenges

Recommendation

Rating: Buy

Reason for Rating: Strong free cash flow generation, shareholder returns, and execution across growth businesses support positive outlook

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/31/2025, 5:33:29 AM