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A Look at Comcast’s Capex and Key Financial Metrics

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Aug. 30 2017, Updated 10:36 a.m. ET

Comcast’s capex trend

Comcast (CMCSA) expects its capex (capital expenditure) for Comcast Cable to remain flat at 15.0% in fiscal 2017, which means it expects absolute capex for cable to rise. In fiscal 2Q17, Comcast Cable had a capital intensity of 14.9%, which indicates the capital used by the company for each dollar of revenue.

The company also expects that capex for its NBCUniversal business will rise 10.0% in fiscal 2017 as it continues to invest in its theme parks by adding new attractions.

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Comcast’s financial metrics

On August 23, 2017, Comcast stock closed at $40.65. The company had a market capitalization of $191.6 billion and an enterprise value of $254.7 billion. At the end of fiscal 2Q17, Comcast had a cash balance of $2.7 billion with a total debt balance of $63.5 billion. The company has a total debt-to-total capital ratio of 51.0%.

In contrast, Twenty-First Century Fox (FOXA), Time Warner (TWX), and Viacom (VIAB) have total debt-to-total capital ratios of 53.0%, 50.0%, and 72.0%, respectively. Comcast’s debt makes up 25.0% of its total enterprise value.

Comcast’s management has ruled out any merger activity since all its businesses are doing exceedingly well. It had a free cash flow of $2.2 billion in fiscal 2Q17.

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