NasdaqGS:CHTR

Stock Analysis Report

Charter Communications

Executive Summary

Charter Communications, Inc., through its subsidiaries, provides cable services to residential and commercial customers in the United States.

Rewards

Trading at 25% below its fair value

Earnings are forecast to grow 23.61% per year

Earnings grew by 35.6% over the past year

Risk Analysis

Interest payments are not well covered by earnings



Snowflake Analysis

Solid track record with reasonable growth potential.


Similar Companies

Share Price & News

How has Charter Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CHTR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

CHTR

0.6%

US Media

0.5%

US Market


1 Year Return

55.2%

CHTR

19.9%

US Media

20.3%

US Market

Return vs Industry: CHTR exceeded the US Media industry which returned 19.9% over the past year.

Return vs Market: CHTR exceeded the US Market which returned 20.3% over the past year.


Shareholder returns

CHTRIndustryMarket
7 Day1.4%0.6%0.5%
30 Day7.7%0.8%2.0%
90 Day15.8%6.2%9.4%
1 Year55.2%55.2%21.5%19.9%22.8%20.3%
3 Year67.2%67.2%18.7%13.8%50.1%40.4%
5 Year169.2%169.2%35.8%25.0%73.1%54.1%

Price Volatility Vs. Market

How volatile is Charter Communications's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Charter Communications undervalued compared to its fair value and its price relative to the market?

25.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHTR ($542.46) is trading below our estimate of fair value ($723.37)

Significantly Below Fair Value: CHTR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CHTR is poor value based on its PE Ratio (71.4x) compared to the Media industry average (14.4x).

PE vs Market: CHTR is poor value based on its PE Ratio (71.4x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: CHTR is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: CHTR is overvalued based on its PB Ratio (3.6x) compared to the US Media industry average (1.4x).


Next Steps

Future Growth

How is Charter Communications forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

23.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHTR's forecast earnings growth (23.6% per year) is above the savings rate (1.7%).

Earnings vs Market: CHTR's earnings (23.6% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CHTR's revenue (4.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CHTR's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CHTR's Return on Equity is forecast to be high in 3 years time (28.3%)


Next Steps

Past Performance

How has Charter Communications performed over the past 5 years?

30.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHTR has high quality earnings.

Growing Profit Margin: CHTR's current net profit margins (3.6%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: CHTR has become profitable over the past 5 years, growing earnings by 30.6% per year.

Accelerating Growth: CHTR's earnings growth over the past year (35.6%) exceeds its 5-year average (30.6% per year).

Earnings vs Industry: CHTR earnings growth over the past year (35.6%) exceeded the Media industry 2.4%.


Return on Equity

High ROE: CHTR's Return on Equity (5.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Charter Communications's financial position?


Financial Position Analysis

Short Term Liabilities: CHTR's short term assets ($6.5B) do not cover its short term liabilities ($12.4B).

Long Term Liabilities: CHTR's short term assets ($6.5B) do not cover its long term liabilities ($97.0B).


Debt to Equity History and Analysis

Debt Level: CHTR's debt to equity ratio (203.8%) is considered high.

Reducing Debt: CHTR's debt to equity ratio has reduced from 14393.3% to 203.8% over the past 5 years.

Debt Coverage: CHTR's debt is not well covered by operating cash flow (14.9%).

Interest Coverage: CHTR's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

Inventory Level: CHTR has a high level of physical assets or inventory.

Debt Coverage by Assets: CHTR's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Charter Communications's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CHTR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CHTR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CHTR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CHTR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CHTR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.1yrs

Average management tenure


CEO

Tom Rutledge (65yo)

8yrs

Tenure

US$8,157,264

Compensation

Mr. Thomas M. Rutledge, also known as Tom, has been the Chief Executive Officer of Charter Communications, Inc. since February 13, 2012 and as its Chairman of the Board since May 18, 2016. Mr. Rutledge ser ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD8.16M) is about average for companies of similar size in the US market ($USD10.78M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Rutledge
Chairman & CEO8yrsUS$8.16m0.13% $170.0m
John Bickham
President & COO3.6yrsUS$4.73m0.015% $18.9m
Christopher Winfrey
Chief Financial Officer9.3yrsUS$2.13m0.060% $77.1m
Kevin Howard
Executive VP13.8yrsUS$1.57m0.0018% $2.2m
David Ellen
Senior Executive Vice President3.7yrsUS$3.24m0.0011% $1.4m
Charles Fisher
Executive VP of Corporate Finance & Development7yrsno datano data
Stephanie Mitchko-Beale
Executive VP & CTO0.4yrsno datano data
Jay Carlson
Senior VP of Information Technology & Chief Information Officer0yrsno datano data
Stefan Anninger
Vice President of Investor Relations7.1yrsno datano data
Richard Dykhouse
Executive VP9.1yrsUS$2.42m0.0025% $3.2m

7.1yrs

Average Tenure

54.5yo

Average Age

Experienced Management: CHTR's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Rutledge
Chairman & CEO8yrsUS$8.16m0.13% $170.0m
John Markley
Independent Director10.3yrsUS$330.44k0.0069% $8.8m
Gregory Maffei
Independent Director6.8yrsUS$344.96k0.0018% $2.3m
Craig Jacobson
Independent Director9.6yrsUS$319.96k0.0050% $6.4m
David Merritt
Independent Director10.2yrsUS$379.98k0.0044% $5.6m
Eric Zinterhofer
Lead Independent Director3.8yrsUS$514.79k0.0082% $10.4m
W. Conn
Independent Director10.3yrsUS$369.98k0.0022% $2.8m
Balan Nair
Independent Director6.8yrsUS$299.96k0.0033% $4.2m
Steven Miron
Independent Director3.8yrsUS$324.96k0.0024% $3.0m
Michael Newhouse
Independent Director3.8yrsUS$339.98k0.0010% $1.3m

6.8yrs

Average Tenure

56yo

Average Age

Experienced Board: CHTR's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CHTR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Charter Communications, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Charter Communications, Inc.
  • Ticker: CHTR
  • Exchange: NasdaqGS
  • Founded: 1993
  • Industry: Cable and Satellite
  • Sector: Media
  • Implied Market Cap: US$127.524b
  • Market Cap: US$113.904b
  • Shares outstanding: 237.21m
  • Website: https://corporate.charter.com

Number of Employees


Location

  • Charter Communications, Inc.
  • 400 Atlantic Street
  • Stamford
  • Connecticut
  • 6901
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHTR *BMV (Bolsa Mexicana de Valores)YesNew Class A Common StockMXMXNDec 2009
CHTRNasdaqGS (Nasdaq Global Select)YesNew Class A Common StockUSUSDDec 2009
CQDDB (Deutsche Boerse AG)YesNew Class A Common StockDEEURDec 2009
CHTRWBAG (Wiener Boerse AG)YesNew Class A Common StockATEURDec 2009
CQDETLX (Eurotlx)YesNew Class A Common StockITEURDec 2009
0HW4LSE (London Stock Exchange)YesNew Class A Common StockGBUSDDec 2009
CHCM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.2 COM USD0.001 CL ABRBRLMay 2019

Biography

Charter Communications, Inc., through its subsidiaries, provides cable services to residential and commercial customers in the United States. It offers subscription-based video services, including video on demand, high definition television, digital video recorder, pay-per-view, and spectrum mobile and spectrum guide services, as well as ad-supported free online video products. The company also provides Internet services, such as security suite that protects computers from viruses and spyware; in-home WiFi, which provides customers with high performance wireless routers to enhance their in-home wireless Internet experience; out-of-home WiFi; and Spectrum WiFi. In addition, it offers voice communications services using voice over Internet protocol technology; and broadband communications solutions, such as Internet access, data networking, fiber connectivity, video entertainment, and business telephone services to cellular towers and office buildings for business and carrier organizations. Further, the company provides video programming, static IP and business WiFi, email and security, and multi-line telephone services, as well as Web-based service management; sells local advertising across various platforms for networks, such as MTV, CNN, and ESPN; Audience App for optimizes linear inventory; and sells video and online advertising inventory to local, regional, and national advertising customers. Additionally, it offers communications products and managed service solutions; data connectivity services to mobile and wireline carriers on a wholesale basis; and owns and operates regional sports networks and local sports, news, and community channels. As of December 31, 2019, the company served approximately 29.2 million residential and small and medium business customers. Charter Communications, Inc. was founded in 1993 and is based in Stamford, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 01:20
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.