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.

Snowflake

Fundamentals

Moderate growth potential with questionable track record.


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


Market Performance


7 Day Return

4.0%

CHTR

1.6%

US Media

0.4%

US Market


1 Year Return

36.9%

CHTR

16.4%

US Media

6.9%

US Market

Return vs Industry: CHTR exceeded the US Media industry which returned 16.4% over the past year.

Return vs Market: CHTR exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

CHTRIndustryMarket
7 Day4.0%1.6%0.4%
30 Day4.7%-0.3%-1.1%
90 Day7.9%-0.03%-0.5%
1 Year36.9%36.9%17.9%16.4%9.3%6.9%
3 Year72.5%72.5%30.2%25.0%45.8%36.4%
5 Year152.1%152.1%41.5%30.2%62.9%45.1%

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?

15.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CHTR ($440.05) is trading below our estimate of fair value ($517.64)

Significantly Undervalued: CHTR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CHTR is poor value based on its PE Ratio (73.4x) compared to the Media industry average (12.6x).

PE vs Market: CHTR is poor value based on its PE Ratio (73.4x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: CHTR is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: CHTR is overvalued based on its PB Ratio (2.8x) compared to the US Media industry average (1.3x).


Next Steps

Future Growth

How is Charter Communications forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?

33.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHTR's forecast earnings growth (33.3% per year) is above the savings rate (2.7%).

Earnings vs Market: CHTR's earnings (33.3% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: CHTR's revenue (4.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CHTR's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CHTR's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has Charter Communications performed over the past 5 years?

48.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CHTR has become profitable over the past 5 years, growing earnings by 48% per year.

Accelerating Growth: CHTR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CHTR had negative earnings growth (-86.5%) over the past year, making it difficult to compare to the Media industry average (-35.1%).


Return on Equity

High ROE: CHTR's Return on Equity (3.8%) is considered low.


Return on Assets

ROA vs Industry: CHTR's Return on Assets is below or equal to the Media industry average last year.


Return on Capital Employed

ROCE Improving: CHTR has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Charter Communications's financial position?


Financial Position Analysis

Short Term Liabilities: CHTR's short term assets ($3.3B) do not cover its short term liabilities ($9.9B)

Long Term Liabilities: CHTR's short term assets (3.3B) do not cover its long term liabilities (93.1B)


Debt to Equity History and Analysis

Debt Level: CHTR's debt to equity ratio (170.1%) is considered high

Reducing Debt: CHTR's debt to equity ratio has reduced from 11853.9% to 170.1% over the past 5 years.

Debt Coverage: CHTR's debt is not well covered by operating cash flow (15.6%).

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 0x 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%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Charter Communications's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

Tom Rutledge (65yo)

7.7yrs

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 ($USD8.16M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

6.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: CHTR's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

56yo

Average Age

Experienced Board: CHTR's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$389,77702 Aug 19
Craig Jacobson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$389.78
SellUS$497,11107 May 19
Craig Jacobson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,325
Max PriceUS$375.18
SellUS$1,017,15027 Feb 19
Jonathan Hargis
EntityIndividual
Shares3,000
Max PriceUS$339.05
SellUS$4,777,84111 Feb 19
John Bickham
EntityIndividual
Role
President
President & COO
Shares14,017
Max PriceUS$341.53
SellUS$345,93506 Feb 19
Kevin Howard
EntityIndividual
Role
Chief Accounting Officer
Executive VP
Shares1,012
Max PriceUS$341.83

Ownership Breakdown


Management Team

  • Chris Winfrey (43yo)

    Chief Financial Officer

    • Tenure: 8.9yrs
    • Compensation: US$2.13m
  • David Ellen (54yo)

    Senior Executive Vice President

    • Tenure: 3.3yrs
    • Compensation: US$3.24m
  • Tom Rutledge (65yo)

    Chairman & CEO

    • Tenure: 7.7yrs
    • Compensation: US$8.16m
  • John Bickham (69yo)

    President & COO

    • Tenure: 3.3yrs
    • Compensation: US$4.73m
  • Kevin Howard (49yo)

    Executive VP

    • Tenure: 13.5yrs
    • Compensation: US$1.57m
  • Stefan Anninger

    Vice President of Investor Relations

    • Tenure: 6.8yrs
  • Richard Dykhouse (55yo)

    Executive VP

    • Tenure: 8.8yrs
    • Compensation: US$2.42m
  • Jay Carlson

    Senior VP of Information Technology & Chief Information Officer

    • Tenure: 0yrs
  • Chuck Fisher

    Executive VP of Corporate Finance & Development

    • Tenure: 6.7yrs
  • Stephanie Mitchko-Beale

    Executive VP & CTO

    • Tenure: 0.08yrs

Board Members

  • Jay Markley (53yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$330.44k
  • Greg Maffei (59yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$344.96k
  • Craig Jacobson (66yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$319.96k
  • Dave Merritt (64yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$379.98k
  • Eric Zinterhofer (47yo)

    Lead Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$514.79k
  • Tom Rutledge (65yo)

    Chairman & CEO

    • Tenure: 7.7yrs
    • Compensation: US$8.16m
  • W. Conn (50yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$369.98k
  • Balan Nair (53yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$299.96k
  • Steve Miron (53yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$324.96k
  • Michael Newhouse (59yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$339.98k

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: 1999
  • Industry: Cable and Satellite
  • Sector: Media
  • Implied Market Cap: US$110.598b
  • Market Cap: US$97.461b
  • Shares outstanding: 250.26m
  • Website: https://www.spectrum.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
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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:26
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.