NasdaqGS:CHTR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Charter Communications

Market Cap

US$155.0b

Last Updated

2021/07/25 22:33 UTC

Data Sources

Company Financials +

Executive Summary

Charter Communications, Inc. operates as a broadband connectivity and cable operator company serving residential and commercial customers in the United States. More Details


Snowflake Analysis

Solid track record with moderate 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CHTR's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

2.4%

CHTR

2.1%

US Media

2.0%

US Market


1 Year Return

29.4%

CHTR

37.1%

US Media

39.1%

US Market

Return vs Industry: CHTR underperformed the US Media industry which returned 37.1% over the past year.

Return vs Market: CHTR underperformed the US Market which returned 39.1% over the past year.


Shareholder returns

CHTRIndustryMarket
7 Day2.4%2.1%2.0%
30 Day0.8%1.1%1.6%
90 Day11.4%3.8%3.5%
1 Year29.4%29.4%38.6%37.1%41.3%39.1%
3 Year153.9%153.9%70.8%63.5%64.0%53.8%
5 Year209.5%209.5%80.2%67.4%123.9%99.0%

Long-Term 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?

23.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHTR ($726.81) is trading below our estimate of fair value ($945.34)

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 (39.9x) compared to the US Media industry average (15x).

PE vs Market: CHTR is poor value based on its PE Ratio (39.9x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: CHTR is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: CHTR is overvalued based on its PB Ratio (6.5x) compared to the US Media industry average (2.1x).


Future Growth

How is Charter Communications forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

19.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHTR's forecast earnings growth (19.6% per year) is above the savings rate (2%).

Earnings vs Market: CHTR's earnings (19.6% per year) are forecast to grow faster than the US market (15.1% per year).

High Growth Earnings: CHTR's earnings are forecast to grow, but not significantly.

Revenue vs Market: CHTR's revenue (4.4% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: CHTR's revenue (4.4% 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 very high in 3 years time (66.8%).


Past Performance

How has Charter Communications performed over the past 5 years?

-3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHTR has high quality earnings.

Growing Profit Margin: CHTR's current net profit margins (7.4%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: CHTR has become profitable over the past 5 years, growing earnings by -3.7% per year.

Accelerating Growth: CHTR's earnings growth over the past year (100.6%) exceeds its 5-year average (-3.7% per year).

Earnings vs Industry: CHTR earnings growth over the past year (100.6%) exceeded the Media industry 54.3%.


Return on Equity

High ROE: CHTR's Return on Equity (15.2%) is considered low.


Financial Health

How is Charter Communications's financial position?


Financial Position Analysis

Short Term Liabilities: CHTR's short term assets ($3.7B) do not cover its short term liabilities ($9.9B).

Long Term Liabilities: CHTR's short term assets ($3.7B) do not cover its long term liabilities ($106.3B).


Debt to Equity History and Analysis

Debt Level: CHTR's debt to equity ratio (312.3%) is considered high.

Reducing Debt: CHTR's debt to equity ratio has reduced from 10869.8% to 312.3% over the past 5 years.

Debt Coverage: CHTR's debt is not well covered by operating cash flow (17.8%).

Interest Coverage: CHTR's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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

8.5yrs

Average management tenure


CEO

Tom Rutledge (67 yo)

9.42yrs

Tenure

US$38,846,705

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 ($USD38.85M) is above average for companies of similar size in the US market ($USD11.26M).

Compensation vs Earnings: Tom's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: CHTR's management team is seasoned and experienced (8.5 years average tenure).


Board Members

Experienced Board: CHTR's board of directors are considered experienced (6.7 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$155.028b
  • Market Cap: US$137.124b
  • Shares outstanding: 213.30m
  • Website: https://corporate.charter.com

Number of Employees


Location

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

Listings


Biography

Charter Communications, Inc. operates as a broadband connectivity and cable operator company serving residential and commercial customers in the United States. The company provides Internet services, such ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/25 22:33
End of Day Share Price2021/07/23 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.