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CHTR

Charter CommunicationsNasdaqGS:CHTR Stock Report

Market Cap

US$129.3b

7D

-0.3%

1Y

-0.004%

Updated

02 Dec, 2021

Data

Company Financials +
CHTR fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance3/6
Financial Health0/6
Dividends0/6

CHTR Stock Overview

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

Charter Communications Competitors

Comcast

NasdaqGS:CMCS.A

US$224.2b

DISH Network

NasdaqGS:DISH

US$16.2b

Cable One

NYSE:CABO

US$10.6b

WideOpenWest

NYSE:WOW

US$1.7b

Price History & Performance

Summary of all time highs, changes and price drops for Charter Communications
Historical stock prices
Current Share PriceUS$670.40
52 Week HighUS$825.62
52 Week LowUS$585.45
Beta0.96
1 Month Change-1.63%
3 Month Change-17.37%
1 Year Change-0.004%
3 Year Change105.15%
5 Year Change140.29%
Change since IPO1,736.90%

Recent News & Updates

Nov 30

Charter Communications: New In-Home WiFi And 5G Services Could Make The Price Spike Up

Charter Communications, Inc. is a broadband connectivity company offering services to 31 million customers in the United States. The most exciting services are the company’s mobile and internet services. In the nine months ended September 30, 2021, Internet revenue grew by 14%, and mobile revenue grew by 65%. If Charter continues to increase the interactions between clients and customer service through social media and the Spectrum application, the services offered will be better. If management finds more ways to offer self-installation or growing levels of installation choices, the free cash flow margins would most likely improve. Under the best-case scenario, with sufficient M&A efforts and successful sale of the new 5G services, the share price could be worth $1275.

Oct 30

Charter: Stock Could Double After COVID-Related Q3 Deceleration

Charter stock fell 4.4% after Q3 results on Friday and is now 18% below its early September peak, and only up 2% year-to-date. We believe investors overreacted to a deceleration in Internet net adds that is temporary and due to COVID-related market conditions. Management comments and competitors' reports both indicated that the lower net adds were not due to Charter gaining less share. Between Q2 and Q3, with just 0.9% more Internet customers, EBITDA grew 5.3%, and Free Cash Flow/Share grew 12.2%. Currently at $674.89, the stock can double (25.1% annualized) by 2024 year-end if Free Cash Flow grows just 11.5% annually. Buy.

Oct 27
Charter Communications (NASDAQ:CHTR) Has A Pretty Healthy Balance Sheet

Charter Communications (NASDAQ:CHTR) Has A Pretty Healthy Balance Sheet

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Shareholder Returns

CHTRUS MediaUS Market
7D-0.3%-2.3%-3.5%
1Y-0.004%1.9%19.4%

Return vs Industry: CHTR exceeded the US Media industry which returned -1.7% over the past year.

Return vs Market: CHTR underperformed the US Market which returned 17.8% over the past year.

Price Volatility

Is CHTR's price volatile compared to industry and market?
CHTR volatility
CHTR Average Weekly Movement3.1%
Media Industry Average Movement6.9%
Market Average Movement6.1%
10% most volatile stocks in US Market14.9%
10% least volatile stocks in US Market2.4%

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.

About the Company

FoundedEmployeesCEOWebsite
199396,100Tom Rutledgehttps://corporate.charter.com

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 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 services, as well as video services. It also 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.

Charter Communications Fundamentals Summary

How do Charter Communications's earnings and revenue compare to its market cap?
CHTR fundamental statistics
Market CapUS$129.33b
Earnings (TTM)US$4.29b
Revenue (TTM)US$51.09b

31.9x

P/E Ratio

2.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CHTR income statement (TTM)
RevenueUS$51.09b
Cost of RevenueUS$28.21b
Gross ProfitUS$22.88b
ExpensesUS$18.59b
EarningsUS$4.29b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)21.04
Gross Margin44.78%
Net Profit Margin8.40%
Debt/Equity Ratio410.5%

How did CHTR perform over the long term?

See historical performance and comparison

Valuation

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

40.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHTR ($670.4) is trading below our estimate of fair value ($1126.27)

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 (31.9x) compared to the US Media industry average (13.3x).

PE vs Market: CHTR is poor value based on its PE Ratio (31.9x) compared to the US market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: CHTR is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: CHTR is overvalued based on its PB Ratio (8x) compared to the US Media industry average (2x).


Future Growth

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

17.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHTR's forecast earnings growth (17.2% per year) is above the savings rate (2%).

Earnings vs Market: CHTR's earnings (17.2% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: CHTR's revenue (4.5% per year) is forecast to grow slower than the US market (10.1% 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 very high in 3 years time (113.9%).


Past Performance

How has Charter Communications performed over the past 5 years?

-9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHTR has high quality earnings.

Growing Profit Margin: CHTR's current net profit margins (8.4%) are higher than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: CHTR's earnings have declined by 9.7% per year over the past 5 years.

Accelerating Growth: CHTR's earnings growth over the past year (59.5%) exceeds its 5-year average (-9.7% per year).

Earnings vs Industry: CHTR earnings growth over the past year (59.5%) underperformed the Media industry 63.1%.


Return on Equity

High ROE: Whilst CHTR's Return on Equity (22.7%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Charter Communications's financial position?


Financial Position Analysis

Short Term Liabilities: CHTR's short term assets ($3.5B) do not cover its short term liabilities ($12.2B).

Long Term Liabilities: CHTR's short term assets ($3.5B) do not cover its long term liabilities ($108.7B).


Debt to Equity History and Analysis

Debt Level: CHTR's net debt to equity ratio (408.4%) is considered high.

Reducing Debt: CHTR's debt to equity ratio has increased from 121.4% to 410.5% over the past 5 years.

Debt Coverage: CHTR's debt is not well covered by operating cash flow (18.3%).

Interest Coverage: CHTR's interest payments on its debt are not well covered by EBIT (2.7x 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?

5.5yrs

Average management tenure


CEO

Tom Rutledge (67 yo)

9.83yrs

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 ($USD38.85M) is above average for companies of similar size in the US market ($USD11.11M).

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 (5.5 years average tenure).


Board Members

Experienced Board: CHTR's board of directors are considered experienced (7.1 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 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$129.329b
  • Market Cap: US$113.706b
  • Shares outstanding: 203.92m
  • Website: https://corporate.charter.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 23:29
End of Day Share Price2021/12/02 00:00
Earnings2021/09/30
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.