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
Price History & Performance
|Historical stock prices|
|Current Share Price||US$670.40|
|52 Week High||US$825.62|
|52 Week Low||US$585.45|
|1 Month Change||-1.63%|
|3 Month Change||-17.37%|
|1 Year Change||-0.004%|
|3 Year Change||105.15%|
|5 Year Change||140.29%|
|Change since IPO||1,736.90%|
Recent News & Updates
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.
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.
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...
|CHTR||US Media||US Market|
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.
|CHTR Average Weekly Movement||3.1%|
|Media Industry Average Movement||6.9%|
|Market Average Movement||6.1%|
|10% most volatile stocks in US Market||14.9%|
|10% least volatile stocks in US Market||2.4%|
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
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
|CHTR fundamental statistics|
Is CHTR overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CHTR income statement (TTM)|
|Cost of Revenue||US$28.21b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||21.04|
|Net Profit Margin||8.40%|
How did CHTR perform over the long term?See historical performance and comparison
Is Charter Communications undervalued compared to its fair value and its price relative to the market?
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).
How is Charter Communications forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?
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%).
How has Charter Communications performed over the past 5 years?
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.
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 ($108.7B).
Debt to Equity History and Analysis
Debt Level: CHTR's net debt to equity ratio (408.4%) is considered high.
Reducing Debt: CHTR's debt to equity ratio has increased from 121.4% to 410.5% over the past 5 years.
Debt Coverage: CHTR's debt is not well covered by operating cash flow (18.3%).
Interest Coverage: CHTR's interest payments on its debt are not well covered by EBIT (2.7x coverage).
What is Charter Communications's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CHTR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CHTR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CHTR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CHTR's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CHTR's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tom Rutledge (67 yo)
Mr. Thomas M. Rutledge, also known as Tom, has been the Chief Executive Officer of Charter Communications, Inc. since February 13, 2012 and as its Chairman of the Board since May 18, 2016. Mr. Rutledge ser...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($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.
Experienced Management: CHTR's management team is seasoned and experienced (5.5 years average tenure).
Experienced Board: CHTR's board of directors are considered experienced (7.1 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Charter Communications, Inc.'s employee growth, exchange listings and data sources
- 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
- Charter Communications, Inc.
- 400 Atlantic Street
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/12/02 23:29|
|End of Day Share Price||2021/12/02 00:00|
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.