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Charter Communications
(NASDAQ:CHTR)
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Rating:51Neutral
Price Target:
$126.00
▼(-46.75% Downside)
Action:Reiterated
Date:05/20/26
The score is held back primarily by financial risk (high leverage) and weakening revenue/free-cash-flow trends, reinforced by clearly bearish technicals. These are partially offset by a very low P/E valuation and an earnings-call outlook that is cautiously constructive longer term (mobile growth, network upgrades, and higher Cox synergy expectations) despite near-term headwinds (subscriber losses and elevated 2026 CapEx).
Positive Factors
Strong operating cash flow and high EBITDA margins
Charter generates consistently strong operating cash flow and industry-leading EBITDA margins (~38%), providing durable internal funding for network investment, M&A integration and shareholder returns. This cash-flow base supports execution despite cyclical revenue pressure and reduces reliance on equity financing.
Negative Factors
Very high leverage and sizable interest burden
Charter’s elevated leverage (net debt/LTM EBITDA ~4.15x and $94B principal) and ~$4.9B annual cash interest reduce financial flexibility. High fixed debt costs constrain capital allocation, increase refinancing and covenant risk in stress scenarios, and make strategic actions more sensitive to macro rate shifts.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating cash flow and high EBITDA margins
Charter generates consistently strong operating cash flow and industry-leading EBITDA margins (~38%), providing durable internal funding for network investment, M&A integration and shareholder returns. This cash-flow base supports execution despite cyclical revenue pressure and reduces reliance on equity financing.
Read all positive factors
Charter Communications Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue into different business areas, revealing which segments drive growth and where the company might face challenges.
Breaks down revenue into different business areas, revealing which segments drive growth and where the company might face challenges.
Data provided by:
The Fly
The FlyCharter Communications (CHTR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.70B
Dividend YieldN/A
Average Volume (3M)3.55M
Price to Earnings (P/E)3.8
Beta (1Y)0.66
Revenue Growth-0.92%
EPS Growth3.13%
CountryUS
Employees94,500
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)37.65
Shares Outstanding122,984,535
10 Day Avg. Volume4,199,245
30 Day Avg. Volume3,549,108
Financial Highlights & Ratios
PEG Ratio1.47
Price to Book (P/B)1.76
Price to Sales (P/S)0.52
P/FCF Ratio6.39
Enterprise Value/Market Cap5.84
Enterprise Value/Revenue2.10
Enterprise Value/Gross Profit4.86
Enterprise Value/Ebitda5.63
Forecast
1Y Price Target
$246.80Price Target Upside4.30% Upside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)41.14
Revenue Forecast (FY)$54.31B
Charter Communications Business Overview & Revenue Model
Company Description
Charter Communications, Inc. is a prominent U.S. broadband and cable operator, delivering services to residential and commercial customers nationwide. Its offerings encompass a wide array of subscription video services, including on-demand content...
How the Company Makes Money
Charter primarily makes money from recurring subscription and usage-based fees for connectivity and communications services delivered over its cable/broadband network. The largest revenue driver is residential internet service, where customers pay...
Charter Communications Earnings Call Summary
Earnings Call Date:Apr 24, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Neutral
The call outlined solid operational and strategic positives—most notably rapid mobile growth, dramatic improvement in video losses, product/network investments, rural expansion, and upgraded Cox synergy expectations—while acknowledging notable near-term headwinds: Internet customer losses, modest revenue and EBITDA declines, elevated near-term CapEx and higher device/service costs, and competitive pressure from fixed wireless and telco subsidies. Management emphasized confidence in longer-term growth driven by network advantages, product improvements, and the Cox acquisition, but financials show short-term pressure. Overall, the positives and negatives are roughly balanced, reflecting cautious optimism but near-term execution and competitive challenges.Positive Updates
Spectrum Mobile Strong Growth
Spectrum Mobile reached over 12 million lines, adding ~370,000 lines in the quarter and ~1.8 million lines over the last 12 months (growth >17%), with product features like Anytime Upgrade and competitive pricing driving adoption.
Negative Updates
Internet Customer Losses and Top-of-Funnel Pressure
Internet customers (residential + small business) declined by 120,000 in 1Q26; management cited a competitive new-sales environment (expanded fixed wireless competition, mobile substitution, fiber overlap) and muted housing/mover activity limiting top-of-funnel growth.
Read all updates
Q1-2026 Updates
Positive
Negative
Spectrum Mobile Strong Growth
Spectrum Mobile reached over 12 million lines, adding ~370,000 lines in the quarter and ~1.8 million lines over the last 12 months (growth >17%), with product features like Anytime Upgrade and competitive pricing driving adoption.
Read all positive updates
Company Guidance
Charter reiterated detailed financial and transaction guidance: 2026 CapEx is expected to be about $11.4 billion (Q1 CapEx was $2.9B), with run‑rate annual CapEx falling to under $8B after the evolution/expansion program (a drop from ~ $11.7B in 2025 to < $8B in 2028 — equivalent to > $28 of free cash flow per share); Q1 free cash flow was $1.4B (≈$200M below prior year), Q1 net income was ~ $1.2B, adjusted EBITDA fell 2.2% (1.8% ex $24M of Cox transition expenses), and Q1 cash taxes were $64M with calendar‑year 2026 cash tax payments expected to be $500–$800M. Balance‑sheet and capital‑returns guidance: debt principal was $94B at quarter end, weighted average cost of debt 5.2%, run‑rate annualized cash interest ~$4.9B, net debt/LTM adjusted EBITDA 4.15x (4.22x pro forma for Liberty), with a plan to be at or slightly under 4.25x during the Cox pendency and a target to reach the low end of 3.5–3.75x within three years post‑close; the company repurchased 4.3M shares in Q1 for $963M (avg $225). Transaction outlook: Cox run‑rate operating expense synergies are now estimated at at least $800M, close is targeted this summer pending California approval, and post‑close reporting will include pro forma customer and revenue schedules (guidance excludes Cox and integration costs).Charter Communications Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
38
Negative
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 54.64B | 54.77B | 55.09B | 54.61B | 54.02B | 51.68B |
| Gross Profit | 23.64B | 25.37B | 25.32B | 21.27B | 23.42B | 20.61B |
| EBITDA | 20.40B | 21.21B | 21.40B | 20.74B | 20.92B | 19.77B |
| Net Income | 4.93B | 4.99B | 5.08B | 4.56B | 5.05B | 4.65B |
Balance Sheet | ||||||
| Total Assets | 154.64B | 154.21B | 150.02B | 147.19B | 144.52B | 142.49B |
| Cash, Cash Equivalents and Short-Term Investments | 517.00M | 477.00M | 459.00M | 709.00M | 645.00M | 601.00M |
| Total Debt | 96.82B | 97.12B | 95.76B | 98.20B | 97.90B | 91.83B |
| Total Liabilities | 133.57B | 133.69B | 130.31B | 132.47B | 131.97B | 124.33B |
| Stockholders Equity | 16.39B | 16.05B | 15.59B | 11.09B | 9.12B | 14.05B |
Cash Flow | ||||||
| Free Cash Flow | 4.03B | 4.42B | 3.16B | 3.49B | 6.10B | 8.68B |
| Operating Cash Flow | 16.14B | 16.08B | 14.43B | 14.43B | 14.93B | 16.24B |
| Investing Cash Flow | -11.91B | -11.62B | -10.84B | -11.13B | -9.11B | -7.75B |
| Financing Cash Flow | -4.48B | -4.37B | -3.79B | -3.24B | -5.77B | -8.88B |
Charter Communications Technical Analysis
Neutral
236.62
Price Trends
153.38
Negative
189.50
Negative
207.14
Negative
Market Momentum
-4.16
Negative
50.92
Neutral
43.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHTR, the sentiment is Neutral. The current price of 236.62 is above the 20-day moving average (MA) of 135.24, above the 50-day MA of 153.38, and above the 200-day MA of 207.14, indicating a neutral trend. The MACD of -4.16 indicates Negative momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 43.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CHTR.
Charter Communications Risk Analysis
Charter Communications disclosed 33 risk factors in its most recent earnings report. Charter Communications reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Charter Communications Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $87.70B | 4.81 | 19.83% | 4.42% | 1.39% | 24.78% | |
74 Outperform | $181.52B | 17.81 | 17.82% | 1.75% | 9.48% | -8.46% | |
67 Neutral | $176.79B | 10.36 | 16.68% | 6.60% | 2.85% | -2.51% | |
66 Neutral | $143.83B | 6.92 | 19.59% | 4.56% | 2.92% | 83.12% | |
63 Neutral | $3.62B | 7.01 | 38.73% | ― | 12.63% | 19.58% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
51 Neutral | $19.70B | 3.76 | 30.84% | ― | -0.92% | 3.13% |
* Communication Services Sector Average
CHTR
Charter Communications
142.21
-270.05
-65.50%
T
AT&T
20.70
-6.43
-23.70%
CMCSA
Comcast
24.55
-7.90
-24.35%
VZ
Verizon
42.34
1.50
3.68%
TMUS
T Mobile US
167.73
-65.30
-28.02%
VEON
VEON
52.21
8.71
20.02%
Charter Communications Corporate Events
Executive/Board Changes
Charter Extends General Counsel Jamal Haughton’s Employment Agreement
Positive
May 19, 2026
On May 15, 2026, Charter Communications entered into a new employment agreement with Executive Vice President, General Counsel and Corporate Secretary Jamal Haughton, extending his role through May 15, 2028 and setting an annual base salary of at ...
Executive/Board ChangesShareholder Meetings
Charter Shareholders Back Board, Incentives at 2026 Meeting
Positive
Apr 23, 2026
On April 21, 2026, Charter Communications, Inc. held its 2026 Annual Meeting of Stockholders, with a substantial majority of its eligible common shares represented in person or by proxy. Shareholders elected all nominated directors to the board, r...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.