Charter Communications (CHTR) AI Stock Analysis

• Market Cap: $39.56B
• Dividend Yield: N/A
• Average Volume (3M): 2.47M
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.82
• Revenue Growth: 1.03%
• EPS Growth: 17.05%
• Country: US
• Employees: 94,500
• Sector: Communication Services
• Sector Strength: 95
• Industry: Telecommunications Services
• EPS (TTM): 9.18
• Shares Outstanding: 136,627,990
• 10 Day Avg. Volume: 1,715,055
• 30 Day Avg. Volume: 2,468,018
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.95
• Enterprise Value/Revenue: 2.83
• Enterprise Value/Gross Profit: 4.74
• Enterprise Value/Ebitda: 7.29
• 1Y Price Target: $380.09
• Price Target Upside: 46.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 68 Neutral
• Price Target: $292.00 ▲(12.52% Upside)

Charter Communications' overall stock score reflects strong financial performance and undervaluation, offset by bearish technical indicators and challenges in customer retention. Strategic initiatives and corporate events provide growth potential, but high leverage and legal risks require careful monitoring.

Positive Factors

Free Cash Flow Growth

Cash tax benefits will help drive free cash flow growth for the next several years.

Merger and Acquisition

The merger with Cox should accelerate revenue growth, elevate margins, be accretive to free cash flow, and reduce leverage.

Mobile Segment Performance

Mobile continues to be a bright spot for Charter, contributing to EBITDA and now to free cash flow.

Negative Factors

Earnings Performance

Charter reported a worse than expected result highlighted by a year-over-year acceleration in net data subscriber losses and moderately worse than expected EBITDA.

Stock Volatility

The stock is down approximately 18% post-second quarter earnings, and volatility is likely to persist into the second half.

Subscriber Losses

Charter's underlying fundamentals remain challenged with the loss of 111,000 residential broadband subscribers in the second quarter.

Charter Communications Business Overview & Revenue Model

Company Description

Charter Communications, Inc. operates as a broadband connectivity and cable operator company serving residential and commercial customers in the United States. The company offers subscription-based video services, including video on demand, high-definition television, digital video recorder, pay-per-view services. It provides Internet services, such as security suite that protects computers from viruses and spyware, and threats from malicious actors; 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. The company 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. In addition, it provides mobile services; offers video programming, static IP and business WiFi, email and security, and multi-line telephone services, as well as Web-based service management; sells local advertising across various platforms for networks, such as TBS, CNN, and ESPN; sells advertising inventory to local sports and news channels; and offers Audience App for optimizes linear inventory. Further, the company offers communications products and managed service solutions; data connectivity services to mobile and wireline carriers on a wholesale basis; and owns and operates regional sports and news networks. It serves approximately 32 million customers in 41 states. The company was founded in 1993 and is headquartered in Stamford, Connecticut.

How the Company Makes Money

Charter Communications generates revenue primarily through subscription fees for its core services: cable television, broadband internet, and voice services. The largest revenue stream comes from residential customers, who pay monthly fees for bundled service packages that often include internet, TV, and phone services. Additionally, Charter earns revenue from commercial services, offering tailored solutions to businesses, which include high-speed internet and business phone services. The company also monetizes its infrastructure by providing wholesale services to other telecommunications providers. Advertising revenue from its cable television segment, as well as partnerships with content providers and local businesses, further contribute to its earnings. Charter's continued investment in network expansion and technology upgrades helps to retain existing customers while attracting new ones, ultimately enhancing its revenue generation capacity.

Charter Communications Financial Statement Overview

Summary

Charter Communications shows strong profitability and revenue growth, supported by efficient operations. However, high leverage and declining free cash flow growth present potential risks. The company should focus on improving cash flow generation and managing debt levels to ensure long-term financial stability.

Income Statement

Charter Communications demonstrates strong revenue growth with a TTM increase of 14.7%, supported by healthy gross and net profit margins of 59.7% and 9.5%, respectively. The EBIT and EBITDA margins are robust at 23.1% and 38.8%, indicating efficient operations. However, the slight decline in revenue growth rate compared to previous years suggests a need to monitor future growth sustainability.

Balance Sheet

The company maintains a high debt-to-equity ratio of 5.86, reflecting significant leverage, which poses potential risks. However, the return on equity is strong at 33.9%, indicating effective use of equity to generate profits. The equity ratio is relatively low, suggesting a heavy reliance on debt financing.

Cash Flow

Operating cash flow remains stable with a slight increase, but free cash flow has decreased by 6% in the TTM period. The operating cash flow to net income ratio is healthy at 1.04, but the free cash flow to net income ratio is moderate at 0.28, indicating room for improvement in cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.22B	55.09B	54.61B	54.02B	51.68B	48.10B
Gross Profit	32.99B	30.78B	21.20B	21.15B	23.70B	21.55B
EBITDA	21.45B	21.40B	20.74B	20.92B	19.77B	18.10B
Net Income	5.26B	5.08B	4.56B	5.05B	4.65B	3.22B
Balance Sheet
Total Assets	151.59B	150.02B	147.19B	144.52B	142.49B	144.21B
Cash, Cash Equivalents and Short-Term Investments	606.00M	459.00M	709.00M	645.00M	601.00M	1.00B
Total Debt	96.28B	95.76B	98.20B	97.90B	91.83B	82.99B
Total Liabilities	131.22B	130.31B	132.47B	131.97B	124.33B	113.92B
Stockholders Equity	16.21B	15.59B	11.09B	9.12B	14.05B	23.80B
Cash Flow
Free Cash Flow	4.30B	3.16B	3.49B	6.10B	8.68B	6.61B
Operating Cash Flow	15.20B	14.43B	14.43B	14.93B	16.24B	14.56B
Investing Cash Flow	-10.68B	-10.65B	-11.13B	-9.11B	-7.75B	-8.16B
Financing Cash Flow	-4.52B	-3.98B	-3.24B	-5.77B	-8.88B	-8.95B

Charter Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 259.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHTR, the sentiment is Negative. The current price of 259.51 is below the 20-day moving average (MA) of 265.34, below the 50-day MA of 323.15, and below the 200-day MA of 359.09, indicating a bearish trend. The MACD of -14.10 indicates Negative momentum. The RSI at 31.81 is Neutral, neither overbought nor oversold. The STOCH value of 13.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHTR.

Charter Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VZ	83 Outperform	$186.28B	10.16	18.26%	6.13%	2.05%	61.39%
CMCSA	81 Outperform	$125.35B	5.60	25.44%	3.77%	2.54%	60.53%
TMUS	81 Outperform	$287.98B	24.13	19.74%	1.40%	6.27%	31.78%
T	77 Outperform	$207.93B	16.58	12.12%	3.75%	1.46%	0.88%
VEON	74 Outperform	$4.00B	4.07	89.94%	―	8.66%	―
CHTR	68 Neutral	$39.56B	7.06	36.19%	―	1.03%	17.05%
Sector *	60 Neutral	$46.28B	4.13	-13.12%	4.13%	1.85%	-42.71%

Charter Communications Corporate Events

Charter Communications Issues $2 Billion in Senior Notes

On September 2, 2025, Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. issued $2 billion in senior secured notes, divided into $1.25 billion of 5.850% notes due 2035 and $750 million of 6.700% notes due 2055. This issuance, managed by major financial institutions, is part of a strategic financial maneuver to bolster Charter’s market positioning and operational capabilities, with implications for stakeholders regarding the company’s financial health and strategic direction.

Charter Communications Issues $2 Billion in Notes

On August 18, 2025, Charter Communications Operating, LLC and its affiliates entered into an underwriting agreement with major financial institutions for the issuance and sale of $2 billion in senior secured notes. This strategic financial move aims to enhance the company’s capital structure and potentially strengthen its market position by securing long-term funding.

Charter Communications Acquires Cox Subsidiaries for Expansion

On May 16, 2025, Charter Communications entered into a transaction agreement with Cox Enterprises to acquire 100% of the equity interests of certain subsidiaries of Cox Communications, which operate commercial fiber and managed IT and cloud services businesses. This strategic move is expected to enhance Charter’s market position by expanding its service offerings and customer base in the commercial sector. The transaction also involves Cox Enterprises contributing equity interests and certain assets related to its residential cable business to Charter Holdings, a subsidiary of Charter Communications.

Charter Communications Signs New Agreement with President

On August 1, 2025, Charter Communications entered into a new employment agreement with Richard DiGeronimo, its President of Product and Technology, effective until August 1, 2027. The agreement outlines his compensation package, including a base salary of at least $1.5 million and a target annual bonus of 225% of his salary, along with various benefits and severance terms. This agreement solidifies DiGeronimo’s role in leading product and technology initiatives at Charter, potentially impacting the company’s strategic direction and operational efficiency.

Charter Communications Suspends Share Repurchase Agreement

On August 4, 2025, Charter Communications received a notice from Advance/Newhouse Partnership to suspend their standing share repurchase agreement. This suspension is intended to continue until the completion or termination of transactions outlined in a May 2025 agreement with Cox Enterprises, but may end sooner or later.

Charter Communications Stockholders Approve Cox Acquisition

On July 31, 2025, Charter Communications held a special meeting where stockholders approved proposals necessary for the completion of a transaction with Cox Communications. This transaction involves Charter acquiring Cox’s commercial fiber and managed IT and cloud services businesses, as well as certain assets related to Cox’s residential cable business. The approval signifies a strategic expansion for Charter, potentially enhancing its market position in the broadband and cable industry, with the transaction expected to close in mid-2026 following regulatory approvals.

Charter Faces Lawsuits Over Acquisition Agreement

On May 16, 2025, Charter Communications entered into a Transaction Agreement with Cox Enterprises to acquire Cox Communications’ commercial fiber and managed IT and cloud services businesses. This move is expected to enhance Charter’s service offerings and market positioning. However, the announcement led to lawsuits from Charter’s stockholders, alleging omissions and negligence in the proxy statement related to the transaction. Charter has denied these allegations and is supplementing its disclosures to avoid delays in the transaction process.