Charter Communications (CHTR) AI Stock Analysis

• Market Cap: $29.94B
• Dividend Yield: N/A
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.65
• Revenue Growth: 0.42%
• EPS Growth: 13.46%
• Country: US
• Employees: 94,500
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 8.34
• Shares Outstanding: 129,409,360
• 10 Day Avg. Volume: 1,583,081
• 30 Day Avg. Volume: 1,741,424
• PEG Ratio: 0.59
• Price to Book (P/B): 3.15
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 15.51
• Enterprise Value/Market Cap: 4.57
• Enterprise Value/Revenue: 2.49
• Enterprise Value/Gross Profit: 4.90
• Enterprise Value/Ebitda: 6.44
• 1Y Price Target: $298.00
• Price Target Upside: 44.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): 35.64
• Revenue Forecast (FY): $54.92B

• Rating: 69 Neutral
• Price Target: $224.00 ▲(8.42% Upside)

Charter Communications' overall stock score reflects a mix of solid financial performance and attractive valuation, offset by technical weaknesses and competitive challenges. The company's strong profitability and cash generation are significant strengths, but high leverage and recent revenue declines pose risks. The low P/E ratio suggests potential undervaluation, while the bearish technical indicators indicate caution. The earnings call and corporate events provide a balanced view of optimism and challenges.

Positive Factors

Mobile Growth

Strong growth in mobile lines indicates robust demand and successful market penetration, enhancing Charter's revenue diversification and competitive position.

Innovative Product Developments

Innovative products and strategic partnerships enhance Charter's service offerings and market competitiveness, supporting long-term growth and customer retention.

Leadership Stability

Extending the CEO's contract ensures leadership stability and strategic continuity, crucial for navigating competitive challenges and executing long-term plans.

Negative Factors

Revenue Decline

A decline in revenue indicates potential challenges in maintaining growth momentum, impacting Charter's ability to invest in new initiatives and sustain profitability.

High Debt Levels

High leverage can limit financial flexibility and increase vulnerability to economic downturns, affecting Charter's long-term financial health and investment capacity.

Competitive Market Challenges

Rising competition from alternative technologies poses a threat to Charter's market share, necessitating strategic responses to maintain customer base and revenue.

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 its subscription-based services. The company's key revenue streams include residential and business broadband internet services, cable television subscriptions, and voice services. Its broadband internet offerings are a significant driver of revenue, as demand for high-speed internet continues to grow. Additionally, Charter earns revenue from advertising through its cable television services and from partnerships with content providers. The company also benefits from upselling premium channels and packages to its subscribers, further enhancing its revenue. Charter's significant scale and extensive infrastructure allow it to maintain competitive pricing and attract a large customer base, contributing to its overall earnings.

Charter Communications Financial Statement Overview

Summary

Charter Communications exhibits strong profitability and revenue growth, with 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	55.10B	55.09B	54.61B	54.02B	51.68B	48.10B
Gross Profit	27.95B	25.32B	21.27B	23.42B	20.61B	17.34B
EBITDA	21.27B	21.40B	20.74B	20.92B	19.77B	17.85B
Net Income	5.12B	5.08B	4.56B	5.05B	4.65B	3.22B
Balance Sheet
Total Assets	152.85B	150.02B	147.19B	144.52B	142.49B	144.21B
Cash, Cash Equivalents and Short-Term Investments	464.00M	459.00M	709.00M	645.00M	601.00M	1.00B
Total Debt	95.70B	95.76B	98.20B	97.90B	91.83B	82.99B
Total Liabilities	133.26B	130.31B	132.47B	131.97B	124.33B	113.92B
Stockholders Equity	15.34B	15.59B	11.09B	9.12B	14.05B	23.80B
Cash Flow
Free Cash Flow	4.39B	3.16B	3.49B	6.10B	8.68B	6.61B
Operating Cash Flow	15.78B	14.43B	14.43B	14.93B	16.24B	14.56B
Investing Cash Flow	-11.31B	-10.84B	-11.13B	-9.11B	-7.75B	-8.16B
Financing Cash Flow	-4.70B	-3.79B	-3.24B	-5.77B	-8.88B	-8.95B

Charter Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 206.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 206.6 is above the 20-day moving average (MA) of 201.94, below the 50-day MA of 227.12, and below the 200-day MA of 315.14, indicating a neutral trend. The MACD of -4.36 indicates Negative momentum. The RSI at 45.24 is Neutral, neither overbought nor oversold. The STOCH value of 76.03 is Neutral, 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	81 Outperform	$172.41B	8.72	19.70%	6.60%	2.42%	102.17%
TMUS	76 Outperform	$218.29B	18.77	19.03%	1.75%	7.30%	17.67%
VEON	75 Outperform	$3.60B	5.58	48.17%	―	6.42%	―
CMCSA	72 Outperform	$100.57B	4.58	24.73%	4.77%	0.20%	61.54%
T	71 Outperform	$174.26B	7.98	20.88%	4.52%	1.98%	150.68%
CHTR	69 Neutral	$29.94B	5.70	34.79%	―	0.42%	13.46%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Charter Communications Corporate Events

Charter Communications Director Announces Retirement

On December 11, 2025, David C. Merritt, a director at Charter Communications, announced his intention to retire from the Board of Directors, effective January 26, 2026. His decision to retire was not due to any disagreements with the company’s operations, policies, or practices, indicating a smooth transition and stability within the company’s governance.

Charter Communications Extends CEO Winfrey’s Contract

On December 3, 2025, Charter Communications‘ Compensation and Benefits Committee approved an amended employment agreement for CEO Christopher L. Winfrey, effective December 1, 2025, extending his term until December 1, 2028. The agreement includes a substantial compensation package with an annual base salary of at least $2.5 million, a target annual bonus opportunity of 300% of his salary, and annual stock option awards. Additionally, a contingent equity award was approved for executive officers, linked to the closing of a transaction with Cox Enterprises, highlighting the company’s strategic moves to strengthen executive retention and incentivize leadership amid significant corporate transactions.