Charter Communications (CHTR) AI Stock Analysis

• Market Cap: $105.80B
• Dividend Yield: N/A
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.79
• Revenue Growth: 0.93%
• EPS Growth: 16.06%
• Country: US
• Employees: 94,500
• Sector: Communication Services
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): 36.06
• Shares Outstanding: 140,364,230
• 10 Day Avg. Volume: 1,434,568
• 30 Day Avg. Volume: 1,461,454
• PEG Ratio: 0.65
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.91
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $425.61
• Price Target Upside: 10.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

Charter Communications scores a solid 76.0, driven by robust financial performance with strong profitability and cash flow management. Despite high leverage, the company's effective equity utilization and operational efficiency are commendable. While technical analysis shows moderate trends, the attractive valuation suggests potential undervaluation. Earnings call insights highlight significant mobile growth and reduced expenses, though customer base challenges and declining advertising revenue temper the outlook.

Positive Factors

Financial Performance

Charter reported financial and operating results that were largely better than projected, with revenue, EBITDA, and FCF all beating estimates.

Shareholder Value

The company initiated a significant share buyback program following Liberty Broadband transaction approval, indicating strong stockholder value efforts.

Subscriber Growth

The strong mobile net additions of 495k demonstrate that Charter can drive both improving ARPU and subscriber growth.

Negative Factors

Competition Impact

Broadband customer losses were higher than expected due to intense competition.

Subscriber Losses

Charter posted residential broadband subscriber losses which were higher than expected.

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 through several key streams. The primary source of income is subscription fees from its broadband internet services, which are marketed under the Spectrum brand. The company also earns significant revenue from cable television subscriptions, where it provides a variety of channel packages and on-demand content. Additionally, Charter offers mobile services, generating revenue through mobile plan subscriptions and related services. Another revenue stream comes from providing voice services, including landline and VoIP services. Charter Communications also benefits from advertising sales on its cable networks, as well as through partnerships and licensing agreements with content providers. The company's earnings are further supported by its business services division, which offers networking and communication solutions to enterprises, small businesses, and government entities.

Charter Communications Financial Statement Overview

Summary

Charter Communications presents a strong financial profile with consistent profitability and effective cash flow management. Despite high leverage, the company demonstrates effective equity utilization and operational efficiency. Future growth may be moderated by slowing revenue increases, but the firm remains well-positioned in the telecommunications sector.

Income Statement

Charter Communications shows a stable income performance with a slight revenue growth of 1.02% in TTM, backed by a solid gross profit margin of 70.12% and a net profit margin of 9.42%. The company maintains strong EBIT and EBITDA margins at 24.12% and 32.73%, respectively, indicating healthy operating efficiency. However, the slowing revenue growth could be a potential concern for future expansion.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 5.77, which suggests considerable leverage and potential financial risk. However, the company maintains a decent equity ratio of 10.76%, showing a stable equity base, and a return on equity of 31.96%, indicating efficient use of shareholders' equity to generate profits.

Cash Flow

Charter Communications demonstrates robust cash flow management with a free cash flow growth of 44.81% in TTM. The operating cash flow to net income ratio is 2.98, highlighting strong operational cash generation, while the free cash flow to net income ratio is 0.88, indicating efficient cash usage. Continued investment and financing activities warrant monitoring.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
55.09B	54.61B	54.02B	51.68B	48.10B
	Gross Profit
30.78B	21.20B	21.15B	23.70B	21.55B
	EBIT
13.12B	12.56B	11.96B	10.53B	8.40B
	EBITDA
21.40B	20.74B	20.92B	19.77B	18.10B
	Net Income Common Stockholders
5.08B	4.56B	5.05B	4.65B	3.22B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
459.00M	709.00M	645.00M	601.00M	998.00M
	Total Assets
150.02B	147.19B	144.52B	142.49B	144.21B
	Total Debt
93.93B	97.78B	97.60B	91.56B	82.75B
	Net Debt
93.47B	97.07B	96.96B	90.96B	81.75B
	Total Liabilities
130.31B	132.47B	131.97B	124.33B	113.92B
	Stockholders Equity
15.59B	11.09B	9.12B	14.05B	23.80B
Cash Flow		Free Cash Flow
3.16B	3.49B	6.10B	8.68B	6.61B
	Operating Cash Flow
14.43B	14.43B	14.93B	16.24B	14.56B
	Investing Cash Flow
-10.65B	-11.13B	-9.11B	-7.75B	-8.16B
	Financing Cash Flow
-3.98B	-3.24B	-5.77B	-8.88B	-8.95B

Charter Communications Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 386.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHTR, the sentiment is Positive. The current price of 386.33 is above the 20-day moving average (MA) of 347.34, above the 50-day MA of 357.71, and above the 200-day MA of 353.44, indicating a bullish trend. The MACD of 1.85 indicates Negative momentum. The RSI at 63.37 is Neutral, neither overbought nor oversold. The STOCH value of 94.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CHTR.

Charter Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VZ	79 Outperform	$184.54B	10.55	18.23%	6.41%	0.93%	56.97%
CHTR	76 Outperform	$105.80B	10.45	36.94%	―	0.93%	16.06%
CMCSA	75 Outperform	$126.09B	8.29	18.57%	3.66%	1.33%	7.69%
T	73 Outperform	$195.68B	16.74	11.38%	4.14%	0.50%	-12.66%
TMUS	72 Outperform	$268.84B	23.08	19.35%	1.31%	5.31%	38.46%
Sector *	59 Neutral	$13.74B	6.91	-2.67%	3.82%	2.33%	-34.79%
FYBR	57 Neutral	$9.05B	―	-6.30%	―	3.23%	-1196.02%

Charter Communications Corporate Events

Charter Communications Holds Annual Stockholders Meeting

On April 22, 2025, Charter Communications held its Annual Meeting of Stockholders where all nominated directors were elected, the 2025 Employee Stock Purchase Plan was approved, and KPMG LLP was ratified as the independent public accounting firm for the year ending December 31, 2025. However, the stockholder proposal regarding a political expenditures report was not approved.

Spark’s Take on CHTR Stock

According to Spark, TipRanks’ AI Analyst, CHTR is a Neutral.

Charter Communications exhibits strong financial performance and an attractive valuation, but faces challenges with high debt levels and technical indicators showing bearish momentum. The earnings call provided positive future guidance, but current customer losses and increased capital expenditures are concerns. Overall, Charter is a promising stock with potential risks related to leverage and market sentiment.

To see Spark’s full report on CHTR stock, click here.

Charter Communications to Acquire Liberty Broadband

On February 26, 2025, Charter Communications and Liberty Broadband held special meetings where stockholders approved the merger agreement, allowing Charter to acquire Liberty Broadband. This merger is expected to close on June 30, 2027, subject to certain conditions, and will result in Liberty Broadband becoming an indirect wholly owned subsidiary of Charter, potentially impacting the company’s market position and stakeholder interests.