Charter Communications (CHTR) AI Stock Analysis

• Market Cap: $29.87B
• Dividend Yield: N/A
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.64
• Revenue Growth: 0.42%
• EPS Growth: 13.46%
• Country: US
• Employees: 94,500
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 10.34
• Shares Outstanding: 129,409,360
• 10 Day Avg. Volume: 2,507,992
• 30 Day Avg. Volume: 1,773,564
• PEG Ratio: 1.47
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 6.39
• Enterprise Value/Market Cap: 4.05
• Enterprise Value/Revenue: 2.21
• Enterprise Value/Gross Profit: 4.92
• Enterprise Value/Ebitda: 5.70
• 1Y Price Target: $270.64
• Price Target Upside: 31.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $213.00 ▲(3.34% Upside)

CHTR scores moderately due to strong cash generation and improving free cash flow, but the heavily leveraged balance sheet and weak/negative revenue trajectory are key risks. Technicals remain mixed with a short-term lift inside a longer-term downtrend, while the low P/E provides meaningful valuation support. Earnings call guidance suggests only modest near-term improvement, with longer-term upside tied to capex decline and execution on deleveraging amid subscriber pressures.

Positive Factors

Durable profitability and margin profile

Consistent EBIT/EBITDA margins and strong operating cash flow indicate durable operating efficiency. This supports reinvestment in network upgrades, funds deleveraging and shareholder returns, and cushions the business against cyclical revenue dips over the next 2–6 months.

Mobile momentum and network offload

Rapid mobile line additions and high traffic offload to Charter’s own network improve unit economics and reduce third‑party costs. This strengthens bundle retention, lowers broadband churn structurally, and diversifies revenue toward higher‑margin connectivity services over the medium term.

CapEx peak passed; material FCF upside

A credible multi‑year plan to cut capex from recent peaks meaningfully increases free cash flow potential. Lower capital intensity enables faster deleveraging, more predictable cash returns to shareholders, and funding for strategic product rollouts without re‑levering.

Negative Factors

Elevated leverage and high gross debt

High absolute debt and ~4.5x leverage constrain financial flexibility and heighten interest expense sensitivity (~$4.9B annualized). Elevated leverage limits capacity for M&A or large discretionary spend and prolongs exposure to cash‑flow shocks until deleveraging materially progresses.

Structural broadband subscriber declines

Ongoing internet customer losses erode recurring revenue and reduce ARPU, pressuring top‑line durability. Substitution by mobile, competitive subsidies and fiber expansion are structural threats that require sustained product, pricing and network investment to counter over multiple quarters.

Streaming app allocation and video ARPU pressure

Rising programmer streaming app allocations reduce reported video revenue and compress video ARPU even if programming costs are GAAP‑neutral. As streaming economics persist, this structural allocation may continue to mute reported revenue growth and complicate long‑term video monetization.

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

Strong, consistent operating cash flow and positive (improving) free cash flow support stability, but the balance sheet is a major constraint with very high debt and elevated leverage. Revenue growth is limited/negative recently, and a noted 2025 margin data quality issue reduces confidence in the latest margin trend.

Income Statement

Revenue has been largely flat over the last several years and turned slightly negative in the most recent annual period (-0.59% growth), suggesting limited top-line momentum. Profitability is steady: net margin has held around ~8%–9% (2023–2025), and earnings have been fairly resilient. A key data quality issue is that 2025 shows zero gross profit and zero EBIT margin despite sizable EBIT/EBITDA, which reduces confidence in margin trend analysis for the latest year.

Balance Sheet

Leverage is the central balance sheet constraint. Total debt remains very high (~$95B) and debt-to-equity is elevated (roughly ~5.9x in 2025; ~6.1x in 2024), leaving the company more exposed to refinancing and interest-rate risk than a typical stable telecom business. Equity has improved versus 2022–2023, which helps, and returns on equity are strong (driven in part by leverage), but the capital structure remains aggressive.

Cash Flow

Cash generation is solid: operating cash flow is consistently strong (~$14B–$16B annually). Free cash flow is positive each year, improved in 2025 to ~$4.4B with strong growth (+63.8%), after weaker performance in 2023–2024. However, free cash flow is a modest share of earnings in recent years (about ~22%–27% in 2024–2025), indicating capital intensity and/or working-capital swings can limit how much accounting profit converts into true excess cash.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	54.77B	55.09B	54.61B	54.02B	51.68B
Gross Profit	25.37B	25.32B	21.27B	23.42B	20.61B
EBITDA	21.21B	21.40B	20.74B	20.92B	19.77B
Net Income	4.99B	5.08B	4.56B	5.05B	4.65B
Balance Sheet
Total Assets	154.21B	150.02B	147.19B	144.52B	142.49B
Cash, Cash Equivalents and Short-Term Investments	477.00M	459.00M	709.00M	645.00M	601.00M
Total Debt	94.76B	95.76B	98.20B	97.90B	91.83B
Total Liabilities	133.69B	130.31B	132.47B	131.97B	124.33B
Stockholders Equity	16.05B	15.59B	11.09B	9.12B	14.05B
Cash Flow
Free Cash Flow	4.42B	3.16B	3.49B	6.10B	8.68B
Operating Cash Flow	16.08B	14.43B	14.43B	14.93B	16.24B
Investing Cash Flow	-11.62B	-10.84B	-11.13B	-9.11B	-7.75B
Financing Cash Flow	-4.37B	-3.79B	-3.24B	-5.77B	-8.88B

Charter Communications Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 206.12
• 50DMA: Positive
• 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 Neutral. The current price of 206.12 is above the 20-day moving average (MA) of 198.05, above the 50-day MA of 201.82, and below the 200-day MA of 289.81, indicating a neutral trend. The MACD of -4.08 indicates Negative momentum. The RSI at 56.23 is Neutral, neither overbought nor oversold. The STOCH value of 50.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CHTR.

Charter Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMCSA	80 Outperform	$108.41B	5.52	21.92%	4.42%	0.20%	61.54%
TMUS	77 Outperform	$220.58B	18.96	19.03%	1.75%	7.30%	17.67%
VEON	75 Outperform	$3.78B	5.86	53.38%	―	6.42%	―
VZ	75 Outperform	$187.72B	10.97	16.86%	6.60%	2.42%	102.17%
T	67 Neutral	$185.81B	8.62	20.43%	4.56%	1.98%	150.68%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CHTR	57 Neutral	$29.87B	5.68	31.52%	―	0.42%	13.46%

Charter Communications Corporate Events

Charter Communications Adds Wade Davis to Board

On January 27, 2026, Charter Communications appointed Wade Davis as an independent member of its Board of Directors, filling the vacancy left by David Merritt’s retirement from the board on January 26, 2026. Davis will receive the company’s standard non-employee director compensation package, including a prorated annual cash retainer of $120,000 and a prorated restricted stock grant valued at $52,398 that will vest at the 2026 annual meeting of stockholders, and his appointment underscores continuity in Charter’s board governance without any special arrangements or side agreements related to his selection.

The most recent analyst rating on (CHTR) stock is a Hold with a $201.00 price target. To see the full list of analyst forecasts on Charter Communications stock, see the CHTR Stock Forecast page.

Charter Communications Extends EVP Adam Ray’s Employment Agreement

On January 16, 2026, Charter Communications entered into a new employment agreement with Adam Ray, confirming his role as Executive Vice President and Chief Commercial Officer through January 19, 2028, with an annual base salary of at least $750,000, a target cash bonus equal to 160% of salary, and ongoing participation in standard executive benefits and perquisites. The agreement enhances Ray’s long-term incentive alignment with shareholders by granting him, starting in 2027, annual equity awards worth at least $4.25 million in options and restricted stock units, plus a $500,000 top-up equity grant issued on January 20, 2026 that cliff vests after three years, while also outlining substantial severance protections and imposing post-employment noncompete, nonsolicitation, and confidentiality obligations that aim to secure commercial leadership stability and protect Charter’s competitive and intellectual property interests.

The most recent analyst rating on (CHTR) stock is a Hold with a $202.00 price target. To see the full list of analyst forecasts on Charter Communications stock, see the CHTR Stock Forecast page.

Charter Communications Issues New Senior Unsecured Notes Offering

On January 13, 2026, Charter Communications’ subsidiaries CCO Holdings, LLC and CCO Holdings Capital Corp. completed the issuance and sale of $3.0 billion in senior unsecured notes, comprising $1.75 billion of 7.000% Senior Notes due 2033 and $1.25 billion of 7.375% Senior Notes due 2036, sold at par to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S. The notes, which are general unsecured and not guaranteed, are governed by an indenture that restricts the issuers’ ability to incur additional debt, pay certain dividends, make specific investments, grant liens, sell assets, or enter into certain affiliate transactions, and includes change-of-control put rights and standard events of default, while a related registration rights agreement commits the issuers to exchange or register the notes or pay additional interest if they fail to meet specified SEC registration timelines, shaping the company’s future financing flexibility and investor protections around this new tranche of high-coupon debt.

The most recent analyst rating on (CHTR) stock is a Sell with a $180.00 price target. To see the full list of analyst forecasts on Charter Communications stock, see the CHTR Stock Forecast page.

Charter details Cox transaction impact with new pro forma

On May 16, 2025, Charter Communications agreed a multi-part transaction with Cox Enterprises under which Charter will acquire 100% of the equity in Cox Communications subsidiaries that operate Cox’s commercial fiber and managed IT and cloud services businesses, while Cox Enterprises will contribute the equity of Cox Communications and certain other assets tied primarily to its residential cable operations into Charter Communications Holdings in exchange for interests there, and make a nominal cash payment to Charter. Charter has now filed unaudited interim condensed consolidated financial statements for Cox Communications as of and for the nine months ended September 30, 2025, along with unaudited pro forma condensed combined financial information for the same period and for the year ended December 31, 2024, to illustrate how the Cox assets and businesses would affect Charter’s balance sheet and operating results as if the deal had been completed earlier, providing investors and other stakeholders with a clearer view of the transaction’s prospective impact on Charter’s scale, leverage and earnings profile in both residential cable and enterprise connectivity services.

The most recent analyst rating on (CHTR) stock is a Hold with a $233.00 price target. To see the full list of analyst forecasts on Charter Communications stock, see the CHTR Stock Forecast page.

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.

The most recent analyst rating on (CHTR) stock is a Hold with a $224.00 price target. To see the full list of analyst forecasts on Charter Communications stock, see the CHTR Stock Forecast page.

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.

The most recent analyst rating on (CHTR) stock is a Sell with a $165.00 price target. To see the full list of analyst forecasts on Charter Communications stock, see the CHTR Stock Forecast page.