Charter Communications (CHTR) AI Stock Analysis

• Market Cap: $28.96B
• Dividend Yield: N/A
• Average Volume (3M): 2.12M
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.69
• 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: 2,012,856
• 30 Day Avg. Volume: 2,118,708
• 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: 4.73
• Enterprise Value/Revenue: 2.49
• Enterprise Value/Gross Profit: 4.90
• Enterprise Value/Ebitda: 6.44
• 1Y Price Target: $303.27
• Price Target Upside: 51.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): 35.64
• Revenue Forecast (FY): $54.92B

• Rating: 66 Neutral
• Price Target: $240.00 ▲(20.11% Upside)

Charter Communications' overall stock score reflects a mix of strong financial performance and valuation, offset by bearish technical indicators and competitive market challenges. The company's solid profitability and undervaluation are significant strengths, while the high debt levels and recent revenue declines pose risks. The earnings call provides some optimism with growth in mobile and improved customer retention, but market competition remains a concern.

Positive Factors

Strategic Partnership with AWS

The partnership with AWS enhances Charter's software development and operational efficiency, potentially leading to improved customer experiences and competitive positioning in the telecommunications sector.

Mobile Growth

Strong growth in mobile lines indicates successful market penetration and diversification, enhancing revenue streams and customer base stability.

Improved Video Customer Retention

Improved retention rates suggest effective customer service and product enhancements, contributing to sustained revenue from video services.

Negative Factors

Revenue Decline

A decline in revenue indicates potential challenges in maintaining growth, possibly affecting long-term financial performance and market confidence.

High Debt Levels

High debt levels can strain financial flexibility and increase vulnerability to economic downturns, impacting long-term stability and investment capacity.

Competitive Market Challenges

Intense competition in the telecommunications sector may pressure Charter's market share and pricing power, affecting future growth and profitability.

Charter Communications Business Overview & Revenue Model

Company Description

Charter Communications, Inc. is a leading telecommunications company in the United States, operating under the Spectrum brand. The company provides a wide range of services, including high-speed internet, cable television, and telephone services to residential and business customers. Charter operates primarily in the broadband communications and entertainment sector, focusing on delivering reliable and high-quality services across its extensive cable network.

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: 199.81
• 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 199.81 is below the 20-day moving average (MA) of 210.27, below the 50-day MA of 241.52, and below the 200-day MA of 323.73, indicating a bearish trend. The MACD of -12.77 indicates Negative momentum. The RSI at 31.94 is Neutral, neither overbought nor oversold. The STOCH value of 37.27 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
VEON	75 Outperform	$3.68B	5.71	48.17%	―	6.42%	―
TMUS	73 Outperform	$231.23B	19.88	19.03%	1.77%	7.30%	17.67%
VZ	72 Outperform	$172.37B	8.71	19.70%	6.66%	2.42%	102.17%
T	72 Outperform	$183.05B	8.38	20.88%	4.30%	1.98%	150.68%
CMCSA	69 Neutral	$96.82B	4.41	24.73%	4.76%	0.20%	61.54%
CHTR	66 Neutral	$28.96B	5.51	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’ Earnings Call Highlights Growth and Challenges

Charter Communications’ recent earnings call presented a mixed sentiment, highlighting both growth and challenges. The company demonstrated strong momentum in its mobile sector and improved video customer retention, yet faced hurdles with declining revenue and EBITDA amidst a competitive market landscape. Despite these challenges, Charter’s innovative product developments and enhanced consumer perceptions offer a promising outlook.

Charter Communications Faces Financial Risks in $16.4 Billion Cox Communications Deal

Charter Communications faces significant financial risks associated with its plans to fund the cash consideration and assume the indebtedness of Cox Communications. The company is obligated to fund $4.0 billion in cash and assume approximately $12.4 billion of Cox’s net debt, which could be adversely affected by unexpected increases in indebtedness, lower-than-expected operating results, or financial market disruptions. Additionally, credit rating downgrades could trigger a ‘change of control repurchase event,’ requiring Charter to repurchase Cox Notes at a premium, potentially necessitating additional debt financing that may not be available on favorable terms. Failure to manage these risks could lead to defaults on Cox Notes and other Charter indebtedness, posing a substantial threat to its financial stability.

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.

The most recent analyst rating on (CHTR) stock is a Sell with a $223.00 price target. To see the full list of analyst forecasts on Charter Communications stock, see the CHTR Stock Forecast page.

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.

The most recent analyst rating on (CHTR) stock is a Buy with a $300.00 price target. To see the full list of analyst forecasts on Charter Communications stock, see the CHTR Stock Forecast page.

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.

The most recent analyst rating on (CHTR) stock is a Buy with a $386.00 price target. To see the full list of analyst forecasts on Charter Communications stock, see the CHTR Stock Forecast page.

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.

The most recent analyst rating on (CHTR) stock is a Buy with a $386.00 price target. To see the full list of analyst forecasts on Charter Communications stock, see the CHTR Stock Forecast page.

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.

The most recent analyst rating on (CHTR) stock is a Buy with a $386.00 price target. To see the full list of analyst forecasts on Charter Communications stock, see the CHTR Stock Forecast page.