Charter Communications (CHTR) AI Stock Analysis

• Market Cap: $40.55B
• Dividend Yield: N/A
• Average Volume (3M): 2.04M
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.78
• Revenue Growth: 1.03%
• EPS Growth: 17.05%
• Country: US
• Employees: 94,500
• Sector: Communication Services
• Sector Strength: 79
• Industry: Telecommunications Services
• EPS (TTM): 9.18
• Shares Outstanding: 136,627,990
• 10 Day Avg. Volume: 3,802,808
• 30 Day Avg. Volume: 2,037,109
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.86
• Enterprise Value/Revenue: 2.83
• Enterprise Value/Gross Profit: 5.94
• Enterprise Value/Ebitda: 8.74
• 1Y Price Target: $415.23
• Price Target Upside: 56.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 76 Outperform
• Price Target: $299.00 ▲(12.41% Upside)

Charter Communications' overall stock score reflects strong financial performance and attractive valuation, which are significant strengths. The company’s strategic initiatives, like the Cox acquisition, offer positive prospects. However, technical analysis indicates bearish sentiment, and challenges such as high leverage and internet customer losses present potential risks.

Positive Factors

Merger Synergies

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

Mobile Growth

Charter is expected to remain the fastest-growing mobile provider in the US, contributing positively to EBITDA and free cash flow.

Strategic Initiatives

Charter remains best positioned among cable operators to defend share due to rural footprint expansion, improved video offerings, attractive converged offers, and network upgrades.

Negative Factors

Competitive Pressures

Investors are concerned that converged wireless/wireline bundles are not offsetting the competitive effects of FWA and fiber-builds, contributing to a nearly 20% decline in shares.

Subscriber Losses

The underlying fundamentals remain challenged with Charter losing 111,000 residential broadband subscribers in the second quarter.

Volatility Concerns

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

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 cable television, broadband internet, and phone services. The company charges customers monthly fees for access to its high-speed internet services, which is a significant revenue driver given the increasing demand for reliable home internet. Cable television services also contribute to revenue through both subscription fees and advertising sales. Additionally, Charter has expanded into mobile services, offering phone plans that bundle with their other services. Charter's revenue streams are further supported by business services that cater to small, medium, and enterprise-level companies, providing internet, networking, and business phone solutions. Partnerships with content providers and technology companies also play a role in Charter's revenue model by enabling the company to offer a wider array of services and content to its subscribers.

Charter Communications Financial Statement Overview

Summary

Charter Communications exhibits strong financial performance with robust profitability and effective cash flow management. The company maintains high margins and efficient equity use, although high leverage and slowing revenue growth could pose risks.

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
EBITDA	21.40B	20.74B	20.92B	19.77B	18.10B
Net Income	5.08B	4.56B	5.05B	4.65B	3.22B
Balance Sheet
Total Assets	150.02B	147.19B	144.52B	142.49B	144.21B
Cash, Cash Equivalents and Short-Term Investments	459.00M	709.00M	645.00M	601.00M	998.00M
Total Debt	95.76B	97.78B	97.60B	91.56B	82.75B
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: Negative
• Last Price: 265.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 265.98 is below the 20-day moving average (MA) of 345.94, below the 50-day MA of 377.27, and below the 200-day MA of 368.54, indicating a bearish trend. The MACD of -35.39 indicates Positive momentum. The RSI at 19.89 is Positive, neither overbought nor oversold. The STOCH value of 1.77 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	81 Outperform	$179.91B	9.98	18.26%	6.35%	2.05%	61.39%
TMUS	80 Outperform	$268.90B	22.73	19.74%	1.39%	6.27%	31.78%
CHTR	76 Outperform	$40.55B	7.13	36.19%	―	1.03%	17.05%
CMCSA	72 Outperform	$120.03B	5.37	25.44%	3.94%	2.54%	60.53%
T	67 Neutral	$198.57B	15.83	12.12%	4.00%	1.46%	0.88%
Sector *	61 Neutral	$41.49B	-2.54	-10.68%	3.99%	2.74%	-43.64%
FYBR	48 Neutral	$9.16B	―	-7.82%	―	4.15%	-311.82%

Charter Communications Corporate Events

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.

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.

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 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.

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 Acquires Cox’s Fiber and IT Services

On May 16, 2025, Charter Communications entered into a transaction agreement with Cox Enterprises to acquire Cox’s commercial fiber and managed IT and cloud services businesses for $3.5 billion in cash. The transaction will also involve Cox contributing its residential cable business assets to Charter Holdings, with Cox Parent receiving convertible preferred units and common units of Charter Holdings. This strategic move is expected to significantly enhance Charter’s market position by expanding its service offerings and increasing its market share in the telecommunications sector.

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 and Cox Announce $34.5 Billion Merger

On May 16, 2025, Charter Communications and Cox Enterprises announced a definitive agreement to merge Cox Communications with Charter, creating a leading entity in mobile and broadband communications. The transaction, valued at approximately $34.5 billion, is expected to enhance service quality and innovation, benefiting employees, customers, and communities. The merger will see the combined company adopt the Cox Communications name, with Spectrum as the consumer-facing brand. The deal is subject to regulatory and shareholder approvals, and upon completion, it will result in significant operational and strategic synergies, positioning the new entity to compete aggressively in the expanding communications market.

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.