Charter Communications Inc - Class A
Exchange: NASDAQSector: Communication ServicesIndustry: Telecom Services
Charter Communications, Inc. is a leading broadband connectivity company with services available to 58 million homes and small to large businesses across 41 states through its Spectrum brand. Founded in 1993, Charter has evolved from providing cable TV to streaming, and from high-speed Internet to a converged broadband, WiFi and mobile experience. Over the Spectrum Fiber Broadband Network and supported by our 100% U.S.-based employees, the Company offers Seamless Connectivity and Entertainment with Spectrum Internet ®, Mobile, TV and Voice products.
Did you know?
Carries 201.7x more debt than cash on its balance sheet.
Current Price
$219.79
+1.63%GoodMoat Value
$927.37
321.9% undervaluedProfile
Valuation (TTM)
Market Cap$28.44B
P/E5.70
EV$123.76B
P/B1.77
Shares Out129.41M
P/Sales0.52
Revenue$54.77B
EV/EBITDA6.08
Charter Communications Inc - Class A (CHTR) Stock Analysis
GoodMoat Analysis
Charter Communications is a major US cable and broadband provider with a potential moat based on its infrastructure scale and switching costs, but it faces significant debt and revenue headwinds. The stock trades at a low P/E of 5.7 and a high FCF yield of 17.7%, suggesting a deeply undervervalued price relative to GoodMoat's $927.37 target. The high debt load and negative revenue growth are key risks that require careful investigation.
Read full analysis
Charter Communications is a leading US telecommunications company, providing broadband, video, and voice services to residential and business customers. Applying the GoodMoat framework, the business shows potential for a durable moat. It likely scores points in Moat Identification for **Scale Privilege** (massive physical cable network), **Switching Costs** (the hassle of changing providers), and potentially **Regulatory Barriers** (local franchise rights). However, the high Debt/Equity ratio of 6.0 and negative Revenue Growth YoY of -2.3% are significant Quality Indicator weaknesses. The company's ROE of 31.1% is strong, and the Operating Margin of 23.6% is healthy, but the balance sheet risk is elevated.
Valuation metrics appear extremely compelling on the surface. A P/E of 5.7 and a Free Cash Flow Yield of 17.7% are deeply discounted levels, especially compared to GoodMoat's target price of $927.37, which implies a massive margin of safety. According to the Decision Framework, the low P/E and high FCF yield would suggest a 'Favourable' valuation signal. However, the business must first pass the 'Moat & Quality Gate' in Step 1. The high debt and revenue decline are red flags that could challenge a 'High Quality' rating, requiring a deeper dive to see if the moat score is sufficient (≥5) to proceed. For a value investor, the extreme disconnect between the market price and the target valuation makes Charter a company worth investigating further, with a focus on the sustainability of its cash flows and its ability to manage debt amidst competitive pressures.
Analysis based on data as of 2024-05-15.
Market Cap$28.44B
Current Price$219.79
P/E Ratio5.70
Forward P/E—
PEG Ratio7.34
EPS$36.21
Book Value$124.06
P/B Ratio1.77
CHTR Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 1.4% FCF growth (CAGR)
Cash vs Debt
Net Debt: 95.7B
Revenue
45.8B
FY19
48.1B
FY20
51.7B
FY21
54.0B
FY22
54.6B
FY23
55.1B
FY24
54.8B
FY25
Net Income
1.7B
FY19
3.2B
FY20
4.7B
FY21
5.1B
FY22
4.6B
FY23
5.1B
FY24
5.0B
FY25
CHTR 52-Week Range
$182.81
$427.25
50-Day MA: $220.62200-Day MA: $254.62
Did you know?
Price sits at 15% of its 52-week range.
Charter Communications Inc - Class A (CHTR) Financial Summary
Charter Communications Inc - Class A (CHTR) is a Communication Services company in the Telecom Services industry, listed on NASDAQ. The stock currently trades at $219.79 with a market capitalization of $28.44B.
Key valuation metrics include a P/E ratio of 5.70, price-to-book ratio of 1.77, and EPS of $36.21. The company reports a profit margin of 9.1% and return on equity of 31.1%.
CHTR Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $28.44B |
| P/E Ratio | 5.70 |
| EPS | $36.21 |
| P/B Ratio | 1.77 |
| P/S Ratio | 0.52 |
| EV/EBITDA | 6.08 |
| Profit Margin | 9.1% |
| Return on Equity | 31.1% |
| Debt/Equity | 5.99 |
CHTR Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $45.76B | $1.67B |
| FY20 | $48.10B | $3.22B |
| FY21 | $51.68B | $4.65B |
| FY22 | $54.02B | $5.05B |
| FY23 | $54.61B | $4.56B |
| FY24 | $55.09B | $5.08B |
| FY25 | $54.77B | $4.99B |
Charter Communications Inc - Class A (CHTR) Valuation
Based on GoodMoat's DCF model, Charter Communications Inc - Class A has a fair value estimate of $927.37. At the current price of $219.79, the stock appears 76.3% undervalued relative to our intrinsic value estimate.
CHTR Quality Indicators
Charter Communications Inc - Class A maintains a profit margin of 9.1% and an operating margin of 23.6%. Return on equity stands at 31.1%. The current ratio is 0.39. Debt-to-equity ratio is 5.99.
About Charter Communications Inc - Class A
Charter Communications, Inc. is a leading broadband connectivity company with services available to 58 million homes and small to large businesses across 41 states through its Spectrum brand. Founded in 1993, Charter has evolved from providing cable TV to streaming, and from high-speed Internet to a converged broadband, WiFi and mobile experience. Over the Spectrum Fiber Broadband Network and supported by our 100% U.S.-based employees, the Company offers Seamless Connectivity and Entertainment with Spectrum Internet ®, Mobile, TV and Voice products.
CHTR Free Cash Flow
Charter Communications Inc - Class A generated $5.00B in trailing twelve-month free cash flow, representing an FCF yield of 17.59%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
CHTR Shares Outstanding
Charter Communications Inc - Class A has 0.13 billion shares outstanding at a share price of $219.79, giving it a market capitalization of $28.44B.