CHARTER COMMUNICATIONS INC-A (CHTR) Stock Fundamental Analysis
NASDAQ:CHTR - Nasdaq - US16119P1084 - Common Stock - Currency: USD
Taking everything into account, CHTR scores 5 out of 10 in our fundamental rating. CHTR was compared to 97 industry peers in the Media industry. CHTR has an excellent profitability rating, but there are concerns on its financial health. CHTR may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year CHTR was profitable.
In the past year CHTR had a positive cash flow from operations.
In the past 5 years CHTR has always been profitable.
Each year in the past 5 years CHTR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.44%, CHTR is in the better half of the industry, outperforming 78.35% of the companies in the same industry.
With an excellent Return On Equity value of 31.97%, CHTR belongs to the best of the industry, outperforming 93.81% of the companies in the same industry.
The Return On Invested Capital of CHTR (7.58%) is better than 77.32% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CHTR is in line with the industry average of 7.56%.
The last Return On Invested Capital (7.58%) for CHTR is above the 3 year average (7.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 31.97% | ||
| ROIC | 7.58% |
ROA(3y)3.33%
ROA(5y)3.1%
ROE(3y)43.05%
ROE(5y)35.16%
ROIC(3y)7.28%
ROIC(5y)6.64%
1.3 Margins
CHTR has a Profit Margin of 9.42%. This is amongst the best in the industry. CHTR outperforms 82.47% of its industry peers.
In the last couple of years the Profit Margin of CHTR has grown nicely.
Looking at the Operating Margin, with a value of 24.50%, CHTR belongs to the top of the industry, outperforming 96.91% of the companies in the same industry.
CHTR's Operating Margin has improved in the last couple of years.
CHTR has a Gross Margin of 45.28%. This is comparable to the rest of the industry: CHTR outperforms 54.64% of its industry peers.
CHTR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.5% | ||
| PM (TTM) | 9.42% | ||
| GM | 45.28% |
OM growth 3Y4.61%
OM growth 5Y10.72%
PM growth 3Y0.82%
PM growth 5Y20.42%
GM growth 3Y1.1%
GM growth 5Y1.69%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CHTR is still creating some value.
The number of shares outstanding for CHTR has been reduced compared to 1 year ago.
Compared to 5 years ago, CHTR has less shares outstanding
The debt/assets ratio for CHTR has been reduced compared to a year ago.
2.2 Solvency
CHTR has an Altman-Z score of 0.78. This is a bad value and indicates that CHTR is not financially healthy and even has some risk of bankruptcy.
CHTR has a Altman-Z score (0.78) which is comparable to the rest of the industry.
CHTR has a debt to FCF ratio of 20.88. This is a negative value and a sign of low solvency as CHTR would need 20.88 years to pay back of all of its debts.
CHTR has a Debt to FCF ratio of 20.88. This is comparable to the rest of the industry: CHTR outperforms 53.61% of its industry peers.
A Debt/Equity ratio of 5.77 is on the high side and indicates that CHTR has dependencies on debt financing.
With a Debt to Equity ratio value of 5.77, CHTR is not doing good in the industry: 84.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.77 | ||
| Debt/FCF | 20.88 | ||
| Altman-Z | 0.78 |
ROIC/WACC1.08
WACC7.04%
2.3 Liquidity
A Current Ratio of 0.36 indicates that CHTR may have some problems paying its short term obligations.
CHTR's Current ratio of 0.36 is on the low side compared to the rest of the industry. CHTR is outperformed by 90.72% of its industry peers.
CHTR has a Quick Ratio of 0.36. This is a bad value and indicates that CHTR is not financially healthy enough and could expect problems in meeting its short term obligations.
CHTR has a Quick ratio of 0.36. This is amonst the worse of the industry: CHTR underperforms 90.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.88% over the past year.
CHTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.98% yearly.
The Revenue has been growing slightly by 0.93% in the past year.
Measured over the past years, CHTR shows a small growth in Revenue. The Revenue has been growing by 3.78% on average per year.
EPS 1Y (TTM)15.88%
EPS 3Y12.08%
EPS 5Y35.98%
EPS Q2Q%11.52%
Revenue 1Y (TTM)0.93%
Revenue growth 3Y2.15%
Revenue growth 5Y3.78%
Sales Q2Q%0.41%
3.2 Future
Based on estimates for the next years, CHTR will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.59% on average per year.
Based on estimates for the next years, CHTR will show a small growth in Revenue. The Revenue will grow by 1.40% on average per year.
EPS Next Y9.84%
EPS Next 2Y14.05%
EPS Next 3Y14.02%
EPS Next 5Y11.59%
Revenue Next Year0.38%
Revenue Next 2Y0.99%
Revenue Next 3Y1.02%
Revenue Next 5Y1.4%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CHTR is valuated reasonably with a Price/Earnings ratio of 11.41.
Compared to the rest of the industry, the Price/Earnings ratio of CHTR indicates a somewhat cheap valuation: CHTR is cheaper than 77.32% of the companies listed in the same industry.
CHTR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.15.
The Price/Forward Earnings ratio is 8.99, which indicates a very decent valuation of CHTR.
Based on the Price/Forward Earnings ratio, CHTR is valued a bit cheaper than 76.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, CHTR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 8.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHTR is valued a bit cheaper than the industry average as 70.10% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHTR indicates a somewhat cheap valuation: CHTR is cheaper than 72.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.34 | ||
| EV/EBITDA | 6.74 |
4.3 Compensation for Growth
CHTR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CHTR may justify a higher PE ratio.
CHTR's earnings are expected to grow with 14.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.16
PEG (5Y)0.32
EPS Next 2Y14.05%
EPS Next 3Y14.02%
5. Dividend
5.1 Amount
No dividends for CHTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
408.81
+7.84 (+1.96%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners77.79%
Inst Owner Change2.72%
Ins Owners0.27%
Ins Owner Change0.17%
Market Cap56.46B
Analysts70.71
Price Target450.64 (10.23%)
Short Float %13.08%
Short Ratio8.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.4%
Min EPS beat(2)-5.05%
Max EPS beat(2)5.84%
EPS beat(4)3
Avg EPS beat(4)1.37%
Min EPS beat(4)-5.05%
Max EPS beat(4)5.84%
EPS beat(8)5
Avg EPS beat(8)-2.47%
EPS beat(12)6
Avg EPS beat(12)-2.81%
EPS beat(16)10
Avg EPS beat(16)1.12%
Revenue beat(2)0
Avg Revenue beat(2)-1.58%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-1.56%
Revenue beat(4)0
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)-1.01%
Revenue beat(8)0
Avg Revenue beat(8)-1.91%
Revenue beat(12)0
Avg Revenue beat(12)-1.91%
Revenue beat(16)0
Avg Revenue beat(16)-1.74%
PT rev (1m)5.69%
PT rev (3m)7.64%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)2.67%
EPS NY rev (1m)0.96%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 8.99 | ||
| P/S | 1.02 | ||
| P/FCF | 12.34 | ||
| P/OCF | 3.65 | ||
| P/B | 3.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.74 |
EPS(TTM)35.83
EY8.76%
EPS(NY)45.47
Fwd EY11.12%
FCF(TTM)33.14
FCFY8.11%
OCF(TTM)111.89
OCFY27.37%
SpS399.23
BVpS117.63
TBVpS-591.61
PEG (NY)1.16
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 31.97% | ||
| ROCE | 9.84% | ||
| ROIC | 7.58% | ||
| ROICexc | 7.63% | ||
| ROICexgc | 26.73% | ||
| OM | 24.5% | ||
| PM (TTM) | 9.42% | ||
| GM | 45.28% | ||
| FCFM | 8.3% |
ROA(3y)3.33%
ROA(5y)3.1%
ROE(3y)43.05%
ROE(5y)35.16%
ROIC(3y)7.28%
ROIC(5y)6.64%
ROICexc(3y)7.31%
ROICexc(5y)6.67%
ROICexgc(3y)28.68%
ROICexgc(5y)27.6%
ROCE(3y)9.43%
ROCE(5y)8.59%
ROICexcg growth 3Y-3.91%
ROICexcg growth 5Y7.76%
ROICexc growth 3Y4.9%
ROICexc growth 5Y14.13%
OM growth 3Y4.61%
OM growth 5Y10.72%
PM growth 3Y0.82%
PM growth 5Y20.42%
GM growth 3Y1.1%
GM growth 5Y1.69%
F-Score6
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.77 | ||
| Debt/FCF | 20.88 | ||
| Debt/EBITDA | 4.23 | ||
| Cap/Depr | 125.54% | ||
| Cap/Sales | 19.73% | ||
| Interest Coverage | 2.65 | ||
| Cash Conversion | 69.69% | ||
| Profit Quality | 88.12% | ||
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 0.78 |
F-Score6
WACC7.04%
ROIC/WACC1.08
Cap/Depr(3y)121.02%
Cap/Depr(5y)104.24%
Cap/Sales(3y)19.39%
Cap/Sales(5y)17.67%
Profit Quality(3y)81.59%
Profit Quality(5y)130.29%
High Growth Momentum
Growth
EPS 1Y (TTM)15.88%
EPS 3Y12.08%
EPS 5Y35.98%
EPS Q2Q%11.52%
EPS Next Y9.84%
EPS Next 2Y14.05%
EPS Next 3Y14.02%
EPS Next 5Y11.59%
Revenue 1Y (TTM)0.93%
Revenue growth 3Y2.15%
Revenue growth 5Y3.78%
Sales Q2Q%0.41%
Revenue Next Year0.38%
Revenue Next 2Y0.99%
Revenue Next 3Y1.02%
Revenue Next 5Y1.4%
EBIT growth 1Y6.7%
EBIT growth 3Y6.86%
EBIT growth 5Y14.9%
EBIT Next Year73.23%
EBIT Next 3Y21.78%
EBIT Next 5Y14.05%
FCF growth 1Y-0.89%
FCF growth 3Y-28.38%
FCF growth 5Y-7.04%
OCF growth 1Y5.84%
OCF growth 3Y-3.86%
OCF growth 5Y4.2%