CHARTER COMMUNICATIONS INC-A (CHTR)
US16119P1084 - Common Stock
We assign a fundamental rating of 5 out of 10 to CHTR. CHTR was compared to 91 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.
CHTR had a positive operating cash flow in the past year.
In the past 5 years CHTR has always been profitable.
In the past 5 years CHTR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.13%, CHTR is in the better half of the industry, outperforming 75.82% of the companies in the same industry.
Looking at the Return On Equity, with a value of 33.16%, CHTR belongs to the top of the industry, outperforming 94.51% of the companies in the same industry.
CHTR has a better Return On Invested Capital (7.42%) than 76.92% 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 6.93%.
The last Return On Invested Capital (7.42%) for CHTR is above the 3 year average (6.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 33.16% | ||
| ROIC | 7.42% |
ROA(3y)3.29%
ROA(5y)2.64%
ROE(3y)43.22%
ROE(5y)29.7%
ROIC(3y)6.96%
ROIC(5y)5.91%
1.3 Margins
CHTR has a better Profit Margin (8.52%) than 81.32% of its industry peers.
In the last couple of years the Profit Margin of CHTR has grown nicely.
With an excellent Operating Margin value of 23.74%, CHTR belongs to the best of the industry, outperforming 96.70% of the companies in the same industry.
CHTR's Operating Margin has improved in the last couple of years.
CHTR has a Gross Margin (46.29%) which is comparable to the rest of the industry.
CHTR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.74% | ||
| PM (TTM) | 8.52% | ||
| GM | 46.29% |
OM growth 3Y9.18%
OM growth 5Y12.87%
PM growth 3Y7.6%
PM growth 5Y24.24%
GM growth 3Y1.08%
GM growth 5Y1.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CHTR is 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
Compared to 1 year ago, CHTR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.73, we must say that CHTR is in the distress zone and has some risk of bankruptcy.
CHTR has a Altman-Z score (0.73) which is comparable to the rest of the industry.
CHTR has a debt to FCF ratio of 25.60. This is a negative value and a sign of low solvency as CHTR would need 25.60 years to pay back of all of its debts.
The Debt to FCF ratio of CHTR (25.60) is comparable to the rest of the industry.
CHTR has a Debt/Equity ratio of 6.70. This is a high value indicating a heavy dependency on external financing.
CHTR has a worse Debt to Equity ratio (6.70) than 87.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.7 | ||
| Debt/FCF | 25.6 | ||
| Altman-Z | 0.73 |
ROIC/WACC1.23
WACC6.04%
2.3 Liquidity
CHTR has a Current Ratio of 0.34. 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's Current ratio of 0.34 is on the low side compared to the rest of the industry. CHTR is outperformed by 97.80% of its industry peers.
A Quick Ratio of 0.34 indicates that CHTR may have some problems paying its short term obligations.
With a Quick ratio value of 0.34, CHTR is not doing good in the industry: 97.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.21% over the past year.
The Earnings Per Share has been growing by 46.16% on average over the past years. This is a very strong growth
CHTR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.55%.
The Revenue has been growing slightly by 4.59% on average over the past years.
EPS 1Y (TTM)4.21%
EPS 3Y24.81%
EPS 5Y46.16%
EPS Q2Q%6.91%
Revenue 1Y (TTM)0.55%
Revenue growth 3Y4.32%
Revenue growth 5Y4.59%
Sales Q2Q%1.55%
3.2 Future
CHTR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.62% yearly.
CHTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.11% yearly.
EPS Next Y16.01%
EPS Next 2Y11.09%
EPS Next 3Y11.86%
EPS Next 5Y12.62%
Revenue Next Year0.83%
Revenue Next 2Y0.23%
Revenue Next 3Y0.44%
Revenue Next 5Y1.11%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.01, which indicates a very decent valuation of CHTR.
Based on the Price/Earnings ratio, CHTR is valued a bit cheaper than the industry average as 75.82% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CHTR to the average of the S&P500 Index (27.20), we can say CHTR is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.49, the valuation of CHTR can be described as very reasonable.
84.62% of the companies in the same industry are more expensive than CHTR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, CHTR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 9.49 |
4.2 Price Multiples
74.73% of the companies in the same industry are more expensive than CHTR, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHTR indicates a somewhat cheap valuation: CHTR is cheaper than 67.03% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.29 | ||
| EV/EBITDA | 6.7 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CHTR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.69
PEG (5Y)0.24
EPS Next 2Y11.09%
EPS Next 3Y11.86%
5. Dividend
5.1 Amount
CHTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CHARTER COMMUNICATIONS INC-A
NASDAQ:CHTR (12/20/2024, 8:02:21 PM)
After market: 350 -1.5 (-0.43%)351.5
-1.27 (-0.36%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners73.77%
Inst Owner Change-3.57%
Ins Owners0.26%
Ins Owner Change0%
Market Cap49.98B
Analysts66.88
Price Target415.41 (18.18%)
Short Float %12.72%
Short Ratio9.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.34%
Min EPS beat(2)0.34%
Max EPS beat(2)4.35%
EPS beat(4)2
Avg EPS beat(4)-5.62%
Min EPS beat(4)-20.6%
Max EPS beat(4)4.35%
EPS beat(8)4
Avg EPS beat(8)-5.95%
EPS beat(12)7
Avg EPS beat(12)-0.25%
EPS beat(16)10
Avg EPS beat(16)2.07%
Revenue beat(2)0
Avg Revenue beat(2)-1.14%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)-1.01%
Revenue beat(4)0
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-2.42%
Max Revenue beat(4)-1.01%
Revenue beat(8)0
Avg Revenue beat(8)-2.02%
Revenue beat(12)0
Avg Revenue beat(12)-1.99%
Revenue beat(16)0
Avg Revenue beat(16)-1.75%
PT rev (1m)11.51%
PT rev (3m)11.3%
EPS NQ rev (1m)0.93%
EPS NQ rev (3m)6.36%
EPS NY rev (1m)0.16%
EPS NY rev (3m)1.47%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)1.64%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 9.49 | ||
| P/S | 0.91 | ||
| P/FCF | 13.29 | ||
| P/OCF | 3.37 | ||
| P/B | 3.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.7 |
EPS(TTM)31.93
EY9.08%
EPS(NY)37.05
Fwd EY10.54%
FCF(TTM)26.46
FCFY7.53%
OCF(TTM)104.26
OCFY29.66%
SpS385.86
BVpS99.15
TBVpS-591.93
PEG (NY)0.69
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 33.16% | ||
| ROCE | 9.56% | ||
| ROIC | 7.42% | ||
| ROICexc | 7.46% | ||
| ROICexgc | 27.14% | ||
| OM | 23.74% | ||
| PM (TTM) | 8.52% | ||
| GM | 46.29% | ||
| FCFM | 6.86% |
ROA(3y)3.29%
ROA(5y)2.64%
ROE(3y)43.22%
ROE(5y)29.7%
ROIC(3y)6.96%
ROIC(5y)5.91%
ROICexc(3y)7%
ROICexc(5y)5.96%
ROICexgc(3y)29.89%
ROICexgc(5y)25.97%
ROCE(3y)8.98%
ROCE(5y)7.62%
ROICexcg growth 3Y10.12%
ROICexcg growth 5Y12.59%
ROICexc growth 3Y13.92%
ROICexc growth 5Y18.08%
OM growth 3Y9.18%
OM growth 5Y12.87%
PM growth 3Y7.6%
PM growth 5Y24.24%
GM growth 3Y1.08%
GM growth 5Y1.09%
F-Score7
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.7 | ||
| Debt/FCF | 25.6 | ||
| Debt/EBITDA | 4.35 | ||
| Cap/Depr | 127.26% | ||
| Cap/Sales | 20.16% | ||
| Interest Coverage | 2.52 | ||
| Cash Conversion | 68.26% | ||
| Profit Quality | 80.47% | ||
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 0.73 |
F-Score7
WACC6.04%
ROIC/WACC1.23
Cap/Depr(3y)104.94%
Cap/Depr(5y)92.75%
Cap/Sales(3y)17.49%
Cap/Sales(5y)16.72%
Profit Quality(3y)122.49%
Profit Quality(5y)172.45%
High Growth Momentum
Growth
EPS 1Y (TTM)4.21%
EPS 3Y24.81%
EPS 5Y46.16%
EPS Q2Q%6.91%
EPS Next Y16.01%
EPS Next 2Y11.09%
EPS Next 3Y11.86%
EPS Next 5Y12.62%
Revenue 1Y (TTM)0.55%
Revenue growth 3Y4.32%
Revenue growth 5Y4.59%
Sales Q2Q%1.55%
Revenue Next Year0.83%
Revenue Next 2Y0.23%
Revenue Next 3Y0.44%
Revenue Next 5Y1.11%
EBIT growth 1Y4.59%
EBIT growth 3Y13.9%
EBIT growth 5Y18.05%
EBIT Next Year77.89%
EBIT Next 3Y22.74%
EBIT Next 5Y14.83%
FCF growth 1Y-44.97%
FCF growth 3Y-22.57%
FCF growth 5Y4.66%
OCF growth 1Y-3.51%
OCF growth 3Y-0.3%
OCF growth 5Y4.17%