187.22 USD
+4.41 (+2.41%)
CHTR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 92 industry peers in the Media industry. While CHTR belongs to the best of the industry regarding profitability, there are concerns on its financial health. CHTR is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year CHTR was profitable.
- CHTR had a positive operating cash flow in the past year.
- Each year in the past 5 years CHTR has been profitable.
- In the past 5 years CHTR always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 3.44%, CHTR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- CHTR has a Return On Equity of 34.28%. This is amongst the best in the industry. CHTR outperforms 97.83% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.48%, CHTR belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CHTR is in line with the industry average of 7.07%.
- The 3 year average ROIC (7.28%) for CHTR is below the current ROIC(7.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 34.28% | ||
| ROIC | 7.48% |
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 9.54%. This is amongst the best in the industry. CHTR outperforms 82.61% of its industry peers.
- In the last couple of years the Profit Margin of CHTR has grown nicely.
- CHTR has a Operating Margin of 24.61%. This is amongst the best in the industry. CHTR outperforms 98.91% of its industry peers.
- CHTR's Operating Margin has improved in the last couple of years.
- CHTR has a Gross Margin of 42.06%. This is comparable to the rest of the industry: CHTR outperforms 53.26% of its industry peers.
- In the last couple of years the Gross Margin of CHTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.61% | ||
| PM (TTM) | 9.54% | ||
| GM | 42.06% |
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
- CHTR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- CHTR has less shares outstanding than it did 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
- Based on the Altman-Z score of 0.66, we must say that CHTR is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of CHTR (0.66) is comparable to the rest of the industry.
- The Debt to FCF ratio of CHTR is 22.11, which is on the high side as it means it would take CHTR, 22.11 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CHTR (22.11) is comparable to the rest of the industry.
- A Debt/Equity ratio of 6.28 is on the high side and indicates that CHTR has dependencies on debt financing.
- CHTR has a Debt to Equity ratio of 6.28. This is in the lower half of the industry: CHTR underperforms 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.28 | ||
| Debt/FCF | 22.11 | ||
| Altman-Z | 0.66 |
ROIC/WACC1.14
WACC6.54%
2.3 Liquidity
- A Current Ratio of 0.37 indicates that CHTR may have some problems paying its short term obligations.
- The Current ratio of CHTR (0.37) is worse than 83.70% of its industry peers.
- CHTR has a Quick Ratio of 0.37. 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 Quick ratio of 0.37 is on the low side compared to the rest of the industry. CHTR is outperformed by 83.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
- CHTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.87%, which is quite good.
- CHTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.98% yearly.
- Looking at the last year, CHTR shows a small growth in Revenue. The Revenue has grown by 0.42% in the last year.
- The Revenue has been growing slightly by 3.78% on average over the past years.
EPS 1Y (TTM)12.87%
EPS 3Y12.08%
EPS 5Y35.98%
EPS Q2Q%-5.44%
Revenue 1Y (TTM)0.42%
Revenue growth 3Y2.15%
Revenue growth 5Y3.78%
Sales Q2Q%-0.89%
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 10.06% yearly.
- Based on estimates for the next years, CHTR will show a small growth in Revenue. The Revenue will grow by 0.84% on average per year.
EPS Next Y4.79%
EPS Next 2Y12.01%
EPS Next 3Y12.7%
EPS Next 5Y10.06%
Revenue Next Year-0.22%
Revenue Next 2Y0.12%
Revenue Next 3Y0.15%
Revenue Next 5Y0.84%
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
- Based on the Price/Earnings ratio of 5.19, the valuation of CHTR can be described as very cheap.
- CHTR's Price/Earnings ratio is rather cheap when compared to the industry. CHTR is cheaper than 94.57% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. CHTR is valued rather cheaply when compared to this.
- CHTR is valuated cheaply with a Price/Forward Earnings ratio of 4.27.
- CHTR's Price/Forward Earnings ratio is rather cheap when compared to the industry. CHTR is cheaper than 91.30% of the companies in the same industry.
- CHTR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.19 | ||
| Fwd PE | 4.27 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHTR indicates a rather cheap valuation: CHTR is cheaper than 91.30% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, CHTR is valued cheaper than 84.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.52 | ||
| EV/EBITDA | 5.38 |
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 12.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)0.14
EPS Next 2Y12.01%
EPS Next 3Y12.7%
5. Dividend
5.1 Amount
- CHTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CHARTER COMMUNICATIONS INC-A / CHTR FAQ
What is the fundamental rating for CHTR stock?
ChartMill assigns a fundamental rating of 5 / 10 to CHTR.
What is the valuation status for CHTR stock?
ChartMill assigns a valuation rating of 9 / 10 to CHARTER COMMUNICATIONS INC-A (CHTR). This can be considered as Undervalued.
Can you provide the profitability details for CHARTER COMMUNICATIONS INC-A?
CHARTER COMMUNICATIONS INC-A (CHTR) has a profitability rating of 8 / 10.
What is the financial health of CHARTER COMMUNICATIONS INC-A (CHTR) stock?
The financial health rating of CHARTER COMMUNICATIONS INC-A (CHTR) is 2 / 10.