CHARTER COMMUNICATIONS INC-A (CHTR) Stock Fundamental Analysis
USA - NASDAQ:CHTR - US16119P1084 - Common Stock
244.2 USD
+0.28 (+0.11%)
243.95 USD
-0.25 (-0.1%)
We assign a fundamental rating of 5 out of 10 to CHTR. CHTR was compared to 94 industry peers in the Media industry. While CHTR belongs to the best of the industry regarding profitability, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on CHTR.
1. Profitability
1.1 Basic Checks
CHTR had positive earnings in the past year.
CHTR had a positive operating cash flow in the past year.
Each year in the past 5 years CHTR has been profitable.
CHTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.56%, CHTR is doing good in the industry, outperforming 71.58% of the companies in the same industry.
CHTR's Return On Equity of 33.33% is amongst the best of the industry. CHTR outperforms 96.84% of its industry peers.
CHTR's Return On Invested Capital of 7.69% is amongst the best of the industry. CHTR outperforms 82.11% 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 8.50%.
The 3 year average ROIC (7.28%) for CHTR is below the current ROIC(7.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 33.33% | ||
| ROIC | 7.69% |
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's Profit Margin of 9.78% is fine compared to the rest of the industry. CHTR outperforms 80.00% of its industry peers.
CHTR's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 24.75%, CHTR belongs to the best of the industry, outperforming 98.95% of the companies in the same industry.
In the last couple of years the Operating Margin of CHTR has grown nicely.
CHTR has a Gross Margin of 43.86%. This is comparable to the rest of the industry: CHTR outperforms 52.63% of its industry peers.
In the last couple of years the Gross Margin of CHTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.75% | ||
| PM (TTM) | 9.78% | ||
| GM | 43.86% |
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.
Compared to 1 year ago, CHTR has less shares outstanding
CHTR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CHTR has been reduced compared to a year ago.
2.2 Solvency
CHTR has an Altman-Z score of 0.68. This is a bad value and indicates that CHTR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CHTR (0.68) is comparable to the rest of the industry.
The Debt to FCF ratio of CHTR is 22.38, which is on the high side as it means it would take CHTR, 22.38 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 22.38, CHTR is in line with its industry, outperforming 51.58% of the companies in the same industry.
CHTR has a Debt/Equity ratio of 5.78. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CHTR (5.78) is worse than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.78 | ||
| Debt/FCF | 22.38 | ||
| Altman-Z | 0.68 |
ROIC/WACC1.17
WACC6.57%
2.3 Liquidity
CHTR has a Current Ratio of 0.33. This is a bad value and indicates that CHTR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.33, CHTR is not doing good in the industry: 87.37% of the companies in the same industry are doing better.
CHTR has a Quick Ratio of 0.33. This is a bad value and indicates that CHTR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.33, CHTR is not doing good in the industry: 87.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
CHTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.45%, which is quite good.
The Earnings Per Share has been growing by 35.98% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 1.03% in the past year.
The Revenue has been growing slightly by 3.78% on average over the past years.
EPS 1Y (TTM)16.45%
EPS 3Y12.08%
EPS 5Y35.98%
EPS Q2Q%8.13%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y2.15%
Revenue growth 5Y3.78%
Sales Q2Q%0.59%
3.2 Future
The Earnings Per Share is expected to grow by 12.60% on average over the next years. This is quite good.
CHTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.12% yearly.
EPS Next Y8.87%
EPS Next 2Y12.7%
EPS Next 3Y12.1%
EPS Next 5Y12.6%
Revenue Next Year0.13%
Revenue Next 2Y0.63%
Revenue Next 3Y0.66%
Revenue Next 5Y1.12%
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.
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 6.69, which indicates a rather cheap valuation of CHTR.
Based on the Price/Earnings ratio, CHTR is valued cheaply inside the industry as 88.42% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.89, CHTR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.50, the valuation of CHTR can be described as very cheap.
CHTR's Price/Forward Earnings ratio is rather cheap when compared to the industry. CHTR is cheaper than 86.32% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, CHTR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.69 | ||
| Fwd PE | 5.5 |
4.2 Price Multiples
82.11% of the companies in the same industry are more expensive than CHTR, based on the Enterprise Value to EBITDA ratio.
76.84% of the companies in the same industry are more expensive than CHTR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.75 | ||
| EV/EBITDA | 5.75 |
4.3 Compensation for Growth
CHTR's 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.
CHTR's earnings are expected to grow with 12.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)0.19
EPS Next 2Y12.7%
EPS Next 3Y12.1%
5. Dividend
5.1 Amount
CHTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
244.2
+0.28 (+0.11%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners77.53%
Inst Owner Change0.14%
Ins Owners0.26%
Ins Owner Change0.02%
Market Cap33.36B
Revenue(TTM)55.22B
Net Income(TTM)5.40B
Analysts71.03
Price Target403.66 (65.3%)
Short Float %16.86%
Short Ratio7.98
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)0
Avg EPS beat(2)-6.44%
Min EPS beat(2)-7.84%
Max EPS beat(2)-5.05%
EPS beat(4)2
Avg EPS beat(4)-1.68%
Min EPS beat(4)-7.84%
Max EPS beat(4)5.84%
EPS beat(8)4
Avg EPS beat(8)-3.47%
EPS beat(12)5
Avg EPS beat(12)-5.56%
EPS beat(16)9
Avg EPS beat(16)0.1%
Revenue beat(2)0
Avg Revenue beat(2)-1.74%
Min Revenue beat(2)-1.92%
Max Revenue beat(2)-1.56%
Revenue beat(4)0
Avg Revenue beat(4)-1.53%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)-1.01%
Revenue beat(8)0
Avg Revenue beat(8)-1.74%
Revenue beat(12)0
Avg Revenue beat(12)-2.01%
Revenue beat(16)0
Avg Revenue beat(16)-1.83%
PT rev (1m)-1.12%
PT rev (3m)-11.6%
EPS NQ rev (1m)-0.92%
EPS NQ rev (3m)-3.68%
EPS NY rev (1m)0.58%
EPS NY rev (3m)-1.84%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.69 | ||
| Fwd PE | 5.5 | ||
| P/S | 0.6 | ||
| P/FCF | 7.75 | ||
| P/OCF | 2.19 | ||
| P/B | 2.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.75 |
EPS(TTM)36.52
EY14.95%
EPS(NY)44.4
Fwd EY18.18%
FCF(TTM)31.5
FCFY12.9%
OCF(TTM)111.29
OCFY45.57%
SpS404.29
BVpS118.67
TBVpS-597.45
PEG (NY)0.75
PEG (5Y)0.19
Graham Number312.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 33.33% | ||
| ROCE | 9.97% | ||
| ROIC | 7.69% | ||
| ROICexc | 7.72% | ||
| ROICexgc | 27% | ||
| OM | 24.75% | ||
| PM (TTM) | 9.78% | ||
| GM | 43.86% | ||
| FCFM | 7.79% |
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%
ROICexgc growth 3Y-3.91%
ROICexgc 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 Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.78 | ||
| Debt/FCF | 22.38 | ||
| Debt/EBITDA | 4.2 | ||
| Cap/Depr | 125.7% | ||
| Cap/Sales | 19.73% | ||
| Interest Coverage | 2.64 | ||
| Cash Conversion | 68.05% | ||
| Profit Quality | 79.66% | ||
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 0.68 |
F-Score6
WACC6.57%
ROIC/WACC1.17
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)16.45%
EPS 3Y12.08%
EPS 5Y35.98%
EPS Q2Q%8.13%
EPS Next Y8.87%
EPS Next 2Y12.7%
EPS Next 3Y12.1%
EPS Next 5Y12.6%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y2.15%
Revenue growth 5Y3.78%
Sales Q2Q%0.59%
Revenue Next Year0.13%
Revenue Next 2Y0.63%
Revenue Next 3Y0.66%
Revenue Next 5Y1.12%
EBIT growth 1Y6.59%
EBIT growth 3Y6.86%
EBIT growth 5Y14.9%
EBIT Next Year72.37%
EBIT Next 3Y21.5%
EBIT Next 5Y13.17%
FCF growth 1Y21.07%
FCF growth 3Y-28.38%
FCF growth 5Y-7.04%
OCF growth 1Y7.22%
OCF growth 3Y-3.86%
OCF growth 5Y4.2%
CHARTER COMMUNICATIONS INC-A / CHTR FAQ
What is the fundamental rating for CHTR stock?
ChartMill assigns a fundamental rating of 5 / 10 to CHTR.
Can you provide the valuation status for CHARTER COMMUNICATIONS INC-A?
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.
Can you provide the PE and PB ratios for CHTR stock?
The Price/Earnings (PE) ratio for CHARTER COMMUNICATIONS INC-A (CHTR) is 6.69 and the Price/Book (PB) ratio is 2.06.