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CHARTER COMMUNICATIONS INC-A (CHTR) Stock Fundamental Analysis

NASDAQ:CHTR - Nasdaq - US16119P1084 - Common Stock

351.555  +1 (+0.28%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to CHTR. CHTR was compared to 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


Dividend Valuation Growth Profitability Health

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8

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.
CHTR had a positive operating cash flow in each of the past 5 years.
CHTR Yearly Net Income VS EBIT VS OCF VS FCFCHTR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B

1.2 Ratios

CHTR has a Return On Assets of 3.13%. This is in the better half of the industry: CHTR outperforms 75.86% of its industry peers.
CHTR has a Return On Equity of 33.16%. This is amongst the best in the industry. CHTR outperforms 94.25% of its industry peers.
With a decent Return On Invested Capital value of 7.42%, CHTR is doing good in the industry, outperforming 77.01% of the companies in the same industry.
CHTR had an Average Return On Invested Capital over the past 3 years of 6.96%. This is in line with the industry average of 6.90%.
The 3 year average ROIC (6.96%) for CHTR is below the current ROIC(7.42%), indicating increased profibility in the last year.
Industry RankSector 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%
CHTR Yearly ROA, ROE, ROICCHTR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 200 300 400 500

1.3 Margins

CHTR has a Profit Margin of 8.52%. This is amongst the best in the industry. CHTR outperforms 81.61% of its industry peers.
In the last couple of years the Profit Margin of CHTR has grown nicely.
CHTR has a Operating Margin of 23.74%. This is amongst the best in the industry. CHTR outperforms 96.55% of its industry peers.
In the last couple of years the Operating Margin of CHTR has grown nicely.
CHTR has a Gross Margin (46.29%) which is in line with its industry peers.
CHTR's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
CHTR Yearly Profit, Operating, Gross MarginsCHTR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30 40

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2

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.
CHTR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CHTR has been reduced compared to 5 years ago.
CHTR has a better debt/assets ratio than last year.
CHTR Yearly Shares OutstandingCHTR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
CHTR Yearly Total Debt VS Total AssetsCHTR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 50B 100B

2.2 Solvency

CHTR has an Altman-Z score of 0.73. 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 (0.73) 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.
CHTR's Debt to FCF ratio of 25.60 is in line compared to the rest of the industry. CHTR outperforms 41.38% of its industry peers.
CHTR has a Debt/Equity ratio of 6.70. This is a high value indicating a heavy dependency on external financing.
CHTR's Debt to Equity ratio of 6.70 is on the low side compared to the rest of the industry. CHTR is outperformed by 87.36% of its industry peers.
Industry RankSector Rank
Debt/Equity 6.7
Debt/FCF 25.6
Altman-Z 0.73
ROIC/WACC1.22
WACC6.08%
CHTR Yearly LT Debt VS Equity VS FCFCHTR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20B 40B 60B 80B

2.3 Liquidity

A Current Ratio of 0.34 indicates that CHTR may have some problems paying 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 97.70% of its industry peers.
CHTR has a Quick 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.
The Quick ratio of CHTR (0.34) is worse than 97.70% of its industry peers.
Industry RankSector Rank
Current Ratio 0.34
Quick Ratio 0.34
CHTR Yearly Current Assets VS Current LiabilitesCHTR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

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4

3. Growth

3.1 Past

CHTR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.21%.
CHTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 46.16% yearly.
The Revenue has been growing slightly by 0.55% in the past year.
Measured over the past years, CHTR shows a small growth in Revenue. The Revenue has been growing by 4.59% on average per year.
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

The Earnings Per Share is expected to grow by 12.93% on average over the next years. This is quite good.
Based on estimates for the next years, CHTR will show a small growth in Revenue. The Revenue will grow by 1.18% on average per year.
EPS Next Y16.01%
EPS Next 2Y11.09%
EPS Next 3Y11.86%
EPS Next 5Y12.93%
Revenue Next Year0.81%
Revenue Next 2Y0.19%
Revenue Next 3Y0.45%
Revenue Next 5Y1.18%

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.
CHTR Yearly Revenue VS EstimatesCHTR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B 40B 50B
CHTR Yearly EPS VS EstimatesCHTR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 20 40 60

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8

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 11.01, which indicates a very decent valuation of CHTR.
Compared to the rest of the industry, the Price/Earnings ratio of CHTR indicates a somewhat cheap valuation: CHTR is cheaper than 77.01% of the companies listed in the same industry.
CHTR is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
CHTR is valuated reasonably with a Price/Forward Earnings ratio of 9.49.
CHTR's Price/Forward Earnings ratio is rather cheap when compared to the industry. CHTR is cheaper than 81.61% 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 24.44.
Industry RankSector Rank
PE 11.01
Fwd PE 9.49
CHTR Price Earnings VS Forward Price EarningsCHTR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CHTR is valued a bit cheaper than the industry average as 77.01% of the companies are valued more expensively.
62.07% of the companies in the same industry are more expensive than CHTR, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 13.29
EV/EBITDA 6.7
CHTR Per share dataCHTR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 -200 -400

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.
The excellent profitability rating of CHTR may justify a higher PE ratio.
PEG (NY)0.69
PEG (5Y)0.24
EPS Next 2Y11.09%
EPS Next 3Y11.86%

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0

5. Dividend

5.1 Amount

No dividends for CHTR!.
Industry RankSector Rank
Dividend Yield N/A

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CHARTER COMMUNICATIONS INC-A

NASDAQ:CHTR (1/22/2025, 1:50:49 PM)

351.555

+1 (+0.28%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)11-01 2024-11-01/bmo
Earnings (Next)01-31 2025-01-31/amc
Inst Owners73.77%
Inst Owner Change0.09%
Ins Owners0.26%
Ins Owner Change0.11%
Market Cap49.99B
Analysts68.39
Price Target418.25 (18.97%)
Short Float %12.23%
Short Ratio8.84
Dividend
Industry RankSector 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)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)0.68%
PT rev (3m)12.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.36%
EPS NY rev (1m)0%
EPS NY rev (3m)1.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.64%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.52%
Valuation
Industry RankSector 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 RankSector 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 RankSector 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
WACC6.08%
ROIC/WACC1.22
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 5Y12.93%
Revenue 1Y (TTM)0.55%
Revenue growth 3Y4.32%
Revenue growth 5Y4.59%
Sales Q2Q%1.55%
Revenue Next Year0.81%
Revenue Next 2Y0.19%
Revenue Next 3Y0.45%
Revenue Next 5Y1.18%
EBIT growth 1Y4.59%
EBIT growth 3Y13.9%
EBIT growth 5Y18.05%
EBIT Next Year77.66%
EBIT Next 3Y22.72%
EBIT Next 5Y14.9%
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%