CHARTER COMMUNICATIONS INC-A (CHTR) Stock Fundamental Analysis
NASDAQ:CHTR - Nasdaq - US16119P1084 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CHTR. CHTR was compared to 93 industry peers in the Media industry. CHTR has an excellent profitability rating, but there are concerns on its financial health. CHTR has a correct valuation and a medium growth rate.
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.
CHTR had positive earnings in each of the past 5 years.
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 3.39%, CHTR is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
With an excellent Return On Equity value of 32.61%, CHTR belongs to the best of the industry, outperforming 94.25% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.47%, CHTR is doing good in the industry, outperforming 77.01% 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 7.01%.
The 3 year average ROIC (7.28%) for CHTR is below the current ROIC(7.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 32.61% | ||
| ROIC | 7.47% |
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
Looking at the Profit Margin, with a value of 9.23%, CHTR belongs to the top of the industry, outperforming 81.61% of the companies in the same industry.
CHTR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 24.04%, CHTR belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
In the last couple of years the Operating Margin of CHTR has grown nicely.
CHTR's Gross Margin of 46.53% is in line compared to the rest of the industry. CHTR outperforms 51.72% of its industry peers.
In the last couple of years the Gross Margin of CHTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.04% | ||
| PM (TTM) | 9.23% | ||
| GM | 46.53% |
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 below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CHTR has less shares outstanding
CHTR has less shares outstanding than it did 5 years ago.
CHTR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.74, we must say that CHTR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.74, CHTR is in line with its industry, outperforming 41.38% of the companies in the same industry.
CHTR has a debt to FCF ratio of 30.30. This is a negative value and a sign of low solvency as CHTR would need 30.30 years to pay back of all of its debts.
The Debt to FCF ratio of CHTR (30.30) is comparable to the rest of the industry.
CHTR has a Debt/Equity ratio of 6.03. This is a high value indicating a heavy dependency on external financing.
CHTR has a worse Debt to Equity ratio (6.03) than 87.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.03 | ||
| Debt/FCF | 30.3 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.99
WACC7.53%
2.3 Liquidity
A Current Ratio of 0.31 indicates that CHTR may have some problems paying its short term obligations.
CHTR has a Current ratio of 0.31. This is amonst the worse of the industry: CHTR underperforms 97.70% of its industry peers.
A Quick Ratio of 0.31 indicates that CHTR may have some problems paying its short term obligations.
CHTR's Quick ratio of 0.31 is on the low side compared to the rest of the industry. CHTR is outperformed by 97.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
CHTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.46%, 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
CHTR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.88%.
The Revenue has been growing slightly by 3.78% on average over the past years.
EPS 1Y (TTM)16.46%
EPS 3Y12.08%
EPS 5Y35.98%
EPS Q2Q%42.86%
Revenue 1Y (TTM)0.88%
Revenue growth 3Y2.15%
Revenue growth 5Y3.78%
Sales Q2Q%1.57%
3.2 Future
The Earnings Per Share is expected to grow by 11.42% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.81% on average over the next years.
EPS Next Y10%
EPS Next 2Y12.3%
EPS Next 3Y11.65%
EPS Next 5Y11.42%
Revenue Next Year0.06%
Revenue Next 2Y0.63%
Revenue Next 3Y0.65%
Revenue Next 5Y0.81%
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
Based on the Price/Earnings ratio of 10.33, the valuation of CHTR can be described as reasonable.
CHTR's Price/Earnings ratio is a bit cheaper when compared to the industry. CHTR is cheaper than 75.86% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, CHTR is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.39, the valuation of CHTR can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CHTR is valued cheaply inside the industry as 81.61% of the companies are valued more expensively.
CHTR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 9.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHTR is valued a bit cheaper than the industry average as 75.86% of the companies are valued more expensively.
CHTR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.21 | ||
| EV/EBITDA | 6.66 |
4.3 Compensation for Growth
CHTR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CHTR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.03
PEG (5Y)0.29
EPS Next 2Y12.3%
EPS Next 3Y11.65%
5. Dividend
5.1 Amount
No dividends for CHTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
361
-2.01 (-0.55%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners73.77%
Inst Owner Change0.02%
Ins Owners0.26%
Ins Owner Change0.12%
Market Cap51.24B
Analysts68.39
Price Target406.43 (12.58%)
Short Float %13.11%
Short Ratio10.66
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)2
Avg EPS beat(2)3.09%
Min EPS beat(2)0.34%
Max EPS beat(2)5.84%
EPS beat(4)3
Avg EPS beat(4)0.98%
Min EPS beat(4)-6.59%
Max EPS beat(4)5.84%
EPS beat(8)5
Avg EPS beat(8)-3.45%
EPS beat(12)7
Avg EPS beat(12)-2.01%
EPS beat(16)10
Avg EPS beat(16)1.1%
Revenue beat(2)0
Avg Revenue beat(2)-1.31%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-1.01%
Revenue beat(4)0
Avg Revenue beat(4)-1.58%
Min Revenue beat(4)-2.42%
Max Revenue beat(4)-1.01%
Revenue beat(8)0
Avg Revenue beat(8)-1.93%
Revenue beat(12)0
Avg Revenue beat(12)-1.95%
Revenue beat(16)0
Avg Revenue beat(16)-1.76%
PT rev (1m)-2.83%
PT rev (3m)9.1%
EPS NQ rev (1m)-2.25%
EPS NQ rev (3m)10.56%
EPS NY rev (1m)3.79%
EPS NY rev (3m)5.38%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 9.39 | ||
| P/S | 0.93 | ||
| P/FCF | 16.21 | ||
| P/OCF | 3.55 | ||
| P/B | 3.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.66 |
EPS(TTM)34.96
EY9.68%
EPS(NY)38.46
Fwd EY10.65%
FCF(TTM)22.27
FCFY6.17%
OCF(TTM)101.66
OCFY28.16%
SpS388.06
BVpS109.81
TBVpS-581.36
PEG (NY)1.03
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 32.61% | ||
| ROCE | 9.7% | ||
| ROIC | 7.47% | ||
| ROICexc | 7.49% | ||
| ROICexgc | 26.47% | ||
| OM | 24.04% | ||
| PM (TTM) | 9.23% | ||
| GM | 46.53% | ||
| FCFM | 5.74% |
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-Score8
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.03 | ||
| Debt/FCF | 30.3 | ||
| Debt/EBITDA | 4.29 | ||
| Cap/Depr | 129.93% | ||
| Cap/Sales | 20.46% | ||
| Interest Coverage | 2.48 | ||
| Cash Conversion | 65.84% | ||
| Profit Quality | 62.19% | ||
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | 0.74 |
F-Score8
WACC7.53%
ROIC/WACC0.99
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)16.46%
EPS 3Y12.08%
EPS 5Y35.98%
EPS Q2Q%42.86%
EPS Next Y10%
EPS Next 2Y12.3%
EPS Next 3Y11.65%
EPS Next 5Y11.42%
Revenue 1Y (TTM)0.88%
Revenue growth 3Y2.15%
Revenue growth 5Y3.78%
Sales Q2Q%1.57%
Revenue Next Year0.06%
Revenue Next 2Y0.63%
Revenue Next 3Y0.65%
Revenue Next 5Y0.81%
EBIT growth 1Y5.91%
EBIT growth 3Y6.86%
EBIT growth 5Y14.9%
EBIT Next Year72.33%
EBIT Next 3Y21.65%
EBIT Next 5Y14.09%
FCF growth 1Y-4.73%
FCF growth 3Y-28.38%
FCF growth 5Y-7.04%
OCF growth 1Y-0.02%
OCF growth 3Y-3.86%
OCF growth 5Y4.2%