Charter Communications, Inc.
Charter Communications, Inc. Fundamental Analysis
Charter Communications, Inc. (CHTR) shows moderate financial fundamentals with a PE ratio of 5.87, profit margin of 9.10%, and ROE of 31.24%. The company generates $55.7B in annual revenue with weak year-over-year growth of 0.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CHTR's fundamental strength across five key dimensions:
Efficiency Score
WeakCHTR struggles to generate sufficient returns from assets.
Valuation Score
ModerateCHTR shows balanced valuation metrics.
Growth Score
ModerateCHTR shows steady but slowing expansion.
Financial Health Score
WeakCHTR carries high financial risk with limited liquidity.
Profitability Score
ModerateCHTR maintains healthy but balanced margins.
Key Financial Metrics
Is CHTR Expensive or Cheap?
P/E Ratio
CHTR trades at 5.87 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CHTR's PEG of 14.42 indicates potential overvaluation.
Price to Book
The market values Charter Communications, Inc. at 1.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.15 times EBITDA. This is generally considered low.
How Well Does CHTR Make Money?
Net Profit Margin
For every $100 in sales, Charter Communications, Inc. keeps $9.10 as profit after all expenses.
Operating Margin
Core operations generate 24.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.24 in profit for every $100 of shareholder equity.
ROA
Charter Communications, Inc. generates $3.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Charter Communications, Inc. generates strong operating cash flow of $16.35B, reflecting robust business health.
Free Cash Flow
Charter Communications, Inc. produces free cash flow of $4.49B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $34.72 in free cash annually.
FCF Yield
CHTR converts 14.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
14.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
6.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How CHTR Stacks Against Its Sector Peers
| Metric | CHTR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.87 | 21.66 | Better (Cheaper) |
| ROE | 31.24% | 1190.00% | Weak |
| Net Margin | 9.10% | -55754.00% (disorted) | Weak |
| Debt/Equity | 6.05 | 1.32 | Weak (High Leverage) |
| Current Ratio | 0.39 | 1.59 | Weak Liquidity |
| ROA | 3.23% | -202359.00% (disorted) | Weak |
CHTR outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Charter Communications, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
84.69%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
367.57%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
88.46%
Industry Style: Growth, Technology, Streaming
High Growth