Charter Communications (CHTR) AI Stock Analysis

• Market Cap: $61.17B
• Dividend Yield: N/A
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.76
• Revenue Growth: 0.93%
• EPS Growth: 16.06%
• Country: US
• Employees: 94,500
• Sector: Communication Services
• Sector Strength: 82
• Industry: Telecommunications Services
• EPS (TTM): 8.42
• Shares Outstanding: 136,627,990
• 10 Day Avg. Volume: 905,089
• 30 Day Avg. Volume: 1,074,586
• PEG Ratio: 3.97
• Price to Book (P/B): 3.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.63
• Enterprise Value/Market Cap: 2.39
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 4.66
• Enterprise Value/Ebitda: 1.70
• 1Y Price Target: $461.40
• Price Target Upside: 20.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 76 Outperform
• Price Target: $434.00 ▲(13.22%Upside)

Charter Communications has a strong overall stock score due to its solid financial performance and strategic corporate events. The company's attractive valuation and positive earnings outlook further support the score, despite some technical analysis concerns and customer base challenges. The merger and acquisition initiatives are particularly significant in enhancing Charter's market position and future growth potential.

Positive Factors

Merger Impact

The announced merger with Cox will accelerate revenue growth, elevate margins, be accretive to free cash flow and reduce net leverage.

Operational Expansion

The transaction makes Charter Communications the largest domestic cable/broadband operator, which should lead to further negotiating and operational advantages.

Product Offering

Charter will benefit from continued momentum from its attractive Spectrum Life Unlimited offering.

Negative Factors

Capital Expenditure

Charter's Capex is expected to peak in '25, with cash flow projected to rise starting in '26, supporting its levered buyback program.

Competitive Environment

The backdrop for broadband remains fiercely competitive.

Subscriber Losses

Charter has lost BB subs for nine consecutive quarters, and it's unclear when it will return to positive net adds given fiber and FWA growth.

Charter Communications Business Overview & Revenue Model

Company Description

Charter Communications, Inc. operates as a broadband connectivity and cable operator company serving residential and commercial customers in the United States. The company offers subscription-based video services, including video on demand, high-definition television, digital video recorder, pay-per-view services. It provides Internet services, such as security suite that protects computers from viruses and spyware, and threats from malicious actors; in-home WiFi, which provides customers with high performance wireless routers to enhance their in-home wireless Internet experience; out-of-home WiFi; and Spectrum WiFi services, as well as video services. The company also offers voice communications services using voice over Internet protocol technology; and broadband communications solutions, such as Internet access, data networking, fiber connectivity, video entertainment, and business telephone services to cellular towers and office buildings for business and carrier organizations. In addition, it provides mobile services; offers video programming, static IP and business WiFi, email and security, and multi-line telephone services, as well as Web-based service management; sells local advertising across various platforms for networks, such as TBS, CNN, and ESPN; sells advertising inventory to local sports and news channels; and offers Audience App for optimizes linear inventory. Further, the company offers communications products and managed service solutions; data connectivity services to mobile and wireline carriers on a wholesale basis; and owns and operates regional sports and news networks. It serves approximately 32 million customers in 41 states. The company was founded in 1993 and is headquartered in Stamford, Connecticut.

How the Company Makes Money

Charter Communications generates revenue primarily through subscription fees for its cable television, broadband internet, and phone services. The company charges customers monthly fees for access to its high-speed internet services, which is a significant revenue driver given the increasing demand for reliable home internet. Cable television services also contribute to revenue through both subscription fees and advertising sales. Additionally, Charter has expanded into mobile services, offering phone plans that bundle with their other services. Charter's revenue streams are further supported by business services that cater to small, medium, and enterprise-level companies, providing internet, networking, and business phone solutions. Partnerships with content providers and technology companies also play a role in Charter's revenue model by enabling the company to offer a wider array of services and content to its subscribers.

Charter Communications Financial Statement Overview

Summary

Charter Communications presents a robust financial profile with consistent profitability and effective cash flow management. Despite high leverage, the company demonstrates efficient equity utilization and operational efficiency. Future growth may be moderated by slowing revenue increases, but the firm remains well-positioned in the telecommunications sector.

Income Statement

Charter Communications shows a stable income performance with a slight revenue growth of 1.02% in TTM, backed by a solid gross profit margin of 70.12% and a net profit margin of 9.42%. The company maintains strong EBIT and EBITDA margins at 24.12% and 32.73%, respectively, indicating healthy operating efficiency. However, the slowing revenue growth could be a potential concern for future expansion.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 5.77, which suggests considerable leverage and potential financial risk. However, the company maintains a decent equity ratio of 10.76%, showing a stable equity base, and a return on equity of 31.96%, indicating efficient use of shareholders' equity to generate profits.

Cash Flow

Charter Communications demonstrates robust cash flow management with a free cash flow growth of 44.81% in TTM. The operating cash flow to net income ratio is 2.98, highlighting strong operational cash generation, while the free cash flow to net income ratio is 0.88, indicating efficient cash usage. Continued investment and financing activities warrant monitoring.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.09B	54.61B	54.02B	51.68B	48.10B
Gross Profit	30.78B	21.20B	21.15B	23.70B	21.55B
EBITDA	21.40B	20.74B	20.92B	19.77B	18.10B
Net Income	5.08B	4.56B	5.05B	4.65B	3.22B
Balance Sheet
Total Assets	150.02B	147.19B	144.52B	142.49B	144.21B
Cash, Cash Equivalents and Short-Term Investments	459.00M	709.00M	645.00M	601.00M	998.00M
Total Debt	95.76B	97.78B	97.60B	91.56B	82.75B
Total Liabilities	130.31B	132.47B	131.97B	124.33B	113.92B
Stockholders Equity	15.59B	11.09B	9.12B	14.05B	23.80B
Cash Flow
Free Cash Flow	3.16B	3.49B	6.10B	8.68B	6.61B
Operating Cash Flow	14.43B	14.43B	14.93B	16.24B	14.56B
Investing Cash Flow	-10.65B	-11.13B	-9.11B	-7.75B	-8.16B
Financing Cash Flow	-3.98B	-3.24B	-5.77B	-8.88B	-8.95B

Charter Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 383.33
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHTR, the sentiment is Negative. The current price of 383.33 is below the 20-day moving average (MA) of 397.95, below the 50-day MA of 401.16, and above the 200-day MA of 368.31, indicating a neutral trend. The MACD of 0.47 indicates Positive momentum. The RSI at 41.61 is Neutral, neither overbought nor oversold. The STOCH value of 9.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHTR.

Charter Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VZ	78 Outperform	$175.31B	9.88	18.23%	6.52%	0.93%	56.97%
CHTR	76 Outperform	$61.17B	10.63	36.94%	―	0.93%	16.06%
CMCSA	76 Outperform	$133.07B	8.75	18.57%	3.70%	1.33%	7.69%
TMUS	76 Outperform	$259.05B	22.24	19.35%	1.54%	5.31%	38.46%
T	70 Outperform	$194.07B	16.56	11.38%	4.09%	0.50%	-12.66%
Sector *	58 Neutral	C$3.42B	8.19	-17.94%	4.80%	-2.58%	-15.59%
FYBR	48 Neutral	$9.20B	―	-7.64%	―	3.69%	-1514.85%

Charter Communications Corporate Events

Charter Communications Acquires Cox’s Fiber and IT Services

On May 16, 2025, Charter Communications entered into a transaction agreement with Cox Enterprises to acquire Cox’s commercial fiber and managed IT and cloud services businesses for $3.5 billion in cash. The transaction will also involve Cox contributing its residential cable business assets to Charter Holdings, with Cox Parent receiving convertible preferred units and common units of Charter Holdings. This strategic move is expected to significantly enhance Charter’s market position by expanding its service offerings and increasing its market share in the telecommunications sector.

The most recent analyst rating on (CHTR) stock is a Buy with a $386.00 price target. To see the full list of analyst forecasts on Charter Communications stock, see the CHTR Stock Forecast page.

Charter and Cox Announce $34.5 Billion Merger

On May 16, 2025, Charter Communications and Cox Enterprises announced a definitive agreement to merge Cox Communications with Charter, creating a leading entity in mobile and broadband communications. The transaction, valued at approximately $34.5 billion, is expected to enhance service quality and innovation, benefiting employees, customers, and communities. The merger will see the combined company adopt the Cox Communications name, with Spectrum as the consumer-facing brand. The deal is subject to regulatory and shareholder approvals, and upon completion, it will result in significant operational and strategic synergies, positioning the new entity to compete aggressively in the expanding communications market.

The most recent analyst rating on (CHTR) stock is a Buy with a $386.00 price target. To see the full list of analyst forecasts on Charter Communications stock, see the CHTR Stock Forecast page.

Charter Communications Holds Annual Stockholders Meeting

On April 22, 2025, Charter Communications held its Annual Meeting of Stockholders where all nominated directors were elected, the 2025 Employee Stock Purchase Plan was approved, and KPMG LLP was ratified as the independent public accounting firm for the year ending December 31, 2025. However, the stockholder proposal regarding a political expenditures report was not approved.