Charter Communications, Inc. (CHTR) stock analysis

P/E above its 5-year median

Charter Communications's P/E of 14.1 is above its own 5-year median of 10.9.

P/E below the industry

Charter Communications's P/E of 14.1 is below the Communications median of 14.4.

EV/EBITDA above its 5-year median

Charter Communications's EV/EBITDA of 9.3 is above its 5-year median of 7.1.

P/B below the industry

Charter Communications's price-to-book of 1.48 is below the Communications median of 1.60.

Trading below fair value

The share price of $136.31 is below our fair value estimate of $222.83.

Margin of safety over 20%

The price is 38.8% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 0.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 5.6% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -72.9% over the last twelve months, against a 5-year average of 9.1% a year.

Growing faster than the industry

Revenue grew 1.0% over the last twelve months; the Communications median is -0.2%.

Guidance unchanged

The latest outlook (full year 2026 capital expenditures, Jul 24, 2026) was maintained, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 10.6% over the last twelve months and averaged 36.6% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 4.0%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Charter Communications's return on equity of 10.6% is above the Communications median of 1.1%.

Earnings grew over 5 years

Net income grew 9.1% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 2.5% over the last twelve months, against a 5-year average of 9.0%.

Net margin above the industry

Charter Communications's net margin of 2.5% is above the Communications median of -2.6%.

High debt

Debt is 975% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 348% five years ago to 975%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 15.0% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.37 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.38; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Charter Communications has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.