CHARTER COMMUNICATIONS INC-A (CHTR)
US16119P1084 - Common Stock
Overall CHTR gets a fundamental rating of 5 out of 10. We evaluated CHTR against 96 industry peers in the Media industry. While CHTR has a great profitability rating, there are quite some concerns on its financial health. CHTR is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
Each year in the past 5 years CHTR has been profitable.
In the past 5 years CHTR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.10%, CHTR is in the better half of the industry, outperforming 74.74% of the companies in the same industry.
CHTR has a Return On Equity of 41.11%. This is amongst the best in the industry. CHTR outperforms 93.68% of its industry peers.
CHTR has a better Return On Invested Capital (7.24%) than 76.84% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CHTR is in line with the industry average of 7.68%.
The 3 year average ROIC (6.96%) for CHTR is below the current ROIC(7.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 41.11% | ||
| ROIC | 7.24% |
ROA(3y)3.29%
ROA(5y)2.64%
ROE(3y)43.22%
ROE(5y)29.7%
ROIC(3y)6.96%
ROIC(5y)5.91%
1.3 Margins
CHTR's Profit Margin of 8.35% is amongst the best of the industry. CHTR outperforms 81.05% of its industry peers.
CHTR's Profit Margin has improved in the last couple of years.
CHTR's Operating Margin of 22.90% is amongst the best of the industry. CHTR outperforms 95.79% of its industry peers.
CHTR's Operating Margin has improved in the last couple of years.
CHTR has a Gross Margin of 45.52%. This is comparable to the rest of the industry: CHTR outperforms 55.79% of its industry peers.
In the last couple of years the Gross Margin of CHTR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.9% | ||
| PM (TTM) | 8.35% | ||
| GM | 45.52% |
OM growth 3Y9.18%
OM growth 5Y12.87%
PM growth 3Y7.6%
PM growth 5Y24.24%
GM growth 3Y1.08%
GM growth 5Y1.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CHTR is creating some value.
The number of shares outstanding for CHTR has been reduced compared to 1 year ago.
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 0.65, we must say that CHTR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.65, CHTR is not doing good in the industry: 66.32% of the companies in the same industry are doing better.
CHTR has a debt to FCF ratio of 29.47. This is a negative value and a sign of low solvency as CHTR would need 29.47 years to pay back of all of its debts.
With a Debt to FCF ratio value of 29.47, CHTR perfoms like the industry average, outperforming 41.05% of the companies in the same industry.
A Debt/Equity ratio of 8.64 is on the high side and indicates that CHTR has dependencies on debt financing.
With a Debt to Equity ratio value of 8.64, CHTR is not doing good in the industry: 89.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.64 | ||
| Debt/FCF | 29.47 | ||
| Altman-Z | 0.65 |
ROIC/WACC1.12
WACC6.47%
2.3 Liquidity
CHTR has a Current Ratio of 0.31. 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 Current ratio of CHTR (0.31) is worse than 95.79% of its industry peers.
A Quick Ratio of 0.31 indicates that CHTR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.31, CHTR is doing worse than 95.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
CHTR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.44%.
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 1.08% in the past year.
The Revenue has been growing slightly by 4.59% on average over the past years.
EPS 1Y (TTM)-2.44%
EPS 3Y24.81%
EPS 5Y46.16%
EPS growth Q2Q-8.06%
Revenue 1Y (TTM)1.08%
Revenue growth 3Y4.32%
Revenue growth 5Y4.59%
Revenue growth Q2Q0.27%
3.2 Future
Based on estimates for the next years, CHTR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.26% on average per year.
Based on estimates for the next years, CHTR will show a small growth in Revenue. The Revenue will grow by 2.16% on average per year.
EPS Next Y15.6%
EPS Next 2Y11.4%
EPS Next 3Y13%
EPS Next 5Y8.26%
Revenue Next Year0.85%
Revenue Next 2Y0.76%
Revenue Next 3Y0.96%
Revenue Next 5Y2.16%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 8.63 indicates a reasonable valuation of CHTR.
Based on the Price/Earnings ratio, CHTR is valued cheaply inside the industry as 91.58% of the companies are valued more expensively.
CHTR is valuated cheaply when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.47 indicates a rather cheap valuation of CHTR.
86.32% of the companies in the same industry are more expensive than CHTR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CHTR to the average of the S&P500 Index (21.67), we can say CHTR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 7.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHTR indicates a somewhat cheap valuation: CHTR is cheaper than 80.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CHTR is valued a bit cheaper than 67.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.59 | ||
| EV/EBITDA | 6.59 |
4.3 Compensation for Growth
CHTR's 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.
CHTR's earnings are expected to grow with 13.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)0.19
EPS Next 2Y11.4%
EPS Next 3Y13%
5. Dividend
5.1 Amount
CHTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CHARTER COMMUNICATIONS INC-A
NASDAQ:CHTR (4/25/2024, 3:17:21 PM)
After market: 257.71 -1.39 (-0.54%)259.1
-5.6 (-2.12%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap41.79B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 7.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.55
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 41.11% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.9% | ||
| PM (TTM) | 8.35% | ||
| GM | 45.52% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-2.44%
EPS 3Y24.81%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.08%
Revenue growth 3Y4.32%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
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