CHARTER COMMUNICATIONS INC-A (CHTR) Stock Fundamental Analysis
USA - NASDAQ:CHTR - US16119P1084 - Common Stock
266.25 USD
+7.52 (+2.91%)
266.25 USD
0 (0%)
Taking everything into account, CHTR scores 5 out of 10 in our fundamental rating. CHTR was compared to 95 industry peers in the Media industry. While CHTR has a great profitability rating, there are quite some concerns on its financial health. CHTR scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
CHTR had positive earnings in each of the past 5 years.
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 3.56%, CHTR is in the better half of the industry, outperforming 71.58% of the companies in the same industry.
CHTR has a Return On Equity of 33.33%. This is amongst the best in the industry. CHTR outperforms 96.84% of its industry peers.
CHTR has a better Return On Invested Capital (7.69%) than 82.11% of its industry peers.
CHTR had an Average Return On Invested Capital over the past 3 years of 7.28%. This is in line with the industry average of 8.50%.
The last Return On Invested Capital (7.69%) for CHTR is above the 3 year average (7.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 33.33% | ||
| ROIC | 7.69% |
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
CHTR has a better Profit Margin (9.78%) than 80.00% of its industry peers.
In the last couple of years the Profit Margin of CHTR has grown nicely.
CHTR has a Operating Margin of 24.75%. This is amongst the best in the industry. CHTR outperforms 98.95% of its industry peers.
In the last couple of years the Operating Margin of CHTR has grown nicely.
The Gross Margin of CHTR (43.86%) is comparable to the rest of the industry.
CHTR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.75% | ||
| PM (TTM) | 9.78% | ||
| GM | 43.86% |
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 just above the Cost of Capital (WACC), which means it is creating some 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
CHTR has an Altman-Z score of 0.70. This is a bad value and indicates that CHTR is not financially healthy and even has some risk of bankruptcy.
CHTR has a Altman-Z score of 0.70. This is comparable to the rest of the industry: CHTR outperforms 43.16% of its industry peers.
The Debt to FCF ratio of CHTR is 22.38, which is on the high side as it means it would take CHTR, 22.38 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CHTR (22.38) is comparable to the rest of the industry.
A Debt/Equity ratio of 5.78 is on the high side and indicates that CHTR has dependencies on debt financing.
CHTR has a Debt to Equity ratio of 5.78. This is amonst the worse of the industry: CHTR underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.78 | ||
| Debt/FCF | 22.38 | ||
| Altman-Z | 0.7 |
ROIC/WACC1.23
WACC6.24%
2.3 Liquidity
A Current Ratio of 0.33 indicates that CHTR may have some problems paying its short term obligations.
CHTR's Current ratio of 0.33 is on the low side compared to the rest of the industry. CHTR is outperformed by 88.42% of its industry peers.
CHTR has a Quick Ratio of 0.33. This is a bad value and indicates that CHTR is not financially healthy enough and could expect problems in meeting its short term obligations.
CHTR's Quick ratio of 0.33 is on the low side compared to the rest of the industry. CHTR is outperformed by 88.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
CHTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.45%, 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
The Revenue has been growing slightly by 1.03% in the past year.
The Revenue has been growing slightly by 3.78% on average over the past years.
EPS 1Y (TTM)16.45%
EPS 3Y12.08%
EPS 5Y35.98%
EPS Q2Q%8.13%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y2.15%
Revenue growth 5Y3.78%
Sales Q2Q%0.59%
3.2 Future
CHTR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.60% yearly.
The Revenue is expected to grow by 1.12% on average over the next years.
EPS Next Y8.24%
EPS Next 2Y13.16%
EPS Next 3Y12.43%
EPS Next 5Y12.6%
Revenue Next Year0.15%
Revenue Next 2Y0.65%
Revenue Next 3Y0.69%
Revenue Next 5Y1.12%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.29, the valuation of CHTR can be described as very cheap.
Based on the Price/Earnings ratio, CHTR is valued cheaply inside the industry as 85.26% of the companies are valued more expensively.
CHTR is valuated cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 5.95, which indicates a rather cheap valuation of CHTR.
CHTR's Price/Forward Earnings ratio is rather cheap when compared to the industry. CHTR is cheaper than 87.37% of the companies in the same industry.
CHTR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 5.95 |
4.2 Price Multiples
82.11% of the companies in the same industry are more expensive than CHTR, based on the Enterprise Value to EBITDA ratio.
CHTR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CHTR is cheaper than 75.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.45 | ||
| EV/EBITDA | 5.89 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CHTR has an outstanding profitability rating, which may justify a higher PE ratio.
CHTR's earnings are expected to grow with 12.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)0.2
EPS Next 2Y13.16%
EPS Next 3Y12.43%
5. Dividend
5.1 Amount
CHTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
266.25
+7.52 (+2.91%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners77.53%
Inst Owner Change-0.02%
Ins Owners0.26%
Ins Owner Change0.07%
Market Cap36.37B
Analysts71.03
Price Target403.66 (51.61%)
Short Float %16.39%
Short Ratio6.41
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)0
Avg EPS beat(2)-6.44%
Min EPS beat(2)-7.84%
Max EPS beat(2)-5.05%
EPS beat(4)2
Avg EPS beat(4)-1.68%
Min EPS beat(4)-7.84%
Max EPS beat(4)5.84%
EPS beat(8)4
Avg EPS beat(8)-3.47%
EPS beat(12)5
Avg EPS beat(12)-5.56%
EPS beat(16)9
Avg EPS beat(16)0.1%
Revenue beat(2)0
Avg Revenue beat(2)-1.74%
Min Revenue beat(2)-1.92%
Max Revenue beat(2)-1.56%
Revenue beat(4)0
Avg Revenue beat(4)-1.53%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)-1.01%
Revenue beat(8)0
Avg Revenue beat(8)-1.74%
Revenue beat(12)0
Avg Revenue beat(12)-2.01%
Revenue beat(16)0
Avg Revenue beat(16)-1.83%
PT rev (1m)-2.49%
PT rev (3m)-10.42%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-2.84%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-1.45%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 5.95 | ||
| P/S | 0.66 | ||
| P/FCF | 8.45 | ||
| P/OCF | 2.39 | ||
| P/B | 2.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.89 |
EPS(TTM)36.52
EY13.72%
EPS(NY)44.77
Fwd EY16.81%
FCF(TTM)31.5
FCFY11.83%
OCF(TTM)111.29
OCFY41.8%
SpS404.29
BVpS118.67
TBVpS-597.45
PEG (NY)0.88
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 33.33% | ||
| ROCE | 9.97% | ||
| ROIC | 7.69% | ||
| ROICexc | 7.72% | ||
| ROICexgc | 27% | ||
| OM | 24.75% | ||
| PM (TTM) | 9.78% | ||
| GM | 43.86% | ||
| FCFM | 7.79% |
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-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.78 | ||
| Debt/FCF | 22.38 | ||
| Debt/EBITDA | 4.2 | ||
| Cap/Depr | 125.7% | ||
| Cap/Sales | 19.73% | ||
| Interest Coverage | 2.64 | ||
| Cash Conversion | 68.05% | ||
| Profit Quality | 79.66% | ||
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 0.7 |
F-Score6
WACC6.24%
ROIC/WACC1.23
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)16.45%
EPS 3Y12.08%
EPS 5Y35.98%
EPS Q2Q%8.13%
EPS Next Y8.24%
EPS Next 2Y13.16%
EPS Next 3Y12.43%
EPS Next 5Y12.6%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y2.15%
Revenue growth 5Y3.78%
Sales Q2Q%0.59%
Revenue Next Year0.15%
Revenue Next 2Y0.65%
Revenue Next 3Y0.69%
Revenue Next 5Y1.12%
EBIT growth 1Y6.59%
EBIT growth 3Y6.86%
EBIT growth 5Y14.9%
EBIT Next Year72.37%
EBIT Next 3Y21.5%
EBIT Next 5Y13.17%
FCF growth 1Y21.07%
FCF growth 3Y-28.38%
FCF growth 5Y-7.04%
OCF growth 1Y7.22%
OCF growth 3Y-3.86%
OCF growth 5Y4.2%