CHARTER COMMUNICATIONS INC-A (CHTR) Stock Fundamental Analysis
USA - NASDAQ:CHTR - US16119P1084 - Common Stock
262.55 USD
+0.38 (+0.14%)
262.55 USD
0 (0%)
CHTR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 99 industry peers in the Media industry. CHTR scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on CHTR.
1. Profitability
1.1 Basic Checks
CHTR had positive earnings in the past year.
CHTR had a positive operating cash flow in the past year.
Each year in the past 5 years CHTR has been profitable.
Each year in the past 5 years CHTR had a positive operating cash flow.
1.2 Ratios
CHTR has a better Return On Assets (3.56%) than 71.72% of its industry peers.
CHTR has a better Return On Equity (33.33%) than 95.96% of its industry peers.
The Return On Invested Capital of CHTR (7.69%) is better than 81.82% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CHTR is in line with the industry average of 8.87%.
The 3 year average ROIC (7.28%) for CHTR is below the current ROIC(7.69%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 9.78%, CHTR is doing good in the industry, outperforming 78.79% of the companies in the same industry.
In the last couple of years the Profit Margin of CHTR has grown nicely.
CHTR has a better Operating Margin (24.75%) than 97.98% of its industry peers.
CHTR's Operating Margin has improved in the last couple of years.
CHTR has a Gross Margin (43.86%) which is in line with its industry peers.
In the last couple of years the Gross Margin of CHTR has grown nicely.
| 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
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.
The number of shares outstanding for CHTR has been reduced compared to 5 years ago.
The debt/assets ratio for CHTR has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.70, we must say that CHTR is in the distress zone and 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 40.40% 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.
With a Debt to FCF ratio value of 22.38, CHTR perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
CHTR has a Debt/Equity ratio of 5.78. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 5.78, CHTR is not doing good in the industry: 78.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.78 | ||
| Debt/FCF | 22.38 | ||
| Altman-Z | 0.7 |
ROIC/WACC1.35
WACC5.71%
2.3 Liquidity
A Current Ratio of 0.33 indicates that CHTR may have some problems paying its short term obligations.
CHTR has a Current ratio of 0.33. This is amonst the worse of the industry: CHTR underperforms 88.89% 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 has a Quick ratio of 0.33. This is amonst the worse of the industry: CHTR underperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.45% over the past year.
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.
Measured over the past years, CHTR shows a small growth in Revenue. The Revenue has been growing by 3.78% on average per year.
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
The Earnings Per Share is expected to grow by 12.60% on average over the next years. This is quite good.
Based on estimates for the next years, CHTR will show a small growth in Revenue. The Revenue will grow by 1.12% on average per year.
EPS Next Y8.24%
EPS Next 2Y13.16%
EPS Next 3Y12.43%
EPS Next 5Y12.6%
Revenue Next Year0.23%
Revenue Next 2Y0.72%
Revenue Next 3Y0.71%
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
Based on the Price/Earnings ratio of 7.19, the valuation of CHTR can be described as very cheap.
CHTR's Price/Earnings ratio is rather cheap when compared to the industry. CHTR is cheaper than 85.86% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.38, CHTR is valued rather cheaply.
The Price/Forward Earnings ratio is 5.87, which indicates a rather cheap valuation of CHTR.
Based on the Price/Forward Earnings ratio, CHTR is valued cheaper than 87.88% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. CHTR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.19 | ||
| Fwd PE | 5.87 |
4.2 Price Multiples
83.84% 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 75.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.33 | ||
| EV/EBITDA | 5.86 |
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.
The excellent profitability rating of CHTR may justify a higher PE ratio.
A more expensive valuation may be justified as CHTR's earnings are expected to grow with 12.43% in the coming years.
PEG (NY)0.87
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 |
262.55
+0.38 (+0.14%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners77.53%
Inst Owner Change-3.33%
Ins Owners0.26%
Ins Owner Change0.07%
Market Cap35.86B
Analysts71.03
Price Target408.23 (55.49%)
Short Float %16.18%
Short Ratio6.86
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)-3.27%
PT rev (3m)-7.52%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-2.65%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.19 | ||
| Fwd PE | 5.87 | ||
| P/S | 0.65 | ||
| P/FCF | 8.33 | ||
| P/OCF | 2.36 | ||
| P/B | 2.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.86 |
EPS(TTM)36.52
EY13.91%
EPS(NY)44.77
Fwd EY17.05%
FCF(TTM)31.5
FCFY12%
OCF(TTM)111.29
OCFY42.39%
SpS404.29
BVpS118.67
TBVpS-597.45
PEG (NY)0.87
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
WACC5.71%
ROIC/WACC1.35
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 Year0.23%
Revenue Next 2Y0.72%
Revenue Next 3Y0.71%
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 5Y13.25%
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%