CHARTER COMMUNICATIONS INC-A (CHTR) Stock Fundamental Analysis
NASDAQ:CHTR - Nasdaq - US16119P1084 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CHTR. CHTR was compared to 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.
CHTR had a positive operating cash flow in the past year.
CHTR had positive earnings in each of the past 5 years.
CHTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.44%, CHTR belongs to the top of the industry, outperforming 80.21% of the companies in the same industry.
The Return On Equity of CHTR (31.97%) is better than 93.75% of its industry peers.
CHTR has a Return On Invested Capital of 7.58%. This is in the better half of the industry: CHTR outperforms 78.13% 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 6.73%.
The last Return On Invested Capital (7.58%) for CHTR is above the 3 year average (7.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 31.97% | ||
| ROIC | 7.58% |
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
Looking at the Profit Margin, with a value of 9.42%, CHTR belongs to the top of the industry, outperforming 85.42% of the companies in the same industry.
CHTR's Profit Margin has improved in the last couple of years.
CHTR has a Operating Margin of 24.50%. This is amongst the best in the industry. CHTR outperforms 96.88% of its industry peers.
In the last couple of years the Operating Margin of CHTR has grown nicely.
CHTR's Gross Margin of 45.28% is in line compared to the rest of the industry. CHTR outperforms 56.25% of its industry peers.
In the last couple of years the Gross Margin of CHTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.5% | ||
| PM (TTM) | 9.42% | ||
| GM | 45.28% |
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
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
CHTR has an Altman-Z score of 0.79. This is a bad value and indicates that CHTR is not financially healthy and even has some risk of bankruptcy.
CHTR's Altman-Z score of 0.79 is in line compared to the rest of the industry. CHTR outperforms 45.83% of its industry peers.
The Debt to FCF ratio of CHTR is 20.88, which is on the high side as it means it would take CHTR, 20.88 years of fcf income to pay off all of its debts.
CHTR has a Debt to FCF ratio of 20.88. This is comparable to the rest of the industry: CHTR outperforms 51.04% of its industry peers.
A Debt/Equity ratio of 5.77 is on the high side and indicates that CHTR has dependencies on debt financing.
CHTR's Debt to Equity ratio of 5.77 is on the low side compared to the rest of the industry. CHTR is outperformed by 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.77 | ||
| Debt/FCF | 20.88 | ||
| Altman-Z | 0.79 |
ROIC/WACC1.04
WACC7.28%
2.3 Liquidity
CHTR has a Current Ratio of 0.36. This is a bad value and indicates that CHTR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.36, CHTR is doing worse than 87.50% of the companies in the same industry.
CHTR has a Quick Ratio of 0.36. This is a bad value and indicates that CHTR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.36, CHTR is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.88% 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 0.93% 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)15.88%
EPS 3Y12.08%
EPS 5Y35.98%
EPS Q2Q%11.52%
Revenue 1Y (TTM)0.93%
Revenue growth 3Y2.15%
Revenue growth 5Y3.78%
Sales Q2Q%0.41%
3.2 Future
The Earnings Per Share is expected to grow by 11.72% 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 1.36% on average per year.
EPS Next Y8.79%
EPS Next 2Y13.74%
EPS Next 3Y14.08%
EPS Next 5Y11.72%
Revenue Next Year0.36%
Revenue Next 2Y0.97%
Revenue Next 3Y0.94%
Revenue Next 5Y1.36%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 11.82, the valuation of CHTR can be described as reasonable.
76.04% of the companies in the same industry are more expensive than CHTR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CHTR to the average of the S&P500 Index (26.60), we can say CHTR is valued rather cheaply.
The Price/Forward Earnings ratio is 9.36, which indicates a very decent valuation of CHTR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHTR indicates a somewhat cheap valuation: CHTR is cheaper than 72.92% of the companies listed 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 22.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 9.36 |
4.2 Price Multiples
CHTR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CHTR is cheaper than 69.79% of the companies in the same industry.
CHTR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CHTR is cheaper than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.99 | ||
| EV/EBITDA | 6.9 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 14.08% in the coming years.
PEG (NY)1.34
PEG (5Y)0.33
EPS Next 2Y13.74%
EPS Next 3Y14.08%
5. Dividend
5.1 Amount
No dividends for CHTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
423.49
+4.86 (+1.16%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners73.87%
Inst Owner Change2.72%
Ins Owners0.26%
Ins Owner Change0.17%
Market Cap59.44B
Analysts68.13
Price Target426.37 (0.68%)
Short Float %12.93%
Short Ratio8.05
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)1
Avg EPS beat(2)0.4%
Min EPS beat(2)-5.05%
Max EPS beat(2)5.84%
EPS beat(4)3
Avg EPS beat(4)1.37%
Min EPS beat(4)-5.05%
Max EPS beat(4)5.84%
EPS beat(8)5
Avg EPS beat(8)-2.47%
EPS beat(12)6
Avg EPS beat(12)-2.81%
EPS beat(16)10
Avg EPS beat(16)1.12%
Revenue beat(2)0
Avg Revenue beat(2)-1.58%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-1.56%
Revenue beat(4)0
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)-1.01%
Revenue beat(8)0
Avg Revenue beat(8)-1.91%
Revenue beat(12)0
Avg Revenue beat(12)-1.91%
Revenue beat(16)0
Avg Revenue beat(16)-1.74%
PT rev (1m)1.32%
PT rev (3m)4.91%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)2.34%
EPS NY rev (1m)-1.74%
EPS NY rev (3m)-1.1%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 9.36 | ||
| P/S | 1.08 | ||
| P/FCF | 12.99 | ||
| P/OCF | 3.85 | ||
| P/B | 3.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.9 |
EPS(TTM)35.83
EY8.46%
EPS(NY)45.23
Fwd EY10.68%
FCF(TTM)32.61
FCFY7.7%
OCF(TTM)110.1
OCFY26%
SpS392.85
BVpS115.75
TBVpS-582.17
PEG (NY)1.34
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 31.97% | ||
| ROCE | 9.84% | ||
| ROIC | 7.58% | ||
| ROICexc | 7.63% | ||
| ROICexgc | 26.73% | ||
| OM | 24.5% | ||
| PM (TTM) | 9.42% | ||
| GM | 45.28% | ||
| FCFM | 8.3% |
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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.77 | ||
| Debt/FCF | 20.88 | ||
| Debt/EBITDA | 4.23 | ||
| Cap/Depr | 125.54% | ||
| Cap/Sales | 19.73% | ||
| Interest Coverage | 2.65 | ||
| Cash Conversion | 69.69% | ||
| Profit Quality | 88.12% | ||
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 0.79 |
F-Score6
WACC7.28%
ROIC/WACC1.04
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)15.88%
EPS 3Y12.08%
EPS 5Y35.98%
EPS Q2Q%11.52%
EPS Next Y8.79%
EPS Next 2Y13.74%
EPS Next 3Y14.08%
EPS Next 5Y11.72%
Revenue 1Y (TTM)0.93%
Revenue growth 3Y2.15%
Revenue growth 5Y3.78%
Sales Q2Q%0.41%
Revenue Next Year0.36%
Revenue Next 2Y0.97%
Revenue Next 3Y0.94%
Revenue Next 5Y1.36%
EBIT growth 1Y6.7%
EBIT growth 3Y6.86%
EBIT growth 5Y14.9%
EBIT Next Year72.27%
EBIT Next 3Y21.67%
EBIT Next 5Y13.55%
FCF growth 1Y-0.89%
FCF growth 3Y-28.38%
FCF growth 5Y-7.04%
OCF growth 1Y5.84%
OCF growth 3Y-3.86%
OCF growth 5Y4.2%