CHARTER COMMUNICATIONS INC-A (CHTR) Stock Fundamental Analysis
USA - NASDAQ:CHTR - US16119P1084 - Common Stock
220.91 USD
-1.29 (-0.58%)
221 USD
+0.09 (+0.04%)
We assign a fundamental rating of 5 out of 10 to CHTR. CHTR was compared to 95 industry peers in the Media industry. While CHTR belongs to the best of the industry regarding profitability, 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.
In the past 5 years CHTR always reported a positive cash flow from operatings.
1.2 Ratios
CHTR's Return On Assets of 3.56% is fine compared to the rest of the industry. CHTR outperforms 70.53% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for CHTR is in line with the industry average of 8.55%.
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 78.95% of the companies in the same industry.
In the last couple of years the Profit Margin of CHTR has grown nicely.
The Operating Margin of CHTR (24.75%) is better than 98.95% of its industry peers.
In the last couple of years the Operating Margin of CHTR has grown nicely.
CHTR has a Gross Margin (43.86%) which 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
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.
Compared to 1 year ago, CHTR has an improved debt to assets ratio.
2.2 Solvency
CHTR has an Altman-Z score of 0.67. This is a bad value and indicates that CHTR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.67, CHTR is in line with its industry, outperforming 42.11% of the companies in the same industry.
CHTR has a debt to FCF ratio of 22.38. This is a negative value and a sign of low solvency as CHTR would need 22.38 years to pay back of all of its debts.
CHTR has a Debt to FCF ratio (22.38) which is comparable to the rest of the industry.
CHTR has a Debt/Equity ratio of 5.78. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CHTR (5.78) is worse than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.78 | ||
| Debt/FCF | 22.38 | ||
| Altman-Z | 0.67 |
ROIC/WACC1.11
WACC6.92%
2.3 Liquidity
A Current Ratio of 0.33 indicates that CHTR may have some problems paying its short term obligations.
The Current ratio of CHTR (0.33) is worse than 86.32% of its industry peers.
A Quick Ratio of 0.33 indicates that CHTR may have some problems paying its short term obligations.
CHTR has a worse Quick ratio (0.33) than 86.32% 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 12.87%, which is quite good.
CHTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.98% yearly.
Looking at the last year, CHTR shows a small growth in Revenue. The Revenue has grown by 0.88% in the last year.
The Revenue has been growing slightly by 3.78% on average over the past years.
EPS 1Y (TTM)12.87%
EPS 3Y12.08%
EPS 5Y35.98%
EPS Q2Q%-5.44%
Revenue 1Y (TTM)0.88%
Revenue growth 3Y2.15%
Revenue growth 5Y3.78%
Sales Q2Q%-0.89%
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.
CHTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.12% yearly.
EPS Next Y7.79%
EPS Next 2Y13.37%
EPS Next 3Y13.6%
EPS Next 5Y12.6%
Revenue Next Year0.02%
Revenue Next 2Y0.52%
Revenue Next 3Y0.54%
Revenue Next 5Y1.12%
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.
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
Based on the Price/Earnings ratio of 6.13, the valuation of CHTR can be described as very cheap.
Based on the Price/Earnings ratio, CHTR is valued cheaply inside the industry as 88.42% of the companies are valued more expensively.
CHTR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.03.
A Price/Forward Earnings ratio of 4.92 indicates a rather cheap valuation of CHTR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHTR indicates a rather cheap valuation: CHTR is cheaper than 86.32% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CHTR to the average of the S&P500 Index (22.27), we can say CHTR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.13 | ||
| Fwd PE | 4.92 |
4.2 Price Multiples
81.05% of the companies in the same industry are more expensive than CHTR, based on the Enterprise Value to EBITDA ratio.
75.79% of the companies in the same industry are more expensive than CHTR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.01 | ||
| EV/EBITDA | 5.62 |
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.
CHTR has an outstanding profitability rating, which may justify a higher PE ratio.
CHTR's earnings are expected to grow with 13.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)0.17
EPS Next 2Y13.37%
EPS Next 3Y13.6%
5. Dividend
5.1 Amount
No dividends for CHTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
220.91
-1.29 (-0.58%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners77.53%
Inst Owner Change0.06%
Ins Owners0.26%
Ins Owner Change0.02%
Market Cap30.17B
Revenue(TTM)55.09B
Net Income(TTM)5.40B
Analysts72
Price Target391.9 (77.4%)
Short Float %17.57%
Short Ratio8.36
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)-4%
PT rev (3m)-14.18%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-4.79%
EPS NY rev (1m)0.58%
EPS NY rev (3m)-1.84%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.13 | ||
| Fwd PE | 4.92 | ||
| P/S | 0.55 | ||
| P/FCF | 7.01 | ||
| P/OCF | 1.99 | ||
| P/B | 1.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.62 |
EPS(TTM)36.04
EY16.31%
EPS(NY)44.93
Fwd EY20.34%
FCF(TTM)31.5
FCFY14.26%
OCF(TTM)111.29
OCFY50.38%
SpS404.29
BVpS118.67
TBVpS-597.45
PEG (NY)0.79
PEG (5Y)0.17
Graham Number310.21
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%
ROICexgc growth 3Y-3.91%
ROICexgc 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 | 0.67 |
F-Score6
WACC6.92%
ROIC/WACC1.11
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)12.87%
EPS 3Y12.08%
EPS 5Y35.98%
EPS Q2Q%-5.44%
EPS Next Y7.79%
EPS Next 2Y13.37%
EPS Next 3Y13.6%
EPS Next 5Y12.6%
Revenue 1Y (TTM)0.88%
Revenue growth 3Y2.15%
Revenue growth 5Y3.78%
Sales Q2Q%-0.89%
Revenue Next Year0.02%
Revenue Next 2Y0.52%
Revenue Next 3Y0.54%
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%
CHARTER COMMUNICATIONS INC-A / CHTR FAQ
What is the fundamental rating for CHTR stock?
ChartMill assigns a fundamental rating of 5 / 10 to CHTR.
Can you provide the valuation status for CHARTER COMMUNICATIONS INC-A?
ChartMill assigns a valuation rating of 9 / 10 to CHARTER COMMUNICATIONS INC-A (CHTR). This can be considered as Undervalued.
Can you provide the profitability details for CHARTER COMMUNICATIONS INC-A?
CHARTER COMMUNICATIONS INC-A (CHTR) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for CHTR stock?
The Price/Earnings (PE) ratio for CHARTER COMMUNICATIONS INC-A (CHTR) is 6.13 and the Price/Book (PB) ratio is 1.86.