Charter Communications, Inc. /Mo/ (NASDAQ: CHTR)

Sector: Communication Services Industry: Telecom Services CIK: 0001091667
Market Cap 32.03 Bn
P/B 2.00
P/E 6.42
P/S 0.58
ROIC (Qtr) 8.78
Div Yield % 0.00
Rev 1y % (Qtr) -2.33
Total Debt (Qtr) 96.20 Bn
Debt/Equity (Qtr) 5.99
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About

Investment thesis

Bull case

  • Operating cash flow of 16.08B provides exceptional 20.64x coverage of minority interest expenses 779M, showing strong core operations.
  • Operating cash flow of 16.08B provides strong 23.89x coverage of stock compensation 673M, indicating sustainable incentive practices.
  • Operating cash flow of 16.08B provides solid 1.21x coverage of current liabilities 13.31B, showing strong operational health.
  • Tangible assets of 124.06B provide robust 9.32x coverage of current liabilities 13.31B, showing strong asset backing.
  • Strong tangible asset base of 124.06B provides 4.11x coverage of intangibles 30.15B, indicating robust asset quality.

Bear case

  • Operating cash flow of 16.08B barely covers its investment activities of (11.62B), with a coverage ratio of -1.38, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of 5B provides weak coverage of capital expenditures of 11.07B, with a 0.45 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 11.72B show weak coverage of depreciation charges of 8.71B, with a 1.35 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 8.71B relative to operating cash flow of 16.08B, which is 0.54x suggests significant maintenance capital requirements affecting free cash flow.
  • Cash position of 477M provides weak coverage of payables of 12.56B, which is 0.04x, indicating potential working capital stress and supplier relationship risks.

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Telecom Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMUS T-Mobile US, Inc. 247.58 Bn 22.52 2.80 118.74 Bn
2 T At&T Inc. 210.50 Bn 12.86 1.15 155.04 Bn
3 VZ Verizon Communications Inc 202.20 Bn 11.00 1.54 181.64 Bn
4 CMCSA Comcast Corp 180.83 Bn 58.43 5.08 98.94 Bn
5 VOD Vodafone Group Public Ltd Co 44.88 Bn 3.20 0.62 60.54 Bn
6 CHT Chunghwa Telecom Co Ltd 33.41 Bn 26.87 4.32 1.20 Bn
7 SATS EchoStar CORP 32.60 Bn -2.52 2.15 30.58 Bn
8 CHTR Charter Communications, Inc. /Mo/ 32.03 Bn 6.42 0.58 96.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.83 0.87
EV to Cash from Ops. EV/CFO 7.97 7.73
EV to Debt EV to Debt 1.33 40.31
EV to EBIT EV/EBIT 10.93 2.24
EV to EBITDA EV/EBITDA 5.93 2.53
EV to Free Cash Flow [EV/FCF] EV/FCF 25.60 33.34
EV to Market Cap EV to Market Cap 4.00 1.71
EV to Revenue EV/Rev 2.34 5.12
Price to Book Value [P/B] P/B 2.00 2.16
Price to Earnings [P/E] P/E 6.42 76.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.17
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.79
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.04
Interest Coverage Int. cover (Qtr) 2.32 -2.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -8.85 19.27
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 3.92 61.85
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -2.07
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -3.09 373.65
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -0.79 192.47
EBIT Growth (1y) % EBIT 1y % (Qtr) -2.01 814.56
EBT Growth (1y) % EBT 1y % (Qtr) -0.79 -29.03
EPS Growth (1y) % EPS 1y % (Qtr) 3.86 141.81
FCF Growth (1y) % FCF 1y % (Qtr) 17.55 78.17
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.56 -10.71
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.36 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.06
Cash Ratio Cash Ratio (Qtr) 0.04 0.68
Current Ratio Curr Ratio (Qtr) 0.39 1.56
Debt to Equity Ratio Debt/Equity (Qtr) 5.99 -0.46
Interest Cover Ratio Int Coverage (Qtr) 2.32 -2.53
Times Interest Earned Times Interest Earned (Qtr) 2.32 -2.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 37.30 46.49
EBIT Margin % EBIT Margin % (Qtr) 21.40 -51.60
EBT Margin % EBT Margin % (Qtr) 12.19 27.73
Gross Margin % Gross Margin % (Qtr) 100.00 55.49
Net Profit Margin % Net Margin % (Qtr) 9.10 26.33