About Charter Communications, Inc.
Charter Communications, Inc. operates as a broadband connectivity company in the United States. The company offers subscription-based internet, mobile, video, and voice services; broadband connectivity services, including fixed internet, WiFi, and mobile; Spectrum internet products; advanced WiFi services; and in-home WiFi, which provides customers with high performance wireless routers and managed WiFi services to enhance their wireless internet experience. It also offers wireline voice communications services using voice over internet protocol technology; Call Guard, an advanced caller ID and robocall blocking solution; video programming and video services, including access to an interactive programming guide with parental controls, video on demand and pay-per-view services; and broadband communications solutions, such as internet access, data networking, fiber connectivity, video entertainment, and business telephone services. In addition, the company provides advertising services on cable television networks, various streaming services, and advertising platforms for local, regional and national businesses. Further, it offers production and technical services for regional sports networks; owns and manages local news channels, including Spectrum News NY1® and Spectrum News SoCal; and delivers broadband connectivity solutions to apartments, single-family gated communities, off-campus student housing, senior residences, and RV parks. The company was founded in 1993 and is headquartered in Stamford, Connecticut.
Charter Communications, Inc. (CHTR) is a Communication Services company in the Telecom Services industry with a market capitalisation of $18.9B. The stock trades at 3.48x trailing earnings.
- Sector
- Communication Services
- Industry
- Telecom Services
- Market cap
- $18.9B
- P/E ratio
- 3.48
- Forward P/E
- 3.19
- EPS (TTM)
- $40.34
- Revenue (TTM)
- $54.4B
- Free cash flow
- $2.2B
- Profit margin
- 9.1%
- Beta
- 0.69
- Shares outstanding
- 119.3M
Financial health: Fair5.5/10
5 strengths, 4 concerns. Weakest points: debt to equity, net debt vs cash flow, current ratio and 1 more.
- Debt to equity: 5.90 (Concern, benchmark < 0.5) — Debt of 5.90x equity is high against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 21.3y (Concern, benchmark < 4 years) — Net debt of $94.3B is 21.3x annual free cash flow — about 21 years of cash flow to repay.
- Current ratio: 0.39 (Concern, benchmark > 1.5) — Short-term assets cover only 0.39x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has improved over the last 4 years.
- Return on equity: 27.2% (Strong, benchmark > 15%) — Earns 27.2% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 55.2% (Strong, benchmark > 40%) — Keeps 55.2% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 9.0% (Watch, benchmark > 10%) — Turns 9.0% of revenue into profit, short of the > 10% mark.
- Free cash flow: $4.4B (Strong, benchmark positive) — Generated $4.4B of free cash flow after capital spending. It has deteriorated over the last 4 years.
- Revenue growth: -1.7% (Concern, benchmark > 10%) — Revenue changed -1.7% year on year, well short of the > 10% mark.
- Earnings growth: 16.1% (Strong, benchmark > 10%) — Earnings changed 16.1% year on year, comfortably past the > 10% mark.
- PEG ratio: 0.76 (Strong, benchmark < 1) — At 0.76, the price looks cheap relative to expected growth — Lynch treated 1.0 as fair value.