CHTR Charter Communications, Inc. - Fundamental Analysis
BEARISH
CHTR Stock | Fundamental Analysis & Investment Insights
NYSE
•
Communication Services
•
Telecom Services
Current Price
$203.1
Analyst Target
$314.94
+55.1% Upside
52W High
$437.06
52W Low
$199.31
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
Charter Communications (CHTR) trades at a deeply depressed valuation with a P/E of 5.63 and forward P/E of 5.68, significantly below the sector average of 17.65, suggesting potential value. However, this is counterbalanced by deteriorating fundamentals: revenue and earnings are contracting YoY (-0.90% and -5.40%, respectively), with a sharp Q/Q earnings decline of -11.20%. Profitability remains strong—ROE of 31.33% and operating margin of 23.86%—but the company faces severe financial leverage (Debt/Equity of 4.98) and weak liquidity (Current Ratio of 0.38), raising sustainability concerns. Insider selling, poor price momentum (-48.5% over 1Y), and a 'Hold' analyst consensus despite a 55% upside to the $314.94 target reflect deep market skepticism.
Key Strengths
Exceptional ROE of 31.33% significantly exceeds sector average of 25.89%, indicating strong capital efficiency
High operating margin of 23.86% reflects pricing power and cost discipline in a capital-intensive industry
Gross margin of 55.24% demonstrates durable underlying business economics and service stickiness
Valuation is deeply discounted: P/E of 5.63 vs sector average of 17.65 and peer AT&T (8.34) and META (26.96)
Analyst target price implies 55% upside ($314.94 vs current $203.10), suggesting embedded value recognition
Key Risks
Extremely high leverage with Debt/Equity of 4.98, far above sector average of 0.75 and peer AT&T (1.24), increasing refinancing and interest rate risk
Deteriorating growth: Revenue down -0.90% YoY and earnings down -5.40%, indicating operational stagnation
Very weak liquidity: Current Ratio of 0.38 and Quick Ratio of 0.31 signal potential near-term cash flow pressure
Consistently negative price momentum: -48.5% 1Y return and -52.5% over 6M, reflecting sustained investor exodus
Insider selling activity: $0.27M in sales with no buys in last 6 months, signaling lack of confidence from insiders
AI Fair Value Estimate
Based on comprehensive analysis
$314.94
+55.1% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare CHTR against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations