Morningstar Rating
Stock XNAS Rating as of
$285.95 +9.69(3.51%)
View Full ChartAs of Delayed Price Closed
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Company Report
Company Report
Charter's Exposure to Broadband Subsidies Will Further Punish Growth
Michael Hodel
We generally like Charter’s efforts to drive customer penetration by limiting price increases, improving customer service, and expanding its offerings to appeal to a variety of preferences. However, we aren’t enamored with the extremely heavy discount on broadband and wireless services it offers. We believe this type of promotion tends to attract disloyal customers while also diminishing the value of these services in consumers’ minds. Charter's heavy exposure to the Affordable Connectivity Program, a federal broadband subsidy, may also impair growth in the short term as funding dries up in 2024. Still, we believe the firm is positioned to remain a dominant broadband provider and produce stable cash flow.
Price vs Fair Value
Price vs Fair Value
CHTR is trading at a 329% premium.
Price
$285.95
Fair Value
$918.00
Uncertainty
High
- 1-Star Price
- $343.90
- 5-Star Price
- $641.00
- Economic Moat
- Dfpknm
- Capital Allocation
- Pbhymvk
Bulls Say, Bears Say
Bulls Say, Bears Say
Bulls
Like its cable peers, Charter’s networks provide a platform to easily meet customers’ growing bandwidth demands, which should drive market share gains and strong recurring cash flow.
Bears
Charter has a reputation for poor customer service. As high-quality alternatives emerge, including fixed-wireless, many customers will jump ship.
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News
News
- SPECTRUM DIGITAL EDUCATION TO AWARD $1 MILLION IN GRANTS FROM CHARTER COMMUNICATIONS 2024 PLEDGE
- Ad-Supported Paramount+ to Be Included in Charter's Spectrum Packages Under New Deal
- PARAMOUNT GLOBAL AND CHARTER COMMUNICATIONS ANNOUNCE NEW MULTI-YEAR AGREEMENT FOR DISTRIBUTION OF PARAMOUNT'S LINEAR NETWORKS, CBS OWNED-AND-OPERATED STATIONS AND DIRECT-TO-CONSUMER STREAMING SERVICES
- PARAMOUNT GLOBAL AND CHARTER COMMUNICATIONS ANNOUNCE NEW MULTI-YEAR AGREEMENT FOR DISTRIBUTION OF PARAMOUNT'S LINEAR NETWORKS, CBS OWNED-AND-OPERATED STATIONS AND DIRECT-TO-CONSUMER STREAMING SERVICES
- Charter Announces Pricing for Tender Offer for 4.908% Senior Secured Notes due 2025
- Charter Announces Upsize and Early Tender Results for 4.908% Senior Secured Notes due 2025
- SPECTRUM OFFERS TO PAY UP TO $2,500 TO CUSTOMERS WHO SWITCH TO SPECTRUM MOBILE™
- Charter Closes $3.0 Billion Senior Secured Notes
Trading Information
Trading Information
- Previous Close Price
- $276.26
- Day Range
$273.59–286.26
- 52-Week Range
$236.08–458.30
- Bid/Ask
- $286.34/$289.40
- Market Cap
- $41.19 Bil
- Volume/Avg
- 1.3 Mil/1.2 Mil
Key Statistics
Key Statistics
- Price/Earnings (Normalized)
- 8.66
- Price/Sales
- 0.79
- Dividend Yield (Trailing)
- —
- Dividend Yield (Forward)
- —
- Total Yield
- 6.84%
Company Profile
Company Profile
Charter is the product of the 2016 merger of three cable companies, each with a decades-long history in the business: Legacy Charter, Time Warner Cable, and Bright House Networks. The firm now holds networks capable of providing television, internet access, and phone services to roughly 57 million US homes and businesses, around 40% of the country. Across this footprint, Charter serves 30 million residential and 2 million commercial customer accounts under the Spectrum brand, making it the second-largest US cable company behind Comcast. The firm also owns, in whole or in part, sports and news networks, including Spectrum SportsNet (long-term local rights to Los Angeles Lakers games), SportsNet LA (Los Angeles Dodgers), SportsNet New York (New York Mets), and Spectrum News NY1.
- Sector
- Communication Services
- Industry
- Telecom Services
- Stock Style Box
- Mid Value
- Total Number of Employees
- 101,100
- Website
- https://corporate.charter.com
Competitors
Competitors
- Lumen Technologies Inc Ordinary Shares LUMN
- Verizon Communications Inc VZ
Valuation
Valuation
| Metric | CHTR | LUMN | VZ |
|---|---|---|---|
Price/Earnings (Normalized) | 8.66 | 21.29 | 8.47 |
Price/Book Value | 3.47 | 2.18 | 1.77 |
Price/Sales | 0.79 | 0.08 | 1.24 |
Price/Cash Flow | 2.88 | 0.39 | 4.35 |
Price/Earnings
CHTR
LUMN
VZ
Financial Strength
Financial Strength
| Metric | CHTR | LUMN | VZ |
|---|---|---|---|
Quick Ratio | 0.34 | 0.77 | 0.52 |
Current Ratio | 0.40 | 1.03 | 0.71 |
Interest Coverage | 2.34 | −8.33 | 3.72 |
Quick Ratio
CHTR
LUMN
VZ
Profitability
Profitability
| Metric | CHTR | LUMN | VZ |
|---|---|---|---|
Return on Assets (Normalized) | 3.93% | −0.98% | 4.66% |
Return on Equity (Normalized) | 53.43% | −11.06% | 18.99% |
Return on Invested Capital (Normalized) | 8.68% | 3.01% | 7.89% |
Return on Assets
CHTR
LUMN
VZ
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Telecom Services Industry Comparables
Telecom Services Industry Comparables
| 1-Day Chart | Name | Price | Morningstar Rating for Stocks | Capital Allocation | Economic Moat | Market Cap |
|---|---|---|---|---|---|---|
| T-Mobile US Inc TMUS | Wtdtbpqrg | Mnmjl | $208.4 Bil | |||
| Verizon Communications Inc VZ | Zjbxrqts | Rrtvg | $166.1 Bil | |||
| Comcast Corp Class A CMCSA | Ghxhbdvm | Rwjb | $146.4 Bil | |||
| T | Qdsmj | Ydbjpkd | $126.7 Bil | |||
| Deutsche Telekom AG ADR DTEGY | Zkmhkmkq | Hrysnbj | $121.0 Bil | |||
| KDDI Corp ADR KDDIY | Qnpcpdp | Jwpgwrs | $55.2 Bil | |||
| America Movil SAB de CV ADR - Series B AMX | Gbmdskyqr | Gqwccj | $52.5 Bil | |||
| BCE Inc BCE | Wwpflyghk | Xwsvyq | $29.8 Bil | |||
| Orange SA ADR ORAN | Wqtdxmfg | Dln | $26.5 Bil |
