Charter Communications CHTR
Charter Communications is a US telecommunications company operating under the Spectrum brand, offering cable television, high-speed internet, and phone services to homes and businesses. Charter trades at a P/E of 2.94 and a 15% FCF yield, reflecting the market's punishment for its extreme leverage (ND/EBITDA 4.41) and declining revenue (-1.7%), but its 23.5% operating margin and 27.2% ROE show a solid underlying business that the market discounts with extreme pessimism.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Charter Communications is a US telecommunications company operating under the Spectrum brand, offering cable television, high-speed internet, and phone services to homes and businesses. Charter trades at a P/E of 2.94 and a 15% FCF yield, reflecting the market's punishment for its extreme leverage (ND/EBITDA 4.41) and declining revenue (-1.7%), but its 23.5% operating margin and 27.2% ROE show a solid underlying business that the market discounts with extreme pessimism.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.9 |
| Quality / Moat | 5.7 |
| Valuation | 9.2 |
| Growth | 4.8 |
| Dividend | 1.4 |
| Momentum | 0.5 |
| Risk & Context | 7.3 |
OVERALL SCORE: 5.3/10
Context and risks
Cable telecommunications sector under structural competitive pressure (fiber and 5G) and regulatory in the US. The 43.8% 12-month decline and 1st percentile of the 52-week range reflect a deterioration in expectations that the market already discounts, but the business model risk persists.
News considered in the analysis
- Comcast’s Dividend Keeps Growing While the Market Treats It Like a Melting Ice Cube — Noticia sobre Comcast, competidor directo, sin información nueva sobre Charter.
- Comcast Stock Hits Its Lowest Level in More Than a Decade. Why the Trouble Runs Deep. — Análisis de un competidor; refleja presión sectorial ya conocida y descontada en el precio de Charter.
- The Cheapest Stocks in the S&P 500: Are They a Bargain or a Trap? — Listículo genérico sin información específica sobre Charter.
- Are You Overpaying For Verizon Stock Versus Its Rivals? — Comparativa de valoración de otro competidor; sin impacto directo en Charter.
- Vecima Networks Q4 Earnings Call Highlights — Proveedor de equipos de red; sin relevancia material para Charter.
Verdict: Hold or accumulate only for investors with high tolerance for leverage risk; valuation is attractive but the balance sheet limits the margin for error.
Main risk: Extreme leverage (Net Debt/EBITDA of 4.41 and Debt/Equity of 441.58) in a rising rate environment, which makes refinancing more expensive and amplifies any operational weakness in a sector with declining revenue.
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