Thinking of Investing in CHTR? What Our Analysts Know.

Charter Communications logged a 0.3% change during today's afternoon session, and is now trading at a price of $365.33 per share.

Over the last year, Charter Communications logged a -3.0% change, with its stock price reaching a high of $458.3 and a low of $302.21. Over the same period, the stock underperformed the S&P 500 index by -20.0%. As of April 2023, the company's 50-day average price was $419.47. Charter Communications, Inc. operates as a broadband connectivity and cable operator company serving residential and commercial customers in the United States. Based in Stamford, CT, the large-cap Telecommunications company has 101,700 full time employees. Charter Communications has not offered a dividend during the last year.

Growing Revenues With Increasing Reinvestment in the Business:

2018 2019 2020 2021 2022 2023
Revenue (MM) $43,634 $45,764 $48,097 $51,682 $54,022 $54,570
Revenue Growth n/a 4.88% 5.1% 7.45% 4.53% 1.01%
Gross Margins 12% 14% 17% 20% 22% 23%
Operating Margins 12% 14% 17% 20% 22% 23%
Net Margins 3% 4% 8% 10% 11% 10%
Net Income (MM) $1,506 $1,992 $3,676 $5,320 $5,849 $5,417
Net Interest Expense (MM) -$77 -$135 -$31 -$101 $56 -$213
Depreciation & Amort. (MM) $10,318 $9,926 $9,704 $9,345 $8,903 $8,700
Earnings Per Share $5.22 $7.45 $15.4 $24.47 $30.74 $30.61
Diluted Shares (MM) 236 224 209 193 164 120
Free Cash Flow (MM) $2,642 $4,553 $7,147 $8,604 $5,549 $3,186
Capital Expenditures (MM) $9,125 $7,195 $7,415 $7,635 $9,376 $11,179

Charter Communications Is Fairly Priced to Earnings but Overpriced Compared to Its Book Value:

Charter Communications has a trailing twelve month P/E ratio of 13.7, compared to an average of 23.78 for the Telecommunications sector. Based on its EPS guidance of $37.31, the company has a forward P/E ratio of 11.2. Furthermore, Charter Communications is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.87 is higher than the sector average of 3.46.

Charter Communications Has an Average Rating of Hold:

The 21 analysts following Charter Communications have set target prices ranging from $320.0 to $708.0 per share, for an average of $467.76 with a hold rating. As of April 2023, the company is trading -10.3% away from its average target price, indicating that there is an analyst consensus of strong upside potential.

Charter Communications has an above average percentage of its shares sold short because 8.9% of the company's shares are sold short. Institutions own 69.5% of the company's shares, and the insider ownership rate stands at 33.92%, suggesting a large amount of insider shareholders. The largest shareholder is Dodge & Cox Inc, whose 6% stake in the company is worth $3,092,896,449.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.