Charter Communications, Inc.

CHTR

Cable & Other Pay Television Services

Mkt Cap

$39.19B

PE

8.44

Debt

$97.97B

Cash

$661M

EV

$136.5B

FCF

$2.88B

Market Cap

$39.19B

P/E Ratio

8.44

Debt

$97.97B

Cash

$661M

EV

$136.5B

FCF

$2.88B

Charts data: {"Earnings":[{"time":"2014-12-30","value":-183000000},{"time":"2015-12-30","value":-271000000},{"time":"2016-12-30","value":3522000000},{"time":"2017-12-30","value":9895000000},{"time":"2018-12-30","value":1230000000},{"time":"2019-12-30","value":1668000000},{"time":"2020-12-30","value":3222000000},{"time":"2021-12-30","value":4654000000},{"time":"2022-12-30","value":5055000000},{"time":"2023-12-30","value":4557000000}],"Sales":[{"time":"2014-12-30","value":9108000000},{"time":"2015-12-30","value":9754000000},{"time":"2016-12-30","value":29003000000},{"time":"2017-12-30","value":41581000000},{"time":"2018-12-30","value":43634000000},{"time":"2019-12-30","value":45764000000},{"time":"2020-12-30","value":48097000000},{"time":"2021-12-30","value":51682000000},{"time":"2022-12-30","value":54022000000},{"time":"2023-12-30","value":54607000000}],"Net Margins":[{"time":"2014-12-30","value":-0.020092226613965744},{"time":"2015-12-30","value":-0.02778347344679106},{"time":"2016-12-30","value":0.12143571354687446},{"time":"2017-12-30","value":0.23796926480844616},{"time":"2018-12-30","value":0.028189026905624054},{"time":"2019-12-30","value":0.03644786294904292},{"time":"2020-12-30","value":0.06698962513254465},{"time":"2021-12-30","value":0.09005069463256066},{"time":"2022-12-30","value":0.09357298878234793},{"time":"2023-12-30","value":0.08345083963594412}],"Assets":[{"time":"2014-12-30","value":24550000000},{"time":"2015-12-30","value":39316000000},{"time":"2016-12-30","value":149067000000},{"time":"2017-12-30","value":146623000000},{"time":"2018-12-30","value":146130000000},{"time":"2019-12-30","value":148188000000},{"time":"2020-12-30","value":144206000000},{"time":"2021-12-30","value":142491000000},{"time":"2022-12-30","value":144523000000},{"time":"2023-12-30","value":147193000000}],"Stockholders Equity":[{"time":"2014-12-30","value":146000000},{"time":"2015-12-30","value":-46000000},{"time":"2016-12-30","value":50366000000},{"time":"2017-12-30","value":47531000000},{"time":"2018-12-30","value":44272000000},{"time":"2019-12-30","value":38811000000},{"time":"2020-12-30","value":30281000000},{"time":"2021-12-30","value":18156000000},{"time":"2022-12-30","value":12549000000},{"time":"2023-12-30","value":14718000000}],"ROE":[{"time":"2014-12-30","value":-1.2534246575342465},{"time":"2015-12-30","value":5.891304347826087},{"time":"2016-12-30","value":0.06992812611682485},{"time":"2017-12-30","value":0.20817992468073468},{"time":"2018-12-30","value":0.02778279725334297},{"time":"2019-12-30","value":0.04297750637705805},{"time":"2020-12-30","value":0.10640335523925894},{"time":"2021-12-30","value":0.25633399427186604},{"time":"2022-12-30","value":0.4028209419077217},{"time":"2023-12-30","value":0.30962087240114144}],"ROA":[{"time":"2014-12-30","value":0.03955193482688391},{"time":"2015-12-30","value":0.02833452029708007},{"time":"2016-12-30","value":0.022506658079923792},{"time":"2017-12-30","value":0.028003792038084067},{"time":"2018-12-30","value":0.03572846095941969},{"time":"2019-12-30","value":0.04393743083110643},{"time":"2020-12-30","value":0.05828467608837358},{"time":"2021-12-30","value":0.07387133222449137},{"time":"2022-12-30","value":0.08276883264255516},{"time":"2023-12-30","value":0.0853233509745708}]}

Charter Communications, Inc. operates as a broadband connectivity and cable operator company serving residential and commercial customers in the United States. The company offers subscription-based internet, video, and mobile and voice services; a suite of broadband connectivity services, including fixed internet, WiFi, and mobile; security suite that protects computers from viruses and spyware, and threats from malicious actors; in-home WiFi, which provides customers with high performance wireless routers and managed WiFi services to enhance their fixed wireless internet experience; out-of-home WiFi; and Spectrum WiFi services. The company also offers voice communications services using voice over internet protocol technology; and broadband communications solutions, such as internet access, data networking, fiber connectivity, video entertainment, and business telephone services to cellular towers and office buildings for business and carrier organizations. In addition, it provides mobile services; video programming, static IP and business WiFi, and e-mail and security services; sells local advertising across various platforms for networks, such as TBS, CNN, and ESPN; sells advertising inventory to local sports and news channels; and offers Audience App to create data-driven linear TV campaigns for local advertisers. Further, the company offers communications products and managed service solutions; data connectivity services to mobile and wireline carriers on a wholesale basis; and owns and operates regional sports and news networks. It serves approximately 32 million customers in 41 states. The company was founded in 1993 and is headquartered in Stamford, Connecticut.

Sector

10-Q
9/30/23
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10-K
12/31/22
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10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Charter Communications, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$2.88B	$3.675B	$4.598B	$5.637B	$6.768B	$7.957B	$9.155B	$10.3B	$11.34B	$12.19B	$12.8B	$128B
DCF		$3.196B	$3.477B	$3.706B	$3.87B	$3.956B	$3.958B	$3.873B	$3.706B	$3.464B	$3.163B	$31.63B
Value	$68B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 8.5%

Earnings Stability -0.32%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	-2.8%	12%	24%	2.8%	3.6%	6.7%	9%	9.4%	8.3%	8.5%
ROA	2.8%	2.3%	2.8%	3.6%	4.4%	5.8%	7.4%	8.3%	8.5%	8.6%
ROE	590%	7%	21%	2.8%	4.3%	11%	26%	40%	31%	30%

What is the average Net Margin?

The average Net Margin over the past 5 years is +6.65%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1.34%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +6.33%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.09%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +19.1%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +7.54%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	68.83	23.48	22.08	28.81	18.14	11.72	10.99	17.86	30.07	34.02
Debt Equity	-776.59	1.27	1.52	1.72	2.13	2.77	5.21	7.90	6.78	6.28
MIN
Graham Stability	-	-	100%	28%	34%	76%	100%	100%	100%	28%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 34.02.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.14.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.28.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	9.5%	4.6%	4.3%	1.1%	-11%
Net Income	3.7%	30%	12%	-9.9%	-13%
Stockholders Equity	-16%	-20%	-21%	17%	-0.25%
FCF	2.9%	4.7%	-23%	-40%	-43%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +4.59%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -11.24%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +29.94%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -13.26%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -19.77%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.25%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +4.66%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -42.76%.