Charter Communications, Inc. (CHTR) | Investment Case

1. Company Snapshot

1.a. Company Description

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 video services, including video on demand, high-definition television, digital video recorder, pay-per-view services.

It provides Internet services, such as 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 to enhance their in-home wireless Internet experience; out-of-home WiFi; and Spectrum WiFi services, as well as video 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; offers video programming, static IP and business WiFi, email and security, and multi-line telephone services, as well as Web-based service management; 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 for optimizes linear inventory.

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.

Show Full description

1.b. Last Insights on CHTR

Charter Communications' recent performance was negatively impacted by weak video and ad sales, leading to a 5.4% year-over-year drop in Q3 EPS and a 0.9% fall in revenues. The company's Q3 earnings missed estimates, with earnings of $8.34 per share, compared to the Zacks Consensus Estimate of $9.32 per share. Analysts cut their forecasts following the downbeat Q3 results. Additionally, the company faces a securities class action lawsuit filed on behalf of shareholders who purchased or acquired Charter securities between July 26, 2024, and July 24, 2025.

1.c. Company Highlights

Last Price	199.98
Change Percentage	0.01%
Open	199.95
Previous Close	199.96
Market Cap ( Millions)	27776
Volume	1587097
Year High	437.06
Year Low	193
M A 50	236.25
M A 200	320.52

FCF Yield	15.80%
Dividend Yield	0.00%
ROE	32.32%
Debt / Equity	620.36%
Net Debt / EBIDTA	445.14%
Price To Book	1.74
Price Earnings Ratio	5.22
Price To FCF	6.33
Price To sales	0.5
EV / EBITDA	5.76

2. Charter Communications' Q3 2025 Earnings: A Mixed Bag

Charter Communications reported a revenue decline of 1% year-over-year, driven by customer losses and a challenging political advertising comparison. EBITDA declined by 1.5% year-over-year, but was essentially flat when excluding advertising. The company's EPS came in at $8.34, missing estimates of $9.23. The revenue decline was partly offset by growth in mobile subscribers, with Charter adding nearly 500,000 Spectrum Mobile lines in the quarter. Adjusted EBITDA margin was also impacted, declining to 39.4% from 40.1% in the prior-year quarter.

Publication Date: Nov -04

                                    📋 Highlights
                                    Spectrum Mobile Growth::
                                                Added 493,000 lines in Q3 2025, totaling 2 million lines (20% growth) over 12 months.
Video Customer Improvements::
                                                Lost 70,000 video customers, with better retention linked to new pricing and product enhancements.
Revenue and EBITDA Trends::
                                                Revenue declined 1% YoY, EBITDA down 1.5% YoY but flat excluding advertising impact.
Capital Expenditures::
                                                $3.1 billion in Q3, with 2025 CapEx forecasted at $11.5 billion, down from $12 billion.

                                

Customer Trends

The company's customer trends were mixed, with Internet customer losses of 109,000 in the quarter, in line with last year's results. However, mobile customer additions remained strong, with 493,000 lines added in the quarter. Video customers declined by 70,000, but the improvement was driven by better connects year-over-year resulting from new pricing and packaging launched last fall and various product improvements. As Chris Winfrey, President and CEO, stated, "We're working on marketing offer expressions, better use of mobile and video, and trying to be a better operator."

Growth Prospects

Charter is focused on improving customer perception of its brand and products, growing mobile profitability, and driving streaming video growth. The company is also investing in AI, which will transform the quality and economics of its $8 billion annual cost to serve. With a goal to improve customer service quality and lower costs, Charter is exploring nonlinear ways to grow revenue, including data offloading, location-based services, and edge CDN use cases.

Valuation

Charter's valuation metrics are as follows: P/E Ratio of 5.8, P/B Ratio of 1.94, P/S Ratio of 0.55, EV/EBITDA of 5.88, and Net Debt / EBITDA of 4.45. The market appears to be pricing in a relatively low growth rate, with analysts estimating revenue growth of 1.0% next year. With a Free Cash Flow Yield of 14.46%, Charter's valuation suggests that the company is generating significant cash flows relative to its market capitalization.

Outlook

Charter expects 2025 full year EBITDA growth to be flat or marginally positive year-over-year, with higher underlying growth absent the impact of political advertising. However, the company expects Q4 EBITDA decline to be bigger than Q3 due to new offers being pulled from the market. The company's leverage ratio is currently at 4.23x pro forma for the pending Liberty Broadband transaction, and Charter plans to target 3.5x to 4.0x after the Cox acquisition. With a comfortable leverage ratio, Charter is well-positioned to continue creating value for shareholders in the medium and long term.

3. NewsRoom

Charter to Participate in UBS Global Media and Communications Conference

Dec -02

Source: prnewswire.com

Boston Partners Purchases Shares of 112,059 Charter Communications, Inc. $CHTR

Nov -28

Source: defenseworld.net

American Century Mid Cap Value Fund Q3 2025 Contributors/Detractors And Notable Trades

Nov -20

Source: seekingalpha.com

Charter Communications: Broadband Collapse Fears Are Overblown

Nov -19

Source: seekingalpha.com

Charter Communications Announces Strategic Collaboration with AWS on Generative AI to Transform Software Development and Operations

Nov -18

Source: prnewswire.com

Brokerages Set Charter Communications, Inc. (NASDAQ:CHTR) Target Price at $329.56

Nov -18

Source: defenseworld.net

SPECTRUM SAYS 'THANK YOU' WITH FREE GIG LIFT DURING THANKSGIVING WEEK

Nov -13

Source: prnewswire.com

PRIMECAP Management's Strategic Moves: Hess Corp Exit and Chevron Corp Addition

Nov -12

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.40%)

6. Segments

Internet Telephone

Expected Growth: 7.4%

Growing demand for high-speed internet and voice services, driven by increasing adoption of streaming services and remote work, will fuel Charter's internet-based phone services growth.

7. Detailed Products

Spectrum Internet

High-speed internet services for residential and business customers

Spectrum TV

Cable television services offering live TV, On Demand, and streaming capabilities

Spectrum Voice

Home phone services with unlimited local and long-distance calling

Spectrum Business Internet

High-speed internet services for businesses of all sizes

Spectrum Business TV

Customized TV solutions for businesses, including hospitality and healthcare industries

Spectrum Enterprise

Customized network and IT solutions for large enterprises and government agencies

8. Charter Communications, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Charter Communications, Inc. faces moderate threat from substitutes due to the availability of alternative internet and TV services from competitors such as AT&T, Comcast, and Verizon.

Bargaining Power Of Customers

Charter Communications, Inc. has a large customer base, but individual customers have limited bargaining power due to the lack of alternative options and high switching costs.

Bargaining Power Of Suppliers

Charter Communications, Inc. has a diverse supplier base, and no single supplier has significant bargaining power due to the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established competitors, including AT&T, Comcast, and Verizon, which leads to aggressive pricing and marketing strategies.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	89.82%
Debt Cost	6.91%
Equity Weight	10.18%
Equity Cost	8.81%
WACC	7.11%
Leverage	881.99%

11. Quality Control: Charter Communications, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

AT&T

A-Score: 7.0/10

Value: 7.1

Growth: 2.6

Quality: 5.7

Yield: 9.0

Momentum: 8.5

Volatility: 9.3

1-Year Total Return ->

Verizon

A-Score: 6.9/10

Value: 7.0

Growth: 3.1

Quality: 5.5

Yield: 10.0

Momentum: 5.5

Volatility: 10.0

1-Year Total Return ->

Comcast

A-Score: 6.5/10

Value: 8.4

Growth: 5.2

Quality: 8.0

Yield: 7.0

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

T-Mobile US

A-Score: 5.7/10

Value: 4.2

Growth: 7.1

Quality: 5.6

Yield: 2.0

Momentum: 6.5

Volatility: 9.0

1-Year Total Return ->

Charter

A-Score: 4.6/10

Value: 7.6

Growth: 7.8

Quality: 5.2

Yield: 0.0

Momentum: 2.0

Volatility: 5.0

1-Year Total Return ->

Cogent Communications

A-Score: 4.1/10

Value: 5.2

Growth: 2.7

Quality: 2.1

Yield: 10.0

Momentum: 0.0

Volatility: 4.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

2.04%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.11%

Charter Communications, Inc. - US16119P1084

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CHTR

1.c. Company Highlights

Higher Growth

Stable Momentum

Medium Volatility

Earnings Miss

Average Yield

Earnings Beats

Weak Momentum

Strong Momentum

Fairly Valued

Revenues Miss

2. Charter Communications' Q3 2025 Earnings: A Mixed Bag

Customer Trends

Growth Prospects

Valuation

Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.40%)

6. Segments

Internet Telephone

Expected Growth: 7.4%

7. Detailed Products

Spectrum Internet

Spectrum TV

Spectrum Voice

Spectrum Business Internet

Spectrum Business TV

Spectrum Enterprise

8. Charter Communications, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Charter Communications, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

199.98$

Current Price

199.98$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA