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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.

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1.b. Last Insights on CHTR

Breaking News: Charter Communications trades at depressed levels after weak earnings and subscriber losses. Despite intensifying competition from fiber, 5G, and satellite providers, the company retains valuable network assets and resilient cash flow. With $94.3 billion in debt and $4.24 billion in annual interest, leverage is manageable. Ongoing capital expenditure is expected to generate future free cash flow upside. Some analysts view Charter Communications as a buy, considering its hard-to-replace assets and potential for future growth. Recommendation to buy this stock has been made by some analysts.

1.c. Company Highlights

2. Charter Q1 2026: Margins Squeezed but Strategy Holds

Charter Communications posted a 1% YoY decline in revenue, coming in at $54.6 billion, while adjusted EBITDA fell 1.8% to $11.3 billion. Net income slid to $9.17 billion against analyst expectations of $9.96 billion, reflecting the impact of prior‑year benefits and a 1.8% drop in margins. Despite a 120,000‑line loss in internet customers, mobile lines grew 370,000, pushing total subscribers past 12 million. The company’s P/E ratio of 4.4 and EV/EBITDA of 5.79 indicate modest valuation pressure amid a competitive cable landscape. <cite>Staff earnings call, Q1 2026</cite>.

Publication Date: Apr -26

📋 Highlights
  • Revenue Decline and Segment Mix:: Q1 2026 revenue fell 1% YoY to $54.6 billion, with residential revenue down 2.7% and commercial revenue up 1%.
  • Customer Metrics Shift:: Internet customer losses of 120,000 offset by mobile line additions (370,000 to 12.0 million), while video losses improved to 60,000 (<1/3 of Q1 2025).
  • Adjusted EBITDA and Free Cash Flow:: Adjusted EBITDA dropped 1.8% to $11.3 billion; free cash flow totaled $1.4 billion, down $200 million YoY.
  • Cox Transaction Progress:: Acquisition nears closure (summer 2026), with $800 million in run-rate synergies (up from $500 million) and B2B/AI capabilities expected to drive growth.
  • Debt and Capital Allocation:: Debt principal at $94 billion with 5.2% weighted average cost; $2.9 billion in Q1 capex (2026 outlook: $11.4 billion) and $963 million in share repurchases (4.3 million shares at $225 avg.).

Revenue Dynamics

Residential revenue slipped 2.7% YoY, driven by a 1% flat broadband ARPU and a 60,000‑line loss in video customers—less than a third of the Q1 2025 loss. Commercial revenue, however, grew 1%, offsetting residential declines and supporting the overall revenue decline of only 1%. The company’s focus on mobile growth and the upcoming Cox acquisition are expected to cushion future revenue volatility.

Profitability & Cash Flow

Adjusted EBITDA dipped 1.8% to $11.3 billion, largely due to one‑time benefits rather than core operating performance. Free cash flow was $1.4 billion, $200 million lower than last year, but still healthy given the $2.9 billion capex outlay and a $64 million cash tax payment in the quarter. The company’s ROIC of 8.3% and ROE of 32.09% highlight efficient capital deployment.

Capital Allocation & Debt

Capital expenditures reached $2.9 billion, with 2026 capex projected at $11.4 billion. Charter’s debt principal stands at $94 billion, carrying a 5.2% weighted average cost and a $4.9 billion current run‑rate annualized cash interest. Net debt to 12‑month adjusted EBITDA remains at 4.15x, and 4.22x pro forma after the pending Liberty Broadband transaction, with a target of 3.5‑3.75x within three years post‑deal.

Cox Acquisition Synergies

The Cox transaction, closing summer 2026, is expected to deliver $800 million in run‑rate operating expense synergies, up from the original $500 million estimate. The deal will add B2B capabilities and network AI talent, while Charter will roll out Spectrum branding and pricing in the legacy Cox footprint. The company plans to leverage video and mobile to preserve ARPU and drive margin growth, anticipating lower broadband pricing and higher sales.

Strategic Outlook & Competition

Charter continues to navigate a dynamic competitive environment, facing fixed‑wireless and satellite challengers. The firm emphasizes operating strategy, customer churn at historical lows, and a strong yield at the point of sale. With fiber overbuild growth steady and a focus on service reputation, Charter aims to capitalize on the muted housing market and potential satellite partnerships while keeping pricing decisions flexible to maintain competitiveness and inflation resilience.

3. NewsRoom

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These Insiders Are Quietly Loading Up on Charter After the Post-Earnings Plunge

May -01

Source: 247wallst.com

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Charter Communications: Buy This Cigar Butt

Apr -29

Source: seekingalpha.com

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Here Are Wednesday’s Top Wall Street Analyst Research Calls: Alibaba, Boston Scientific, Brown-Forman, Charter Communications, Franklin Resources, Spotify, T-Mobile, and More

Apr -29

Source: 247wallst.com

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Tractor Supply, Lululemon, and Northrop Grumman Are Among Top 10 Large-Cap Losers Last Week (April 20-April 24): Are The Others In Your Portfolio?

Apr -26

Source: feeds.benzinga.com

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Charter Communications Inc (CHTR) Q1 2026 Earnings Call Highlights: Navigating Challenges with Strategic Growth Initiatives

Apr -25

Source: gurufocus.com

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Why Charter Communications Stock Plummeted Today

Apr -24

Source: fool.com

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Charter's stock is getting hammered. Here's what's fueling its worst day on record.

Apr -24

Source: marketwatch.com

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Charter Communications: Broadband Panic Is Overly Dramatic

Apr -24

Source: seekingalpha.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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AT&T

A-Score: 7.0/10

Value: 7.5

Growth: 2.6

Quality: 5.5

Yield: 9.0

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Verizon

A-Score: 6.9/10

Value: 8.0

Growth: 3.1

Quality: 5.8

Yield: 10.0

Momentum: 4.5

Volatility: 10.0

1-Year Total Return ->

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Comcast

A-Score: 6.1/10

Value: 8.6

Growth: 5.2

Quality: 6.6

Yield: 7.0

Momentum: 1.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
T-Mobile US

A-Score: 5.2/10

Value: 4.5

Growth: 7.1

Quality: 5.8

Yield: 2.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Charter

A-Score: 4.6/10

Value: 8.1

Growth: 7.7

Quality: 5.3

Yield: 0.0

Momentum: 1.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Cogent Communications

A-Score: 4.1/10

Value: 7.7

Growth: 2.7

Quality: 2.1

Yield: 10.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

171.74$

Current Price

171.74$

Potential

-0.00%

Expected Cash-Flows