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 positively driven by increased investor confidence, as evident from Savant Capital LLC's 661.2% stake increase in the company. Additionally, Cryder Capital Partners LLP raised its holdings by 13.6%. The company's Q4 2025 earnings call highlighted mobile line growth, with nearly 2 million mobile lines added, a 19% growth. Despite revenue decline, Charter's EBITDA grew by about 0.5%. Analysts increased their forecasts following Q4 earnings, indicating a positive outlook. Institutional investors' increased stake and analyst upgrades signal a positive trend.

1.c. Company Highlights

Last Price	232
Change Percentage	1.13%
Open	229.29
Previous Close	229.41
Market Cap ( Millions)	30023
Volume	1185606
Year High	437.06
Year Low	180.38
M A 50	213.7
M A 200	274.74

FCF Yield	14.72%
Dividend Yield	0.00%
ROE	31.24%
Debt / Equity	604.96%
Net Debt / EBIDTA	455.63%
Price To Book	1.84
Price Earnings Ratio	5.92
Price To FCF	6.8
Price To sales	0.55
EV / EBITDA	5.97

2. Charter Communications' Q4 2025 Earnings: A Resilient Performance Amidst a Competitive Landscape

Charter Communications reported a revenue decline of 2% year over year in Q4 2025, with a slight decline of 0.4% when excluding advertising revenue and programmer app allocation. Despite the challenging environment, the company demonstrated resilience, with adjusted EBITDA declining by only 1.2% year over year. Earnings per share (EPS) came in at $10.34, beating analyst estimates of $9.78. The company's capital expenditures totaled $3.3 billion, higher than the previous year's Q4, but in line with expectations. Free cash flow was $773 million, impacted by a less favorable change in working capital and higher CapEx.

Publication Date: Feb -02

                                    📋 Highlights
                                    Revenue Decline::
                                                2025 revenue fell 0.5% year-over-year, with Q4 revenue down 2% YoY, driven by political advertising challenges and customer losses.
Customer Metrics::
                                                Residential Internet lost 119,000 customers (better than 2024’s 135,000), while video gained 44,000 and rural markets added 46,000 net customers in Q4.
Capital Expenditures::
                                                Q4 CapEx rose to $3.3 billion, with 2026 guidance at $11.4 billion, but plans to reduce to under $8 billion by 2028 to boost free cash flow ($773 million in Q4).
EBITDA Growth::
                                                2025 full-year adjusted EBITDA grew 0.6% YoY, with Q4 down 1.2% YoY, but 2026 guidance projects slight growth excluding transition costs.
Debt and Share Repurchases::
                                                Net debt/EBITDA remains at 4.5x (targeting 3.5-3.75x by 2028), with $760 million spent on 2.9 million share buybacks at $259 average price in Q4.

                                

Operational Highlights

The company's operational performance was marked by a loss of 119,000 Internet customers, better than the previous year's Q4. Video customers grew by 44,000, while wireline voice customers declined by 140,000. The rural segment saw 46,000 net customer additions. The wireless offload strategy continued to gain traction, with an 89% offload rate, up from 88% in the previous quarter.

Financial Guidance and Outlook

Charter expects slight EBITDA growth, excluding transition costs, for the full year 2026. The company is planning for total 2026 capital expenditures to reach $11.4 billion, with a reduction to less than $8 billion by 2028. This reduction is expected to drive free cash flow growth. Analysts estimate revenue growth of 1.1% for the next year.

Valuation and Leverage

Charter's current valuation metrics indicate a P/E Ratio of 5.26, P/B Ratio of 1.63, and EV/EBITDA of 5.7. The Net Debt / EBITDA ratio stands at 4.44. The company is committed to reducing leverage to the low end of a new 3.5 to 3.75 times range within three years following the close of the Liberty Broadband transaction.

Strategic Initiatives

The company is focused on messaging its superior value and utility, and providing the best quality service to win in the residential and business connectivity marketplace. Charter has amended and modernized its long-term MVNO agreement with Verizon, supporting profitable growth for both companies. The convergence strategy is gaining traction, with Spectrum Mobile improving brand awareness and reputation.

3. NewsRoom

Charter Communications, Inc. (CHTR) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript

Mar -04

Source: seekingalpha.com

SPECTRUM BUSINESS EXPANDS TECHNOLOGY OFFERINGS FOR CALIFORNIA STATE AGENCIES THROUGH CALNET CONTRACT

Mar -03

Source: prnewswire.com

US agency approves Charter Communications' $34.5 billion deal to buy Cox

Feb -27

Source: reuters.com

Charter to Participate in Morgan Stanley Technology, Media & Telecom Conference

Feb -25

Source: prnewswire.com

CHARTER COMMUNICATIONS NAMES FRONTIER CEO NICK JEFFERY CHIEF OPERATING OFFICER

Feb -25

Source: prnewswire.com

SPECTRUM GUARANTEES $1,000 SAVINGS IN THE FIRST YEAR FOR CUSTOMERS WHO FLEE THE BIG 3

Feb -24

Source: prnewswire.com

First Eagle Global Real Assets Fund Q4 2025 Portfolio Review

Feb -23

Source: seekingalpha.com

3 Stocks to Watch From a Prospering Cable Television Industry

Feb -20

Source: zacks.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: 7.5

Growth: 2.6

Quality: 5.5

Yield: 9.0

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

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 ->

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 ->

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 ->

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 ->

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 ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

0.55%

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' Q4 2025 Earnings: A Resilient Performance Amidst a Competitive Landscape

Operational Highlights

Financial Guidance and Outlook

Valuation and Leverage

Strategic Initiatives

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

232.0$

Current Price

232$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA