tiprankstipranks
Trending News
More News >
Charter Communications (CHTR)
NASDAQ:CHTR
Advertisement

Charter Communications (CHTR) AI Stock Analysis

Compare
2,250 Followers

Top Page

CHTR

Charter Communications

(NASDAQ:CHTR)

Select Model
Select Model
Select Model
Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
$305.00
▲(17.54% Upside)
Charter Communications' stock score is driven primarily by its strong financial performance and undervaluation, despite high leverage and declining free cash flow. Technical analysis shows mixed signals, with short-term bullish momentum but longer-term bearish trends. The absence of a dividend yield supports a focus on growth and reinvestment.
Positive Factors
Mobile Growth
The significant growth in mobile subscribers demonstrates Charter's ability to expand its market share in the mobile sector, enhancing revenue diversification and long-term growth potential.
Strategic Partnerships
The partnership with T-Mobile strengthens Charter's service offerings and competitive positioning, potentially leading to increased customer acquisition and retention over time.
Contract Extension with CSG
The extended contract with CSG ensures continued support for Charter's revenue management, aiding in operational stability and enabling growth in digital entertainment services.
Negative Factors
High Leverage
High leverage can limit financial flexibility and increase risk, potentially impacting Charter's ability to invest in growth opportunities and manage economic downturns.
Declining Free Cash Flow
A decline in free cash flow may constrain Charter's ability to fund operations, pay down debt, or invest in strategic initiatives, posing a risk to long-term financial health.
Internet Customer Losses
Continued internet customer losses suggest challenges in retaining subscribers, which could hinder revenue growth and market position in the broadband sector.

Charter Communications (CHTR) vs. SPDR S&P 500 ETF (SPY)

Charter Communications Business Overview & Revenue Model

Company DescriptionCharter 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.
How the Company Makes MoneyCharter Communications generates revenue primarily through subscription fees for its core services: cable television, broadband internet, and voice services. The largest revenue stream comes from residential customers, who pay monthly fees for bundled service packages that often include internet, TV, and phone services. Additionally, Charter earns revenue from commercial services, offering tailored solutions to businesses, which include high-speed internet and business phone services. The company also monetizes its infrastructure by providing wholesale services to other telecommunications providers. Advertising revenue from its cable television segment, as well as partnerships with content providers and local businesses, further contribute to its earnings. Charter's continued investment in network expansion and technology upgrades helps to retain existing customers while attracting new ones, ultimately enhancing its revenue generation capacity.

Charter Communications Key Performance Indicators (KPIs)

Any
Any
Customer Relationships
Customer Relationships
Measures the strength and depth of customer connections, indicating potential for customer loyalty, retention, and future revenue growth.
Chart InsightsCharter Communications' Residential customer base has been declining since late 2023, reversing the steady growth seen in previous years. This trend suggests potential challenges in retaining customers or increased competition. Meanwhile, the SMB segment shows stability with slight fluctuations, indicating resilience in this market. Without recent earnings call insights, the reasons behind these shifts remain unclear, but the decline in Residential relationships could pressure future revenue growth if not addressed.
Data provided by:Main Street Data

Charter Communications Earnings Call Summary

Earnings Call Date:Jul 25, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments in mobile growth and strategic partnerships, along with challenges in Internet customer retention and advertising revenue. While there are significant strategic initiatives underway, the financial metrics showed modest growth.
Q2-2025 Updates
Positive Updates
Mobile Growth
Charter added 500,000 Spectrum Mobile lines in the second quarter, with a total of 2.1 million lines added over the last 12 months, achieving growth of nearly 25%.
Video Customer Loss Improvement
Video customer losses improved fivefold year-over-year to 80,000, driven by better connects and lower churn.
Rural Expansion
Activated the 1 millionth subsidized rural passing during the second quarter, and grew subsidized rural passings by 123,000 in the quarter.
Strategic Partnerships
Announced a long-term MVNO relationship with T-Mobile, enhancing Spectrum business package of connectivity services.
Record Employee Participation
Nearly 15,000 employees participated in the employee stock purchase plan, showing strong internal confidence.
Negative Updates
Internet Customer Losses
Internet customer losses of 117,000, although improved from 149,000 last year, still indicate a challenge in gaining net positive customers.
Revenue and EBITDA Growth
Revenue was up slightly year-over-year, and second quarter EBITDA grew by only 0.5%.
Advertising Revenue Decline
Advertising revenue declined by 6.7% due to a more challenged national and local advertising market.
Increased Non-Pay Churn
Higher levels of non-pay Internet churn were recorded, partly due to the absence of ACP benefits.
Company Guidance
During Charter Communications' second quarter 2025 investor conference call, the company discussed its continued growth and strategic initiatives, highlighting significant metrics. They reported adding 500,000 Spectrum Mobile lines in the quarter, contributing to a 25% growth over the past 12 months. Internet customer losses improved to 117,000 from 149,000 the previous year, while video customer losses improved fivefold to 80,000. Revenue saw a slight year-over-year increase, and second quarter EBITDA grew by 0.5%, with expectations for full-year EBITDA growth. Charter also emphasized their new pricing and packaging, which has led to increased product sales and a higher gig attach rate. The company completed the rollout of 2x1 gigabit per second service to 15% of their footprint and is progressing with DOCSIS 3.1 and DOCSIS 4.0 upgrades. They also highlighted a new long-term MVNO relationship with T-Mobile and a positive outlook on free cash flow growth, aided by tax legislation that supports capital-intensive investments.

Charter Communications Financial Statement Overview

Summary
Charter Communications shows strong profitability and revenue growth, supported by efficient operations. However, high leverage and declining free cash flow growth present potential risks. The company should focus on improving cash flow generation and managing debt levels to ensure long-term financial stability.
Income Statement
85
Very Positive
Charter Communications demonstrates strong revenue growth with a TTM increase of 14.7%, supported by healthy gross and net profit margins of 59.7% and 9.5%, respectively. The EBIT and EBITDA margins are robust at 23.1% and 38.8%, indicating efficient operations. However, the slight decline in revenue growth rate compared to previous years suggests a need to monitor future growth sustainability.
Balance Sheet
70
Positive
The company maintains a high debt-to-equity ratio of 5.86, reflecting significant leverage, which poses potential risks. However, the return on equity is strong at 33.9%, indicating effective use of equity to generate profits. The equity ratio is relatively low, suggesting a heavy reliance on debt financing.
Cash Flow
65
Positive
Operating cash flow remains stable with a slight increase, but free cash flow has decreased by 6% in the TTM period. The operating cash flow to net income ratio is healthy at 1.04, but the free cash flow to net income ratio is moderate at 0.28, indicating room for improvement in cash generation relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue55.22B55.09B54.61B54.02B51.68B48.10B
Gross Profit27.20B25.32B21.27B23.42B20.61B17.34B
EBITDA21.45B21.40B20.74B20.92B19.77B17.85B
Net Income5.26B5.08B4.56B5.05B4.65B3.22B
Balance Sheet
Total Assets151.59B150.02B147.19B144.52B142.49B144.21B
Cash, Cash Equivalents and Short-Term Investments606.00M459.00M709.00M645.00M601.00M1.00B
Total Debt96.28B95.76B98.20B97.90B91.83B82.99B
Total Liabilities131.22B130.31B132.47B131.97B124.33B113.92B
Stockholders Equity16.21B15.59B11.09B9.12B14.05B23.80B
Cash Flow
Free Cash Flow4.30B3.16B3.49B6.10B8.68B6.61B
Operating Cash Flow15.20B14.43B14.43B14.93B16.24B14.56B
Investing Cash Flow-10.44B-10.65B-11.13B-9.11B-7.75B-8.16B
Financing Cash Flow-4.75B-3.98B-3.24B-5.77B-8.88B-8.95B

Charter Communications Technical Analysis

Technical Analysis Sentiment
Negative
Last Price259.49
Price Trends
50DMA
266.59
Negative
100DMA
326.49
Negative
200DMA
344.02
Negative
Market Momentum
MACD
-0.80
Positive
RSI
38.96
Neutral
STOCH
11.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHTR, the sentiment is Negative. The current price of 259.49 is below the 20-day moving average (MA) of 269.45, below the 50-day MA of 266.59, and below the 200-day MA of 344.02, indicating a bearish trend. The MACD of -0.80 indicates Positive momentum. The RSI at 38.96 is Neutral, neither overbought nor oversold. The STOCH value of 11.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHTR.

Charter Communications Risk Analysis

Charter Communications disclosed 28 risk factors in its most recent earnings report. Charter Communications reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Charter Communications Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$108.77B4.8725.44%4.41%2.54%60.53%
75
Outperform
$168.02B9.2618.26%6.83%2.05%61.39%
73
Outperform
$257.48B21.5819.74%1.54%6.27%31.78%
72
Outperform
$39.56B7.0636.19%1.03%17.05%
72
Outperform
$184.98B14.7512.12%4.29%1.46%0.88%
69
Neutral
$3.48B3.5489.94%8.66%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CHTR
Charter Communications
259.49
-72.31
-21.79%
T
AT&T
25.87
5.52
27.13%
CMCSA
Comcast
29.46
-10.98
-27.15%
VZ
Verizon
39.85
-0.56
-1.39%
TMUS
T Mobile US
228.79
15.91
7.47%
VEON
VEON
50.34
20.08
66.36%

Charter Communications Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Charter Communications Issues $2 Billion in Senior Notes
Neutral
Sep 2, 2025

On September 2, 2025, Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. issued $2 billion in senior secured notes, divided into $1.25 billion of 5.850% notes due 2035 and $750 million of 6.700% notes due 2055. This issuance, managed by major financial institutions, is part of a strategic financial maneuver to bolster Charter’s market positioning and operational capabilities, with implications for stakeholders regarding the company’s financial health and strategic direction.

Private Placements and FinancingBusiness Operations and Strategy
Charter Communications Issues $2 Billion in Notes
Positive
Aug 20, 2025

On August 18, 2025, Charter Communications Operating, LLC and its affiliates entered into an underwriting agreement with major financial institutions for the issuance and sale of $2 billion in senior secured notes. This strategic financial move aims to enhance the company’s capital structure and potentially strengthen its market position by securing long-term funding.

M&A TransactionsBusiness Operations and Strategy
Charter Communications Acquires Cox Subsidiaries for Expansion
Positive
Aug 18, 2025

On May 16, 2025, Charter Communications entered into a transaction agreement with Cox Enterprises to acquire 100% of the equity interests of certain subsidiaries of Cox Communications, which operate commercial fiber and managed IT and cloud services businesses. This strategic move is expected to enhance Charter’s market position by expanding its service offerings and customer base in the commercial sector. The transaction also involves Cox Enterprises contributing equity interests and certain assets related to its residential cable business to Charter Holdings, a subsidiary of Charter Communications.

Executive/Board ChangesBusiness Operations and Strategy
Charter Communications Signs New Agreement with President
Neutral
Aug 5, 2025

On August 1, 2025, Charter Communications entered into a new employment agreement with Richard DiGeronimo, its President of Product and Technology, effective until August 1, 2027. The agreement outlines his compensation package, including a base salary of at least $1.5 million and a target annual bonus of 225% of his salary, along with various benefits and severance terms. This agreement solidifies DiGeronimo’s role in leading product and technology initiatives at Charter, potentially impacting the company’s strategic direction and operational efficiency.

Stock Buyback
Charter Communications Suspends Share Repurchase Agreement
Neutral
Aug 4, 2025

On August 4, 2025, Charter Communications received a notice from Advance/Newhouse Partnership to suspend their standing share repurchase agreement. This suspension is intended to continue until the completion or termination of transactions outlined in a May 2025 agreement with Cox Enterprises, but may end sooner or later.

M&A TransactionsShareholder Meetings
Charter Communications Stockholders Approve Cox Acquisition
Positive
Aug 1, 2025

On July 31, 2025, Charter Communications held a special meeting where stockholders approved proposals necessary for the completion of a transaction with Cox Communications. This transaction involves Charter acquiring Cox’s commercial fiber and managed IT and cloud services businesses, as well as certain assets related to Cox’s residential cable business. The approval signifies a strategic expansion for Charter, potentially enhancing its market position in the broadband and cable industry, with the transaction expected to close in mid-2026 following regulatory approvals.

M&A TransactionsLegal Proceedings
Charter Faces Lawsuits Over Acquisition Agreement
Negative
Jul 21, 2025

On May 16, 2025, Charter Communications entered into a Transaction Agreement with Cox Enterprises to acquire Cox Communications’ commercial fiber and managed IT and cloud services businesses. This move is expected to enhance Charter’s service offerings and market positioning. However, the announcement led to lawsuits from Charter’s stockholders, alleging omissions and negligence in the proxy statement related to the transaction. Charter has denied these allegations and is supplementing its disclosures to avoid delays in the transaction process.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 09, 2025