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Charter Communications
(NASDAQ:CHTR)
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Rating:59Neutral
Price Target:
$151.00
▲(22.46% Upside)
Action:Reiterated
Date:08/04/26
CHTR’s score is primarily held back by elevated leverage and recent operating headwinds (broadband subscriber losses and modest revenue/EBITDA declines), despite strong underlying margins and dependable operating cash flow. The valuation is a key offset given the very low P/E, while technicals are mixed (near-term improvement but still below longer-term trend). Earnings call guidance adds both upside (CapEx reduction and Cox synergies) and execution risk (uncertain broadband recovery timing).
Positive Factors
Reliable operating cash flow
Consistently strong operating cash flow (~$16.5B TTM) and positive free cash flow (~$4.4B TTM) provide durable internal funding for capex, deleveraging and strategic initiatives. Recurring subscription revenues underpin predictability and long‑term liquidity support.
Negative Factors
Very high leverage
A very large debt stock (~$94B) and mid‑single digit net leverage (~4.18x) materially constrain financial flexibility. Elevated interest and covenant sensitivity limit capital allocation, prompting paused buybacks and aggressive liability management that could slow shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Reliable operating cash flow
Consistently strong operating cash flow (~$16.5B TTM) and positive free cash flow (~$4.4B TTM) provide durable internal funding for capex, deleveraging and strategic initiatives. Recurring subscription revenues underpin predictability and long‑term liquidity support.
Read all positive factors
Charter Communications Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue into different business areas, revealing which segments drive growth and where the company might face challenges.
Breaks down revenue into different business areas, revealing which segments drive growth and where the company might face challenges.
Data provided by:
The Fly
The FlyCharter Communications (CHTR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.40B
Dividend YieldN/A
Average Volume (3M)3.66M
Price to Earnings (P/E)3.7
Beta (1Y)0.74
Revenue Growth-1.50%
EPS Growth4.45%
CountryUS
Employees91,900
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)39.00
Shares Outstanding119,277,490
10 Day Avg. Volume3,241,674
30 Day Avg. Volume3,658,582
Financial Highlights & Ratios
PEG Ratio1.47
Price to Book (P/B)1.76
Price to Sales (P/S)0.52
P/FCF Ratio6.39
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$163.73Price Target Upside32.78% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)41.12
Revenue Forecast (FY)$54.26B
Charter Communications Business Overview & Revenue Model
Company Description
Charter Communications, Inc. is a prominent U.S. broadband and cable operator, delivering services to residential and commercial customers nationwide. Its offerings encompass a wide array of subscription video services, including on-demand content...
How the Company Makes Money
Charter primarily makes money from recurring subscription and usage-based fees for connectivity and communications services delivered over its cable/broadband network. The largest revenue driver is residential internet service, where customers pay...
Charter Communications Earnings Call Summary
Earnings Call Date:Jul 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Neutral
The call presented a mix of clear strategic strengths (rapid mobile growth, video loss improvement, converged gigabit-plus network, substantial rural expansion, a path to meaningful CapEx reduction and planned synergies from the Cox acquisition) alongside near-term operational and financial headwinds (notably continued broadband subscriber declines, a modest YoY revenue and EBITDA decline, higher-than-expected transition costs, and elevated leverage). Management emphasized confidence in future free cash flow ramp, active liability management and a detailed integration playbook for Cox, but acknowledged that broadband growth recovery timing is uncertain. Overall, positives around long-term strategic positioning and capital efficiency are balanced by short-term execution and competitive pressures in broadband.Positive Updates
Strong Mobile Growth
Added over 400,000 Spectrum Mobile lines in Q2 and 1.7 million lines over the last 12 months (16% growth). Spectrum now has over 12.5 million mobile lines and is the fastest-growing mobile provider in its footprint.
Negative Updates
Broadband Subscriber Losses
Lost 172,000 Internet customers in 2Q26, a larger loss than a year ago. Management attributed the decline to softer gross additions, increased fixed wireless competition, mobile substitution, fiber overlap and aggressive competitor promotions.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Mobile Growth
Added over 400,000 Spectrum Mobile lines in Q2 and 1.7 million lines over the last 12 months (16% growth). Spectrum now has over 12.5 million mobile lines and is the fastest-growing mobile provider in its footprint.
Read all positive updates
Company Guidance
Charter updated its financial and operating outlook: standalone 2026 EBITDA (ex‑Cox transition costs) is expected to decline about 1% YoY, standalone CapEx is ~ $11.4B for 2026 (Q2 CapEx $2.9B) with run‑rate CapEx targeted below $8B by 2028 (management says this equates to >$30 of FCF per share), Q2 free cash flow was $1.0B (≈$75M below prior year), Q2 cash taxes were $101M and calendar 2026 cash taxes are expected to be $500–$800M. Capital‑structure targets and liquidity actions include ending Q2 with $94B of debt principal, weighted‑average debt life 11.7 years, cost of debt ~5.2% (annualized cash interest ~$4.9B), net debt/LTM adjusted EBITDA of 4.18x (4.21x pro forma Liberty Broadband), an expected pro‑forma ratio just above 3.9x at end‑Q3 assuming the Cox/Liberty deals and exchange offer succeed, and a post‑transaction leverage target of a flat 3.5x within 3 years (share buybacks paused through Q3, to resume in Q4); Q2 repurchases included 4M shares for $838M and ~$1.2B of debt repurchases (~$1B cash, capturing ~$250M discount), and a capped exchange offer targets $20B par value of bonds. Operational guidance and deal metrics: Q2 consolidated revenue fell 1.7% YoY (–0.8% excl. advertising and programmer app allocation), adjusted EBITDA down 4.3% (3.2% ex transition expenses), Internet net loss of 172k customers in Q2, video loss of 21k (vs –80k in 2Q'25), +406k mobile lines in Q2 and +1.7M over 12 months (now >12.5M mobile lines, 16% growth), Q2 Cox transition expenses were $65M, management expects at least $800M of run‑rate transaction synergies (likely to grow toward $1B), and the combined company is projected to represent roughly $67B of revenue and $28B of EBITDA with ~1.3M miles of network, >70M passings and ~37M customers.Charter Communications Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
38
Negative
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 54.40B | 54.77B | 55.09B | 54.61B | 54.02B | 51.68B |
| Gross Profit | 30.77B | 25.37B | 25.32B | 21.27B | 23.42B | 20.61B |
| EBITDA | 20.10B | 21.21B | 21.40B | 20.74B | 20.92B | 19.77B |
| Net Income | 4.92B | 4.99B | 5.08B | 4.56B | 5.05B | 4.65B |
Balance Sheet | ||||||
| Total Assets | 155.62B | 154.21B | 150.02B | 147.19B | 144.52B | 142.49B |
| Cash, Cash Equivalents and Short-Term Investments | 509.00M | 477.00M | 459.00M | 709.00M | 645.00M | 601.00M |
| Total Debt | 95.56B | 97.12B | 95.76B | 98.20B | 97.90B | 91.83B |
| Total Liabilities | 133.72B | 133.69B | 130.31B | 132.47B | 131.97B | 124.33B |
| Stockholders Equity | 16.95B | 16.05B | 15.59B | 11.09B | 9.12B | 14.05B |
Cash Flow | ||||||
| Free Cash Flow | 4.36B | 4.42B | 3.16B | 3.49B | 6.10B | 8.68B |
| Operating Cash Flow | 16.47B | 16.08B | 14.43B | 14.43B | 14.93B | 16.24B |
| Investing Cash Flow | -12.49B | -11.62B | -10.84B | -11.13B | -9.11B | -7.75B |
| Financing Cash Flow | -4.03B | -4.37B | -3.79B | -3.24B | -5.77B | -8.88B |
Charter Communications Technical Analysis
Neutral
123.31
Price Trends
136.86
Positive
164.35
Negative
189.65
Negative
Market Momentum
4.57
Negative
61.95
Neutral
92.77
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHTR, the sentiment is Neutral. The current price of 123.31 is below the 20-day moving average (MA) of 137.77, below the 50-day MA of 136.86, and below the 200-day MA of 189.65, indicating a neutral trend. The MACD of 4.57 indicates Negative momentum. The RSI at 61.95 is Neutral, neither overbought nor oversold. The STOCH value of 92.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CHTR.
Charter Communications Risk Analysis
Charter Communications disclosed 33 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $185.26B | 18.03 | 18.22% | 2.19% | 9.68% | -10.02% | |
72 Outperform | $159.32B | 7.68 | 19.48% | 4.60% | 2.63% | 72.35% | |
72 Outperform | $85.03B | 7.78 | 12.04% | 5.92% | 0.58% | -48.94% | |
70 Outperform | $3.62B | 76.90 | 4.15% | ― | 12.62% | 19.57% | |
69 Neutral | $195.46B | 12.19 | 15.52% | 6.03% | 1.38% | -10.78% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $19.40B | 3.72 | 30.43% | ― | -1.50% | 4.45% |
* Communication Services Sector Average
CHTR
Charter Communications
152.57
-106.20
-41.04%
T
AT&T
23.79
-3.09
-11.48%
CMCSA
Comcast
25.36
-2.71
-9.64%
VZ
Verizon
47.06
6.64
16.43%
TMUS
T Mobile US
177.19
-67.08
-27.46%
VEON
VEON
57.10
0.65
1.15%
Charter Communications Corporate Events
Financial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Charter Releases Pro Forma Financials for Cox Acquisition
Positive
Aug 3, 2026
On May 16, 2025, Charter Communications entered into a transaction agreement with Cox Enterprises under which Charter will acquire 100% of the equity interests in subsidiaries of Cox Communications that operate its commercial fiber and managed IT ...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
Charter launches debt exchange offers to reshape balance sheet
Positive
Jul 23, 2026
On July 23, 2026, Charter launched two private exchange offers through its subsidiaries, seeking to swap multiple long-dated senior secured notes issued by Charter and Time Warner Cable for a mix of cash and up to $3.5 billion in new senior secure...
Executive/Board Changes
Charter Extends General Counsel Jamal Haughton’s Employment Agreement
Positive
May 19, 2026
On May 15, 2026, Charter Communications entered into a new employment agreement with Executive Vice President, General Counsel and Corporate Secretary Jamal Haughton, extending his role through May 15, 2028 and setting an annual base salary of at ...
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.