Charter Communications AI Stock Analysis
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Charter Communications (CHTR) AI Stock Analysis
Charter Communications
(NASDAQ:CHTR)
The score is anchored by solid underlying operations and cash generation but materially limited by heavy leverage and softening free-cash-flow trends. Valuation is a clear positive due to the extremely low P/E, while technicals are mixed (short-term strength but still below longer-term trend). The earnings call adds moderate support from planned CapEx reductions, cost savings, and deleveraging targets, tempered by ongoing subscriber/revenue pressure and lack of a clear return-to-growth timeline.
Charter Communications Key Performance Indicators (KPIs)
Revenue by SegmentBreaks down revenue into different business areas, revealing which segments drive growth and where the company might face challenges.
Mobile revenue disappears from reporting after 2022—likely a reclassification—masking a real growth engine: Spectrum Mobile added 1.7M lines in 12 months and materially reduces churn, but its upside hasn’t yet offset ongoing residential pressure and broadband net losses. Commercial is a steady, modest-growth buffer while Other and Advertising are lumpy (2023 jumps reflect reclassifications/one‑offs). Management’s Cox synergies and planned CapEx cuts could unlock significant FCF upside, but near‑term revenue/EBITDA declines and elevated leverage keep execution risk high.
The FlyCharter Communications (CHTR) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $18.37B
- Dividend Yield
- ―
- Average Volume (3M)
- 3.01M
- Price to Earnings (P/E)
- 13.6
- Beta (1Y)
- 0.68
- Revenue Growth
- 0.99%
- EPS Growth
- -72.87%
- Country
- US
- Employees
- 91,900
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Telecommunications Services
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, h...
How the Company Makes Money
Charter primarily makes money by charging recurring subscription fees for connectivity and related services delivered under the Spectrum brand. The largest revenue driver is residential internet (broadband) service, where customers pay monthly fees t...
Charter Communications Earnings Call Summary
The call presented a mixed outlook. Charter reported meaningful operating and financial pressure, including increased Legacy Charter internet losses, Cox customer declines, lower revenue, lower EBITDA, a $2.1 billion net loss, and leverage of 3.93x. However, management outlined a broad operating transformation, substantial Cox synergies and cost savings, strong mobile growth, improved video trends, lower expected capital expenditures, continued rural additions, and early improvement in the Cox internet trajectory. The current results and lack of a specific return-to-growth timeline balance the strategic opportunities and planned improvements.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Charter expects network investments to decline after next year; for full year 2026, total pro forma capital expenditures, excluding transition CapEx, are expected to total approximately $13 billion, while 2027 capital expenditures, excluding transition capital, are expected to land at or below $11 billion. Actual calendar year 2026 cash tax payments are expected to total between $500 million and $800 million, and significant free cash flow growth is expected over the next several years. Charter is targeting an incremental $2 billion in annualized run rate operating expense savings over the next 18 months, alongside over $1 billion in transaction synergies, with nearly half that run rate expected to be achieved in the first half of 2027 and 90% of that expected to be captured over the next 24 months. The company expects to achieve its 3.5x net debt-to-EBITDA leverage target within three years of the close of the Cox and Liberty Broadband transactions, exit 2026 below 3.9x leverage, direct the majority of fourth-quarter free cash flow to efficient debt reductions, and repurchase some shares this quarter; it is not providing guidance or outlook for exactly when it returns to growth.
Charter Communications Financial Statement Overview
Summary
Operating performance is resilient (TTM revenue +2.3%, EBITDA margin ~39%, operating margin ~23%) and operating cash flow is strong (~$16.0B). However, balance-sheet risk is a major constraint (very high leverage with ~$107B debt vs ~$11B equity) and free cash flow is positive but weakening (TTM FCF ~$3.9B, -9.8% YoY) with low FCF conversion versus net income.
Income Statement
70PositiveBalance Sheet
38NegativeCash Flow
62Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 55.65B | 54.77B | 55.09B | 54.61B | 54.02B | 51.68B |
| Gross Profit | 15.16B | 25.37B | 25.32B | 21.27B | 23.42B | 20.61B |
| EBITDA | 16.65B | 21.21B | 21.40B | 20.74B | 20.92B | 19.77B |
| Net Income | 1.39B | 4.99B | 5.08B | 4.56B | 5.05B | 4.65B |
Balance Sheet | ||||||
| Total Assets | 178.47B | 154.21B | 150.02B | 147.19B | 144.52B | 142.49B |
| Cash, Cash Equivalents and Short-Term Investments | 573.00M | 477.00M | 459.00M | 709.00M | 645.00M | 601.00M |
| Total Debt | 109.93B | 97.12B | 95.76B | 98.20B | 97.90B | 91.83B |
| Total Liabilities | 148.65B | 133.69B | 130.31B | 132.47B | 131.97B | 124.33B |
| Stockholders Equity | 10.98B | 16.05B | 15.59B | 11.09B | 9.12B | 14.05B |
Cash Flow | ||||||
| Free Cash Flow | 3.93B | 4.42B | 3.16B | 3.49B | 6.10B | 8.68B |
| Operating Cash Flow | 16.02B | 16.08B | 14.43B | 14.43B | 14.93B | 16.24B |
| Investing Cash Flow | -16.75B | -11.62B | -10.84B | -11.13B | -9.11B | -7.75B |
| Financing Cash Flow | 827.00M | -4.37B | -3.79B | -3.24B | -5.77B | -8.88B |
Charter Communications Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHTR, the sentiment is Positive. The current price of 136.31 is above the 20-day moving average (MA) of 114.22, above the 50-day MA of 119.72, and below the 200-day MA of 162.23, indicating a neutral trend. The MACD of 3.50 indicates Negative momentum. The RSI at 67.36 is Neutral, neither overbought nor oversold. The STOCH value of 90.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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.
Latest Risks Added
3 New RisksCharter Communications Peers Comparison
Overall Rating
VZ67Neutral
T63Neutral
CMCSA61Neutral- CHTR61Neutral
ECHO44Neutral
CABO39Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| VZ | 67Neutral | $191.94B | 11.89 | 15.73% | 6.04% | 1.38% | -16.44% |
| T | 63Neutral | $147.80B | 12.03 | 11.95% | 4.99% | 3.51% | -39.83% |
| CMCSA | 61Neutral | $87.89B | 7.92 | 12.32% | 5.28% | -0.25% | -47.58% |
| CHTR | 61Neutral | $23.48B | 13.63 | 9.21% | ― | 0.99% | -72.87% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| ECHO | 44Neutral | $30.31B | 3.00 | 92.99% | ― | -19.83% | ― |
| CABO | 39Underperform | $21.30M | -0.01 | -198.99% | ― | -8.34% | -241.21% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| CHTR | Charter Communications | 136.31 | -68.49 | -33.44% | |
| T | At&t Inc | 22.26 | -2.32 | -9.43% | |
| CMCSA | Comcast Corp | 25.02 | 0.15 | 0.60% | |
| ECHO | Echostar | 102.20 | 32.22 | 46.04% | |
| VZ | Verizon Communications | 46.60 | 8.05 | 20.89% | |
| CABO | Cable ONE, Inc | 3.66 | -104.36 | -96.61% |
Charter Communications Corporate Events
Charter Declares Quarterly Dividend on Preferred Stock
PositiveOn October 26, 2026, Charter Communications’ Compensation and Benefits Committee approved a temporary compensation package for Kevin Howard for the period he serves as Interim Chief Financial Officer, including an annual base salary of $925,000 and a...
Charter Communications Details Cox Transactions Under Regulation FD
PositiveOn August 19, 2026, Charter Communications completed its transactions with Cox Communications, known as the Cox Transactions, marking a notable step in the company’s operational alignment with another major cable provider. Following the closing, Char...
Charter Communications announces leadership change and advisory transition
NeutralOn October 12, 2026, Charter Communications announced that Adam Ray stepped down from his role as Executive Vice President, Chief Commercial Officer, and transitioned into a non-executive advisory position through December 31, 2026. The company is pr...
Charter Communications Declares Quarterly Preferred Stock Dividend
PositiveOn September 15, 2026, Charter Communications announced that its board declared a regular quarterly cash dividend for holders of its Series A Cumulative Redeemable Preferred Stock. The dividend was set at $0.43750001 per share, payable in cash on Oct...
Charter Communications announces CFO transition and interim appointment
NeutralOn August 28, 2026, Charter Communications’ Chief Financial Officer Jessica Fischer resigned to pursue another professional opportunity and is expected to remain in her role through October 15, 2026, assisting with the transition and the close of the...
Charter Completes Cox Acquisition and Aligns Debt Guarantees
PositiveOn August 19, 2026, Charter Communications completed its previously announced transaction with Cox Enterprises, acquiring Cox Communications’ commercial fiber and managed IT and cloud services businesses while taking in the residential cable business...
Charter Communications Completes Final Settlement of Debt Exchange
PositiveOn August 12, 2026, Charter Communications Operating, LLC, its capital subsidiary, and Time Warner Cable, LLC completed early settlement of two private exchange offers, swapping multiple series of long-dated senior secured notes for cash and new 7.08...
Charter Communications Completes Liberty Broadband, Cox Transactions
PositiveOn August 20, 2026, Charter completed its acquisition of Liberty Broadband in an all‑stock deal and closed a major transaction with Cox Communications that folds Cox’s cable and commercial fiber operations into Charter. The combined deals reduce Char...
Charter Communications Completes Major Senior Notes Financing
PositiveOn August 18, 2026, Charter Communications’ subsidiaries Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. closed a $4.75 billion senior secured notes offering. The transaction comprised four tranches: $1.75 bil...
Charter Communications Extends Maturities with New Secured Notes
PositiveOn July 23, 2026, Charter Communications Operating, LLC and affiliates launched private exchange offers to swap multiple series of existing long‑dated senior secured notes for cash and up to $4 billion of new senior secured notes maturing in 2038 and...
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: Nov 06, 2026