📊 CHTR Key Takeaways
Is Charter Communications, Inc.. /Mo/ (CHTR) a Good Investment?
Charter Communications exhibits severe financial stress with a critical liquidity position (0.40x current ratio) and extreme leverage (5.76x D/E) that outweighs operational strengths. Despite substantial operating cash flow and reasonable margins, declining net income (-13.5% YoY) alongside the unexplained 6061% revenue spike signals deteriorating earnings quality and integration risks that threaten financial stability.
Charter shows a fundamentally solid core business with strong operating profitability, substantial operating cash flow, and positive free cash flow generation despite heavy capital intensity. However, growth quality looks questionable given the extreme reported revenue jump alongside declining net income, and the balance sheet remains highly leveraged with weak liquidity, which limits financial flexibility.
Why Buy Charter Communications, Inc.. /Mo/ Stock? CHTR Key Strengths
- Strong operating cash flow of 4.3B provides debt servicing capacity
- Reasonable operating margin of 23.6% indicates operational efficiency
- Adequate interest coverage ratio of 11.1x demonstrates current debt service capability
- Strong operating margin of 23.6% supports durable core profitability
- Operating cash flow of $16.08B and free cash flow of $4.42B demonstrate meaningful cash generation
- ROE of 31.1% and positive EPS growth indicate the business still converts scale into shareholder earnings
CHTR Stock Risks: Charter Communications, Inc.. /Mo/ Investment Risks
- Critical liquidity crisis with current ratio of 0.40x—cannot cover short-term obligations with current assets
- Extreme leverage at 5.76x debt-to-equity with only 517M cash against 94.4B debt—minimal financial flexibility
- Deteriorating profitability with net income down 13.5% YoY despite massive revenue growth suggests acquisition integration issues or margin compression
- Very poor returns on capital (ROE 7.1%, ROA 0.8%) indicate inefficient capital deployment
- Unexplained 6061% YoY revenue growth suggests significant acquisition/consolidation with uncertain synergy realization
- Very high leverage with $94.76B in long-term debt and debt/equity of 5.90x creates balance sheet risk
- Weak liquidity with a 0.39x current and quick ratio reduces near-term flexibility
- Reported revenue growth of +6061.3% is likely distorted, making underlying growth quality and trend interpretation less reliable
Key Metrics to Watch
- Current ratio trend—any further decline below 0.40 signals imminent refinancing or restructuring risk
- Free cash flow sustainability—verify if 1.4B FCF is sustainable to service debt
- Debt-to-EBITDA ratio—critical to assess deleveraging trajectory post-acquisition
- Operating margin stability—monitor if 23.6% margin holds through integration
- Free cash flow after capital expenditures
- Net debt leverage and liquidity ratios
Charter Communications, Inc.. /Mo/ (CHTR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
CHTR Profit Margin, ROE & Profitability Analysis
CHTR vs Telecom Sector: How Charter Communications, Inc.. /Mo/ Compares
How Charter Communications, Inc.. /Mo/ compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Charter Communications, Inc.. /Mo/ Stock Overvalued? CHTR Valuation Analysis 2026
Based on fundamental analysis, Charter Communications, Inc.. /Mo/ shows some fundamental concerns relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Charter Communications, Inc.. /Mo/ Balance Sheet: CHTR Debt, Cash & Liquidity
CHTR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Charter Communications, Inc.. /Mo/'s revenue has remained relatively flat over the 5-year period, with a 10% decline. The most recent EPS of $29.99 reflects profitable operations.
CHTR Revenue Growth, EPS Growth & YoY Performance
CHTR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $13.6B | $1.2B | $8.42 |
| Q3 2025 | $13.7B | $1.1B | $8.34 |
| Q2 2025 | $13.7B | $1.2B | $8.49 |
| Q1 2025 | $13.7B | $1.1B | $7.55 |
| Q3 2024 | $13.6B | $1.3B | $8.25 |
| Q2 2024 | $13.7B | $1.2B | $8.05 |
| Q1 2024 | $13.7B | $1.0B | $6.65 |
| Q3 2023 | $13.6B | $1.2B | $7.38 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Charter Communications, Inc.. /Mo/ Dividends, Buybacks & Capital Allocation
CHTR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Charter Communications, Inc.. /Mo/ (CIK: 0001091667)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CHTR
What is the AI rating for CHTR?
Charter Communications, Inc.. /Mo/ (CHTR) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CHTR's key strengths?
Claude: Strong operating cash flow of 4.3B provides debt servicing capacity. Reasonable operating margin of 23.6% indicates operational efficiency. ChatGPT: Strong operating margin of 23.6% supports durable core profitability. Operating cash flow of $16.08B and free cash flow of $4.42B demonstrate meaningful cash generation.
What are the risks of investing in CHTR?
Claude: Critical liquidity crisis with current ratio of 0.40x—cannot cover short-term obligations with current assets. Extreme leverage at 5.76x debt-to-equity with only 517M cash against 94.4B debt—minimal financial flexibility. ChatGPT: Very high leverage with $94.76B in long-term debt and debt/equity of 5.90x creates balance sheet risk. Weak liquidity with a 0.39x current and quick ratio reduces near-term flexibility.
What is CHTR's revenue and growth?
Charter Communications, Inc.. /Mo/ reported revenue of $13.6B.
Does CHTR pay dividends?
Charter Communications, Inc.. /Mo/ does not currently pay dividends.
Where can I find CHTR SEC filings?
Official SEC filings for Charter Communications, Inc.. /Mo/ (CIK: 0001091667) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CHTR's EPS?
Charter Communications, Inc.. /Mo/ has a diluted EPS of $9.17.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CHTR a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Charter Communications, Inc.. /Mo/ has a SELL rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CHTR stock overvalued or undervalued?
Valuation metrics for CHTR: ROE of 7.1% (sector avg: 15%), net margin of 8.6% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
Should I buy CHTR stock in 2026?
Our dual AI analysis gives Charter Communications, Inc.. /Mo/ a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CHTR's free cash flow?
Charter Communications, Inc.. /Mo/'s operating cash flow is $4.3B, with capital expenditures of $2.9B. FCF margin is 10.7%.
How does CHTR compare to other Telecom stocks?
Vs Telecom sector averages: Net margin 8.6% (avg: 14%), ROE 7.1% (avg: 15%), current ratio 0.40 (avg: 1).
Is Charter Communications, Inc.. /Mo/ carrying too much debt?
CHTR has a debt-to-equity ratio of 5.76x, which is above the Telecom sector average of 1.2x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.